Insurance News Archive

Commercial property slide continues

The Invista Foundation Property Trust has become the latest victim of the downturn in commercial property.

Invista's net asset value (NAV) is 3.5 per cent down over six months and its borrowings currently stand at 45 per cent of net assets.

CEO Duncan Owen insisted that the fund was responding appropriately to the downturn and gave no indication of its expected duration or pace.

"We have prudently begun to position the portfolio defensively and have started to crystallise the strong performance enjoyed in central London over the last two years," Mr Owen said.

He added that further London disposals might be considered "at appropriate pricing levels," though he insisted overall occupier demand for commercial property remains strong.

Invista's sliding share price comes alongside reports that Schroders is to cut the price of units for its flagship Schroder Exempt Property Unit Trust by 12.5 per cent.

27 Nov 2007