View more on these topics

EIS goes Down the pub

Downing Corporate Finance is raising up to £16m to invest in an enterprise investment scheme that will invest in a portfolio of freehold and long-leasehold pubs.

The Downing Pub EIS fund 1 will invest in two EIS qualifying companies set up to buy, refurbish if necessary and operate portfolios of pubs.

This fund targets returns after five years of £1.10 for each for each net 70p invested equates to an annual tax-free return of 9 per cent, after tax relief. Downing says this is equivalent to 15 per cent a year gross to a 40 per cent taxpayer or 18 per cent gross a year to a 50 per cent taxpayer.

Downing is experienced in both the EIS and pub sectors, having raised around £60m for 12 EIS fund launches in the last four years. It currently manages investments in 36 pubs operated by 12 management teams.

Drawing on this experience, Downing will buy pubs for its new EIS only where it believes there is scope to develop the trade and grow the business. The manager believes that as each qualifying company in which the fund invests will own the pubs, this will reduce the risk relative to EIS funds that have no assets.

There will be no geographical restrictions on the pubs they will buy, but the manager expects to focus on the Midlands and South East England. It may also consider investments in licensed establishments such as restaurants, late-night bars and nightclubs.

Downing expects to benefit from the recent fall in pub prices in that pubs can be bought at below their peak value. The firm intends provide an exit for investors after five years while also providing a rollover option for investors who want to keep holding their shares. However, if there is not enough investor interest in this option to make it worthwhile, an exit will be provided for all investors.

This EIS fund could appeal to investors who are looking for EIS tax incentives. However, some investors may prefer the London bar/restaurant focus of theImbiba Bar and Restaurants EIS fund, while others may wait for the next issue of the City Pub Companies EIS fund, which is due in July.


Intelliflo appoints provider and client consultant

Intelliflo has appointed Kieran McGee as provider and client consultant. The firm says McGee will be responsible for working with providers and existing integrations. McGee returns to Intelliflo after two years with Focus where he worked as product manager, he previously held the same role with Intelliflo. McGee originally joined Intelliflo in August 2006 as […]

Investec puts fixed-income bond range on the defensive

Investec head of fixed income John Stopford has moved to a more defensive position across the £18.7bn fixed-income bond range as his expectations for global growth weaken. Stopford says the chances of improved global growth and additional monetary stimulus in the US and Europe are fading. He says: “We have been reducing risk as we […]


John Howard: Clean up claims firms but they have a role to play

How many emails, texts and phone calls have you received today from Claims Management Companies promising you compensation for dodgy loan insurance cover?  This aggravating blight on our daily lives is reaching a crescendo as claims firms try to cash in on the billions of pounds the banks have already set aside for the missale […]


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