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THREADNEEDLEUK PROPERTY TRUST

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UNAUDITED INTERIM REPORTS AND FINANCIAL STATEMENTSTHREADNEEDLE UK PROPERTY TRUSTNOVEMBER 2015

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Threadneedle UK Property Trust Unaudited Interim Reports and Financial Statements November 2015

Contents

Trust Report

Introduction 2

Manager’s Report 3 – 7

Directors’ Statement 7

Property Portfolio

Retail 8 – 14

Retail Warehouse 15 – 18

Offices 19 – 25

Supermarket 26

Industrial 27 – 36

Retail/Residential 37

Car Showroom 38 – 39

Petrol Station 40

Shopping Centres 41

Financial Statements

Statement of Total Return 42

Statement of Change in Net Assets Attributable to Unitholders 42

Balance Sheet 42

Cash Flow Statement 42

Distribution Table 42

Notes to the Financial Statements 43

Additional Information (Unaudited)

Portfolio Statement 44 – 45

Comparative Tables 46

Ongoing Charges Figure Summary 47

Property Expense Ratio 47

Total Purchases and Sales* 47

Unit Price Performance – Bid to Bid Basis 48

Unit Turnover and Unit Analysis 48

Finance Costs: Distributions per Unit 49

Further Information 50 – 51

Management and Administration 52

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This Interim Report reviews the performance of the Threadneedle UK Property Trust and the market background over the 6 months to 15 November 2015.

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 keyWe 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 investmentsWe 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 buyersWe 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 developmentThis 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 valueWe 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 Interim 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.

Introduction

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Investment Objective The objective of Threadneedle UK Property Trust (the “Fund” or “Trust”) is to obtain a total return based on income and capital appreciation primarily through investment in certain kinds of real estate, property-related securities, government and public securities and units in collective investment schemes.

Investment PolicyThe Fund will invest primarily in UK commercial real estate. It may also invest in US or Continental European real estate, property-related securities, property investment companies, collective investment schemes (including other collective investment schemes managed, advised or operated by the Manager or its associates), cash and near cash, warrants, deposits and money market instruments. Derivatives may be used for efficient portfolio management purposes only.

The Fund will always invest so as to be eligible as an ISA investment.

Review This report covers the period from 16 May 2015 to 15 November 2015.

Property Market CommentaryThe UK property market, as represented by the IPD UK Monthly index, generated another strong ‘All Property’ quarterly total return of 3.4% in Q3 2015. Significant capital value growth of 2.1% formed the core component of total return, supported by an income return of 1.3%. Consistent with this theme, the ‘All Property’ net initial yield (NIY) sharpened by 7 basis points from 5.15% to 5.08%, representing the lowest NIY since November 2007.

While moderating, the investment market shows limited sign of a material slowdown for the remainder of 2015, with investor demand continuing to outstrip supply. Strong underlying property fundamentals, supported by consistently bullish rental-value growth forecasts in all but retail markets, combined with the enhanced availability of attractively priced debt finance, continue to support current transactional pricing.

The correlation between rising capital values and rising rental values continued in Q3, with the IPD ‘All Property’ rental growth recording an exceptional 1.2% for the quarter, representing the highest quarterly ‘All Property’ rental growth since December 2000 (dot-com leasing boom). A severely restricted supply-side pipeline (dearth of speculative development outside the capital) and improved tenant demand (continued confidence in UK economy) across the majority of key office and industrial sub-sectors were the principle contributors to rising ‘All Property’ rents.

Office rental values, positively influenced by the continuation of significant growth in London and the South East (Q3: 2.3%), continue to be the best-performing sub-sector, supported by improving rental growth in the industrial sector (Q3: 1.4%). Encouragingly, despite the ongoing challenges in the occupational market, the retail sector continued its positive recovery that began in mid-2014, with an increased rate of rental growth in Q3 of 0.3%.

UK Property market Performance – 12 Months to end October 2015

Retail Office IndustrialAll

PropertyTotal Return 9.1% 19.9% 18.8% 14.7%Income Return 6.0% 4.9% 6.3% 5.7%Capital Growth 3.0% 14.4% 11.9% 8.6%Rental Value Growth 0.6% 8.4% 4.7% 4.2%Yield Impact 3.5% 7.2% 8.4% 5.8%

Source: IPD UK Monthly Index October 2015

As displayed in the table above, there was a pronounced disparity between the strong returns generated by the industrial and office sectors and the far weaker returns from the retail sector. Despite decent sales growth in household goods and positive consumer sentiment, rental value growth across the retail sector as a whole was minimal. Structural and technological changes in retailing formats and behaviours are still suppressing demand for physical retail space. Retailers with a multi-channel strategy (online and physical presence) are outperforming. While there are significant exceptions in the form of dominate regional centres, most high streets in the country are showing little prospect of a recovery in rental levels. Total returns for the retails sector of 9.1%, comprised an income component of 6.0% and a yield impact of 3.5% as investors were at least attracted to the comparably generous yields on offer.

The office sector retained its position as the top performing sector with a total return of 19.9%, ahead of the industrial sector’s total return of 18.8%. The office sector generated the highest rental value growth of 8.4% which was very largely focused on the office markets of central and suburban London and the surrounding M25. This effect is a logical reflection of the extent to which the UK’s economic recovery has been led by both the South East and the service sector. The industrial sector experienced the greatest yield impact, as investors were drawn to the relatively high yields and lower obsolescence that the sector offers.

In terms of its performance relative to other asset classes, the direct property return of 14.7% was significantly ahead of both UK equities at 3.0% and UK gilts at 5.6%. This significant outperformance vividly illustrates the diversification merits of real estate in multi-asset-class portfolios.

Finally, and largely as a result of the significant yield-driven capital appreciation in the market, the net initial yield on the property sector fell over the period, standing at 5.1% as at end October 2015, compared to 5.5% a year earlier (unless otherwise stated, the source of market statistics in this report is the IPD UK Market Index).

Property Market Outlook2015 was a year during which the UK commercial property sector delivered highly attractive investment return to investors.

The UK commercial property market’s net initial yield still offers appeal in today’s yield-starved investment landscape. Its margin above gilt yields still suggests a degree of resilience for the property market should gilt yields rise. Looking ahead to 2016, we do not anticipate another year in which property yields fall as proportionately far as they did in 2014/15, implying lower total returns for next year. However, with a greater component of this total return emanating from healthy fundamentals in the form of rental value growth, this change in relative drivers is to be welcomed.

The portfolio has been strategically positioned relative to the manager’s thoughts on occupational and investment-market conditions. There is significant potential for continued capital and rental-value growth to be generated through pro-active asset management. The fund has a defensive structure, with no exposure to property-company shares, no exposure to speculative property development and no debt at the property or fund level.

Highly exacting controls and risk management remain absolutely central to the overall management of the trust.

Manager’s Report

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The Portfolio

Property Type Overview as at 31st October 2015(as a percentage of direct property assets)

29%

16%

25%27%

3%

OfficesIndustrialsRetail WarehousesShopsOther

Source: Columbia Threadneedle Investments

Sector Breakdown as at 31st October 2015(as a percentage of direct property assets)

Offices Industrials Shops OtherRetailWarehouses

Fund Index

Source: Columbia Threadneedle Investments/IPD Monthly Universe October 2015

5%

10%

15%

20%

25%

30%

35%

40%

0%

The Threadneedle UK Property Trust benefits from a well-balanced portfolio offering a high income return and a low vacancy rate. The portfolio is extremely well diversified and is free from the elevated risks associated with wholesale, speculative development activities. Importantly, the trust also has an element of buying power in the form of cash reserves. Subsequently, the trust has continued its strategic acquisition of mispriced assets targeting properties exhibiting strong underlying investment credentials and considered to provide a significant risk premium.

At the end of October 2015 the trust’s property portfolio generated an extremely attractive net income return of 6.47%, a 141 basis-point income-yield advantage above the comparable (IPD Monthly Universe) market yield and this, combined with the capital value appreciation the trust has enjoyed across the portfolio, will enable the trust to maintain a competitive advantage. The trust’s vacancy rate is just 6.9% of the portfolio’s total rental value compared to 7.6% for the IPD UK Monthly Universe which reflects the market overall.

The Net Asset Value (NAV) of the fund (as at 15 November 2015) now stands at £1.24bn following a period of dramatic NAV growth (a 47% increase year on year to 15 November 2015). As the NAV of the fund continues to grow, lower proportionate cash holdings will have a diluted impact on trust returns. Since

the onset of the financial crisis in late 2007, prudent liquidity management has remained one of the hallmarks of the trust’s long-term strategy.

Index measures are provided for information, to demonstrate performance relative to peer groups. However, please be reminded that the fund is not managed with reference to any benchmark.

PerformanceWith reference to the Morningstar UK IMA OEIC benchmark for Real Estate Trusts, the Threadneedle UK Property Trust is ranked second quartile (17th out of 50 funds) over 12 months to 31 October 2015. This information is provided to demonstrate performance relative to the peer group. However, please be reminded that the trust is not managed with reference to any benchmark.

StrategyThe trust has continued its strategic acquisition of mispriced assets, targeting properties exhibiting strong underlying investment credentials and those with a significant risk premium when compared to similar assets transacted on the open-market.

The trust successfully acquired 47 properties over the period to 15 November 2015 with a combined value of just under £294m. The purchases are considered accretive to trust performance, contributing a 7.1% net income return (inclusive of rental top-ups) to the existing property portfolio, whilst reducing the trusts liquidity margin closer to its 10% target. Furthermore, the trust has continued to experience positive valuation movement across the portfolio.

2015 purchases included:715 Aztec West BristolThe property, constructed in the early 1990s, provides 17,630 square feet of newly refurbished office accommodation, configured as a two-storey office building of 14,564 sq ft and an adjoining one storey, self-contained office building of 3,066 sq ft (‘The Link Building’). Building 715 is let to Imagination Technologies Ltd (guaranteed by Imagination Technologies Group PLC – both are 5A1 rated by Dun & Bradstreet) on a 10-year lease from 12 January 2015 (with a tenant option to determine lease at expiry of year five). The rent rises from £63,420 at purchase, to £254,888 in 2017, giving the equivalent of 12 month’s rent free during the period. The Link Building, also refurbished, is currently vacant. The vendor provided a two-year rent, rates and service charge guarantee in respect of this element, and the corresponding amount was deducted from the purchase price on completion, together with the rent-free ‘top-up’ on building 715 as set out below. Specification includes suspended ceilings, modern LG7 lighting, VRF air-conditioning and heat-recovery ventilation, raised floors and an excellent car-parking ratio of 1:223 sq ft. The purchase price of £3,570,000 reflected an effective net initial yield of 8.2% inclusive of a rent free / void vendor ‘top-up’ equating to a low gross capital value of £193 per sq ft.

Principle Trust PortfolioThis mixed-use portfolio comprised 14 assets located in the South East of England. The office/industrial properties (business space located in Aylesford, Basildon, Waltham Cross, Welwyn Garden City, Romford, Harefield, Heathrow, Langley and Hemel Hempstead) provide a total floor area of 647,392 sq ft. The three shopping-centre and associated retail assets (Brentwood, Braintree and Dagenham) provide a total floor area of 360,234 sq ft. The total income receivable from the portfolio is £4,616,931 per

Manager’s Report(continued)

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annum on the office/industrial properties and £4,058,902 per annum on the shopping centre/retail properties, producing a total income of £8,675,833 per annum. The portfolio included a total of 140,640 sq ft of vacant accommodation (14%) providing an opportunity to add value by pursuing a variety of leasing strategies. Additional active asset-management initiatives include various lease re-gears, lease renewals and the acquisition of adjoining interests. The individual asset-apportioned purchase prices are considered to reflect a discount to other M25/South East properties being transacted on the open market. The purchase price of approx. £129,316,000 reflected an attractive effective net initial yield of 6.9% (inclusive of vendor rental top-ups), rising to 8.1% upon full reversion (leasing of voids and realisation of current estimated rental value). The purchase was considered particularly advantageous as it provided numerous opportunities to add value, while complementing the trust’s existing high and sustainable net initial yield when compared with the IPD Month Index.

The Calthorpe Centre, 10 Calthorpe Street and 29-30 High Street BanburyThe subject property, a former Sainsbury’s supermarket, is prominently located in Banbury town centre, adjacent to the high street and provides 49,185 sq ft of accommodation arranged as a terrace of 3 retail warehouse units, a leased car park and two separate A2 units. The property is let to T K Maxx, Poundstretcher, Farmfoods, National Car Parks, Plus One Personnel and a local firm of estate agents, with a weighted average unexpired lease term (WAULT of 5.6 years (to break) or 7.5 years (to expiry). The property generates £477,030 per annum (inclusive of rental top-up on Farmfoods unit from £30,000 to £60,000 per annum until 26 September 2016) equating to a low overall rent of £7.00 per sq ft on the retail/A2 with a further £165,000 per annum derived from the associated NCP car park income. Various active asset-management initiatives include lease re-gears, removal of tenant break options and potentially improving the tenant line-up by integrating a mainstream foodstore operator. The purchase price of £7,000,000 reflected an attractive ‘topped-up’ net initial yield of 6.9%.

D’Oriel House, Holton Heath Trade Park, PooleThe property, constructed in the mid-1980s provides 76,413 sq ft (Gross Internal Area (GIA)) of industrial/warehouse accommodation and is prominently located on Holton Heath Trading Estate just one mile south of the A351/A35 interchange, providing direct access to the M27 motorway to the east. The property has been refurbished for the ingoing tenant. From completion, the property was let to Ashley & Pollock Limited (Co No. 8824298), Wyderington Limited (Co No. 08824157) and Parley Chase Limited (Co No. 08824179) together trading as Tower Supplies Limited. The property is let on a new 10-year Full Repairing and Insuring (FRI) lease (tenant break option in year five) on a stepped rent at £200,000 per annum year one (following an initial two-month rent-free period) rising to £250,000 year two, £300,000 year three and £350,000 per annum years four and five, with an open-market rent review thereafter. The vendor topped up the stepped rent to £350,000 (equating to £4.50 per sq ft) effectively providing a day one net initial yield of 7.5%. The purchase price equates to a low gross capital value of £57.00 per sq ft, significantly below replacement cost.

Jarman Way, Royston Industrial Estate, Royston, HertfordshireThe subject property comprises a purpose built industrial/warehouse building with ancillary offices constructed in 2008 to a high specification throughout, and is the UK headquarters for Bruel & Kjaer UK Ltd (5A1 Dunn & Bradstreet (D&B) Rated). The property is located on Royston’s main industrial area and extends to 57,330 sq ft. It is let to Bruel & Kjaer VTS Ltd on a FRI lease for a term

of 15 years from 9 May 2008 expiring 7 May 2023 (approximately eight years unexpired) at a rent of £473,648 per annum / £8.26 per sq ft. This is subject to five yearly upward only open-market-value rent reviews with the next being due in May 2018. The rent increased from £416,160 (£7.25 per sq ft) at the last rent review.

Arcus PortfolioA portfolio of four high street and three retail warehouse assets, all let to strong “household” covenants including Boots, Wickes, the Arcadia Group and JD Sports, providing the fund with a WAULT of 7.5 years to lease expiries and 7.3 years including tenant-break options. The portfolio has a strong South East bias, with 72% of the income derived from properties located in this region. All of the assets are located in prominent positions within strong retailing centres and are let to tenants reporting good trading performance. The purchase price of £36,100,000 generated an attractive ‘topped-up’ headline NIY of 7.2% contributing positively to the trust’s high and sustainable income return.

One 100, Road One, Winsford Industrial Estate, CheshireThe property comprises a recently refurbished industrial/distribution unit totalling around 103,586 sq ft located six miles from Junction 18 of the M6. The property is let to Howard Tenens (Winsford) Ltd for 10 years commencing 24 February 2015, at a rent of £336,723 per annum, equating to a low rate of £3.25 per sq ft. The lease is subject to an upward-only rent review in year five to the higher of RPI, collared at 2% and capped at 4% compounded, or open market rent. This provides the fund with a guaranteed rental reversion in February 2020 and with potential future rental growth prospects. The tenant benefited from a 15 month rent-free period that was topped up by the vendor via a deduction from the purchase price on completion. The purchase price of £4,785,000 reflected a headline NIY of 6.7%, rising to a minimum of 7.3% following the aforementioned fixed rental increase in 2020.

2 Charlotte Place, Southampton2 Charlotte Place comprises a Grade A town-centre office building, constructed in 2008, and provides 79,766 sq ft of accommodation over the ground and eight upper floors, with a generous city-centre car-park ratio of 1:643 sq ft. The property is multi-let to nine tenants, all of whom are in occupation, with a further 17,169 sq ft available to let on two floors. Charlotte Place is the only office building in Southampton city centre with any availability built within the last 10 years, with future speculative development considered unlikely in the short term. It is therefore well placed to benefit from the ongoing recovery in the occupational market. The purchase price of £14,902,828 reflected a headline NIY of 7.6%, inclusive of a vendor rent guarantee on the vacant accommodation. The investment proposition generated an attractive yield and capital-value profile when compared to other core South East city-centre office assets recently transacted on the open market.

Units 1-4 The Abacus 97-104 London Road BrightonThe property comprises part of a newly constructed property and includes four retail/leisure units providing 30,882 sq ft of accommodation located on Brighton’s London Road. It is situated below new student accommodation which has similarly recently completed but has been sold off to a third party. Three of the retail units have recently been let on long leases (10/15 years) and the final unit is under offer on a straight 10-year term. Interest has been strong in these units and the fund may be able to engineer a more profitable deal on the currently


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vacant unit. Notwithstanding this, the asset provides the fund with a relatively high day-one income yield (on expiry of current tenant incentives), secured for an average of 11.4 years, at rents which are reflective of the current market and offer scope for growth over the medium term. The purchase price of £6,376,582 reflected an attractive NIY of 6.6%, considered a discount to other similar well-let investment propositions currently being transacted on the open market.

Chelston Business Park, Wellington, SomersetThe property was constructed in 1990 and provides a GIA of 184,748 sq ft of industrial/warehouse accommodation. It is located on Chelston Business Park, approximately one mile north of Junction 26 of the M5 motorway. The property is let in its entirety to the Co-Operative Group Limited on an FRI lease for a term of 25 years from 26 September 1997, expiring 25 September 2022, at £785,775 per annum, equating to £4.35 per sq ft. The property was sub-let to Rigid Containers (3A1 D&B rated) on an FRI lease (subject to a Schedule of Condition) from 23 April 2013, expiring 26 June 2022 at £685,775 per annum, equating to a low rent of £3.75 per sq ft. The lease is guaranteed by VPK Packaging Group NV (5A1 D&B rated). Rigid Containers has invested heavily in its own mechanical and electrical installations (circa £12m) and has previously expressed interest in acquiring the unit, potentially providing an opportunity to secure a longer-term occupational commitment. The purchase price of £10,400,000 reflected an attractive NIY of 7.1% and equates to a low gross capital value of £60.00 per sq ft.

112/114 & 118/120 Promenade, CheltenhamThe property, an attractive Grade II listed building, occupies a prominent corner position on the Promenade in Cheltenham, the town’s premier retailing thoroughfare. The property was previously two retail units but has been reconfigured by LK Bennett Limited (under licence) to provide a single shop unit of 1,956 sq ft overall. The property is let in its entirety to LK Bennett on FRI terms for 15 years from 3 April 2003 (circa 2.75 years unexpired) at a passing rent of £199,300 per annum. The Promenade provides a high-end niche retail offer with shops including White Stuff, East, Reiss, Jack Wills, Hobbs, Whistles and Jigsaw. There are no vacant units on the Promenade. Adjacent retailers include Joules and Vinegar Hill. The price of £2,900,000 reflected an attractive NIY of 6.5%, providing an opportunity to realise a significant capital gain following lease restructuring pre/post lease expiry. For example, 156-160 High Street, let to Office Shoes for a further 9.75 years, sold for £3.7m in July 2015, reflecting a NIY of 4.5%.

27-29 Great George St, Clifton, BristolThe property is an attractive Grade II listed office building and provides 20,379 sq ft of accommodation across three interconnecting buildings. The property is located in an established office location close to Bristol city centre in the affluent suburb of Clifton. The property is situated on the south side of Great George Street and overlooks Brandon Hill Park. Terms have been agreed to buy the property from Rombourne Limited (D&B 4A1 rated) on the basis of a sale and leaseback. Rombourne Limited currently operates a serviced office business from the property (95% occupancy rate as at May 2015). From completion, the property will be let on a new 15-year, FRI lease at £400,000 per annum, equating to a low overall rent of £16.16 per sq ft (on the office accommodation), including £70,500 per annum generated by the car park. The property has an excellent town-centre car-parking ratio of 1:306 sq ft and generates £1,500 per surplus car parking space, after allowing for a ratio of 1:1,000 ft (i.e. 47 spaces providing a further £70,500 per annum). The rent is subject to a fixed uplift at the end of year five,

to £450,000 per annum (£18.62 per sq ft on the office accommodation) with an upward-only open-market rent review thereafter. The neighbouring property, 31 Great George Street, a modern office property of 54,626 sq ft (parking ratio of 1:993 sq ft), will undergo a comprehensive Grade A refurbishment at the end of 2015. The leasing agents, JLL, will quote between £23.00 and £25.00 per sq ft and already have significant interest. The purchase price of £6,518,000 reflected an attractive NIY of 5.8%, rising to 6.5% following the fixed rental increase in 2020. The asset is considered extremely liquid with consideration to location, covenant strength and lot size.

Maple PortfolioThe portfolio of six south-east industrial properties (five freehold and one long leasehold) comprises four multi-let industrial estates, a single let trade counter/ builder’s merchant and a multi-let open storage facility in Newhaven. Other locations include West Thurrock, Basildon, Crawley, Crowborough and Stevenage. 69% of the income is secured to ‘low risk’ D&B rated covenants. Tenants include Menzies Distribution, Cummins Limited, Virgin Media, CCF Limited (Travis & Perkins), CEMEX UK, and HSBC Bank. The total floor area is 252,094 sq ft (27,414.90 sq m) plus 25.8 acres of open storage land. Contractual income (less top-ups) comes to £2,075,528 per annum, with an estimated rental value (ERV) of £2,517,039 per annum. The average weighted unexpired lease term (AWULT) is 3.6 years to expiry and 2.1 years to breaks. The purchase price of £29,600,000 provided an attractive net initial yield of 7.4%, inclusive of a vendor rental top-up, with a reversion to 8.1% upon realisation of current ERV.

Digby PortfolioA portfolio of 9 south and south west industrial properties, of which six are freehold and three are long-leasehold interests, comprising eight multi-let industrial/trade counter estates (one of which includes 1.01 acres of storage land) in towns experiencing strong occupier demand including Eastleigh, Avonmouth, Christchurch, Poole, Bournemouth and Swindon and a single let distribution/Royal Mail sorting office in Chippenham. 48% of the income is secured to ‘Low Risk’ D&B Rated covenants. Tenants include; Kwik-Fit, Enterprise Rent A Car, Sanoh UK Manufacturing Ltd, ATS Euromaster and Euro Car Part Ltd. Total floor area of 389,317 sq ft (36,168.4 sq m) plus 1.01 acres of open storage land. The portfolio generates a total net income of £2,192,465 per annum inclusive of Escrow rent guarantee on 9 imminent new lease events.

The total estimated rental value is £2,402,089 per annum (net). The purchase price of £30,050,000 reflected an attractive headline net initial yield of 6.9% (inclusive of vendor rent ‘top-up’) and an attractive reversionary yield of 7.6% upon realisation of current ERV, and providing an AWULT of 4.26 years to expiry and 2.53 years to breaks.

Brambles House, WaterloovilleThe subject property, constructed 1992, provides 55,154 sq ft GIA of industrial/warehouse accommodation located on the established Waterlooville business park, approximately two miles west of the A3(M) motorway. The property is let in its entirety to Solab Group Ltd (2A1 D&B Rated) on an FRI lease for a term of 15 years from June 2011, generating £300,000 per annum equating to £5.50 per sq ft and is considered reversionary. There is a tenant-only option to terminate the lease on 16 December 2019, subject to six months’ prior written notice and rolling breaks thereafter (6 months’ notice). The tenant has been in occupation for 23 years and is considered unlikely to vacate in the short term. The purchase price of £3,435,000 reflected an attractive net initial yield of 8.3% with a reversion to 9.1% upon realisation of current estimated rental value and equated to a low gross capital value of £65 per sq ft.


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2015 sales included:The fund completed two sales over the period amounting to £34,255,194.

Ystwyth Retail Park, Park Avenue, Aberystwyth SY23 1PBThe trust agreed terms to sell Ystwyth Retail Park, Aberystwyth for £13,000,000, equating to a net initial yield of 6.3%. Ystwyth Retail Park is fully let to five tenants and benefits from an open A1 planning consent, but it is located in a market town in the far west of Wales with two other competing retail parks nearby and with limited catchment. The subject scheme comprises an L-shaped terrace of four retail warehouse units totalling 76,396 sq ft and anchored by a 15,021 sq ft Co-Operative Food store. Tesco is scheduled to open a 64,000 sq ft store opposite in 2016, which will have a considerable impact on the Co-Op store. The park is located directly opposite the proposed Mill Street retail development encompassing a Marks & Spencer and a Tesco supermarket (64,000 sq ft) which is anticipated to be in place by Christmas 2016. Tesco has confirmed that it remains committed to opening the planned new store in Aberystwyth. The most recent letting to Peacocks, post-CVA, suggests the four other units could be around 20% over-rented. The property was acquired by the fund in January 2014 for £10,825,000, equating to a net initial yield of 7.7%, and the sale therefore realised considerable upside on a property considered to have diminishing investment credentials.

Sale of investment in TPUTThe Threadneedle UK Property Trust (TUKPT) sold its entire holding in Threadneedle Property Unit Trust (TPUT), with a NAV of £20,147,103 (30 September 2015). TUKPT’s original strategic investment in TPUT enabled it to provide initial investors with exposure to a diversified and balanced portfolio of commercial real estate at a time when TUKPT was in its infancy.

TUKPT now has its own diverse direct commercial property portfolio with an NAV of £1.24bn (15 November 2015) and, subsequently, its investment in TPUT is no longer considered necessary. Strong investor demand for TPUT created an opportunity to trade the units on the secondary market at a significant premium to the bid price normally expected, i.e. a trade at approximately 5.5% above NAV as opposed to a 1.3% discount.

Directors’ StatementIn accordance with the requirements of the Financial Conduct Authority’s Collective Investment Schemes (COLL) Sourcebook, we hereby certify the Interim Report & Accounts on behalf of the Directors of Threadneedle Investment Services Limited.

D Jordison T N Gillbanks Director Director

18 December 2015


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Property Portfolio

Retail

Less than £1 million in ValuePrincipal

TenantsRental Income

per annumNext Rent

Review

Doncaster8 St Sepulchre GateLeasehold, mid-terrace retail unit with retail space on the ground floor and ancillary basement, first and second floors. Property totals 4,322 sq ft.

The Works Stores Limited £65,000 N/A

Hinckley14/16 Castle StreetFreehold mid-terrace two-storey building comprising two ground floor retail units and first floor ancillary accommodation. Property totals 4,301 sq ft.

PDSAHinckley (VE) Limited

£24,000£29,640

N/AN/A

Maidstone27 Week StreetFreehold three-storey terraced building arranged with retail sales on the ground floor and ancillary accommodation on the basement, first and second floors. Property totals 1,361 sq ft.

Thorntons Plc £46,700 N/A

Newport35/36 Commercial StreetFreehold, five-storey corner building comprising two retail units on the ground floor with ancillary basement and first floors and self-contained offices on second and third floors. Property totals 9,612 sq ft.

The Carphone Warehouse LimitedMonmouthshire Building Society

Tracey Stokes Whiting

£49,750£8,800

£20,000

N/A05/2018

N/A

Plymouth66/68 New George StreetLeasehold, three-storey mid terrace building with dual frontage onto New George Street & Cornwall Street. Comprising two retail units on the ground, with potential retail/restaurant and ancillary on the upper floors. Property totals 15,402 sq ft.

Poundland LimitedVacant

£200,000£0

11/2018N/A

Southampton83 & 85 Above Bar StreetFreehold, mid-terrace property split to provide two ground floor retail units within ancillary first and second floors. Property totals 3,837 sq ft.

SCC Transatlantic LimitedAmplifon UK Limited

£51,500£34,667

N/AN/A

Southport207/209 and 211/213 Lord StreetFreehold mid-terrace building comprising two ground floor units with three upper floors split into twelve residential flats. Property totals 2,656 sq ft excluding flats.

VacantDuvetco Limited

£0£20,000

N/A04/2019

Between £1 million and £2.5 million in Value

Principal Tenants

Rental Income per annum

Next Rent Review

Andover48/48a High StreetFreehold, terraced property over two floors with the ground floor split in to two retail units and first floor used as storage. Property totals 6,528 sq ft.

AG Retail Cards LimitedCosta Limited

£60,000£66,500

09/201702/2018

Barnstaple75 High StreetFreehold Grade II listed retail unit over ground and two upper floors, together with first and second floor maisonette with separate access from rear. The maisonette produces £2,585 per annum. Property totals 2,548 sq ft excluding maisonette.

Costa LimitedA Timothy & R J Timothy

£85,000£2,585

03/2016N/A

Bedford1-3 Silver StreetFreehold retail unit and upper floors totalling 8,619 sq ft. JD Sports Fashion Plc

Vacant £126,660

£0N/AN/A

Brentwood75 High StreetFreehold retail unit totalling 9,337 sq ft. Barclays Bank Plc £150,000 08/2016

9


Property Portfolio (continued)

Retail (continued)


Principal Tenants


Next Rent Review

Canterbury36/37 High StreetFreehold, period terraced property comprising two retail units. 36 High Street has retail sales space on ground and first floors with ancillary basement and second floors. 37 High Street has ground floor retail sales space with ancillary basement, first and second floors. Property totals 4,832 sq ft.

First Sport LimitedTreds Limited

£108,000£70,000

N/AN/A

Croydon85 North EndFreehold, terraced retail unit over three floors. Ground floor retail with ancillary first and second floors. Property totals 1,334 sq ft.

Everything Everywhere Limited £135,000 N/A

Eastbourne87/89 & 91 Terminus RoadFreehold, four-storey terraced property with retail on ground and basement and three residential units on first and second floors. Property totals 2,705 sq ft excluding residential.

Arcadia Group Limited £138,250 N/A

Glasgow102 Argyle StreetFreehold listed nineteenth-century building over two-storeys plus basement. Comprises corner retail unit with frontage to Argyle Street and Argyle Arcade, plus ancillary space above. Property totals 2,174 sq ft.

Hutchison 3G UK Limited £160,000 N/A

Glasgow109-113 Sauchiehall StreetFreehold terraced building with ground floor retail sales and ancillary accommodation to the 1st and 2nd floors. Property totals 3,586 sq ft.

Everything Everywhere Limited £111,500 N/A

Hounslow219-221 High StreetFreehold, four-storey terraced property with retail on ground and basement and two residential units on first and second floors. Property totals 5,422 sq ft excluding residential.

Sam 99p LimitedResidential

£120,000£21,600

N/AN/A

Glasgow102 Argyle Street

10



Retail (continued)


Principal Tenants


Next Rent Review

King’s Heath, Birmingham149-151 High StreetFreehold, mid-terrace retail unit with ground floor retail sales area and first floor storage. Property totals 8,988 sq ft.

Peacocks Stores Limited £140,000 N/A

Manchester24/26 King StreetFreehold mid-terrace period building providing retail accommodation on the ground floor with ancillary basement storage and three floors of recently refurbished office space above. Property totals 6,761 sq ft.

The Body Shop International £188,060 N/A

Newcastle-Under-Lyme 96 High StreetFreehold, four-storey corner property with ground floor retail space and ancillary basement, first and second floors. Property totals 33,044 sq ft.

99p Stores Limited £140,000 N/A

Nottingham1 Houndsgate & 2/4 Albert RoadFreehold corner retail unit with ground floor sales area and two ancillary upper floors and an unused former residential unit. Property totals 2,903 sq ft.

Vodafone £120,000 N/A

Romford105-111 South StreetFreehold, three-storey mid-terrace building comprising a ground and first floor bar and ancillary second floor. Property totals 11,752 sq ft.

Stonegate Pub Company Limited £178,400 12/2017

Staines95-99 High StreetFreehold, end terrace three-storey retail unit with ground floor retail sales area, first and second floor ancillary. Property totals 5,009 sq ft.

Poundland Limited £145,000 N/A

Sutton96 High StreetFreehold, two-storey terraced retail unit, ground floor retail space and first floor ancillary. Property totals 6,970 sq ft.

Vacant – Under Offer £0 N/A

Sutton151-153 High StreetFreehold three-storey building, providing two lock up shops on ground floor and two maisonettes on first and second floors. Property totals 1,305 sq ft excluding maisonettes.

Everything EverywhereGB Sweets (Sutton) Limited

Residential

£45,000£25,000£20,940

N/AN/AN/A

Between £2.5 million and £5 million in Value

Principal Tenants


Next Rent Review

Blackpool24-30 Victoria Street & 31-37 Corporation StreetFreehold, retail parade comprising seven two-storey retail units. Property totals 22,861 sq ft.

Various £417,024 Various

BreconBethel SquareFreehold, 17 retail units predominantly over two storeys, arranged 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.


11



Retail (continued)


Principal Tenants


Next Rent Review

Brentwood49 High StreetFreehold, terraced property over four floors, arranged as a ground floor retail unit with ancillary basement and first floors and three maisonettes on the first and second floor. Property totals 8,404 sq ft excluding maisonettes.

Superdrug Stores Plc £173,900 12/2015

Brentwood38 & 40-42 High StreetFreehold block of three High Street retail units, a kisk unit, upper floor offices and three flats.

Various £230,940 N/A

Brighton5-8 London RoadFreehold 1950s former department store, split into three retail units over ground, first and second floors. Property totals 27,684 sq ft.

Peacock’s Stores LimitedIceland Foods Limited

Poundland Limited

£87,000£87,650£90,000

N/A09/201710/2017

Chatham195/203 High StreetFreehold, two-storey corner retail unit. Ground floor retail space and first floor ancillary. Property totals 14,949 sq ft.

Burton/Dorothy Perkins Properties LimitedVision Express UK Limited

Holland & Barrett Retail LimitedCards Direct

£118,500£0

£48,470£35,000

N/AN/AN/AN/A

Cheltenham112/114 &118/120 PromenadeFreehold double corner retail unit totalling 1,956 sq ft. L K Bennet Limited £199,300 N/A

Chichester83/83a North StreetFreehold, terraced period property split into two retail units arranged as ground and first floor retail sales and second floor ancillary. Property totals 5,823 sq ft.

Mountain Warehouse LimitedClaire’s Accessories UK Limited

£152,500£75,000

05/2017N/A

Doncaster8-12 Frenchgate 1-4 & 6/6a BaxtergateFreehold, corner block of seven retail units. Ground floor retail with basement, first and second floor ancillary space. Property totals 23,600 sq ft.

Various £336,000 03/2017

DunfermlineNext 117-119 High StreetFreehold mid-terrace period property comprising two adjoining buildings with walls removed at ground and first floor to create a single retail unit. Over basement, ground and two upper floors. Totals 15,447 sq ft.

Next Group Plc £216,000 05/2016

Elgin1 & 2 Thunderton PlaceFreehold, detached property with ground and first floor retail sales, second and third floor ancillary space and car parking. Property totals 32,125 sq ft.

NBC Apparel (t/a TK Maxx)Poundstretcher Limited

£150,000£85,000

N/AN/A

12



Retail (continued)


Principal Tenants


Next Rent Review

Folkestone9-17 Sandgate Freehold, three-storey mid-terraced retail unit. The accommodation is split into ground floor sales with ancillary on the first floor, second floor and basement. The property totals 33,547 sq ft.

Wilkinsons Hardware Store Limited £250,000 N/A

Frimley25-39 and 50-62 High StreetFreehold. Three retail parades fronting onto Frimley High Street. Ground floor retail units with flats above. Property totals 9,978 sq ft.


Ipswich30-36 Tavern StreetFreehold. Four retail units arranged over basement ground and two upper floors. Grade II listed. Property totals 7,736 sq ft.

Norwich & Peterborough Building SocietyWhittard Trading Limited

Thomas Cook Limited

£141,500£40,000£70,000

N/AN/AN/A

London18, 76, 82 and 84 Golders Green RoadFreehold. Four non-contiguous retail units with flats above accessed to the rear. Property totals 5,682 sq ft.


Stevenage9-11 The Forum Freehold, two retail units constructed in 1975. Property totals 35,450 sq ft.

New Look Retailers Limited97p Store Limited

£280,000£40,000

12/201507/2019

Folkestone9-17 Sandgate

13



Retail (continued)

Over £5 million in ValuePrincipal


per annumNext Rent

Review

AccringtonBroadway & Market WalkFreehold, two terraced retail parades with a total of eleven purpose built retail units. Property totals 58,774 sq ft.


BrightonUnits 1-4, The AbacusLong Leasehold, terrace of four retail units over ground and basement totalling 30,882 sq ft.


Canterbury15-16 The Parade & 2 Rose LaneFreehold large retail unit over basement, ground and first floors with ancillary second floor totalling 10,125 sq ft.

Burtons/Dorothy Perkins (Arcadia Group Limited)

£400,000 N/A

Carmarthen15-23 Red Street & Units 1-4, 15 John StreetLeasehold, parade of nine retail units constructed in the 1970s. Predominantly arranged over ground and two upper floors. Property totals 39,465 sq ft.

Various £435,750 09/2019

Ipswich18/20/22 Tavern Street & 13-15/17/18-19 ButtermarketFreehold unbroken block of six retail units, three fronting Tavern Street and three fronting Buttermarket.Property totals 43,762 sq ft.


Maidenhead54-58 High Street Freehold large retail store over ground and three upper floors totalling 39,210 sq ft.

Boots UK Limited £420,000 09/2016

Nottingham1-8 Exchange Walk & 5-7 St Peters GateFreehold, parade of six retail units plus one retail unit on St Peters Gate. Each unit is generally over ground and first floors with two units having basements. Property totals 4,676 sq ft.


14




per annumNext Rent

Review

Reading 52/53 Broad StreetFreehold, The property is split into 3 retail units, 2 front onto Broad Street and 1 onto Friar Street at the rear. Property totals 30,963 sq ft (14,882 sq ft ITZA).

Lewis (Ayr) Limited £672,263 N/A

Watford125-133, The ParadeFreehold, three storey retail and leisure facility split into seven units constructed c.1960. Property totals 66,482 sq ft with small private car park.



Retail (continued)

Reading52/53 Broad Street

15



Retail Warehouse


Principal Tenants


Next Rent Review

DumfriesSt Michaels Bridge RoadFreehold, 1980’s built single storey detached retail warehouse unit. Property totals 15,393 sq ft.

Halfords Limited £192,479 N/A

Newark on Trent92-94 NorthgateFreehold, detached retail warehouse constructed in 1996. Property totals 8,304 sq ft.


WellingboroughVictoria Retail ParkFreehold, L–shaped detached single storey purpose built retail warehouse. Property totals 9,169 sq ft.


Winnersh612 Reading Road Freehold modern retail warehouse with mezzanine sales and storage area installed by the tenant. Externally there are 34 parking spaces. Property totals 7,357 sq ft.

Halfords Limited £127,364 06/2016


Principal Tenants


Next Rent Review

Bedford532 Goldlington RoadFreehold retail warehouse constructed in late 1990s. Externally there are 142 parking spaces. Property totals 43,306 sq ft.

Go Outdoors Limited £350,000 05/2015(O/S)

CromerNorth Norfolk Retail ParkFreehold terrace of three retail warehouse units constructed in 2002. The accommodation is at ground floor level and there is external parking. Property totals 24,755 sq ft.

Argos LimitedHalfords Limited

Hughes Electrical LimitedCarpetright Plc

£130,000£81,345£56,696£81,548

N/A06/1906/16

N/A

DarlingtonHaughton Road Retail ParkTwo freehold detached retail warehouse units, constructed in 1994. Externally there are 145 parking spaces. Property totals 37,994 sq ft.

Wickes Building Supplies LimitedNetto Foodstores Limited

£247,019£116,925

N/AN/A

CromerNorth Norfolk Retail Park

16



Retail Warehouse (continued)


Principal Tenants


Next Rent Review

GloucesterGo Outdoors, 98-108 Barton StreetFreehold standalone modern retail warehouse unit totalling 41,692 sq ft with further outdoor sales area of 12,304 sq ft, together with 185 parking spaces.

Go Outdoors Limited £325,000 07/2020

NuneatonNewtown RoadFreehold retail warehouse, built in the late 1980s. Externally there is parking for 68 cars. Property totals 13,157 sq ft.


Preston1&2 Mariners WayLeasehold terrace of two retail warehouse units, constructed in 1997. Externally there are 60 car parking spaces. Property totals 15,023 sq ft.

Pets at Home LimitedHalfords Limited

£154,220£153,750

03/201703/2017

Slough380 Bath RoadFreehold retail warehouse built in the late 1980s. A mezzanine sales and storage area has been installed by the tenant. Externally, there is parking for 53 cars. Property totals 11,550 sq ft.


SouthamptonGo Outdoors Limited, Third AvenueFreehold. Detached solus retail warehouse constructed in the 1980s. Ground floor sales with first floor ancillary space, totals 36,735 sq ft.

Go Outdoors Limited £350,000 N/A

Sutton in AshfieldForest Retail ParkFreehold three unit retail warehouse scheme, one single detached unit and a terrace of two units, constructed in 2002. Externally there are 48 parking spaces. Property totals 15,236 sq ft.

Frozen Value LimitedBrantano (UK) Limited

Halfords Limited

£37,000 £76,000

£105,000

N/A N/AN/A

Stevenage Unit 11, The Forum Shopping Park, Fairlands Way Freehold modern standalone retail warehouse unit totalling 17,642 sq ft together with 48 parking spaces.

Staples UK Limited £258,126 09/2019

Wrexham36 Mount StreetFreehold retail warehouse, built in the early 1990s totalling 14,955 sq ft. A mezzanine sales and storage area has been installed by the tenant. There are 75 car spaces.


PrestonUnits 1&2, Mariners Way

17






per annumNext Rent

Review

BanburyThe Calthorpe CentreA purpose built supermarket divided to provide three independent retail units and two detached period office buildings together with a car park. Property totals 49,185 sq ft.


BlackwoodBlackwood Retail ParkFreehold. Terrace of six retail units with two standalone pods. Constructed in 2002. Property totals 46,789 sq ft.


CoventryMatalan Wheeler RoadFreehold. Two bay retail warehouse built in 1986. Ground floor sales with tenant fitted mezzanine used for storage. Property totals 36,323 sq ft with 203 car parking spaces.

Matalan Retail Limited £545,850 12/2015

CoventryUnit 2, Radford RoadFreehold purpose built solus retail warehouse unit totalling 33,997 sq ft with 108 parking spaces.

Wickes Building Supplies Limited £452,250 03/2017

DoncasterThe Range, York RoadFreehold, purpose built standalone retail warehouse unit, constructed circa 1985. The property totals 86,471 sq ft.

CDS (Superstores International) Limited £550,000 N/A

FarehamSouthampton Road Retail ParkFreehold property comprising two retail warehouse units constructed in the 1980s. The combined total area is 66,538 sq ft with an additional mezzanine level creating 77,421 sq ft in total.

Argos LimitedDunelm (Soft Furnishings) Limited

£492,265£336,450

12/201603/2016

HolyheadHolyhead Retail ParkFreehold retail warehouse park, built in 2005. The park is 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.


DoncasterThe Range

18






per annumNext Rent

Review

LlandudnoB&QLeasehold single detached retail warehouse unit. Property totals 38,991 sq ft.

B&Q Plc £484,875 N/A

RedditchWashford Retail ParkFreehold, Modern trade counter/retail park of ten units constructed in 2006. Two terraces, a semi-detached and two standalone units. Property totals 41,114 sq ft.


RochdaleSt Mary’s GateFreehold retail warehouse, constructed in late 1980s. The property is currently split into two units. Externally there are 262 parking spaces. Property totals 46,509 sq ft.

Homebase Limited £400,000 06/2019

StaffordGreyfriars PlaceFreehold, modern standalone purpose built retail warehouse with an external garden centre to the rear. Property totals 36,484 sq ft.

Homebase Limited £457,850 08/2018

StevenageStevenage Retail ParkFreehold, seven single storey retail warehouse units. Total of 241 car parking spaces. Property totals 56,175 sq ft.

Various £1,132,002 Various

SunderlandThe RangeFreehold, detached retail warehouse unit constructed in 2001. Arranged over ground floor with mezzanine storage area. Customer car park provides 220 car parking spaces. Property totals 43,211 sq ft.

CDS (Superstores) Limited t/a The Range £518,436 11/2016

TauntonSt John’s Retail ParkFreehold, two purpose built retail warehouse units constructed in 2001. Arranged over ground floor and mezzanine level. 199 car parking spaces. 40,184 sq ft.

DFS Furniture Company LimitedGo Outdoors Limited

£275,000£250,000

12/2016N/A

TorquayBridge Street Retail ParkFreehold, 3 purpose built retail warehouse units and a detached retail unit with A3 consent. Property totals 43,514 sq ft with 205 car parking spaces.

Staples UK LimitedPets at Home Limited

Dunelm (Soft Furnishings) LimitedMcDonalds Restaurants Limited

£359,534£191,376£400,000

£89,200

09/201609/201606/202006/2020

StaffordHomebase, Greyfriars Place

StevenageStevenage Retail Park

19



Offices

Between £1 million and £2.5 million

Principal Tenants


Next Rent Review

StirlingLaurel HouseFreehold purpose built office block constructed in the 1980s. Over two storeys together with basement level car parking. Property totals 15,014 sq ft.

Bank of Scotland PlcScottish Enterprise Plc

Target Advisors LLP

£46,900£182,250

£0

N/AN/AN/A

RomfordRedwing Court Business CentreFreehold purpose built modern business centre over two storeys with car parking totalling 12,192 sq ft.


West BromwichChristchurch HouseFreehold detached office building constructed in 1995. Externally there are 102 parking spaces. Property totals 25,577 sq ft.

The Secretary of State for Communities & Local Government

£300,000 N/A


Principal Tenants


Next Rent Review

Bristol715 Aztec WestFreehold two storey modern office building on an established business park totalling 17,630 sq ft.

Imagination Technologies Limited.Vacant

£63,420£0

N/AN/A

GlasgowAllan HouseFreehold, grade B Listed office building comprising basement and ground floor restaurant and four upper floors of office space. Property totals 24,305 sq ft

Blackhouse Restaurants LimitedScott – MoncrieffMcBains Cooper

Vacant

£147,000£169,278

£0

N/AN/AN/A

GlasgowAllan House

20



Offices (continued)


Principal Tenants


Next Rent Review

HeathrowPrincess HouseFreehold office building constructed in 1998, arranged over ground, first and second floors. Externally there are 33 parking spaces. Property totals 9,612 sq ft.

Securicor ADI Group Limited £264,880 09/2018

Hemel Hempstead Grovelands Freehold campus of three two storey office blocks and car parking totalling 33,887 sq ft.


NottinghamJohn Webster HouseFreehold office building constructed in 2005. Externally there are 60 parking spaces. Property totals 15,187 sq ft.

Centres for Assisted Reproduction Limited

£240,867 12/2015

QuintonNo 9 Quinton Business ParkLong leasehold, three storey office building constructed in 2006. 132 external parking spaces. Property totals 27,809 sq ft.

Independent Police Complaints CommissionHealth and Safety Executive

£262,523£137,913

N/A04/2017

Welwyn Garden City Inspira House Freehold two storey office building and car parking totalling 24,171 sq ft.

Alstom Transport UK Limited £325,762 N/A

WorcesterOne Kings CourtFreehold, standalone three storey modern office building in out of town location. Property totals 31,504 sq ft with 80 car parking spaces.


21



Offices (continued)



per annumNext Rent

Review

BrentwoodCountryside HouseFreehold, detached office building arranged on ground and two upper floors. There are 178 parking spaces externally and at basement level. Property totals 36,564 sq ft.

Countryside Properties (UK) Limited £735,720 N/A

Bristol600-650 Aztec WestFreehold, two detached office buildings over ground and first floor with parking areas. Property totals 25,143 sq ft.

Co-operative Legal Services LimitedTaylor Wimpey UK Limited

£237,064£228,000

N/AN/A

Bristol930 Aztec WestFreehold, detached L shaped office building constructed in 2008 over ground and two upper floors. Externally there are 122 parking spaces. Property totals 30,171 sq ft.

Nvidia Technology UK Limited £561,058 N/A

Bristol27-29 Great George StreetFreehold converted period office building over basement lower ground, ground and three upper floors, totalling 20,379 sq ft.

Rombourne Limited £400,000 09/2025

BristolQueen Square HouseLeasehold, grade II listed office building, the property has been extended to comprise open plan office accommodation to the rear, whilst retaining the traditional frontage to Queen Square. Offices over ground, 1st, 2nd and 3rd floors with 11 car parking spaces in the basement. Property totals 35,961 sq ft.


Cardiff24 Cathedral RoadFreehold purpose built office block constructed in late 1970s linked to a converted Victorian town house. Converted Victorian coach house provides additional office accommodation. The property was refurbished internally in 2008 and has 59 surface and under-croft car parking spaces. Property totals 24,305 sq ft.

Auditor General for Wales £382,000 03/2018

ChelmsfordOne Legg StreetFreehold, an office building constructed in 1991 that 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.


Bristol600-650 Aztec West

BristolQueen Square House

22



Offices (continued)



per annumNext Rent

Review

Crawley1 Forest GateFreehold, detached office building constructed in 1993. Arranged over ground and two upper floors. There is external car parking totalling 126 spaces. Property totals 25,127 sq ft.

KPMG LLP £568,570 06/2018

EghamAxon CentreFreehold, detached purpose built office block constructed in 1999 over three-storeys. Externally there are 107 parking spaces. Property totals 25,102 sq ft.

Axon Solutions Limited £692,874 N/A

Fareham Eagle Point, SegensworthFreehold, detached three storey office building built in 2004. Externally there are 109 parking spaces. Property totals 29,570 sq ft.

Skills Funding Agency Geest Line Limited Lorne Stewart Plc

Portland Business and Financial Solutions Limited

£285,500£60,000£24,850£58,128

N/A04/2016

N/AN/A

Harefield Salamander Quay Freehold modern office complex of two three storey blocks in a waterside setting with car parking. Property totals 33,372 sq ft.


Hemel HempsteadHemel One Freehold, detached office building arranged over ground and three upper floors constructed in the 1980s. There are 434 car parking spaces externally. Property totals 93,717 sq ft.


HestonThe Square Freehold, office campus of three two storey office buildings and car parking totalling 69,522 sq ft.


Crawley1 Forest Gate

EghamAxon Centre

23



Offices (continued)



per annumNext Rent

Review

High WycombePeregrine Business Park Freehold, six well specified detached two-storey office buildings in a business park environment. Property totals 46,990 sq ft.


LangleyThe CurveFreehold detached modern office building totalling 41,228 sq ft with car parking.


LondonOne Long LaneFreehold, self-contained office building arranged over basement ground and five upper floors. The property totals 23,781 sq ft.

BarnardosVacant

£49,500£0

N/AN/A

Milton KeynesAvebury HouseFreehold, four storey detached office building split into two wings. The property totals 32,796 sq ft with 50 car parking spaces.


Milton KeynesRegus Business CentreFreehold Grade A office building constructed in 2000 and arranged over three floors. The property holds a BREEAM ‘Excellent’ rating. Externally there are 133 parking spaces. Property totals 33,741 sq ft.

Milton Keynes Atterbury Lakes Centre Limited

£685,397 08/2016

High WycombePeregrine Business Park

Milton KeynesAvebury House

24



Offices (continued)



per annumNext Rent

Review

Nottingham31-35 Park RowFreehold, terrace of three self-contained office buildings constructed in 1988. Arranged over ground and four upper floors. Property totals 52,638 sq ft.

KPMG LLP Lloyds TSB Bank Plc

Executive Communications Limited

£236,000£138,538£306,600

N/AN/AN/A

RedhillBetchworth HouseFreehold, detached ‘L’ shaped office building constructed in 1983. The property is over four floors, totalling 32,023 sq ft. Externally 89 car parking spaces.


Southampton2 Charlotte PlaceFreehold multi-let modern office block over ground and eight upper floors totalling 79,766 sq ft together with 88 basement car parking spaces.


StainesRourke HouseFreehold three-storey detached office building constructed in 1991. Externally there are 16 parking spaces. Property totals 22,430 sq ft.

Shell UK Limited £492,508 N/A

StainesViewpointFreehold, detached multi-let office building over ground and three upper floors. Property totals 34,540 sq ft.

Del Monte Europe LimitedElior UK Limited

Airport Co-ordinationVacant

£392,000£0

£38,000£0

N/AN/AN/AN/A

StainesViewpoint

Nottingham31-35 Park Row

25




per annumNext Rent

Review

St AlbansBricket HouseFreehold purpose built office block constructed in 1980s. There are 25 ground floor parking spaces. Property totals 26,382 sq ft.

PwC Services LimitedBDRC Continental Limited

Pharmathen UK Limited

£351,740£117,928

£67,072

N/AN/AN/A

St Albans45 Grosvenor RoadFreehold, office building constructed in 1993 arranged over three floors in two wings. Property totals 62,268 sq ft.

The Secretary of State for Communities & Local Government.

£940,705 N/A

Waltham CrossQueensgate StreetFreehold modern office park of three buildings totalling 58,957sq ft with car parking.


WatfordThe Belfry Business ParkFreehold. Five purpose built 1980s office buildings arranged around central landscaped courtyard. Property totals 66,294 sq ft with 198 car parking spaces.


WatfordCSB House 28 Clarendon RoadLeasehold office building over ground and four upper floors. Property totals 19,826 sq ft.

Bromark LimitedAspire Achieve Advance Limited

Mace Macro Limited

£0£82,928£98,328

N/AN/AN/A


Offices (continued)

St AlbansBricket House

WatfordCSB House

26



Principal Tenants


Next Rent Review

Highcliffe-on-Sea309/311 Lymington RoadFreehold. 1970s built large retail unit of steel framed construction. Ground floor retail and first floor ancillary space. Totals 10,574 sq ft.

Somerfield Stores Limited £147,097 N/A

Lydney (Chepstow)Hanley HouseFreehold 1980’s single storey detached supermarket unit. Internally, the property comprises sales area, stockroom, staff quarters, food preparation area and plant areas. External areas comprise car parking and goods reception. Property totals 14,670 sq ft.

The Co-operative Group Limited £170,094 N/A

MansfieldVictoria Street, ShirebrookFreehold detached purpose built supermarket constructed circa 1987. Ground floor comprises retail area, preparation areas, warehouse, and offices. First floor provides additional offices and staff ancillary areas. Property totals 12,954 sq ft.

The Co-operative Group Limited £141,675 N/A


Principal Tenants


Next Rent Review

ChepstowThomas StreetFreehold. Purpose built supermarket. Property Totals 20,454 sq ft

Marks and Spencer Plc £286,650 04/2019



per annumNext Rent

Review

BoscombeThe Former Superstore, Sovereign CentreFreehold. Former Safeway supermarket located in The Sovereign Centre. Divided into two sublet retail units. Ground and first floor levels. Totals 50,235 sq ft.

Safeway Stores Limited £454,500 N/A


Supermarket

27



Industrial


Principal Tenants


Next Rent Review

AvonmouthUnits 1-10 PolygonLong leasehold, mid-1980s built estate of ten industrial units arranged in two terraces with a central yard and car parking area. Property totals 23,259 sq ft. 1 unit is currently vacant.


BirminghamLand on North East side of Tilton RoadFreehold late 1980s distribution warehouse building with a good sized yard. Property totals 34,281 sq ft.

LTS Distribution Limited £162,300 N/A

Bourne End1-3 Wessex RoadFreehold terrace of three 1980s industrial warehouse buildings with integral two-storey office pods to the front. Property totals 23,955 sq ft. 1 Wessex Road is currently vacant.

Brand International Group LimitedFromm Packaging Limited

Jewelcity Limited

£52,000£50,000£56,000

N/AN/AN/A

BridgendBooker UnitFreehold detached cash and carry warehouse with yard and car parking areas. Property totals 38,656 sq ft.

Booker Limited £115,000 04/2016

ChippenhamWessex Business CentreLong leasehold, detached warehouse building constructed in the 1980s. Includes integral two storey office block to the front. Property totals 15,678 sq ft.

Royal Mail Group Limited £112,500 N/A

CleckheatonUnit D3, West 26 Business Park, Whitehall RoadFreehold modern detached single-storey warehouse with two-storey office block to the front together with concrete yard area and car parking. Property totals 23,479 sq ft.

Rhenus Logistics Limited £110,500 N/A

CrowboroughApril Court Sybron WayFreehold, 1980s built industrial complex comprising 16 units with a total floor area of 31,410 sq ft. Generally configured with ground floor industrial / trade counter space and office accommodation at first floor level.


Leeds22 Brown Lane WestFreehold terrace of four single storey warehouse / storage units constructed in the 1960s and 1970s. Property totals 27,727 sq ft.

Jewson Limited £165,612 N/A

28



Industrial (continued)


Principal Tenants


Next Rent Review

Portsmouth Magnet Fitzherbert RoadFreehold, detached industrial unit. Property totals 9,994 sq ft. Magnet Limited £72,000 12/2015

SheffieldUnit 1, Thorncliffe Distribution Centre, Brookdale RoadFreehold late 1980’s single storey detached warehouse incorporating two storey offices together with concrete service yard and car parking areas. Property totals 21,080 sq ft.

ZAPP (GB) Limited £92,500 N/A

StevenageUnit 11, Babbage RoadFreehold, standalone single storey warehouse with adjoining brick built office building. External yard with customer parking area. Property totals 17,023 sq ft.

CCF Limited £93,346 02/2020

TewkesburyUnit 11 Tewkesbury Business ParkFreehold, detached 1980’s portal frame warehouse with office accommodation to the front. Property totals 18,030 sq ft.

TRL Technology Limited £120,000 N/A


Principal Tenants


Next Rent Review

BasildonEssex Auto, Festival Business ParkFreehold, modern warehouse unit with ancillary offices at ground and first floor level. Property totals 34,574 sq ft.

Essex Auto Group Limited £226,276 N/A

BasildonWollaston Industrial EstateFreehold, large multi-let industrial estate, various unit sizes and types. Let on a mixture of leaseholds and long leaseholds. Property totals 176,727 sq ft.


PortsmouthMagnet Unit, Fitzherbert Rd

29



Principal Tenants


Next Rent Review

Bristol6020 G Park, AvonmouthFreehold detached distribution warehouse constructed in 2003 on 2.8 acre site. Property totals 51,053 sq ft, including ancillary offices.

Macfarlane Group UK Limited £306,500 04/2018

BlackpoolBlackpool Trade Park Vicarage LaneFreehold, six standalone ‘Trade Counter’ units. Predominantly arranged over ground floor with some mezzanines. Property totals 26,325 sq ft.


BournemouthUnit 1-26 Elliott RoadFreehold, 26 unit industrial estate arranged in four terraces. Property totals 30,457 sq ft. 4 of the units are currently undergoing refurbishment.


BromsgroveAston Fields Trading EstateLong leasehold, 20 industrial units arranged in two terraces constructed in the 1980s. Property totals 59,621 sq ft.




BromsgroveAston Fields Trading Estate

30





Principal Tenants


Next Rent Review

ByfleetUnits A, B & C 120 OysterFreehold, three ‘Trade Counter’ industrial units. Property totals 20,540 sq ft.

Multi-Tile LimitedPutney Builders Merchant LimitedAlloway Timber (Southern) Limited

£85,656£44,000£66,750

03/202206/201606/2016

ChesterCalder Phase IILong leasehold, two modern industrial warehouse units with yard and car parking areas totalling 40,275 sq ft.

Calder Industrial Materials LimitedRybrook Cars Limited

£141,912£45,500

08/2020N/A

ChristchurchUnits 1-10 AirfieldFreehold, ten industrial units constructed in mid-1980s. Each unit has small office block and a tarmacadam forecourt. Property totals 46,463 sq ft.

Coastline Produce Limited (multiple leases)Kwik Fit Properties Limited

Talbot Frozen FoodsEuro Car Parts

£177,250£25,600£24,500£56,500

Various 01/2019

N/A04/2020

CrawleyLloyd’s Court ManorFreehold estate of 20 units with a mixture of warehousing, workshop space & office accommodation. Comprises two phases constructed in 1950s and 1985. Property totals 50,585 sq ft.


EastleighRenown, Trafalgar, SchoolFreehold, three non-contiguous industrial units within Chandlers Ford Industrial Estate. Constructed in mid or late 1980s. Property totals 35,172 sq ft.

Nutland Carpet Accessories LimitedStewart Signs Limited

Easystands Limited

£91,500£87,500£67,500

N/A01/2019

N/A

FarehamPalmer and Harvey, Crompton WayLeasehold, detached warehouse unit with ancillary two storey office accommodation to the front. The property totals 40,311 sq ft.

P&H (1925) Limited £259,749 N/A

ByfleetUnits A, B, & C, 120 Oyster

31





Principal Tenants


Next Rent Review

Glasgow300 Crownpoint RoadFreehold industrial unit split into three units, one with two storey office accommodation to the front. Property totals 89,387 sq ft.

Saint-Gobain Building Distribution £286,246 N/A

GlasgowYodel 4 Rosehall RoadFreehold (Scottish equivalent) industrial warehouse unit constructed circa 1990s. Property totals 53,785 sq ft.

Yodel Delivery Network Limited £275,000 N/A

LondonGolden Business ParkLeasehold, detached industrial unit. Property totals 21,503 sq ft. Federal Express UK Limited £191,169 N/A

MiddletonPlot C Touchet Hall RoadFreehold. Purpose built warehouse unit constructed in 1991 with car parking to the front and loading yard at the rear. Property totals 64,265 sq ft.

Booker Limited £0 02/2020

NewburyUnits A&B, 6 Hambridge LaneFreehold industrial warehouse constructed in mid 1980s, with yard. Property totals 50,214 sq ft.

Geopost UK Limited £314,238 N/A

North ShieldsWest Chirton Industrial EstateFreehold, six detached and hree terraced industrial units constructed in the 1980s. Mixture of dedicated and shared service and car parking areas. Property totals 110,619 sq ft.


PooleD’Oriel House Halton RoadFreehold, large detached mid-1980s built warehouse unit with integral two storey offices to the front. Property totals 76,413 sq ft.

Tower Supplies Limited £200,000 06/2020

RomfordUnits 2-6, King George CloseFreehold, industrial warehouse units. Property totals 35,741 sq ft. Howden Joinery Properties Limited

BSS Group plc£118,500£144,907

N/AN/A

SheffieldParkway One Business CentreFreehold, detached modern warehouse unit with two storey offices. Property totals 60,658 sq ft.

Mawdsley Brooks & Co Limited £288,400 09/2018

GlasgowYodel 4 Rosehall Road

32






per annumNext Rent

Review

Avonmouth, BristolIO Centre, Cabot ParkFreehold terrace of three modern industrial units within a spacious landscaped environment. Property totals 104,340 sq ft.


AylesfordLarkfield Mill Industrial EstateFreehold multi-let industrial estate of nine units with one sold off long leasehold. Property totals 318,194 sq ft.


BasildonBakers Court Industrial EstateFreehold multi-let industrial/trade counter estate of 22 units totalling 68,260 sq ft.



Principal Tenants


Next Rent Review

StroudUnits 10-15 Stonehouse Industrial EstateFreehold, a terrace of six industrial units. Varying in size, each has ancillary office accommodation and parking to the front. Property totals 39,041 sq ft.


SuttonSutton Trade ParkFreehold, three ‘trade counter’ industrial units. Property totals 14,671 sq ft.

Screwfix Direct LimitedBoyden & Co Limited

Angel Plastics Limited

£72,663£63,024£61,738

N/AN/AN/A

SwanleyMoreton Industrial EstateLeasehold, terrace of three industrial units built in the late 1970s. The property totals 27,221. Externally there are 47 car parking spaces.

Palco Industries LimitedKeyboard Print Solutions Limited

West House Transport Limited

£61,675£60,615£66,150

01/201911/2015

N/A

SwindonCheney Manor Industrial EstateFreehold, seven modern industrial units arranged in two terraces and a standalone unit. Property totals 38,773 sq ft. Each unit has 8 car parking spaces to the front.


ThornburyThe Hemingway Business CentreLeasehold, 15 light industrial units arranged in three terraces, constructed in the early 1970s. Primarily provide ground floor warehouse accommodation with ancillary office blocks. Property totals 68,672 sq ft.


ThornburyUnits 17-30 Thornbury Industrial EstateLong leasehold, 14 industrial units of varying age located throughout Thornbury Industrial Estate. Property totals 57,546 sq ft.


WaterloovilleBrambles House, Waterberry DriveLeasehold, detached industrial warehouse building constructed in 1992 totalling 55,154 sq ft.

Solab Group Limited £300,000 06/2016

WellingboroughUnits D-F, Whittle CloseFreehold, three detached industrial warehouse units, all with two storey offices. The property totals 58,940 sq ft. Externally there are 58 car parking spaces.

Ray Mallock Limited £161,836 N/A

33






per annumNext Rent

Review

CanterburyUnits 1-8 Wincheap Trade ParkLeasehold Trade Park, comprising nine units, built during the 1970s. Property totals 69,893 sq ft.


DunstableAB Inbev, Chiltern Park Freehold modern two bay warehouse constructed in the early 1990s and extended in 1998. Property totals 116,467 sq ft.

AB Inbev UK Limited £698,000 N/A

EllandLowfields Business ParkDetached warehouse unit with ancillary two storey office accommodation to the front. Property totals 40,311 sq ft.

Sungard Availability Services (UK) LimitedVacant

£231,700£0

09/2016N/A

EllandLowfields Business Park

DunstableAB Inbev, Chiltern Park

34






per annumNext Rent

Review

GuildfordThe Rock & The HubLeasehold industrial estate comprising two modern detached warehouses, one containing three mezzanine levels (The Rock) and the other two mezzanine levels (The Hub). Externally there are 70 parking spaces. Property totals 52,684 sq ft.

Snow & Rock Limited £457,000 N/A

HarlowUnits 1 & 2, Temple House Freehold, two detached industrial warehouse units constructed in the early 1970s. Property total 177,696 sq ft.

Westex LimitedMorplan Limited

£541,500£250,000

N/AN/A

Milton KeynesGranby Industrial and Trade ParkFreehold multi-let industrial estate of 24 units totalling 147,374. Various £676,860 Various

Milton KeynesSaxon ParkFreehold, industrial estate totalling 127,008 sq ft providing 12 units arranged in four terraces.


NewhavenNorth QuayLong leasehold, open storage estate with operational wharfage access comprising 15 plots of various sizes. Property has a total area of 38.13 acres.


NottinghamPhase 1&2, Easter ParkFreehold, arranged as four terraces of industrial units and three detached units, total of 19 units, 2 have been sold off on a long leasehold basis. The total floor area of the 17 retained units is 145,114 sq ft.


NottinghamPhase 1&2, Easter Park

GuildfordThe Rock & The Hub

35






per annumNext Rent

Review

PooleNursery Scheme 1& 2 and storage landFreehold, 28 industrial units split into two phases and 6 terraces. Phase 1 was constructed in 1970s and Phase 2 in 1980s. Total floor area of 101,768 sq ft. Two units are currently vacant. Property includes storage land adjacent to Nursery scheme 2 with an area of 1 acre.


PooleWessex Trade CentreFreehold industrial estate of thirty three units constructed in eight terraces with yard and car parking areas. Property totals 94,091 sq ft.


RedditchUnit 3, Arrow ValleyFreehold, new build trade counter/distribution unit of two-bay steel portal frame construction with integral two storey offices. Property totals 140,308 sq ft.

Toolstation Limited £736,617 10/2018

RoystonBruel & Kajer Jarman WayFreehold, purpose built industrial warehouse unit constructed in 2008 with ancillary office arranged over three floors. Property totals 57,330 sq ft.

Bruel & Kjaer VTS Limited £473,648 05/2018

TreforestParc NantgarwFreehold, two detached industrial warehouse units constructed in the early 1990s. Arranged over ground floor with two storey office accommodation. Property totals 75,056 sq ft.

General Motor Acceptance Corporation (UK) plc

Doosan International UK Limited

£273,778£142,500

06/18N/A

WellingtonRigid Containers Unit, Chelston Business parkFreehold, standalone distribution warehouse built in 1990 with a total floor area of 184,748 sq ft. Includes a two storey ancillary office block and a large bitumen surfaced yard.

The Co-operative Group Limited £785,775 09/2017

West ThurrockUnits E3, E4 & W1Freehold, 3 purpose built light industrial/warehouse units constructed in 1980s with a total floor area of 102,340 sq ft.

Agility Logistics LimitedCummins Limited

Menzies Distribution Limited

£437,992 N/AN/AN/A

36




per annumNext Rent

Review

WiganSouth Lancs Industrial EstateFreehold, two non-contiguous industrial units, with Unit 2 and a development site located at the south eastern end of Lockett Road with Unit 7 located where it re-joins Bryn Road to the north. Property totals 239,429 sq ft.

Chemviron Carbon LimitedSCA Hygiene Products UK Limited

Development Plot

£85,000£683,530

£0

N/AN/AN/A

WinsfordOne 100 Road OneFreehold, standalone industrial unit with yard and car parking spaces to the front. Constructed in 1977 the unit has 2 x two storey integral block built offices. Property totals 103,586 sq ft.

Howard Tenens (Winsford) Limited £0 02/2025



WiganSouth Lancs Industrial Estate

37




per annumNext Rent

Review

HarpendenHarpenden EstateFreehold, mixed use island site extending to approximately 1.142 acres. The property comprises of 29 retail units and four main blocks of residential units together with some office accommodation.



Retail/Residential

HarpendenHarpenden Estate

38



Principal Tenants


Next Rent Review

StourbridgeStratstone JaguarFreehold, purpose built car showroom with workshop, car preparation and car display areas, totalling 13,800 sq ft.

Pendragon Property Holdings Limited £144,909 04/2019

Weston Super MareMercedes Benz, Bridge RoadFreehold modern car showroom facility comprising ground floor showroom areas together with first floor offices, workshops, service bays and parts storage areas. Externally there are forecourt display areas together with customer parking bays and a secure vehicle compound. Property totals 14,048 sq ft.

Cruickshank Motors Limited £181,025 N/A


Car Showroom

StourbridgeStratstone Jaguar

39



Principal Tenants


Next Rent Review

BuryStratstone Land RoverFreehold, purpose built car showroom with workshop, car preparation and car display areas, totalling 16,854 sq ft.

Vertu Motors (Property) Limited £197,077 04/2019

DoncasterStratstone Land RoverFreehold, purpose built car showroom with workshop, car preparation and car display areas, totalling 16,960 sq ft.

Pendragon Property Holdings Limited £208,669 04/2019



per annumNext Rent

Review

ExeterUnits 1a, 1b & 9 Marsh Barton RoadFreehold, three warehouse/‘trade counter’ units, dating from the 1950’s onwards, arranged as two buildings on a triangular site divided by a no through access road, Filmer Way. Property totals 113,986 sq ft.

Stoneman & Bowker LimitedInter-line (South West) LimitedVospers Motor House Limited

£0£118,000£254,000

N/A05/2017

N/A


Car Showroom (continued)

DoncasterStratstone Land Rover

BuryStratstone Land Rover

40



Petrol Station


Principal Tenants


Next Rent Review

CardiffCardiff Gate Motorway ServicesLong Leasehold, 125 years from 12 August 1996 at a peppercorn rent (108 years unexpired). The property comprises a ‘Shell Select’ petrol filling station and ‘Deli2go’ convenience store, there are 17 petrol pumps. The property totals 0.36 ha (0.9 acres).

Shell Service Station Properties Limited £243,340 N/A

CardiffCardiff Gate Motorway Services

41




per annumNext Rent

Review

BraintreeGeorge Yard Shopping CentreFreehold town centre open shopping centre of 33 retail units and 3 office suites.


BrentwoodBaytree CentrePredominantly freehold shopping centre of 35 units totalling 132,547 sq ft.


DagenhamHeathway MallLong leasehold covered shopping centre of 33 retail units and four flats.


TonbridgePavillion Shopping CentreFreehold, 18 unit shopping centre at ground floor level, with an additional mezzanine level. 8 units on the High Street pitch and 10 units within the mall. Total property area 68,784 sq ft, including mezzanine level 79,667 sq ft.


UrmstonEden Square Shopping CentreFreehold, shopping centre development constructed between 2009 and 2012 anchored by Sainsbury’s. 20 retail units along with 76 upper-floor apartments sold off long-leasehold. Property totals 68,205 sq ft.



Shopping Centres

UrmstonEden Square Shopping Centre

TonbridgePavillion Shopping Centre

Financial Statements

42


STATEMENT OF TOTAL RETURNfor the accounting period 16 May 2015 to 15 November 2015

2015 2014£000 £000

IncomeNet capital gains 25,345 40,753Revenue 36,136 23,858

Expenses (11,095) (7,683)Interest payable and similar charges (1) –

Net revenue before taxation 25,040 16,175Taxation (5,058) (3,271)

Net revenue after taxation 19,982 12,904

Total return before distributions 45,327 53,657Distributions (25,815) (16,245)

Change in net assets attributable to unitholders from investment activities 19,512 37,412

STATEMENT OF CHANGE IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERSfor the accounting period 16 May 2015 to 15 November 2015

2015 2014£000 £000

Openning net assets attributable to unitholders 1,055,327 612,746Amounts receivable on the issue of units 169,184 222,850Amounts payable on the cancellation of units (21,948) (38,760)

147,236 184,090Stamp duty reserve tax – (20)Change in net assets attributable to unitholders 19,512 37,412Retained distribution on accumulation units 18,108 12,591

Closing net assets attributable to unitholders 1,240,183 846,819

The comparatives used within the Statement of Change in Net Assets Attributable to Unitholders are for the corresponding period of the previous year. Therefore the openning net assets attributable to unitholders for the current year are at 15 May 2015 whilst the figure disclosed in the comparatives’ closing net assets attributable to unitholders is at 15 November 2014.

BALANCE SHEETas at 15 November 2015

2015May 2015

£000 £000Assets:Fixed assets:

Land and Buildings 1,071,310 898,121Current assets:

Debtors 18,374 15,700

Cash and bank balances 185,658 296,746

Total assets 1,275,342 1,210,567Creditors:

Distribution payable (9,200) (7,322)Other creditors (25,959) (147,918)

Total liabilities (35,159) (155,240)

Net assets attributable to unitholders 1,240,183 1,055,327

CASH FLOW STATEMENTas at 15 November 2015

2015May2015

£000 £000Net cash inflow from operating activities 25,931 41,980

Taxation (3,920) (5,005)

Capital ExpenditurePayments to acquire investments (307,149) (250,880)Receipts from sale of investments 32,080 –

(275,069) (250,880)

Distributions paid (7,322) (9,523)

FinancingAmounts received on creation of units 171,948 417,965Less: amounts paid on cancellation of units (22,656) (54,329)

149,292 363,636

Net (decrease)/increase in cash in the year (111,088) 140,208

DISTRIBUTION TABLEfor the accounting period 16 May 2015 to 15 November 2015

Dividend distribution in pence per unitClass 1 UnitsNet IncomeDistribution Period

Net Revenue Equalisation

DistributionPayable

2015

DistributionPaid2014

Group 116/05/2015 to 15/11/2015 1.7054 – 1.7054 1.5444Group 216/05/2015 to 15/11/2015 1.0152 0.6902 1.7054 1.5444 Total distributions in the period 1.7054 1.5444

Class 1 UnitsNet AccumulationDistribution Period


DistributionPayable

2015


Group 116/05/2015 to 15/11/2015 2.3906 – 2.3906 2.0816 Group 216/05/2015 to 15/11/2015 1.0914 1.2992 2.3906 2.0816 Total distributions in the period 2.3906 2.0816

Class 2 UnitsNet IncomeDistribution Period


DistributionPayable

2015



Class 2 UnitsNet AccumulationDistribution Period


DistributionPayable

2015



Financial Statements(continued)

43


1 ACCOUNTING POLICIES(1) Basis of accounting

The interim financial statements have been prepared on the historical cost basis, as modified by the revaluation of investments, in compliance with FRS 102 and in accordance with the SORP. This is the first set of financial statements to be prepared for the fund under the 2014 SORP however the impact is minimal for an interim reporting period and limited to presentational amendments to the Statement of Total Return, Statement of Change in Net Assets Attributable to Unitholders and the Balance Sheet. These presentational amendments have no impact on the total return or the net assets attributable to Unitholders in either the current or preceding year. The full disclosures under the new SORP will first be presented for the annual financial statements prepared for the year to 15 May 2016. Unless otherwise stated all other accounting policies applied are consistent with those of the annual financial statements for the year ended 15 May 2015 and are described in those financial statements.

(2) Basis of valuation of investments The investments of the fund are valued at fair market prices at close of business of the accounting period (UK time). Investments are stated at their fair value which generally is the bid valuation of each security.

These bid values are sourced from independent pricing sources; to the extent that an independent pricing source is not available then quotes are obtained from a broker. Where the ACD deems that these valuations are unrepresentative of a fair valuation of the security, a fair valuation adjustment is applied based upon the ACD’s opinion of fair value.

(3) Exchange rates Assets and liabilities expressed in foreign currencies at the end of the accounting period are translated into sterling at the exchange rates ruling at close of business (UK time).

Transactions denominated in a foreign currency are translated into sterling at the exchange rates ruling at the date of the transaction.

(4) Distribution policyCorporation tax relief is applicable only where the transfer of the benefit is between the revenue and capital property of at least two different share classes of the fund. Previously, corporation tax relief could apply between the revenue and capital property of the same share class of the fund.

(5) NotesIn accordance with the guidelines of the SORP the fund has taken advantage of the facility not to provide further notes to the financial statements.

Notes to the financial statementsfor the accounting period 16 May 2015 to 15 November 2015

44

Portfolio Statementas at 15 November 2015

Holding or nominal

value Investment

Market Value

£000

% of NetAssetValue

Holding or nominal

value Investment

Market Value

£000

% of NetAssetValue


Additional Information

DIRECT PROPERTIESCar showroom 0.84% (1.45%)Bury 2,975 0.24Doncaster 3,150 0.25Stourbridge 2,175 0.18Weston-Super-Mare 2,150 0.17Total market value 10,450 0.84

Industrial 25.76% (20.35%)Avonmouth 1,930 0.16Basildon, Bakers Court Industrial Estate 5,950 0.48Basildon, Endeavour Drive 3,575 0.29Basildon, Wollaston Way 4,630 0.37Birmingham 2,125 0.17Bournemouth 3,200 0.26Bourne End 2,400 0.19Bridgend 1,550 0.12Bristol, Cabot Park 9,200 0.74Bristol, G Park 4,635 0.37Bromsgrove 4,550 0.37Byfleet 3,650 0.29Canterbury 5,150 0.42Chester 2,700 0.22Chippenham 1,500 0.12Christchurch 3,850 0.31Cleckheaton 1,450 0.12Crawley 4,100 0.33Cromer 4,725 0.38Crowborough 1,475 0.12Dunstable 8,900 0.72Eastleigh 3,300 0.27Elland 7,750 0.62Exeter 5,000 0.40Glasgow, Bellshill 3,400 0.27Glasgow, Crown Point Road 3,910 0.32Guildford 7,100 0.57Harlow 10,300 0.83Hertfordshire 6,600 0.53Larkfield Mill 23,200 1.87Leeds 2,450 0.20London 3,265 0.26Manchester 4,000 0.32Milton Keynes Granby Industrial and Trade Park 9,850 0.79Milton Keynes, Saxon Park 8,450 0.68Newbury 5,050 0.41Newhaven 8,225 0.66Nottingham 13,250 1.07North Shields 4,675 0.38Poole, D'Oriel House 4,250 0.34Poole, Nursery Scheme 8,380 0.68Poole, Wessex Trade Centre 9,350 0.75Portsmouth 1,075 0.09Redditch 11,900 0.96Romford 3,925 0.32Segansworth 3,700 0.30Sheffield, Parkway One 3,900 0.31Sheffield, Thorncliffe Distribution Centre 1,200 0.10Stevenage 1,350 0.11Stroud 2,775 0.22Sutton 3,050 0.25Swanley 2,575 0.21Swindon 2,780 0.22Tewkesbury 1,475 0.12

Thornbury, Hemingway Business 3,700 0.30Thornbury, Thornbury Industrial Estate 2,500 0.20Treforest 5,115 0.41Wellingborough 2,550 0.21Wellington 10,500 0.85West Thurrock 10,250 0.83Wigan 7,550 0.61Winsford 4,650 0.37Total market value 319,520 25.76

Offices 24.41% (24.51%)Brentwood 9,650 0.78Bristol, 600 and 650 Aztec West 5,175 0.42Bristol, 715 Aztec West 3,230 0.26Bristol, 930 Aztec West 7,400 0.60Bristol, Great George Street 6,525 0.53Bristol, Queens Square 5,350 0.43Cardiff 5,550 0.45Chelmsford 17,575 1.42Crawley 6,750 0.54Egham 9,200 0.74Fareham 5,250 0.42Glasgow 4,700 0.38Harefield 11,675 0.94Heathrow 3,250 0.26Hemel Hempstead, Grovelands Business Centre 3,825 0.31Hemel Hempstead, Hemel One 19,500 1.57Herefield 6,700 0.54Hertfordshire, Waltham Cross 10,000 0.81Hertfordshire, Watford 9,550 0.77Hertfordshire, Welwyn Garden City 2,675 0.22High Wycombe 10,550 0.85Langley 10,200 0.82London 13,500 1.09Milton Keynes, Avebury House 6,110 0.49Milton Keynes, Regus Business Centre 8,300 0.67Nottingham, Park Row 7,075 0.57Nottingham, Webster House 2,750 0.22Quinton 4,975 0.40Redhill 8,100 0.65Romford 1,400 0.11Southampton 15,185 1.22St Albans, Bricket House 7,650 0.62St Albans, Grosvenor Road 14,850 1.20Staines, Rourke House 5,200 0.42Staines, Viewpoint 7,415 0.60Stirling 1,650 0.13Waterlooville 3,435 0.28Watford, Belfry Business Park 8,450 0.68Watford, CSB House 5,100 0.41West Bromwich 2,500 0.20Worcester 4,825 0.39Total market value 302,750 24.41

Other commercial 0.24% (0.28%)Cardiff 2,975 0.24Total market value 2,975 0.24

Retail 18.02% (17.43%)Accrington 6,160 0.50Andover 1,525 0.12Barnstaple 1,110 0.09

45

Portfolio Statement(continued)

Holding or nominal

value Investment

Market Value

£000

% of NetAssetValue

Holding or nominal

value Investment

Market Value

£000

% of NetAssetValue


Additional Information(continued)

DIRECT PROPERTIES (continued)Retail 18.02% (17.43%) (continued)

Bedford 1,720 0.14Birmingham 1,475 0.12Blackpool 4,700 0.38Braintree 19,250 1.55Brecon 4,550 0.37Brentwood, 38-42 High Street 3,100 0.25Brentwood, 49 High Street 2,630 0.21Brentwood, 75 High Street 2,250 0.18Brentwood, Baytree Shopping Centre 20,275 1.64Brighton, London Road 4,000 0.32Brighton, The Abacus 6,500 0.52Canterbury, High Street 1,800 0.15Canterbury, The Parade & Rose Lane 5,700 0.46Carmarthen 6,425 0.52Chatham 2,825 0.23Cheltenham 3,100 0.25Chichester 4,400 0.35Croydon 1,150 0.09Dagenham 9,900 0.80Doncaster, 8 St Sepulchre Gate 765 0.06Doncaster, 8-12 Frenchgate 4,140 0.33Dunfermline 2,630 0.21Eastbourne 2,150 0.17Elgin 2,675 0.22Folkstone 3,500 0.28Frimley 3,750 0.30Glasgow, Argyle Street 1,875 0.15Glasgow, Sauchiehall Street 1,225 0.10Hinckley 615 0.05Hounslow 2,050 0.17Ipswitch, 18-22 Tavern Street 10,195 0.82Ipswitch, 30-36 Tavern Street 3,150 0.25London 4,375 0.35Maidenhead 5,500 0.44Maidstone 385 0.03Manchester 1,900 0.15Newcastle-Under-Lyme 1,320 0.11Newport 450 0.04Nottingham, 1-8 Exchange Walk and 5/7 St Peters Gate 8,025 0.65Nottingham, 2/2A Albert Street & 1 Houndsgate 1,800 0.15Plymouth 985 0.08Reading 9,200 0.74Romford 2,400 0.19Southampton 970 0.08Southport 750 0.06Staines 1,950 0.16Stevenage 4,175 0.34Sutton, 151-153 High Street 1,050 0.08Sutton, 96 High Street 1,210 0.10Tonbridge 9,000 0.73Urmston 14,775 1.19Total market value 223,485 18.02

Retail/residential 1.49% (1.74%)Harpenden 18,425 1.49Total market value 18,425 1.49

Retail warehouse 14.36% (16.21%)Bedford 5,000 0.40Blackpool 2,625 0.21Blackwood 8,800 0.71Coventry, Radford Road 6,100 0.49Coventry, Wheler Road 6,650 0.54Darlington 4,650 0.37Doncaster 6,700 0.54Dumfries 1,950 0.16Fareham 12,525 1.01Gloucester 4,100 0.33Holyhead 11,100 0.90Llandudno 5,450 0.44Newark-on-Trent 1,575 0.13Nuneaton 2,760 0.22Preston 4,500 0.36Redditch 7,250 0.59Rochdale 5,300 0.43Slough 3,650 0.29Southampton 4,800 0.39Stafford 7,050 0.57Stevenage, The Forum 2,975 0.24Stevenage, Retail Park 17,900 1.44Sunderland 7,100 0.57Sutton-in-Ashfield 2,625 0.21Taunton 7,500 0.61Torquay 16,500 1.33Wellingborough 1,785 0.14Winnersh 1,650 0.13Wrexham 2,550 0.21

Total market value 173,120 13.96

Supermarket 1.97% (1.58%)Banbury 7,100 0.57Boscombe 5,650 0.46Chepstow 4,750 0.38High Cliff-on-Sea 2,175 0.17Lydney 2,475 0.20Mansfield 2,300 0.19Total market value 24,450 1.97

Total valuation by CBRE at open market value 1,075,175 86.69

Fair valuation of direct property assets 1,071,310 86.38

COLLECTIVE INVESTMENT SCHEMES Property collective investment schemes 0.00% (1.82%)

Total collective investment schemes – –

Total value of investments 1,071,310 86.38

Net other assets 13.62% (14.90%) 168,873 13.62

Net assets 1,240,183 100.00

The fair valuation of direct properties as at 15 November 2015 is calculated after deducting the value of lease incentives amounting to £3,865,272 (15 May 2015: £2,920,047). The value of lease incentives is shown within Debtors.

May 2015 comparatives in brackets.

46


Net Asset Net Asset Highest Lowest Value of Value per Net Income offer bid Trust Unit Units per Unit price price Accounting Period £000 P in Issue Calendar Year p p p


Comparative Tables

for the year ended 15 May 2013Class 1 – Net income units 61,040 66.33 92,028,904Class 1 – Net accumulation units 280,105 85.17 328,875,007Class 2 – Net income units 25,482 72.56 35,117,250Class 2 – Net accumulation units 27,234 91.27 29,840,141for the year ended 15 May 2014 Class 1 – Net income units 49,721 66.41 74,870,384Class 1 – Net accumulation units 298,900 91.70 325,942,539Class 2 – Net income units 112,306 73.10 153,628,662Class 2 – Net accumulation units 151,819 98.82 153,625,238for the year ended 15 May 2015 Class 1 – Net income units 45,244 73.41 61,635,331Class 1 – Net accumulation units 342,405 103.19 331,810,419Class 2 – Net income units 298,127 81.30 366,690,218Class 2 – Net accumulation units 369,551 111.94 330,123,915for the period ended 15 November 2015 Class 1 – Net income units 45,927 74.96 61,268,808Class 1 – Net accumulation units 360,645 107.78 334,616,248Class 2 – Net income units 367,737 83.36 441,129,484Class 2 – Net accumulation units 465,874 117.34 397,020,886

2010Class 1 – Net income units 2.5038 83.09 76.77Class 1 – Net accumulation units 2.7916 92.80 84.67Class 2 – Net income units 2.7387 84.90 81.18Class 2 – Net accumulation units 2.9832 93.03 87.522011Class 1 – Net income units 3.1660 82.15 75.14Class 1 – Net accumulation units 3.6600 94.55 87.89Class 2 – Net income units 3.4688 84.43 80.35Class 2 – Net accumulation units 3.9151 95.38 91.422012 Class 1 – Net income units 3.3340 80.09 67.16Class 1 – Net accumulation units 4.0273 95.08 84.32Class 2 – Net income units 3.6713 82.77 73.37Class 2 – Net accumulation units 4.3353 96.13 89.992013Class 1 – Net income units 3.3070 75.01 68.77Class 1 – Net accumulation units 4.1951 96.71 87.83Class 2 – Net income units 3.6660 77.94 74.52Class 2 – Net accumulation units 4.5455 98.96 92.62

*2014Class 1 – Net income units 3.2051 76.31 69.70

†Class 1 – Net accumulation units 4.2662 104.20 91.70Class 2 – Net income units 3.5781 84.30 75.65

†Class 2 – Net accumulation units 4.6634 112.70 97.36**†2015

†Class 1 – Net income units 3.2549 84.32 75.69†Class 1 – Net accumulation units 4.5234 122.90 112.80*Class 2 – Net income units 3.5850 89.24 83.65

**Class 2 – Net accumulation units 4.8871 118.60 104.20 To 15 November 2015.Class Z – Net accumulation units commenced 16 December 2014.Class T – Net income units commenced 30 October 2015.

The additional information provided in this section complies where applicable, with the minimum and best practice guidelines as outlined in the Code of Practice (version January 2015) as issued by the Association of Real Estate Funds.

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Ongoing Charges Figure Summaryfor the accounting period 16 May 2015 to 15 November 2015 November 2015 May 2015

Class 1 – Net income units 1.63% 1.63% Class 1 – Net accumulation units 1.63% 1.63% Class 2 – Net income units 0.81% 0.80% Class 2 – Net accumulation units 0.81% 0.80%

The Ongoing Charges Figure (OCF) is the European standard method of disclosing the charges of a share class of a trust based on the last year’s expenses and may vary from year to year. It includes charges such as the trust’s annual management charge, registration fee, custody fees and distribution cost but ordinarily excludes the costs of buying or selling assets for the trust (unless these assets are shares of another fund). The non-UCITS retail scheme key investor information document contains the current OCF. For a more detailed breakdown please visit columbiathreadneedle.com/fees.

Property Expense Ratiofor the accounting period 16 May 2015 to 15 November 2015 November 2015 May 2015

Class 1 – Net income units 0.52% 0.43%Class 1 – Net accumulation units 0.52% 0.43%Class 2 – Net income units 0.52% 0.43%Class 2 – Net accumulation units 0.52% 0.43%

A property expense ratio is shown which takes into account expenses that are associated with the day to day maintenance of the property assets and excludes costs associated with operating the Trust.

Total Purchases and Sales for the accounting period 16 May 2015 to 15 November 2015 November 2015 May 2015 £000 £000

Total purchases for the period 307,149 375,938 Total sales for the period 32,080 –


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Unit Price Performance – Bid to Bid Basis (adjusted for net revenue) 1 November 2014 1 November 2013 1 November 2012 1 November 2011 since launch§*for the period to 31 October 2015 to 31 October 2014 to 31 October 2013 to 31 October 2012 to 31 October 2015 % % % % %

Class 1 – Net income units +9.21 +13.06 +1.43 -1.31 +1.55Class 1 – Net accumulation units +9.40 +13.34 +2.35 -1.36 +1.71Class 2 – Net income units +10.14 +15.26 +2.40 -0.66 +2.55Class 2 – Net accumulation units +9.92 +15.57 +3.15 -0.74 +2.67Morningstar Median Performance +8.18 +10.69 +6.31 +4.69 +0.97§(OEIC Benchmark for Real Estate Trusts) +1.30*

§ Class 1 Net income and net accumulation units commenced 19 February 2007. *Class 2 Net income and net accumulation units commenced 8 October 2007.Source: Morningstar and Threadneedle. Bid to bid prices are quoted (i.e. not including any initial charge) with net income reinvested for the UK basic rate tax payer. Performance data is quoted in sterling. OEIC Benchmark for Real Estate Trusts refers to the IPD UK Monthly Index since 28 February 2007.

Unit Turnover

For the period ending 15 November 2015 Number of Units

Net asset value of Units as at

period end (£000s)

Percentage of total net

asset value of the Trust as at start of period

(%)

Percentage of total net

asset value of the Trust as at end of period

(%)Unit creations 184,157,003 169,184 16.03% 13.64%Unit redemptions -40,381,460 21,948 2.08% 1.77%Units matched* – – – –

*Units matched refers only to changes in the beneficial ownership of the unit, not just the registered owner.

Unit Analysis

As at 15 November 2015Number of

Unitholders % NAV

Less than 1% of Units in issue 141 9.09%1% or greater but less than 2% 8 11.39%2% or greater but less than 4% 8 20.95%4% or greater but less than 8% 5 25.16%Greater than 8% of Units in issue 3 33.41%Grand Total 165 100.00%Total Number of Units in Issue 1,234,035,426Internal Investors 0.00%External Investors 100.00%Total 100.00%

Largest Investor 13.51%

Largest 3 Investors 33.41%



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Finance Costs: Distributions per Unit

For the accounting period from 16 May 2015 to 15 November 2015

Opening offer price

(pence)

Closingoffer price

(pence)

Distributionaccrued (pence)

Yield on closing

NAV price (%)

Yield on closing

offer price (%)

Class 1 – Net income units 82.38 84.32 1.71 2.28 2.02Class 1 – Net accumulation units 113.50 118.60 2.39 2.22 2.02Class 2 – Net income units 86.91 89.24 1.85 2.22 2.07Class 2 – Net accumulation units 117.20 122.90 2.55 2.17 2.07

For the year ending 15 May 2015

Opening offer price

(pence)

Closingoffer price

(pence)


Yield on closing

NAV price (%)

Yield on closing

offer price (%)



Opening offer price

(pence)

Closingoffer price

(pence)


Yield on closing

NAV price (%)

Yield on closing

offer price (%)



Opening offer price

(pence)

Closingoffer price

(pence)


Yield on closing

NAV price (%)

Yield on closing

offer price (%)



Opening offer price

(pence)

Closing offer price

(pence)

Distribution accrued (pence)

Yield on closing

NAV price (%)

Yield on closing

offer price (%)


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Further Information

Charges and PricesThe Manager includes in the selling price of the Class 1 units a preliminary charge of 5% of the creation price, out of which remuneration is payable to qualified intermediaries; rates are available on request.

There is no preliminary charge for the Class 2 units.

The fees and expenses of the Trustees, Registrars’ fees, Auditors’ fees and FCA authorisation fees are also payable by the Trust.

The Manager is entitled to make a periodic management charge which accrues daily and is payable to the Manager monthly. For the Class 1 units the current periodic management charge is 1.50% per annum of the net asset value of Class 1 units. For the Class 2 units the current periodic management charge is 0.75% per annum of the net asset value of the Class 2 units. These periodic charges are payable out of the Trust’s assets together with any Value Added Tax on these charges where applicable.

Insurance commissions are payable to the Manager, whilst the Trust is entitled to retain all management fees payable by tenants under service charges and landlords’ licence fees for alterations, assignments and sub-lettings.

Changes to the ProspectusDuring the period from 16 May 2015 to 15 November 2015 there were no changes to the Prospectus of the Trust.

Changes to the Trust DeedDuring the period from 16 May 2015 to 15 November 2015 there were no changes to the Trust Deed.

Important InformationAn extraordinary general meeting of unitholders of the Threadneedle UK Property Trust was held on 9 April 2015 at which a resolution detailing the conversion of the Threadneedle UK Property Trust into the Threadneedle UK Property Authorised Investment Fund, an Open-Ended Investment Company was successfully passed. Whilst the intention had been for the conversion to take place on 2 May 2015, it has now been agreed between the Manager, ACD and Trustee to postpone the effective date of the conversion. Once the revised date for the conversion has been agreed, we will inform all unitholders of the new effective date.

Details of the conversion can be found at columbiathreadneedle.com/PAIF.

Change to the trustee of the TrustsCitibank International Limited was merged into Citibank Europe plc on 1 January 2016.

With effect from the merger date:

■ any references to Citibank International Limited in fund documentation should be read as Citibank Europe plc, UK branch.

■ all functions of Citibank International Limited will be automatically transferred to Citibank Europe plc, UK branch.

Changes to the directors of the Manager On 24 June 2015, Mr. Nick Ring resigned from his role as a director of the Manager.

Income EqualisationWhen the first income distribution is received it may include an amount known as equalisation. The amount representing the income equalisation in the unit’s price is a return of capital and is not taxable in the hands of unitholders. This amount should be deducted from the cost of income units in computing capital gains realised on their disposal.

General InformationRevenue is distributed in relation to income units following interim and annual allocation dates. For accumulation units, the revenue is automatically reinvested (after expenses) following interim and annual allocation dates and is reflected in the price for each accumulation unit.

An interim report giving details of the Trust’s progress is published on or before 15 January each year.

Prices and yields are quoted at Columbiathreadneedle.com and the Manager will deal on normal business days. Units are bought back at the bid price. A direct credit (BACS) transfer in settlement will normally be made within four working days of receipt by the Manager of a fully completed form of renunciation.

Information relating to the management of the Trust, its fees and expenses, distribution policy, derivative exposure, valuations, investment and borrowing powers and the issue, redemption and switching of units can be found in the current Prospectus.

Buying UnitsThe minimum initial investment is £1,000 for Class 1 units and £500,000 for Class 2 units. The minimum additional investment for each subsequent investment is £1,000, for Class 1 units is £1,000 and £25,000 for Class 2 units is £25,000 for each subsequent investment.

Individual Savings AccountsThroughout the accounting period the Trust has satisfied the requirements of the Individual Savings Account Regulations 1998 (as amended).

It is the Manager’s intention that the Trust will be managed in such a way as to continue to meet this requirement.

Business Continuity StrategyColumbia Threadneedle Investments has in place a business continuity and disaster recovery plan to enable swift recovery and resumption of normal operations following an incident. Regular exercises of this plan are held at third party recovery sites in both London and Farnborough and attended by critical staff. These exercises are externally audited.

Social ResponsibilityAt Columbia Threadneedle Investments we are active investors committed to maximising our investment returns though the pursuance of good governance and socially responsible investment practices. We are

51


signatories to the United Nations Principles for Responsible Investment (UN PRI).

We believe that the analysis of governance, social, ethical and environmental factors should be incorporated into stock selection to impact returns. Consequently, management of the risks and opportunities presented by these factors is integral to our investment decision-making process.

Management of the TrustThe roles and responsibilities of all parties involved in running the Trust who have obligations, or the ability to set and implement policies or strategies relating to the management of the Trust can be found in the current Prospectus.

CertificationThe Trust is non-certified. Title to units will be evidenced solely by reference to entries in the register.

Important Information Key RisksInvestment Risk: The value of investments can fall as well as rise and investors might not get back the sum originally invested.

Property Liquidity Risk: It may be difficult or impossible to realise an investment in the Trust because the underlying property concerned may not be readily saleable.

Property Valuation Risk: The value of a property is a matter of a valuer’s opinion and the true value may not be recognised until the property is sold.

Property Market Risk: The performance of the Trust would be adversely affected by a downturn in the Property market in terms of capital value or a weakening of rental yields.

Effect of Dual Pricing Risk: The Trust is dual priced, and there is a price to buy units and a different price to sell them (see the section with the heading “Prices of Units” on page 11 of the Trust’s Prospectus). Because of the cost of transacting in property, the difference between the two prices is likely to be wider than for other funds. The price at which you deal may change depending on whether the Trust is experiencing inflows or outflows of cash, and any change will mean an increase or decrease in the price at which you deal.

Volatility Risk: The Trust may exhibit significant price volatility.

Uninvested Cash Risk: Due to the illiquid nature of property and the time it can take to buy or sell assets, under normal circumstances up to 20% of the Trust’s assets may be held as cash deposits. In exceptional circumstances, the level of cash held by the Trust may be significantly higher. Holding high levels of cash will have an impact on the performance of the Trust and its distributable income until the excess cash is invested in property assets.

Non-UCITS Retail Scheme Key Investor Information (NURS-KII) – Subscription requirementsThe NURS-KII is a pre contractual document and investors have to confirm that they have read the latest NURS-KII before making a subscription. Threadneedle has the right to reject a subscription if the investor does not confirm that they have read the latest NURS-KII at the time of application. Investors can obtain the latest NURS-KII from Columbiathreadneedle.com.


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Management and AdministrationThe Trust is an Authorised Unit Trust Scheme within Section 243 of the Financial Services and Markets Act 2000 belonging to the category of trusts complying with COLL recognised by the Financial Conduct Authority under the Collective Investment Schemes Sourcebook, as amended from time to time.

Manager and Alternative Investment Fund ManagerThreadneedle Investment Services Limited (Authorised and regulated by the Financial Conduct Authority (FCA)) Cannon Place78 Cannon StreetLondonEC4N 6AG

Client Services DetailsThreadneedle Investment Services LimitedInternational Financial Data ServicesPO Box 10033ChelmsfordEssex CM99 2ALTelephone UK Investors: (dealing & customer enquiries): 0800 953 0134*Telephone non-UK Investors: (dealing & customer enquiries): +44 (0) 1268 441520Fax UK Investors (dealing): 0845 113 0274Fax non-UK Investors (dealing): 00 352 2452 9807Email (enquiries): [email protected]

RegistrarThreadneedle Investment Services Limiteddelegated to International Financial Data Services (UK) Limited(Authorised and regulated by the FCA)St Nicholas LaneBasildonEssex SS15 5FS

Chairman and Chief ExecutiveC D Fleming

Other DirectorsT N Gillbanks N J Ring (resigned from the Board effective 24 June 2015) A RougheadD Jordison

TrusteeCitibank Europe plc, UK Branch**(Authorised by the Prudential Regulatory Authority (PRA) and regulated by the FCA and PRA)Head Office and Registered OfficeCitigroup CentreCanada SquareCanary WharfLondon E14 5LB

Independent AuditorsPricewaterhouseCoopers LLP7 More London RiversideLondonSE1 2RT

Investment AdviserThreadneedle Portfolio Services Limited(Authorised and regulated by the FCA)Cannon Place78 Cannon StreetLondonEC4N 6AG

Legal AdvisersHogan Lovells International LLPAtlantic House50 Holburn ViaductLondonEC1A 2FG

Standing Independent ValuerCBRE LimitedHenrietta HouseHenrietta PlaceLondon W1G ONB

BankersCitibank International LimitedHead Office and Registered OfficeCitigroup CentreCanada SquareCanary WharfLondon E14 5LB

Lloyds Bank plcCity OfficePO Box 72Bailey DriveGillingham Business ParkGillinghamME8 0LS

Managing AgentsWorkman LLPAlliance House12 Caxton StreetLondonSW1H 0QS

GBR Phoenix Beard7-10 Chandos StreetCavendish SquareLondonW1G 9EH

Collier International50 George StreetLondonW7U 7GA


*Calls will be recorded ** Citibank Europe plc, UK branch took over the operations of Citibank

International Limited on 1 January 2016.

To find out more visit columbiathreadneedle.comThreadneedle Investment Services Limited, ISA Manager, Authorised Corporate Director and Unit Trust Manager. Registered No. 3701768. Registered in England and Wales. Registered Office: Cannon Place, 78 Cannon Street, London EC4N 6AG. Authorised and regulated by the Financial Conduct Authority. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies. columbiathreadneedle.com

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