Financial News

Ifirst became aware of property shares 50 years ago, on reading an investment newsletter - I think it was written by a man called Beveridge - which my father used to receive. Beveridge extolled the virtues of Harold Samuel's Land Securities (LSE: LAND.L - news) - and I much regret never having tucked some away.

My first property holding was developer Edger Investments - named from the ED of Edwin McAlpine and GER of City solicitor Gerald Glover. My records don't go back that far but I suspect my holding cost all of £100 - I cannot remember the outcome!

Over the years, I have bought and sold many property shares and been through several property peaks and troughs. Usually, I focused on lowly-geared plcs at a significant discount to assets - often finding this combination in family-dominated businesses.

While I have incurred one or two small losses - Warnford Estates in 1973-74 and Barlows in 1991-94 - property shares have served me well, which is not surprising given inflation and the general appreciation in property values.

This year marks the 50th anniversary of the Freshwater family's Daejan Holdings (LSE: 381220.L - news) going public. The annual report tells us that, in 1959, net assets equated to 29p per share. Today, that figure is £46.60, a 160-fold increase! Sadly, I didn't buy until 2007, paying £41 per share, then £29 later that year and £27.50 in 2008.

The nearest I have come to a Daejan-like performance was with north-west building services company Pochins (LSE: PCH.L - news) which, in recent years, was powered along by its property developments. I first invested in 1977 and then finally in 1984, with my average buying price being (an adjusted) 5p. The shares peaked at just over £4 in 2007 - I felt they were "toppy" and realised some at just under that figure. However, in the recent maelstrom, they have plunged to a current 85p - but still show me a 17-fold appreciation.

Another significant success was with industrial property owner Trafford Park Estates, which I bought on 12 separate occasions between 1990 and 1996 at 41p-116p. It was subsequently taken over by Green Properties of Ireland for 190p in 1998.

Other more modest successes included a 1996 purchase of London Industrial Group (later renamed Workspace (LSE: WKP.L - news) ), Peel Holdings - developer of The Trafford Centre - in 2000, Yorkshire small industrial estates owner Headway in 2001 (I remember getting lost in Halifax's one-way system searching for one of its sites!) and London landlord Estates and Agency Holdings in 2004.

However, the Ziff family's Leeds-based Town Centre Securities (LSE: TCSC.L - news) must be my all- time yo-yo. I paid 64p in 1999 for a good yield and assets discount. By skilful management - including buying back half its equity - the NAV rose steadily, with the shares peaking at 653p in 2007. I sold some at 595p. The banking/property crisis then sent the shares crashing - I bought again at 60p in February 2009, selling three-quarters of this purchase at 182p in September - a trebling in seven months.

Today, I hold seven property stocks: Daejan, McKay, Pochins, Primary Health, Sovereign Reversions (LSE: SVN.L - news) , Stewart & Wight and Town Centre. I regard them all as long-term "holds".

John Lee is an active private investor, writing about his own investments. He may have a financial interest in any of the companies, securities and trading strategies mentioned.