Cordea Savills has launched a property development scheme which aims to deliver a return to investors of between 9 and 11 per cent by allowing them to assume the role of developers.
The project which allows investors to take part in commercial, residential and mixed-use property developments under its Qualifying Property Companies structure involves establishing trading development companies.
Each new company should qualify for the benefits of business property relief after two years of trading which would allow inheritance tax relief on the value of the shares in their development company.
The Group has bought a site near Bristol for £1.185m which will be used to develop offices and these will then be sold to owner occupiers. Chase Commercial which is part of the Chase Midland Group is the development manager.
Private investors, trusts and existing trading companies can invest with a minimum investment amount of £75,000.
Head of Wealth Management Steve Taylor says: “QPC offers investors an opportunity to benefit from the combination of a strongly performing property market with estate planning benefits. With an estimated 1.5m people now liable for inheritance tax, we are expecting significant interest from potential investors looking for exposure to property development with downside protection from proven development managers.”