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Bates builds a top-floor fund

Bates last year left Bates Investment Services, the IFA firm which he founded. He has amassed a personal property portfolio of 10m by investing in his speciality, North of England property, and is offering IFAs’ clients the opportunity to share in his expertise and exploit a 40 per cent tax break by investing in the Keydata resid- ential property limited partnership.

The fund will buy vacant upper floors of town-centre commercial properties in the North and convert them into affordable one and two-bedroom flats for local people.

This would fall under Deputy Prime Minister John Prescott’s plans for affordable housing and means the fund qualifies for the tax break, provided that investors’ money stays in for seven years.

Government figures forecast that the rise in single person households will bring a need for 3.8 million homes to be built in the next 25 years, with 1.4 million are likely to be rented.

Keydata wants to move its focus into the residential property ahead of the changes to Sipp regulations next year. Managing director Stewart Ford says he is hoping this fund will raise 10m but it could be the forerunner of a fund 10 times that size.

Minimum investment is 10,000. Commission is 3 per cent. The fund closes to investment on June 30.

Bates says: “I have always smelt a good property deal. It is a personal interest that became a business. I understand the issues that IFAs are facing and I know they will be able to explain this product.”

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