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ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS
THREADNEEDLE UK PROPERTY AUTHORISED TRUST
MAY 2020
THREADNEEDLE
UK PROPERTY AUTHORISED TRUST
COLUMBIATHREADNEEDLE.COM
Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Contents
Introduction 2 Important Information (Unaudited)* 45 – 51
Investment Report* 3–8 Directory* 52
Directors’ Statement* 8 *These pages comprise the Authorised Fund Manager’s Report.
Property Portfolio of the Threadneedle UK Property
Authorised Investment Fund
Retail 9 – 13
Retail Warehouse 14 – 16
Offices 17 – 22
Supermarket 22
Industrial 23 – 30
Leisure 31
Retail/Residential 32
Car Showroom 33
Shopping Centres 34
Financial Statements
Statement of Total Return 35
Statement of Change in Net Assets Attributable
to Unitholders 35
Balance Sheet 35
Cash Flow Statement 35
Distribution Table 35
Comparative Table Disclosure 36
Notes to the Financial Statements 37 – 40
Statement of Manager’s Responsibilities to the
Financial Statements of the Scheme 41
Statement of the Trustee’s Responsibilities in
Respect of the Scheme and Report of the Trustee to the
Unitholders of the Threadneedle UK Property
Authorised Trust for the Year ended 15 May 2020 41
Independent Auditors’ Report 42
Portfolio Statement* 43
Unit Price Performance – Bid to Bid Basis* 44
Unitholder Turnover and Unit Analysis 44
Finance Costs: Distributions per Unit 44
1
Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Introduction
Threadneedle UK Property Authorised Trust was launched on 14 May 2016
following the conversion of the Threadneedle UK Property Trust into the
Threadneedle UK Property Authorised Fund.
Details of the conversion can be found at columbiathreadneedle.com/PAIF.
This Annual Report reviews the performance of the Threadneedle
UK Property Authorised Trust and the market background over the
12 months to 15 May 2020.
Columbia Threadneedle Investments has a dynamic, award winning
approach to property investment. Our experienced investment team has
been investing since 1994, and the focus on maintaining high yields has
distinguished us from the market.
Columbia Threadneedle Investments property team has a distinctive
investment philosophy which can be summarised in the following five
principles:
Stock picking is key
We believe that specific stock selection within sectors is the primary driver
of long-term performance. Our experience, resources and contacts allow
us to select the most appropriate and attractively valued properties for our
funds while avoiding exposure to property shares.
A preference for high yielding investments
We believe that over the long term, income is the dominant component of
property total returns. As such, yield is a key focus of our stock selection
process.
Flexible buyers
We do not populate our portfolios with trophy assets, as these frequently
offer unappealing yields. Instead, we seek good value and investment
potential across all sectors, geographies and lot sizes.
Avoid speculative development
This kind of activity locks up capital for long periods of time and can be risky.
We prefer to buy standing investments with the potential to improve returns.
Active asset management unlocks value
We work hard to maximise the returns from the properties we own,
refurbishing and updating buildings regularly in order to increase capital
value and improve rental growth potential.
We hope that you find this Annual Report informative. If you have any
further queries regarding any aspect of your investment or about other
Columbia Threadneedle Investments products, please contact us directly
on 0800 068 3000 (8am – 6pm Monday to Friday) or speak to your financial
adviser. Alternatively, please visit columbiathreadneedle.com.
2
Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Investment Report
Investment Objective and Policy Property Market Commentary
It is intended that Threadneedle UK Property Authorised Trust (the Trust) UK macroeconomic viewpoint
be a feeder trust for the Threadneedle UK Property Authorised Investment March 2020 evidenced the most dramatic fiscal and monetary intervention
Fund (the Company) at all times. At the date of this report, the Company, in decades, as the threat posed by the COVID-19 virus was increasingly
an openended investment company, is constituted as a Non-UCITS Retail understood, and the actions to halt its spread necessarily more severe. The
Scheme and qualifies as a PAIF. impacts of the virus on the UK commercial property market are yet to be fully
understood, however the economic impacts are already being felt.
The objective of the Trust is to obtain a total return based on income and
capital appreciation by investing solely in the Company. The Fund’s performance and outlook therefore need to be viewed in light
of both the relatively benign environment represented by the calendar
The investment policy of the Trust means that it may be appropriate for the
year ending December 2019, and the more recent volatility created by this
Trust to hold cash or near cash where the Manager reasonably regards it
unprecedented event towards the end of the Fund’s financial year.
to be necessary to enable the pursuit of the Trust’s objective, redemption of
Units, efficient management of the Trust in accordance with its objective, or 2019 in summary
for purposes ancillary to its objective. Prior to the containment measures announced to combat the spread
of COVID-19 in March 2020, both the UK commercial property market
The objective of the Company is to obtain a total return based on income and
and the UK economy more broadly had recorded solid, if unspectacular,
capital appreciation predominantly through investment in certain kinds of real
performance metrics.
estate, property related securities, government and public securities and units
in collective investment schemes. Throughout 2019, the UK experienced significant political instability and
continued uncertainty regarding future relations with the EU, resulting in
The Company will invest primarily in UK commercial real estate. It may also
some businesses postponing commitments and investment into the UK.
invest in US or Continental European real estate, property-related securities,
Reflecting this, 2019 recorded UK GDP growth of 1.4% which was a modest
property investment companies, collective investment schemes (including
improvement on the 1.3% recorded in 2018.
other collective investment schemes managed, advised or operated by the
ACD or its associates), cash and near cash, warrants, deposits and money However, the underlying economic fundamentals remained sound, with the
market instruments. employment rate in the three months to January 2020 estimated at a joint
record high of 76.5%, 0.4% higher than a year earlier, and the unemployment
Derivatives may be used for investment purposes on the giving of 60 days’
rate was correspondingly low at 3.9%, largely unchanged compared with a
notice to Shareholders. At the date of the report derivatives are used for
year earlier. Annual growth in average weekly earnings in the three months
efficient portfolio management purposes only.
to January 2020 was 3.1%, significantly above the rates of both RPI and CPI
It is intended that the Company be a Property Authorised Investment Fund inflation, which were 2.7% and 1.8% respectively over the same time period.
(PAIF) at all times and so its investment objective is to carry on Property The Bank of England base rate remained unchanged at 0.75% throughout the
Investment Business and to manage cash raised from investors for investment year following its increase of 25 basis points in August 2018.
in the Property Investment Business as further described below. HM Revenue
The Conservative Party’s commanding majority in the December 2019 UK
& Customs has confirmed to the ACD that the Company meets the requirements
General Election swept away all prior political uncertainty and resulted in
to qualify as a PAIF under regulation 69O of the PAIF Tax Regulations.
the UK formally leaving the EU on 31st January 2020, via a transition year
The Trust will be managed so as to be eligible as an ISA investment for the ending in a new trading relationship with the EU to be determined by 31st
purposes of the Individual Savings Account Regulations 1998 (as amended December 2020. The majority government seemed likely to provide the UK
from time to time). economy with much-needed political stability, however, caution surrounding
Review the ongoing negotiations with the EU appeared likely to subdue significant
This report covers the year from 16th May 2019 to 15th May 2020. Fund economic growth in 2020.
performance in this commentary relates to the performance of Threadneedle
UK Commercial Property
UK Property Authorised Investment Fund (TUKPAIF), and not the Trust.
Against this modest economic backdrop, the MSCI UK Monthly Index
Status of the Trust recorded a total return of 2.1% for the 12 months to December 2019, which
The Trust is an authorised Unit Trust Scheme within Section 243 of the represented a significant fall against the 7.5% recorded in 2018. In a return
Financial Services and Markets Act 2000, and is a non-UCITS retail scheme to a more traditional market dynamic, the income return at 5.3% formed the
for the purpose of the Financial Conduct Authority’s Collective Investment core component of total return, offsetting modest negative capital volatility
Schemes Sourcebook (COLL) as amended from time to time. of -3.1%.
3
Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Investment Report
(continued)
4.0%
3.0%
2.0%
Total return (%)
1.0%
0.0%
-1.0%
-2.0%
-3.0%
Jun-09
Sep-09
Dec-09
Jun-10
Sep-10
Dec-10
Jun-11
Sep-11
Dec-11
Jun-12
Sep-12
Dec-12
Jun-13
Sep-13
Dec-13
Jun-14
Sep-14
Dec-14
Jun-15
Sep-15
Dec-15
Jun-16
Sep-16
Dec-16
Jun-17
Sep-17
Dec-17
Sep-18
Dec-18
Mar-19
Sep-19
Dec-19
Mar-20
Mar-10
Mar-11
Mar-12
Mar-13
Mar-14
Mar-15
Mar-16
Mar-17
Mar-18
Jun-18
Jun-19
Monthly income Capital appreciation
Source: MSCI UK Monthly Index All Property Capital and Income Returns to 31 March 2020
At the market level, rental value growth for the 12 months to December 2019 COVID-19
was broadly flat at 0.1% (20-year average at 1.3%) decreasing from 0.7% as As markets grappled with the implications of the spread of COVID-19 from
at year end 2018. China across the world, risk appetite reduced sharply. The FTSE 100 lost 25%
of its value in the first quarter, though it subsequently rallied in response to
One key theme of 2019 was the continued divergence of the retail sector
stimulus programmes announced by Western governments totalling around
from the rest of the UK market, reflected in negative rental growth of -4.5%
$3.5 trillion. Gold gained over 18% since the start of the year, and UK gilts
(20-year average at 0.7%) and capital falls of -12%, contributing to a negative
ended Q1 2020 at with yields at all-time lows of less than 0.4%, in response
total return in the sector of -6.6%. Concerns persisted over occupier demand
to the Bank of England lowering the base rate to 0.1%.
in the retail sector given the structural oversupply of secondary property,
increased occupier failure rates and increasing consumer preferences for Social distancing and self-isolation have already had a huge impact on our
online retailing. society and our service-based economy, albeit the swift action taken by
the government will mitigate the fallout in the short term. We have already
Industrials and offices continued to evidence landlord-favourable demand
seen early reaction within our industry, but the full implications, positive and
and supply leasing dynamics, which continued to positively influence rental
negative, are likely to be longer lasting.
growth prospects. The industrial sub-sector recorded positive rental value
growth in 2019 at 3.2%, followed by offices at 2.1%. As the severity of the virus became apparent, culminating in its classification
by the World Health Organisation as a ‘global pandemic’ on 11 March,
2020
independent property valuers faced an unprecedented set of circumstances
The certainty delivered by the December 2019 General Election result
on which to base judgement, and were able to attach less weight to prior
brought renewed confidence to the UK property market in the early part
market evidence for comparison purposes, to inform opinions of value.
of the year, with agents anecdotally recording increased levels of both
occupier and investor demand. This view, sanctioned in an RICS guidance note on 19 March, led to the
industry-wide adoption of a ‘market uncertainty’ clause, which effectively
The market benefited from favourable supply/demand dynamics in most
limited the certainty on the valuations provided and was to have immediate
occupational sectors, a compelling income yield of 5.1%, and low levels of
ramifications for fund pricing and, hence, dealing.
leverage (especially by historic standards). This led to a strong start to the
year, with a number of investment transactions indicating yields may harden
for the very best assets, especially in Central London. However, this rapidly
changed over the course of the first quarter.
4
Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Investment Report
(continued)
Suspension The poor performance of the retail sector therefore continues to act as a
On 18 March 2020 Columbia Threadneedle Investments temporarily drag on returns at a market level, though it now accounts for a diminishing
suspended dealing in the Company and its feeder trust, the Threadneedle proportion of the overall index composition, representing just 26.1% of the
UK Property Authorised Trust. This decision followed notification from the monthly index, down from a high of 47.5% in 2012/2013. (All return data from
Fund’s independent valuer, CBRE, that they were unable to value the Fund’s MSCI UK Monthly Property Index, March 2020).
assets with certainty in the current exceptional market environment. Commercial Property returns 12 months to 30 April 2020
We have continued to provide a daily estimated NAV/price for indicative On an annualised basis to 30 April 2020, the All-Property Index returned a
purposes. However, if you are using the estimated daily NAV/price to make barely positive total return of 0.1%, driven by a consistent income return of
investment or accounting decisions or to price an underlying product, 5.4% offsetting the impact of -5.4% capital value growth. As highlighted above,
you should take into account the uncertainty the valuer of the underlying the disparity between sectors was pronounced, as the chart below illustrates:
assets expressed above. In particular, you should be aware that the actual All
realisation proceeds may differ from that indicated in the price. Columbia Retail Office Industrial Property
Threadneedle Investments are continuing to closely monitor the situation Total return -11.9% 2.7 4.6% 1.4%
and the Fund suspension is reviewed regularly. Income return 6.6% 4.9 4.8 5.4%
Capital growth -17.4% -2.1% -0.2% -6.5%
Tenant engagement Rental value growth -5.0% 1.6% 2.8 -0.5%
As UK businesses came under increasing short-term cash flow pressure, Yield impact -13.4% -2.8% -2.6% -5.9%
many sought to reduce their cost base as a result, including via deferral Source: MSCI UK Monthly Index Annualised Sector Returns to 30 April 2020
of rent. As responsible investors in real estate, we took the opportunity to
As in 2019, returns between sectors differed significantly, with total returns
engage with our tenants and ensure a measured outcome for all parties,
from the industrial sector at 4.6%, again compensating for poor performance
and we supported the government announcement on 23rd March that no
in the retail sector, which returned -11.9%, and offices, which returned 2.7%.
tenant will face enforcement action as a result of non-payment of the March
quarter’s rent. Portfolio Strategy and Activity
As at the end of April 2020, the Fund’s property portfolio comprised a total
However, the impact on occupiers is not evenly distributed. Given the
of 134 properties and 1,096 individual tenancies. The portfolio continues to
deliberately diverse nature of the Fund’s occupier base, we have not
offer exceptional diversification benefits. By way of illustration, the ten most
adopted a ‘one size fits all approach’, and instead are actively managing our
valuable properties represent 24.5% of the total portfolio value; similarly, the
tenant base to achieve the right result for our investors and occupiers alike.
ten largest tenants in terms of total rental commitments represent 15.7% of
The impact of COVID-19 on returns the entire portfolio rent roll. This diversification is a central component of the
Reflecting the market optimism evident prior to the outbreak of the virus, Fund’s investment approach and acts as a powerful control on risk.
investment transaction volumes for Q1 2020 held up remarkably well
At the strategic level, investment performance benefited from the Fund’s
in relative terms, however, investment activity was almost exclusively
relatively high exposure to the industrial and logistics sector, the standout
confined to the year prior to the lockdown announcement. In the absence of
performer over the year. The Fund’s office exposure performed well in the
meaningful transactional evidence illustrating pricing in the post-lockdown
context of the sector. TUKPAIF has no central London office exposure, with
environment, valuers were forced to attribute changes to property values
the majority of its business-space ownership weighted towards the South
based on prevailing occupational and investor sentiment, including taking
and the South East of England.
into account early data on rent collection.
The resulting valuation changes in March resulted in negative capital value The asset management team have also delivered additional performance
growth of -2.4% and negative total returns of -2.0% for the month, marking gains through tactical lease surrenders, with simultaneous re-lettings
the end of a run of positive monthly total returns stretching back to July/ as well as the ongoing engagement of all occupiers. During the financial
August 2016, when returns briefly turned negative following the Brexit year, the team successfully completed a total of 143 new lettings and lease
referendum result. renewals relating to a total annual rent roll of £6.1m.
Despite being cushioned by a consistent income return of +1.3%, quarterly Investment approach/portfolio strategy
total returns also turned negative to -1.4%, as the accelerated valuation falls We stock pick assets offering high, sustainable income yields and
in March took capital value growth to -2.7% over the first quarter. proactively manage those assets to drive rental growth. In an environment
where capital values become exposed to increased volatility, we believe the
Looking across the sectors, valuation movements broadly reflected the
income advantage generated by this approach offers the best potential for
perceived impact of, or resilience to, the lockdown, accelerating trends
relative outperformance.
apparent for some time and resulting in significant variation between
sectors in the Q1 returns. The industrial and office sectors recorded capital The Fund’s property portfolio therefore offers a high degree of asset and
value declines of -0.8% and -1.2% respectively, contributing to total returns tenant diversification, which limits volatility, and our focus on smaller lot
of 0.4% and 0.0% in those sectors, however the retail sector recorded capital sizes offers the greatest degree of liquidity, as we can sell to different
value declines of -0.63%, contributing to total returns of -4.7%. investor groups to capitalise on the strongest demand.
5
Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Investment Report
(continued)
Our investment approach has remained consistent through multiple market Net
cycles and has delivered a track record of relative outperformance in Initial
challenging macroeconomic conditions such as these. Sale Yield
Proceeds (Topped
With reference to the Morningstar UK IMA OEIC benchmark for real Property Address Quarter (£) Sector up)
estate funds, the Threadneedle UK Property Authorised Investment Fund North Quay, Newhaven Q2 2019 9,900,000 Industrial 7.2%
(TUKPAIF) generated a total return of -3.6% in the 12 months ending 30 April Unit 3c Crompton Way, Fareham, Q3 2019 3,350,000 Industrial 6.2%
2020, outperforming the Morningstar UK IMA OEIC benchmark by +1%. The PO15 5SS
240 London Road, Stains-Upon- Q3 2019 6,700,000 Office 5.6%
Morningstar UK IMA OEIC benchmark return being -4.6%. Thames TW18 4JT
125/133 The Parade, Watford Q3 2019 10,320,000 Leisure 8.0%
This information is provided to demonstrate performance relative to the peer
Chiltern Park, Dunstable Q3 2019 14,000,000 Industrial 5.2%
group. However, we wish to remind investors that the Fund is not managed Thornberry Way, Guildford Q3 2019 6,550,000 Industrial 0.0%
with reference to any benchmark. 15 Mills Road, Aylesford Q3 2019 5,600,000 Industrial 4.3%
Hambridge Lane, Newbury Q3 2019 6,275,000 Industrial 5.3%
As highlighted in the market background, all investment markets are likely Park Row, Nottingham Q3 2019 7,000,000 Office 5.5%
to continue to face uncertainty until there is some form of clarity around the Go Outdoors - Goldington Road Q3 2019 4,953,490 Retail 7.0%
pandemic. The Fund continues to be well positioned against this uncertain Business Park, Bedford Warehouse
Go Outdoors - Third Avenue, Q3 2019 5,420,272 Retail 7.0%
backdrop owing to the following features:
Southampton Warehouse
The Company is a major open-ended product with circa.£1.0bn under Go Outdoors - Barton Street, Q3 2019 4,351,238 Retail 7.0%
Gloucester Warehouse
management, and it benefits from a well-diversified underlying client base. 36/37 High Street, Canterbury Q3 2019 1,075,000 Retail 4.4%
The Fund offers significant income yield advantage (c.130 basis points) Hanley House, Hams Road, Q3 2019 2,500,000 Retail 7.1%
Lydney, Chepstow
versus the MSCI benchmark (6.4% vs 5.1%). Co-Op, 2-26 Victoria Street, Q3 2019 2,100,000 Retail 7.0%
Shirebrook, Mansfield, NG20 8AQ
The Company provides diversification at both portfolio and tenant levels.
Co-Op, 309-311 Lymington Road, Q3 2019 1,800,000 Retail 8.6%
The Company is positioned strategically, with a focus on the strongest Highcliffe-on-Sea, BH23 5EG
Loomis UK Ltd, 34 Lake Road, Q3 2019 1,840,000 Industrial 3.9%
underlying sub-sectors (34.9% of direct property exposure is to the Aylesford, ME20 7XB
industrial market). Larkfield Mill Industrial Estate, Q4 2019 33,500,000 Industrial 5.2%
Aylesford, Kent ME20 6SQ
There is significant potential to add value through proactive asset Mills Road Industrial Estate, Q4 2019 8,242,101 Industrial 4.3%
management across the portfolio, despite the potential challenges of a Aylesford
post-COVID occupational market. 54/58 High Street, Maidenhead Q4 2019 4,625,000 Retail 8.5%
Betchworth House, Redhill Q4 2019 6,509,762 Office 5.4%
Fund Investment Activity Salamander Quay, Harefield Q4 2019 6,500,509 Office 6.8%
Disposals: Park House, New Brick Road, Q4 2019 4,035,000 Office 7.8%
Bristol
The Fund strategically sold 56 assets in the 12 months to 15 May 2020 Peregrine Business Park, Q4 2019 9,152,579 Office 7.6%
generating sales receipts of £351.4m. Sales were focused on retail assets High Wycombe
with 16 high-street retail sales, and a further 10 retail warehouse sales. 151-153 High Street, Sutton Q4 2019 950,000 Retail 8.8%
2 Charlotte Place, Southampton Q4 2019 14,100,000 Office 5.3%
Selective sales were also made across other sectors to capitalise on market
49 High Street, Brentwood Q4 2019 1,900,000 Retail 8.4%
conditions to achieve strong sales receipts. On aggregate, the sales were 27-29 Great George Street Bristol Q4 2019 7,956,712 Office 5.3%
at a 0.01% discount to the latest independent valuation at the point of sale. Burnt Ash Trade Park, Quarry Q4 2019 13,715,000 Industrial 4.8%
The sales process assisted the continual efforts to maintain a balanced risk Wood Industrial Estate, Aylesford
1-7 St Benedict's Square, Lincoln Q4 2019 3,150,000 Retail 9.4%
profile within the Fund, and to assist in managing liquidity.
LN5 7AR
As a result of this investment activity, cash increased from 13.2% to 17.7% 8/12 Frenchgate, 1/4 & 6/6A Q4 2019 1,275,000 Retail 15.2%
Baxtergate, Doncaster
over the course of the year. Bricket House, St Albans Q4 2019 9,050,000 Office 0.0%
The Fund completed 143 lettings and lease renewals, securing rent of Land Strip, Aylesford Q4 2019 69,000 Industrial 7.8%
38 High street, Brentwood Q4 2019 650,000 Retail 8.1%
£6.1m p.a. and settled 39 rent reviews achieving an uplift of £0.4m p.a. 149/151 High Street, Kings Heath, Q4 2019 905,000 Retail 9.4%
Rent collection, typically over 97%, was significantly down in Q1 2020 at West Midlands
Units 6.1 and 6.3, Parc Nant Garw, Q4 2019 6,250,000 Industrial 6.4%
73.05% (as of 63 days beyond the quarter day) which the Fund continues Treforest
to monitor and actively engages with its diverse occupier base in order to Wessex Industrial Estate, Q4 2019 3,162,144 Industrial 6.3%
achieve the right result for our investors and occupiers alike, with regard to Bourne End
South Marston Park, Swindon Q4 2019 10,850,000 Industrial 5.4%
current legislation.
Lord Street, Southport Q4 2019 215,092 Retail 0.0%
75 High Street, Brentwood Q4 2019 1,800,000 Retail 7.8%
Waltham Cross, Queensgate Q4 2019 13,700,000 Office 13.7%
9-17 Sandgate Road, Folkestone Q4 2019 2,620,000 Retail 9.0%
6
Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Investment Report
(continued)
Net As illustrated in the graphs above, and reflective of the size of the Fund’s
Initial property portfolio, the Fund’s industrial exposure increased, from 33.6%
Sale Yield (April 2019) to 34.9% in April 2020 via a strategic disposal programme,
Proceeds (Topped significantly reducing exposure to the retail sector. The Fund’s property
Property Address Quarter (£) Sector up)
portfolio continues to enjoy a good balance in terms of both sector and
Wickes, Coventry Q4 2019 5,500,000 Retail 7.7%
Warehouse regional distribution. As at the end of April 2020, the property portfolio
The Range, Chesterfield Q4 2019 4,000,000 Retail 6.8% generated a net initial yield of 6.4%, 130 basis points above the comparable
Warehouse market yield (MSCI UK Monthly Benchmark).
Marsh Barton, Exeter Q4 2019 4,800,000 Car 3.4%
Showroom Responsible Investment highlights (ESG)
Axon Centre, Egham Q4 2019 9,550,000 Office 6.9% The Fund strives to be a responsible steward of our clients’ assets within
Oliver Close, West Thurrock Q4 2019 15,484,001 Industrial 5.2%
a framework of good governance and transparency. We promote ESG and
Halfords, 92 Northgate, Q4 2019 1,050,000 Retail 11.9%
Newark-on-Trent, NG24 1HF Warehouse sustainability best practice, which assist in achieving the Funds’ primary
40-42 High street, Brentwood Q1 2020 2,010,000 Retail 9.3% financial objectives of delivering strong investment returns, by enhancing
600/650 Aztec West, Almondsbury, Q1 2020 7,126,566 Office 6.9% the underlying real estate, reducing running costs and making them more
Bristol
11 Fairlands Way, Stevenage Q1 2020 1,500,000 Retail 0.0% attractive to occupiers. These are implemented as property level initiatives,
Warehouse with the expectation of a positive impact on rental income streams, capital
The Range, Doncaster Q1 2020 7,400,000 Retail 7.0% values and tenant satisfaction. To gain support for this process from key
Warehouse
stakeholders, we aim to clearly articulate the connections between
The Range, Stafford Q1 2020 5,400,000 Retail 8.0%
Warehouse sustainability and value creation, as both investors and occupiers should
Peterborough Business Park, Q2 2020 22,545,369 Office 7.2% experience the value created, environmentally, socially and financially. In
Lynch Wood, Peterborough
addition, our sustainability objectives guard against transitional risks, as
The Calthorpe Centre, Banbury Q2 2020 5,550,000 Retail 9.2%
Warehouse policy/law makers are introducing new obligations on the real estate sector
96 High Street, Sutton Q2 2020 850,000 Retail 5.7% to move towards a low carbon economy.
TOTAL £351,383,838
Global Real Estate Sustainability Benchmark (GRESB)
2020 marked the first year of the Fund’s participation in the GRESB survey.
Purchases:
The Fund achieved two stars and a score of 70 out of 100, ranking it 29th
The Fund made no purchases over this year.
within its peer group of 79 funds.
Portfolio Weighting by Sector relative to MSCI UK Monthly Property
GRESB is benchmarked against two dimensions:
Index as at 30 April 2020
Implementation and Measurement – actions and programmes that have
6.9% (10.2%) been initiated by the fund. TUKPAIF achieved a score of 65 out of 100, which
was 4 percentage points above the peer group average.
28.8% (30.9%)
17.5% (12.8%) Management and Policy – relating to policies and processes that set out
Offices
the fund’s intent for managing sustainability issues. TUKPAIF scored 87 out
Industrials of 100, which was the same as the peer group (87), and 7 percentage points
Retail Warehouses better than the GRESB global average (80).
11.9% (12.5%) Shops
Other Environmental data management system and quarterly reporting
The fund uses SIERA as its environmental data management system where
energy, water, waste and greenhouse gas emission data are collected and
34.9% (33.6%) validated for all assets where the portfolio has operational control. Energy
and greenhouse gas emission data is reported on a quarterly basis for the
Portfolio Weighting by Geography relative to MSCI UK Monthly Property portfolio’s 20 highest energy consuming assets.
Index as at 30 April 2020
Streamlined Energy and Carbon Reporting (SECR) (Unaudited)
0.4% (34.8%) 4.7% (1.5%) Under this legislation all quoted companies, “large” unquoted companies
15.0% (9.7%)
and LLPs are required to report their UK energy use, associated Scope 1
(gas) & 2 (electricity) emissions, an intensity metric and, where applicable,
3.5% (3.3%) Southern
global energy use in their Annual Reports. More information can be found
Eastern on pages 47 to 51.
Midlands
11.6% (11.4%)
Yorkshire / Humberside
Energy
North Overall, like-for-like energy consumption reduced by 13.1% between 2018
4.5% (10.9%) London and 2019. Like-for-like electricity consumption reduced by 15.9% whilst fuel
Wales
(gas) consumption reduced by 7.4%.
60.3% (24.7%)
7Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Investment Report
(continued)
Greenhouse Gas Emissions This environment highlights the value of stock picking investments based on
Overall total Greenhouse Gas Emissions reduced by 20.1% on a like for-like tenant-by-tenant due diligence, which ensures assets generate sufficient
basis between 2018 and 2019. Like-for-like Scope 1 (gas) emissions reduced revenues for occupiers to allow them to trade profitably and continue to
by 8.0% whilst Scope 2 (electricity) emissions reduced by 24.1%. pay rent.
Managing sustainability In other sectors, logistics will continue to benefit from the structural change
Managing agents play a crucial role in supporting the Funds sustainability in the way we shop and has undoubtedly been boosted by a population
programme. As such, a set of ESG key performance indicators have been confined to their online shopping accounts.
developed to guide managing agents for the fund in their support of the fund’s
But the virus will also make us question the solidity of in-vogue sectors,
sustainability programme. These indicators include coverage of energy,
most obviously the alternatives sector. Cinemas, restaurants, hotels and
water, and waste data, impact on local community, and regular tenant
student housing have all been adversely affected by restrictions on social
engagement through tenant satisfaction surveys. In conjunction with its
interaction. Operators saddled with high levels of corporate debt may
Managing agents, the Fund has also completed technical sustainability audits
require collaboration with lenders to survive reductions in revenue, but this
at 12 of its largest energy consuming assets. The technical sustainability
in turn will allow the stronger operators to thrive.
audits identify current environmental performance, including energy, water,
waste and wellbeing, as well as the tangible identification of opportunities More generally, operational assets (such as student housing) where
for environmental and financial improvement. investors are more closely aligned to the underlying income profiles
generated by buildings, will feel immediate pain, as management agreements
Full details of the Fund’s Responsible Investment approach and targets are
do not offer the same protection as leases.
set out on page 47 to 51.
Outlook for the UK Commercial Property Market This is not to say that the long-term demographic trends favouring these
The UK response to COVID-19 is still evolving, and the medium-term impacts on sectors will reverse, but we are reminded to properly consider the merits of
our asset class are only starting to come into focus. However, some trends are each opportunity on an asset-by-asset basis.
becoming apparent, and it is likely the fallout from the virus will accelerate trends Distribution
which were already apparent prior to its outbreak, with significant differences In accordance with the Prospectus, holders of income units in the trust will
between sub-sectors, and between different parts of some sub-sectors. receive distributions on a quarterly basis.
Retail provides the clearest indication of this trend: anecdotal evidence The distribution on income units for the year ended 15 May 2020 amounts
suggests retail footfall is down circa 80% at market level since the lockdown to 2.0313p per unit.
was introduced. However, within the sector, the impact has not been evenly
distributed. The distribution on accumulation units is transferred from income to the
capital property of the trust following the end of the distribution year.
Retailers selling goods deemed essential have remained open for business,
including supermarkets and pharmacies. A number of the ‘discounters’, including The amount accumulated after the year ended 15 May 2020 was 2.3658p
B&M, The Range and Home Bargains, also fall into this category and have per unit.
continued trading, and DIY stores remain open for click and collect services. Other Information
However, shopping centres and fashion parks have almost exclusively closed The information on pages 45 to 51 forms part of the Manager’s Report.
their doors, with obvious cash flow ramifications for those retailers deemed non-
essential that have been unable or unwilling to satisfy demand online. Directors’ Statement
In accordance with the requirements of the Financial Conduct Authority’s
The longer-term impact of coronavirus on the retail sector will be determined
Collective Investment Schemes (COLL) Sourcebook, we hereby certify the
to a large extent by the duration of the lockdown and how quickly consumer
Annual Report and Audited Financial Statements on behalf of the Directors
spending returns to pre-coronavirus levels. With unemployment already
of Threadneedle Investment Services Limited.
increasing, and spending habits changed by necessity as a result of the
lockdown, it is unlikely consumers will return to the high street in sufficient
numbers to prevent more businesses following the likes of Laura Ashley or
Debenhams into administration.
On a geographic basis, an extended lockdown therefore has the potential to L Weatherup R Vincent
Director Director
accelerate the structural decline of poorly performing centres, as retailers
seek to reduce exposure to non-profit making stores. Arcadia has already 12 August 2020
announced it will not reopen all its stores once the lockdown is lifted, which
is reflective of the challenges affecting this part of the market.
However, the case for major, destination- and experience-led centres
is likely to be much more positive. Once social distancing measures are
removed, it is probable that retail and leisure occupiers in key cities may
evidence a surge in sales, buoyed by a combination of pent-up demand and
the nation reconnecting with family members and friends.
8Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Property Portfolio of the Threadneedle UK Property Authorised Investment Fund
Retail
% of Total
Assets 0.21 Total Market Principal Rental Income Next Rent
Less than £1 million in Value (0.33) Value £2.2m Tenants per annum Review
Bedford
1-3 Silver Street
Freehold retail unit and upper floors totalling 8,619 sq ft. JD Sports Fashion Plc £110,000 N/A
AM2PM Healthcare Ltd £20,000 N/A
Doncaster
8 St Sepulchre Gate
Leasehold, mid-terrace retail unit with retail space on the ground The Works Stores Ltd £65,000 23/06/2020
floor and ancillary basement, first and second floors.Property
totals 4,322 sq ft.
Hinckley
14/16 Castle Street
Freehold mid-terrace two-storey building comprising two ground PDSA £24,000 N/A
floor retail units and first floor ancillary accommodation. Property Hinckley V.E Limited £29,640 N/A
totals 4,301 sq ft.
Nottingham
1 Houndsgate & 2/4 Albert Road
Freehold corner retail unit with ground floor sales area and two Senior Trading Limited £0 N/A
ancillary upper floors and an unused former residential unit.
Property totals 2,903 sq ft.
% of Total
Between £1 million and Assets 1.34 Total Market Principal Rental Income Next Rent
£2.5 million in Value (1.19) Value £13.9m Tenants per annum Review
Accrington
Broadway & Market Walk
Freehold, two terraced retail parades with a total of eleven Various £358,500 29/01/2021
purpose built retail units. Property totals 58,774 sq ft.
Brecon
Bethel Square
Freehold, 17 retail units predominantly over two storeys, arranged Various £292,474 22/02/2021
around a central square. There is also a small terrace of four, one
storey units. Lion House within the development compromises
5 office suites. Property totals 32,670 sq ft.
Canterbury
15-16 The Parade & 2 Rose Lane
Freehold large retail unit over basement, ground and first floors Burtons/Dorothy Perkins £200,000 N/A
with ancillary second floor totalling 10,125 sq ft. (Arcadia Group Ltd)
Chatham
195/203 High Street
Freehold, two-storey corner retail unit. Ground floor retail space Various £187,470 N/A
and first floor ancillary. Property totals 14,949 sq ft.
Cheltenham
112/114 &118/120 Promenade
Freehold double corner retail unit totalling 2,287 sq ft. Vacant £0 N/A
9Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Property Portfolio of the Threadneedle UK Property Authorised Investment Fund (continued)
Retail (continued)
% of Total
Between £1 million and Assets 1.34 Total Market Principal Rental Income Next Rent
£2.5 million in Value (1.19) Value £13.9m Tenants per annum Review
Ipswich
30-36 Tavern Street
Freehold. Four retail units arranged over basement ground and Various £0 N/A
two upper floors. Grade II listed. Property totals 7,736 sq ft.
Reading
50 Broad Street
Freehold, a four-storey structure (including basement) of Beaconsfield Footwear Ltd £170,000 24/02/2021
reinforced concrete frame construction. Ground and part of the
first floor are retail sales areas. The remaining accommodation is
used for storage. Property totals 6,325 sq ft.
Stevenage
9-11 The Forum
Freehold, two retail units constructed in 1975. Property totals New Look Retailers Ltd £126,000 N/A
35,450 sq ft. Wawelski Ltd £43,500 02/12/2021
Reading
50 Broad Street
10Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Property Portfolio of the Threadneedle UK Property Authorised Investment Fund (continued)
Retail (continued)
% of Total
Between £2.5 million and Assets 1.87 Total Market Principal Rental Income Next Rent
£5 million in Value (3.11) Value £19.3m Tenants per annum Review
Brighton
Units 1-4, The Abacus
Long Leasehold, terrace of four retail units over ground and Various £480,900 18/09/2020
basement totalling 30,882 sq ft.
Carmarthen
Units 2-12 Red Street
Freehold parade of seven retail units which are arranged over Various £405,500 03/10/2020
ground and first floors. Property totals 19,133 sq ft.
Carmarthen
15-23 Red Street & Units 1-4, 15 John Street
Leasehold, parade of nine retail units constructed in the 1970s. Various £388,400 30/07/2020
Predominantly arranged over ground and two upper floors.
Property totals 39,465 sq ft.
Cheltenham
108-110 The Promenade
Freehold, Grade II listed semi-detached two storey building with Joules £155,000 N/A
mezzanine and attic floors. Two retail units over ground and Vinegar Hill £165,000 N/A
mezzanine floors, with ancillary accommodation to the remaining
ground and upper floor areas. Property totals 8,963 sq ft.
Promenade Cheltenham
11Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Property Portfolio of the Threadneedle UK Property Authorised Investment Fund (continued)
Retail (continued)
% of Total
Between £2.5 million and Assets 1.87 Total Market Principal Rental Income Next Rent
£5 million in Value (3.11) Value £19.3m Tenants per annum Review
Guildford
115 High Street
Freehold, a mid-terraced retail unit arranged over basement, L.K. Bennett (in £0 N/A
ground and two upper floors. Property totals 5,484 sq. ft. administration)
Ipswich
24/28 Tavern Street and 4/8 Dial Lane
Freehold, block of six retail units arranged over basement ground Various £220,750 17/03/2021
and three upper floors. Property totals 16,594 sq ft.
% of Total
Assets 3.87 Total Market Principal Rental Income Next Rent
Over £5 million in Value (4.42) Value £40.0m Tenants per annum Review
Ipswich
18/20/22 Tavern Street & 13-15/17/18-19 Buttermarket
Freehold unbroken block of six retail units, three fronting Various £625,000 28/09/2020
Tavern Street and three fronting Buttermarket.
Property totals 43,762 sq ft.
Nottingham
1-8 Exchange Walk & 5-7 St Peters Gate
Freehold, parade of six retail units plus one retail unit on St Various £524,750 31/05/2020
Peters Gate. Each unit is generally over ground and first floors
with two units having basements. Property totals 4,676 sq ft.
Ipswich Ipswich
4/8 Dial Lane Tavern Street
12Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Property Portfolio of the Threadneedle UK Property Authorised Investment Fund (continued)
Retail (continued)
% of Total
Assets 3.87 Total Market Principal Rental Income Next Rent
Over £5 million in Value (4.42) Value £40.0m Tenants per annum Review
Reading
51 Broad Street & 2-6 Union Street
Freehold, the property is dominated by 51 Broad Street Various £371,501 03/09/2020
but also includes 3 small retail units on Union Street.
51 Broad Street (including 2-3 Union Street) trades on the
ground and first floor, with ancillary staff and storage on the
second floor. Property totals 18,648 sq ft.
Reading
52/53 Broad Street
Freehold, the property is split into 3 retail units, 2 front onto Sam 99p Ltd £0 21/08/2024
Broad Street and 1 onto Friar Street at the rear. Property totals
30,963 sq ft (14,882 sq ft ITZA).
Reading
54-60 Broad Street & 109-117 Friar Street
Freehold former department store, split into six retail units, over Various £1,063,150 25/03/2028
basement, ground and two upper floors.
Reading Reading
51 Broad Street 52/53 Broad Street
Reading Reading
54-60 Broad Street 109-117 Friar Street
13Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Property Portfolio of the Threadneedle UK Property Authorised Investment Fund (continued)
Retail Warehouse
% of Total
Between £1 million and Assets 1.07 Total Market Principal Rental Income Next Rent
£2.5 million in Value (1.15) Value £11.1m Tenants per annum Review
Darlington
Haughton Road Retail Park
Two freehold detached retail warehouse units, constructed in Wickes Building Supplies Ltd £169,013 24/12/2022
1994. Externally there are 145 parking spaces. Property totals
37,994 sq ft.
Nuneaton
Newtown Road
Freehold retail warehouse, built in the late 1980s. Externally Halfords Ltd £197,085 N/A
there is parking for 68 cars. Property totals 13,157 sq ft.
Preston
1&2 Mariners Way
Leasehold terrace of two retail warehouse units, constructed in Pets at Home Ltd £154,220 N/A
1997. Externally there are 60 car parking spaces.Property totals Halfords Ltd £153,750 N/A
15,023 sq ft.
Sutton in Ashfield
Forest Retail Park
Freehold three-unit retail warehouse scheme, one single detached Various £145,000 25/03/2022
unit and a terrace of two units, constructed in 2002. Externally
there are 48 parking spaces. Property totals 15,236 sq ft.
Wellingborough
Victoria Retail Park
Freehold, L–shaped detached single storey purpose built retail Halfords Ltd £147,632 N/A
warehouse. Property totals 9,169 sq ft.
Preston
Units 1&2, Mariners Way
14Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Property Portfolio of the Threadneedle UK Property Authorised Investment Fund (continued)
Retail Warehouse (continued)
% of Total
Between £1 million and Assets 1.07 Total Market Principal Rental Income Next Rent
£2.5 million in Value (1.15) Value £11.1m Tenants per annum Review
Winnersh
612 Reading Road
Freehold modern retail warehouse with mezzanine sales and Halfords Ltd £127,364 N/A
storage area installed by the tenant. Externally there are 34
parking spaces. Property totals 7,357 sq ft.
Wrexham
36 Mount Street
Freehold retail warehouse, built in the early 1990s totalling Halfords Ltd £209,244 N/A
14,955 sq ft. A mezzanine sales and storage area has been
installed by the tenant. There are 75 car spaces.
% of Total
Between £2.5 million and Assets 0.96 Total Market Principal Rental Income Next Rent
£5 million in Value (1.95) Value £10.0m Tenants per annum Review
Coventry
Matalan Wheler Road
Leasehold. Two bay retail warehouse built in 1986. Ground floor Matalan Retail Ltd £545,850 21/12/2020
sales with tenant fitted mezzanine used for storage. Property
totals 36,323 sq ft with 203 car parking spaces.
Llandudno
B&Q
Leasehold single detached retail warehouse unit. Property B&Q Plc £484,875 N/A
totals 38,991 sq ft.
Rochdale
St Mary’s Gate
Freehold retail warehouse, constructed in late 1980s. The Dunelm Ltd £314,000 N/A
property is currently split into two units. Externally there are 262 Carpetright Ltd £64,500 N/A
parking spaces. Property totals 46,509 sq ft.
15Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Property Portfolio of the Threadneedle UK Property Authorised Investment Fund (continued)
Retail Warehouse (continued)
% of Total
Assets 7.64 Total Market Principal Rental Income Next Rent
Over £5 million in Value (10.34) Value £79.0m Tenants per annum Review
Cardiff
City Link Retail Park
Freehold retail warehouse park providing twelve units totalling Various £1,041,322 19/10/2020
118,623 sq ft., with 469 car parking spaces.
Evesham
Four Pools Retail Park
Freehold purpose built retail warehouse park of four units and Various £997,991 12/09/2022
a restaurant unit. The property totals 75,646 sq ft. with 215 car
parking spaces.
Fareham
Collingwood Retail Park
Freehold purpose built retail warehouse park of four units and Various £882,106 29/01/2021
a restaurant ‘pod’ totalling 76,520 sq ft. with 372 car parking
spaces.
Holyhead
Holyhead Retail Park
Freehold retail warehouse park, built in 2005. The park is Various £650,065 25/03/2021
configured as a retail terrace of five units with a stand-alone
Wilkinsons store and a fast food unit. Externally, there are 206
parking spaces. Property totals 62,750 sq ft.
Reading
Reading Retail Park
Freehold retail warehouse park of eight units totalling Various £2,108,766 22/07/2020
118,352 sq ft with 430 car parking spaces.
Stevenage
Stevenage Retail Park
Freehold, seven single storey retail warehouse units. Total of Various £902,466 24/07/2020
241 car parking spaces. Property totals 56,175 sq ft.
Taunton
St John’s Retail Park
Freehold, two purpose built retail warehouse units constructed DFS Furniture Company Ltd £275,000 03/12/2021
in 2001. Arranged over ground floor and mezzanine level. 199 Go Outdoors Ltd £262,753 N/A
car parking spaces. 40,184 sq ft.
Reading Retail Park Stevenage
Stevenage Retail Park
16Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Property Portfolio of the Threadneedle UK Property Authorised Investment Fund (continued)
Offices
% of Total
Between £1 million and Assets 1.23 Total Market Principal Rental Income Next Rent
£2.5 million (0.15) Value £1.7m Tenants per annum Review
West Bromwich
Christchurch House
Freehold detached office building constructed in 1995. The Secretary of State £300,000 N/A
Externally there are 102 parking spaces. Property totals for Communities & Local
25,577 sq ft. Government
% of Total
Between £2.5 million and Assets 1.07 Total Market Principal Rental Income Next Rent
£5 million in Value (0.99) Value £11.0m Tenants per annum Review
Bristol
715 Aztec West
Freehold two storey modern office building on an established Imagination Technologies Ltd £276,837 N/A
business park totalling 17,631 sq ft. Antillion Ltd £55,188 09/11/2021
Fareham
Eagle Point, Segensworth
Leasehold, detached three storey office building built in Various £399,500 N/A
2004. Externally there are 109 parking spaces. Property totals
29,570 sq ft.
Nottingham
John Webster House
Freehold office building constructed in 2005. Externally there are Centres for Assisted £120,434 16/12/2025
60 parking spaces. Property totals 15,187 sq ft. Reproduction Ltd
17Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Property Portfolio of the Threadneedle UK Property Authorised Investment Fund (continued)
Offices (continued)
% of Total
Assets 22.56 Total Market Principal Rental Income Next Rent
Over £5 million in Value (26.35) Value £233.2m Tenants per annum Review
Birmingham
1320 Solihull Parkway, Birmingham Business Park
Freehold, detached office building arranged over two storeys. Various £427,642 30/06/2022
There are 125 parking spaces. Property totals 26,374 sq ft.
Bristol
Unit H1, Harlequin Office Park
Freehold, detached three storey office building. Constructed in ALD Automotive Ltd £567,693 01/06/2020
2009. Property totals 26,871 sq ft. There are 122 car parking spaces.
Brentwood
Countryside House
Freehold, detached office building arranged on ground and two Countryside Properties £735,720 N/A
upper floors. There are 178 parking spaces externally and at (UK) Ltd
basement level. Property totals 36,564 sq ft.
Brentwood
Academy Place, Brook Street
Freehold, detached modern office building over ground and two Various £705,653 03/10/2021
upper floors totalling 46,006 sq ft with 182 car parking spaces.
Brentwood
Academy Place, Brook Street
18Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Property Portfolio of the Threadneedle UK Property Authorised Investment Fund (continued)
Offices (continued)
% of Total
Assets 22.56 Total Market Principal Rental Income Next Rent
Over £5 million in Value (26.35) Value £233.2m Tenants per annum Review
Bristol
Prudential Buildings, Wine Street
Leasehold city centre office block over basement, ground and Various £1,493,674 02/03/2022
six upper floors. The property totals 60,394 sq ft. with 24 car
parking spaces.
Bristol
1300 Parkway North
Freehold, detached three-storey HQ style building. The property The Secretary of State for £467,713 N/A
totals 30,175 sq ft with 140 car parking spaces. Defence
Chelmsford
One Legg Street
Freehold, an office building constructed in 1991 that Various £349,980 13/03/2021
incorporates a grade 2 listed building – King William House.
Accommodation is arranged over basement and five upper
floors and four floors respectively. Property totals 75,404 sq ft.
Bristol
Prudential Buildings, Wine Street
19Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Property Portfolio of the Threadneedle UK Property Authorised Investment Fund (continued)
Offices (continued)
% of Total
Assets 22.56 Total Market Principal Rental Income Next Rent
Over £5 million in Value (26.35) Value £233.2m Tenants per annum Review
Crawley
1 Forest Gate
Freehold, detached office building constructed in 1993. KPMG LLP £253,562 24/06/2023
Arranged over ground and two upper floors. There is external
car parking totalling 126 spaces. Property totals 25,127 sq ft.
Fareham
Fusion - Buildings 1-3
Freehold, business park development constructed in Various £2,201,295 31/01/2021
1987 providing 157,036 sq. ft of grade A refurbished office
accommodation across three buildings together with surface
car parking at a ratio of 1:194 sq ft.
Guildford
Hays House
Freehold detached modern office building over ground and two Various £420,229 30/08/2021
upper floors. The property totals 18,466 sq ft. with 21 car parking
spaces.
Crawley Fusion Solent Business Park
1 Forest Gate
Guildford
Hays House
20Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Property Portfolio of the Threadneedle UK Property Authorised Investment Fund (continued)
Offices (continued)
% of Total
Assets 22.56 Total Market Principal Rental Income Next Rent
Over £5 million in Value (26.35) Value £233.2m Tenants per annum Review
Hemel Hempstead
Hemel One
Freehold, detached office building arranged over ground and Various £1,011,967 25/06/2020
three upper floors constructed in the 1980s. There are 434 car
parking spaces externally. Property totals 93,717 sq ft.
Heston
The Square
Freehold, office campus of three two storey office buildings and Various £542,775 17/11/2020
car parking totalling 69,522 sq ft.
Langley
The Curve
Freehold detached modern office building totalling 41,228 sq ft Various £719,956 06/10/2020
with car parking.
Luton
400, 450, 475 Capability Green
Freehold office campus of three detached buildings arranged Various £1,054,963 08/04/2021
around a central courtyard. The property totals 91,367 sq ft. with
a total of 492 car parking spaces.
The Curve Langley
21Threadneedle UK Property Authorised Trust Annual Report and Audited Financial Statements May 2020
Property Portfolio of the Threadneedle UK Property Authorised Investment Fund (continued)
Offices (continued)
% of Total
Assets 22.56 Total Market Principal Rental Income Next Rent
Over £5 million in Value (26.35) Value £233.2m Tenants per annum Review
Quinton
Buildings 4,7,8 & 9, Quinton Business Park
Long leasehold, four modern business park office buildings Various £940,469 18/10/2021
built in the mid 2000’s. Buildings 4 and 9 are three storey and
buildings 7 and 8 are two storey. Property totals 77,451 sq ft,
together with 380 external surface parking spaces.
Solihull
Birmingham International Park
Freehold, three detached Grade A office buildings arranged Various £1,197,771 15/06/2020
over three storeys. The property totals 71,661 sq ft.
Watford
The Belfry Business Park
Freehold. Five purpose-built 1980s office buildings arranged Various £444,186 02/02/2023
around central landscaped courtyard. Property totals 66,294 sq ft
with 198 car parking spaces.
Worcester
One Kings Court
Freehold, standalone three storey modern office building in out Various £483,849 30/11/2022
of town location. Property totals 31,504 sq ft with 80 car parking
spaces.
Supermarket
% of Total
Between £2.5 million and Assets 0.45 Total Market Principal Rental Income Next Rent
£5 million in Value (0.43) Value £4.7m Tenants per annum Review
Boscombe
The Former Superstore, Sovereign Centre
Freehold. Former Safeway supermarket located in The Safeway Stores Ltd £454,500 24/06/2020
Sovereign Centre. Divided into two sublet retail units. Ground
and first floor levels. Totals 50,235 sq ft.
Belfry Business Park Watford
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