View more on these topics

Cordea Savills lands investment opportunity

Cordea Savills, the fund management arm of the Savills property services group has established the serviced land fund which will trade in land.

The fund, available as a limited partnership and exempt unit trust for Sipp and SSAS investors, has a 25,000 minimum investment and will target returns in excess of 15 per cent a year over a five year period.

Large tracts of land will be bought then split into smaller plots of between 3 and 10 acres, which Cordea Savills believes is more attractive to property developers than larger plots. Improvements will also be made to the plots such as obtaining planning permission particularly if changing the use of the land from industrial or agricultural to commercial or residential putting in drainage systems, gas, electricity and telephone lines before the plots are sold to developers at a premium.

Cordea Savills has appointed a land developer, Cofton, as the primary asset manager. Cofton was established in 1972 and specialises in providing serviced lad for house builders. It has its own civil engineering team to carry out enhancements to the land.

The fund will focus on adding value to the land it buys though changing the planning use, refine planning consent,, installing the infrastructure and services, which may include building roads. Cordea Savills may also make joint venture arrangements with developers where land is sold in return for agreed share of sale s of the houses that are built on the land.

A seed investment has been identified for the fund a site in Norfolk currently owned by Cofton. This is part of a former sand and gravel quarry and is likely to be the first asset to be acquired by the fund, subject to due diligence and valuation. The fund is looking to acquire 7.8 acres of land totalling 7.722m but a 10% discount will be offered in return for Cofton having an equivalent share in the fund.

On a positive note, a slowing housing market may mean developers are less willing to hold large plots of undeveloped land, while at the same time more homes need to be built to meet demand for single occupier properties and starter homes.

Although this fund does not get involved in finding tenants, investing in land can be risky as values can rise and fall, while there is no guarantee that the required planning permission and enhancements can be made. However, Cordea Savills and Cofton are experienced in the land and property markets, so the due diligence they carry out should avoid unnecessary risks.


Twins for Octopus

Octopus Asset Management is looking to raise up to 60m for its twin structure venture capital trusts, Eclipse 3 and 4 VCT.

Taking stock

Schroder income maximiser is an interesting proposition with a mouth-watering yield. It aims to generate an income of about 6-7 per cent (net of charges) which is distributed quarterly. The fund will invest in a portfolio of the UK value team’s 40-50 best blue-chip stock ideas coupled with an overlay strategy using covered call options. […]

Matrix unloaded

The controversial move of the 30m Quantock UK growth fund from Matrix to Marlborough demonstrates the power wielded by managers in disputes over the control of their funds.

How can I help develop my professional connections?

Graeme Ballantyne, business consultancy manager, looks at how you can maximise the opportunities through your professional connections As we move through the summer months it’s perhaps a good time to pause and reflect on whether the plans you’ve made for your business are bearing fruit. One area we at PruConsulting know many advisers have been […]


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