LONDON (Thomson Financial) - Sovereign Reversions Plc. said its Home & Capital equity release business is performing ahead of expectations, and has a current business pipeline which indicates the rate of growth is accelerating.

But it warned that the value of its property interests has fallen since April owing to the difficulties in the property and finance markets.

In a statement ahead of the company's AGM, chairman Paul Spencer said the group is operating within its current banking facilities; the directors anticipate that these facilities will be renewed when they fall due in the second half of our financial year.

Sales in the year to date have realised on average 90 percent of April 2008 open market valuations, it said, adding that it expects property interests sold during the rest of the year to be realised at a discount to April open market valuations, reflecting market conditions.

However, in a difficult market for residential property, the number of properties for sale has increased, the company said. It also said that reversionary surpluses realised should ensure that sales are made at more than book value. TFN.newsdesk@thomson.com ran/vs

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