In a recent update to investors, Brandeaux said the fall in the Student Accommodation Fund’s NAV reflects a decline in the independent valuation given by valuers Saville at the end of August, which it said takes into account current market conditions.
However, there was some good news for investors who were told that room occupancy for the 2013/2014 university year is “back to 99%” for the Student Accommodation Fund, which Brandeaux added “resumed our track record prior to the hiatus of last year”.
Meanwhile, investors in the Ground Floor Rent Funds were told the fund’s directors are in “advanced stages of three major sales transactions representing approximately 80% of the value of the total remaining ground rent portfolio”.
However, the directors said the likely outcome of these transactions are slightly less than the most recent valuation given by independent valuer Cluttons, meaning “after allowing for sales costs, the net asset value of the Ground Rent Funds is approximately 5% less than the value published on 31 July”.
Brandeaux took the decision at the beginning of July to suspend its entire fund range citing problems with market liquidity and pressures from investors wishing to redeem their investments.
