Close Property Investment is offering a commercial prop erty fund aimed at producing a target income level of 6 per cent a year.
The active commercial estates fund allows investors to either take the income annually or to roll it up to achieve capital appreciation through investing in accumulation units.
Ace proposes to acquire property which can be enhanced by active management which Close says contrasts with many property funds which hold long-term portfolios of properties.
Close hopes that by concentrating on specific investment opportunities which offer particular capital growth potential it can aim for medium-term growth of 10 per cent a year.
It also says IFAs are minded to diversify their clients' portfolio with a commercial property investment because the performance of commercial property is generally contracyclical to equities.
In addition, commercial property produces an income yield several times greater than equities and significantly more than cash.
The new vehicle is open to private individuals, self-inv-ested personal pensions and small self-administered schemes, as well as for trusts and charities.
Initial introductory commission is 3.5 per cent on subscriptions made by November 1. After this period, it falls to 2 per cent.
Close Property Investment managing director Anthony Wyld says: “For the client, the benefit is to have exposure to commercial property at a time when equity markets are down. Investors also have the option of taking either income or accumulation units with a free switching facility.”