Invista European Real Estate looks to “new start” after 2011 loss

The appointment of a new manager will herald “a new start” for the Invista European Real Estate trust, its chairman says.

But the Luxembourg-domiciled trust is also in discussions with regulators regarding a move towards a structured realisation over the coming years.

Internos Real Investors has been appointed as the new investment manager of the trust and took over from Invista Real Estate Investment Management on December 15.

According to the fund’s latest financial results, the trust made a loss before tax of €11.5m (£9.7m) in the 12 months to September 30, advancing from the €1.1m loss seen in the previous year.

In addition, the adjusted net asset value (NAV) dropped from €0.54 per share as of September 30 2010 to €0.52 per share in the most recent period, with the fall driven by weakening property valuations over the second half of the year.

Property assets owned by the fund fell from €515.7m to €451.1m across the year, with €50.2m of this attributed to disposals. The portfolio now holds 39 properties with a bias towards France and Germany.

Tom Chandos, the chairman of the Invista European Real Estate trust, says: “The appointment of Internos represents a new start for the company and its key managers worked assiduously to prepare for the assumption of the management role.

“A number of former employees of Invista have now joined Internos, including the entire Paris-based team, so there should be a useful level of continuity and transfer of knowledge.”

In June, the trust proposed changing its investment objective and policy to a structured realisation strategy because of the “substantial discount to NAV at which the shares of the company currently trade”. This was passed by shareholders and is being discussed with Luxembourg regulator, the Commission de Surveillance du Secteur Financier.

The proposed strategy will see the trust’s existing properties “sold as expeditiously as is consistent with the protection of value”, with the proceeds being used to pay off debt and then returned to shareholders within three years.

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