Property developer Fiducia Group and stockbroker Goy Harris Cartwright are offering a fund which will invest in commercial or mixed-use property projects.
The firms want to raise £6.5m via high-net-worth investors in “partnership units” of £250,000 or more for the Fiducia pool 2004 fund, which has a seven-year lifespan. Each unit ent-itles investors to become partners in the fund, which pays an income when unreserved profits from the property projects hit £100,000.
GHC says that the fund is unlikely to reach the £100,000 target until after the first year, given investment timing and the length of the projects. All capital will be returned after seven years unless the maturity date is extended by members.
The firm says the investment risk will be minimised through strict investment criteria, including a maximum equity limit of £1.5m per project, which falls to £500,000 if only outline planning has been obtained.
Speculative projects must satisfy an adjusted profits test while any funds not invested will be placed in low-risk liquid investments or deposits.
GHC chief executive Paul Harris says: “The fund represents an opportunity for investors and their advisers to take advantage of the potential returns from property development.”