Garratt to launch UK residential property fund
Garratt Property Group is launching a residential property fund for investors seeking exposure to a recovery in the UK residential property market.
The Luxembourg domiciled fund is targeting an aggregate return of 70-100 per cent over its five-year term and aims to raise £50-100m.
It will invest in below market value residential property across the UK with properties purchased at an average discount of 15-20 per cent from their current day valuations from the Royal Institution of Chartered Surveyors.
The group says this discount and the use of gearing to maximise the number of properties purchased will ensure that the fund delivers a healthy return even in the event the UK property market remains flat over the next five years.
The fund is available to institutional and well-informed investors and has a £20,000 minimum investment. It was set up in conjunction with KMG Capital Markets Luxembourg S.A. and will be domiciled and regulated in Luxembourg.
Garratt is investment adviser and will only take performance fees on profits after initial investor capital has been returned.
IFA commission will be 3 per cent, with 0.5 per cent trail.
Garratt Property Group director Amanda McHugh says: “The fund was developed to give investors access to Garratt’s considerable experience of purchasing residential property at significant discounts to market value.
“It represents the smarter way to invest in residential property, a great opportunity for investors to gain exposure to a diverse portfolio of UK residential properties.”