The Charities Property Fund has doubled in size over the last 18 months and now stands at £389m, according to an update released by the fund manager this week.

Cordea Savills said the Fund transacted more than £100m in 2010 and delivered an average of 7 per cent income return over the three years to the end of December 2010.  This meant it outperformed the All Balanced Funds total return index by an average of 3.3 per cent over the same period.

During 2010 the Fund acquired nine properties and sold two, in eight separate transactions totalling more than £100m.  The average lease length on these new assets is 6.8 per cent and the average lease length 12.6 years.

Fifty-five of the properties under management by the Fund are let to long-term tenants and the vacancy rate is 4.2 per cent of rental value.  Some 86 per cent of the properties are secured on covenants rated as low/negligible risk.

A total of 1,193 charities are invested in the Fund, which Cordea Savills expects to reach the £400m mark during March.