Kenmore sees portfolio value fall 9.5% in 2009

Kenmore European Industrial Fund, a Guernsey-registered closed-end investment company focusing on industrial property assets in Western Europe and Scandinavia, said the underlying value of its portfolio fell by 9.58% in 2009 as property values across mainland Europe slid in the wake of the financial crisis.

Giles Weaver, Chairman, commented: 'Over the past year, mainland European property markets have continued to see values reduce although the last quarter of 2009 showed a slight upturn. The board remains satisfied that the Fund is well placed to consider and mitigate the impact of likely future adjustments.'

Kenmore said the key asset management focus for the coming year is centred on a highly proactive asset management approach by staying close to tenants and assisting them where possible as they deal with the prevailing economic climate. Despite the downturn, the fund reported significant leasing activity last year, with 61 new leases and 88 renewals signed. It sold 31 assets for £92.1 mln (EUR 102 mln) and used the proceeds to repay £100.4 mln of debt, giving the fund a degree of flexibility with which to address the necessary refinancing.

Adjusted net asset value per share was 79.8 pence at end-2009, down 28.8 pence from 108.6 pence a year earlier but but up 0.6 pence from 79.2 pence at end-September 2009.