The British property opportunities fund will target an annual return of 10 per cent-plus by investing in both residential and commercial property, including distressed portfolios, high yield rental units and development opportunities.
MPL managing director Jeremy Leach “This is an ideal fund for those who see value in property because it has no legacy issues and it will be one of the few funds in an acquisitive mode in 2008. We are seeing discounts to market value of around 20 per cent being offered on both private and commercial property at the moment, and in a leveraged fund such as this we believe the fund could produce high returns in a very short time.
“Property prices will cool this year, but it is a cyclical market and the British desire to own or invest in property when nothing else offers good value will return. When the dynamics of the property market change then other opportunities will become available, but in the meantime, now is a great time to get into the market.”
Property adviser to the fund is Horizon Asset Management. The minimum investment is £50,000, or £2,500 if an investment is made via an insurance bond or SIPP wrapper. There is a 5 per cent initial charge, giving an initial allocation of 95 per cent and an annual management charge of 1 per cent. There is a performance fee of 50 per cent of all gains above 10 per cent. Commission for IFAs is 4 per cent initial and 0.5 per cent trail. The fund will be leveraged by up to 70 per cent at the discretion of the board to enhance returns.