February 23, 2016
Salmon Harvester Opportunity Fund, which aims to acquire and manage investments across all UK commercial property sectors, has today announced that total returns for the year to 31 December 2015 were 22.5 percent, with annualised returns over the past three years exceeding 23 percent.
The growth comes as a result of the Fund’s focus on astute stock selection and active asset management. In 2015, three of its major holdings – Kingston-upon-Thames, Worcester and Birmingham – produced impressive returns.
In Kingston-upon-Thames, the Fund enjoyed particular success. Following a rent review of its major office holding, income increased by 46 percent. The value of the investment has now more than doubled since it was purchased, with opportunities to add further value expected in the years to come.
Elsewhere, the Fund commenced work in Worcester on the partial redevelopment of its Cathedral Square leisure and retail scheme. The development is now over 50 percent pre-let to major tenants and is due to open in Easter 2017.
The Fund is also transforming an office building in Swallow Street, Birmingham, converting it into 55 city centre apartments that will help meet the rapidly rising demand for high quality residential accommodation.
Matthew Meaden, Fund Manager, commented: “Our strategy is to invest in properties with asset management potential where there is potential to drive values by re-profiling into assets where there is both occupational and investor demand. This strategy is reaping rewards and we will continue to recycle capital into new opportunities that deliver excellent returns to our investors.”
Salmon is currently considering options to launch additional funds to meet investor appetite from asset management led returns.