14 October, Plus 24
Over the past few weeks, the Delta Fund has communicated that the last property in the portfolio had been sold. The news comes after the previous divestiture of the portfolios concerning the multiplex cinemas and the tourist resorts. The total value should be close to 85 euro of net assets as estimated at the end of June. For the initial underwriters, who in 2006 invested 100 euro per share, the result can’t be good since they will register a total loss above 10%. However, we must consider that the fund started at the peak of the previous real estate cycle and that other vehicles have registered worse performances towards their shareholders. Instead, for those who invested in Delta on the secondary market, the Fund has given them great satisfaction, considering that the share price in the middle of 2013 went down to 30 euro per share.
Last month, the property funds have experienced a slight appreciation. Among the best performances of the period, besides obviously Delta (+9.1%), there is Valore Imm. Globale (+9.3%) which registered a +28.7% since the beginning of the year. Atlantic 1 too has registered a significant recovery (+6.1%), with above average values. Beta (-13%) confirms its weakness, suffering from its approaching closure with still properties to be sold and whose sale might happen at lower prices than those appraised.
Source: Plus 24
Translator: Cristina Ambrosi