Executive Summary
- The Prime Central London (“PCL”) Residential Property Opportunity Fund is targeting ‘added value’ opportunities in Prime Central London.
- With over 300 garden squares in Prime Central London, our focus is on properties in and around these highly desirable squares, which can charge an increased premium compared to private and gated roads. This will include long, medium and short-term leases.
- Prime Central London locations are more desirable to HNWIs, achieving consistently higher prices, as well as being a possible hedge in case of a downturn in the market.
- Prime Central London is a safe haven asset class with low volatility and little correlation to equities or the UK economy.
- With an increasing number of global UHNWIs there is likely to be a growing pipeline of demand.
- Prime Central London has been supported by the relaxation of travel restrictions and continued downward pressure on the pound.
- Property’s reputation as an inflation hedge gives it extra appeal, while the prospect of rising borrowing costs is injecting a degree of urgency into the market.
- Returns are forecasted at around 10.8% IRR (net) with no capital growth and around 13.4% IRR (net) with growth.
- The fund maturity is a 4-year term. Investors are forecasted to be made whole by the end of year 4.
- It is tax efficient for both UK and non-UK residents as there is No Capital Gains Tax (‘CGT’) or Inheritance Tax (IHT) for non-UK residents investing in the Fund.
- The distribution policy ensures that proceeds from resales shall be distributed to investors on a quarterly basis.