View more on these topics

BDO Stoy Hayward targets ugly ducklings

The Hyde Park Fund from BDO Stoy Hayward Investment Management aims to raise up to £30m to invest in ‘ugly duckling’ central London properties that can be turned into prime residences.

Prime central London is defined as the City of Westminster including the West End, Mayfair, Belgravia, Kensington, Chelsea an some parts of Camden.

Unlike some prime residential property funds, this will steer clear of the finished article. Instead, it is looking to add value by refurbishing or extending properties to sell at a profit, acquiring blocks of flats to sell as individual units, converting commercial property to residential, obtaining enhanced planning consents and acquiring property off plan. The intention is to make the changes at a lower cost than the value resulting from the changes.

The company says the prime Central London market has increased, with high demand from wealthy foreign buyers and city workers that were paid high annual bonuses last year.

However, the supply of properties in this part of the market is limited and Knight Frank estimates growth will reach 10 per cent during 2007. It is also seen as an attractive area of the property market because it is more resilient to movements in the broader residential market and is driven by wealthy people who are not panicked by interest rate movements.

The fund will target returns of 10 per cent a year after tax and charges. It is expected to hold 6-12 properties in the portfolio at any given time, with average holding periods for properties between one and two years.
The fund will not diversify across different types of property just for the sake of because it believes opportunistic purchases and active management will potentially lead to high returns.

Investment opportunities will be found by property specialists Coba Asset Management and bank debt of £50-£55m will be used to help fund the purchases. BDO feels it is prudent to borrow no more as some properties may not produce income.

On a positive note, outperformance at the top end of the property market could result from strong demand and limited supply. However, the returns for this fund are only a target and there is no guarantee that suitable properties can be found in such a competitive market.


‘Discontented consumers need with-profits service’

The Financial Services Consumer Panel is calling on the FSA to introduce a limited advice service for with-profits policyholders through specialist firms and trade bodies.The panel claims in a report that eight million with-profits policyholders cannot get independent advice because their funds are too small to generate commission for advisers.It makes three key recommendations which […]

Hip providers offer deferred payment scheme to consumers

HIP Payment Services has joined forces with LMS and other providers in order to offer a deferred payment scheme to consumers.The scheme provides vendors with the option of deferring payment for their Home Information Pack until the sale of their property has gone through, whilst removing the burden of any payment or payment collection for […]

In the hot seat

It had not been an easy summer for the chairman of Betelgeuse Investment Funds. Turmoil in the credit markets and a particularly volatile period for shares had not helped demand for its products. Nor had it made life any easier for its managers, operating in conditions where share prices could swing violently in a single day.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm