Invista rides UK property rise but casts wary eye on Europe

Assets under management soared by £77 million at Invista Real Estate, rising from £5.33 billion to £5.41 billion in six months.

Duncan Owen, chief executive of the investment management company, said Invista’s business had continued to develop over the first half of 2010 as momentum grew in the UK bricks and mortar market.

Pre-tax profits climbed from £0.1 million in the first six months of 2009 to £5.3 million in the six months to 30 June 2010.

‘The strong recovery in UK commercial property values, together with the pro-active asset management of our portfolios have contributed to positive performance, Owen said. ‘While macroeconomic risks remain evident the company is well positioned to enter the market with new fund initiatives.

‘The changes in market conditions witnessed during the last six to nine-month period have provided further opportunities for progress.’

During the first half of the year, Invista revealed it had continued to build on its acquisition of Big Orange Self Storage in Asia, which it bought last year and now owns 50% of the unit in its Opportunistic funds.

Invista also enjoyed upward shifts in valuation of its HBOS and Separate Account funds, and the revenues from each rose 30% and 13%, respectively.

However the company said that while trading had been ‘encouraging’ during the first half of 2010, it remained concerned momentum in the UK commercial property market would be held back by the uncertainty that surrounds Europe.

‘We still maintain a note of caution as it remains to be seen whether the positive momentum witnessed in capital values in the UK commercial property market  in the first part of the year are sustainable in the current uncertain European economic environment.’