Pensioners are being offered Gatwick car parking spaces with investments of £25,000 as part of an unregulated investment scheme.
The FT reports parking spaces at the airport are being offered at a “guaranteed” 8 per cent yield for at least two years.
The spaces are being offered by Park First, a sister company to Store First, which was previously investigated by Dispatches over the sale of storage units as an investment for pensioners.
Investors in the parking spaces receive a certificate of ownership, and the space is leased and managed by a parking company. Investors must buy a £20,000 parking space at Glasgow airport before they can access Gatwick spaces.
Citing a valuation report commissioned from chartered surveyor AJP, the firm claims that each Gatwick space will generate £3,380 of rental income annually, leaving investors with £2,000 after management fees, service charges and ground rental.
Investors are free to sell, let or manage their own spaces at any time using any agent they choose, but after five years, they are given the option to sell the space back to Park First for the original price paid.
Law firm Neglect Assist’s Tim Wixted told the newspaper: “There is no liquid market — indeed, there is probably no market whatsoever — for the sale of airport car parking spaces.” He added the two-year rate promised smacked of a scheme that is “doomed to fail”