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PJB property is golden goose

PINDER FRY & BENJAMIN

Gold 9

Type:
Exempt unit trust

Aim:
Growth by investing in a central London office rented by international accountancy firm Ernst & Young

Minimum investment:
Lump sum £25,000

Investment split:
100% in a commercial property

Place of registration:
Dublin

Closing date:
July 14, 2004

Charges:
Initial 4.96%

Commission:
Initial 1.75%

Tel: 020 7291 7700

Gold 9 is an exempt unit trust, which is also available as a limited partnership. It invests in Becket House, a commercial property that is let to accountancy firm Ernst & Young.

Charter Devon Law principal Michael Posner thinks this product is well thought out and likes the tax breaks which result from the money being paid into an unincorporated trading business. This reduces CGT to 10 per cent after two years and ensures the money is CGT free for pension funds.

Posner says: “This is an opportunity to invest in real property in an improving area of the capital, at the relatively low starting investment figure of £25,000. Considerable attention is drawn to the belief that the demand for property in the Capital is increasing. But it is only a hope &#45 albeit an educated one &#45 that the depths have been plumbed. In my view it would take very little to tip the balance away from investing in prestigious offices in London and there is a great deal of uncertainty as to which direction we are actually going.”

Posner thinks the pre-prospectus literature is professionally presented and sets out clearly the exact terms of the offer but he would like to see more detail. He says: “This offering should be seen as a medium to long-term commitment of capital, but would depend on the date of actual realisation. It is essentially an open-ended investment and there is no guarantee on the date when it may be realised. There is an intention to realise the investment after the next successful rent review, assuming the demand is present. There is, however, no certainty.”

Summing up Posner says: “As this is an opportunity to invest in a particular, identified, property, I do not see there being any major competitors for this offering. It stands or falls on its own merits.”

BROKER RATINGS:

Suitability to market: Good
Investment strategy: Good
Charges: Average
Adviser remuneration: Average

Overall 7/10

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