L&S looks for backing from its investors

London & Stamford will ask shareholders for additional investment fire-power after becoming the only property company this year to report a positive movement in the value of its assets.

The Aim-listed fund, managed by property veterans Raymond Mould and Patrick Vaughan, on Thursday said that it planned to raise new capital, ahead of a move to the main market next year and a potential conversion to a real estate investment trust.

Net asset value per share rose 5 per cent to 102p for the year to March 2009, a rare increase in a sector where values have tumbled over the past year.

The results come on the back of gains in two of its investments, a City of London office block called Fleet Place and Meadowhall shopping centre in Sheffield, as well as a fair value adjustment in the value of the debt in the latter. However, other legacy assets declined in value in line with losses in the wider market.

The company has also made three acquisitions in the past few weeks: No 1 Whitehall Riverside in Leeds for £37.6m ($62.3m), Racecourse retail park in Aintree for £60.9m and a distribution unit in Wellingborough for £19.6m.

The company said that its recent acquisitions had been made through new debt provision from a German bank, allowing it to refinance the already drawn down element of its £150m bank facility from HBOS.

That refinancing means the HBOS facility remains untouched, leaving the company with guaranteed debt to add to its remaining £90m of uncommitted equity.

Profit for the year rose from £400,000 to £24m, while net assets increased from £277.9m to £291.7m. Earnings per share climbed from 0.14p to 8.4p and the total dividend is 4p (1.6p).