A charitable fund backed by Clare College Cambridge has increased its assets under management to £50m after buying an office building in Watford.
The Diversified Property Fund for Charities, of which Clare College Cambridge is a seed investor, bought the almost 25,000 sq-ft multi-let office block for £7m.
The deal was led by specialist charity investment manager Eskmuir Properties and is part of a strategy to grow the portfolio’s net asset value while generating a recurring income of at least 6% a year. It has achieved this target during its two-year investment history.
Clare College Cambridge bursar Paul Warren said this is why he invested in the fund. “Eskmuir Properties has an enviable track record of driving value and delivering unbroken dividend growth on behalf of family trusts and charities in a market with few opportunities for charities to invest achieving such attractive returns,” he added.
The tax-efficient investment trust has now reached a quarter of its target to own £200m of assets in five years. It intends to achieve this goal by investing in multi-let commercial properties in high demand locations.
Reducing vacancy throughout the portfolio has helped boost returns. The level has fallen to 0.94% from 4.7% in June.
