Property Fund

A £20m FSA sponsored property fund offered by our affiliate that boasts 10.2% AER.

This fund is raising £20 million to assemble a portfolio of high-yielding rental properties to let to students and key workers on a room by room basis. There will be rent cross guarantees between the tenants themselves for each property and as a fail-safe, payment of rent in almost every case will also be guaranteed by each tenant’s parents or other responsible person.

The Fund will invest predominantly in the growing student cities of the North West, North East and Midlands of the UK and which are all set to benefit from large scale regeneration projects. All properties acquired by the fund will be within walking distance of a growing university or hospital and will be either existing houses of multiple occupation (HMO), or will be converted into high quality shared units.

It is intended that the properties will be purchased at a price lower than their RICS valuation, renovated to a market leading standard, and then let out on a room by room basis. Each property is expected to achieve above a 10% yield. The Fund strategy pursues a value investing principle, and the lower price achieved on purchase of the assets ensures a margin of safety.

By the Fund then adding value to each deal through renovation, it will position each property to achieve an optimal occupancy rate and command a premium rent per room.

Headline figures:

• Expected net annual return - The indicative annual return to investors is 10.2%
• Income - Priority income of 5.5% per annum (included in the return).
• Portfolio size - Up to £40,000,000 – made up of up to £20,000,000 of equity together with limited recourse debt funding.
• Term of investment - 7 Years with an option to reduce to 5 years.
• Eligible Investors - The Fund is suitable for SIPP’s, SSAS’s, individuals, corporate and charities.
• Minimum Subscription - Minimum cash investment is £50,000, with £1,000 increments above that.
• Launch Date - June 19th 2009.

Please fill out a contact form if you are interested in this investment:-