New fund for UK residential property investment
Thursday, 07 February 2013
Castel Global has launched a specialist fund to invest in UK residential properties that will be leased into the supported accommodation sector through a charity.
The investment strategy of the fund is to purchase quality, freehold properties in desirable postcodes.
The firms says that it will provide investors with accessible exposure to this asset class and as well as the potential capital appreciation, Castel provides a secure, inflation protected income typically through long term leases of 20 years.
Castel added that it brings together complementary parties who each play a pivotal role in this already a proven investment model. BeST is a not for profit provider and manager of social housing and North West based property developer, PPI renovates and maintains the houses to a high specification.
Meanwhile, Isle of Man-based Creechurch Capital will act as the master distributor of the fund through its specialist offering, Creechurch Advisory Services.
‘Castel has been created to give investors an effective and proven option to incorporate UK residential property into a well diversified, long term portfolio. This unique, fully managed fund addresses the risks typically associated with investing in property. It is ideally placed to take advantage of the fact the UK residential market has made an average 8% annualised capital return since the 1950s,’ said John Greenwood, chief executive officer at Creechurch Capital.
‘It overcomes the usual issue of liquidity and voids when investing in property as well as complete peace of mind that all ongoing maintenance is taken care of, leases are secure and ultimately the asset is very saleable. We’ve been overwhelmed by the initial positive response from the market and the most compelling attraction has been that Castel offers a 6% plus inflation linked income,’ he added.
The minimum initial investment is £10,000 with a targeted overall return of 8% per annum plus long term capital appreciation.
Castel has also engaged the services of the Manchester office of the international PR agency, Weber Shandwick, to support and amplify the fund launch across various media and multiple territories.
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