Brandeaux have now launched a new “A” share class for the dual asset funds.  Existing holders (investments made prior to 12^th December 2008) will be offered the opportunity to convert their shareholding into the new “A” shares.  The target date for this conversion is end of March 2010.  The process will be similar to that employed for the Student Accommodation fund in that a redemption notice of six months is required, whilst the existing share class will remain suspended.  These funds have a mix of both Student Accommodation and Ground Rents.

Over 2008 the Sterling fund returned 9.27% and over 2009 it returned a healthy 5.45% given the effects felt by the wider property market (Source: Brandeaux Group, All returns are net of charges, 31^st December 2007 to 31^st December 2009).

Euro Fund – open for new subscriptions

As with the Sterling fund above, Brandeaux will launch a new “A” share class with existing investors being offered the opportunity of converting their current shares into the new share class.  There will be a six month redemption referral period, whilst the existing share class will remain suspended.  The target conversation date is the end of March 2010.

Over 2008 the Euro fund returned 6.57%, whilst over 2009 it produced a respectable return of 4.79%, given the effects felt by the wider property market (Source: Brandeaux Group, All returns are net of charges, 31^st December 2007 to 31^st December 2009).

Ground Rent Funds – currently suspended

The Brandeaux ground rent funds were resilient in the face of the recent market turmoil and whilst the value of the Ground Rent fund fell by 3% early 2009, in the latter stages of the year these falls were fully recovered.

The directors’ priority during 2009 has been to maintain portfolio value while at the same time making property disposals into a fragile market in order to create liquidity.  There are currently several sales under negotiation and with the successful completion of these, combined with the disposals already completed, Brandeaux believe that the target date of the end of March 2010 for the re-opening of the ground rent funds is achievable.

The directors intend to propose to the shareholders that the ground rent funds are re-opened with revised share redemption terms similar to those which have been successfully adopted by Brandeaux Student Accommodation Fund (Sterling) Limited.  Details of the terms and the process will be communicated in due course.