The Kenmore European Industrial Fund continued to sell assets in the first half of the year in order to reduce gearing.

In its interim results today, fund chairman Giles Weaver said that disposals had been undertaken which took the fund’s gearing level to 61%, against a covenant of 70%.

‘These sales collectively have been effected in line with the 30 June valuations,’ he said. ‘This not only strengthens the fund’s balance sheet but guards against future loan covenant issues potentially brought on by falling values.’

The company said that the value of its portfolio, which is located in Western Europe and Scandanavia, had fallen just less than 1% to £446m. The companies net asset value remained broadly flat at 121.4p a share.