UK - Invista Real Estate Investment Management suffered a 32% drop in revenue in 2008, according to preliminary results for the year.

The steep decline in UK property values and £453m (€510.7) worth of net outflows from some of the firm's open-ended funds caused revenue to fall to £45.6m last year from £67m in 2007.

Assets under management stood at £6.3bn on 31 December 2008, representing a 28% on the year before.

Duncan Owen, chief executive of Invista Real Estate, said: "The company still has healthy cash balances and when combined with our solid underlying recurring income and tight cost controls we remain well-placed to take advantage of the opportunities which this environment will undoubtedly create," he added.

According to Invista Real Estate, it is not planning to change its core objectives and will continue diversifying its business into new fund types and geographies and deploying balance sheet funds into areas of the business it wishes to expand.

In 2008 the firm focused on diversifying its investment style and geographical spread by launching a new international fund, a UK OEIC property fund and a global property securities fund.

The global property securities fund was launched in September 2008 and focused on investing in diversified property securities listed on exchanges around the world. Invista is currently the only investor in the fund but the firm hopes to bring in outside investors once a performance track record is established. 

Invista currently manages eight HBOS funds for the HBOS Group with a total value of $3bn, representing 45% of the firm's assets under management.

And in November 2008, Invista launched a new OEIC fund, which was supported by HBOS with £50m, and is now looking to invest in core commercial property sectors in the UK to take advantage of low prices in the current market.

The company was also awarded a mandate to manage the £120m Bank of Scotland Property Pension Fund in March 2008 and successfully secured refinancing for the residential fund, Invista Castle, it had acquired.

Gross debt at 31 December 2008 was £85.4m while the bank loan for Invista Castle, maturing on 30 April 2011, is currently valued at £13.6m.
Invista Castle's property portfolio dropped by 5% in value to £122m at the end of the year.

Invista Real Estate currently manages a total of £419m of residential assets but officials say they are looking to acquire more.

If you have any comments you would like to add to this or any other story, contact Poppy Sketchley on + 44 (0)20 7261 4629 or email