BDO Stoy Hayward Investment Management is starting a fund focusing on highend residential property in central London.
The Hyde Park fund will be unregulated and run in conjunction with the firm’s Dublin arm, Simpson Xavier. It will invest in residential properties in Westminster, the West End, Kensington and Chelsea and part of Camden.
With a minimum investment of £100,000, BDO is looking to raise up to £60m for the fund and aims to return 10 to 15 per cent a year.
Lead manager Robert Walters says the central London residential market is being driven by overseas buyers who snapped up 60 per cent of super-prime properties in London last year.
He believes the fund will achieve better returns by buying non-residential properties and converting them into flats as existing residential property is expensive.
Walters says: “We are launching the fund to capitalise on the remarkably buoyant prime central London residential market. This is a market driven by very wealthy foreign purchasers attracted to the UK by the generous tax breaks for non-domiciled residents and all high-end facilities and services a wealthy individual would expect from the world’s leading financial centre.”