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Property home for pensions

Teather & Greenwood is setting up a pension investment vehicle which will be listed on Aim that invests in the London residential property market.

Property Investment for Pensions plc qualifies for self-invested personal pensions, small self-administered schemes and funded unapproved retirement benefit schemes. It will list in April and proposes to raise up to £20m, although it will also borrow up to 70 per cent of the value of the properties it will invest in.

The plan is designed to have a term of between five and seven years.

Pip will be managed by Invest-in-Property, which has been established since 1989.It claims that even if house price inflation slows, the value of London property should prove resilient having fallen only three times in the last 33 years.

The properties would typically be let out on company leases to leading businesses for young professionals looking for luxury accommodation for short periods.

The minimum investment is £10,000 and commission is 2.5 per cent.

Teather & Greenwood director Martin Sherwood says: “There are a lot of Sipp holders with cash to invest who are not keen to invest in a volatile stockmarket but lack a suitable alternative.

“This is designed to be an investment to be held over the course of its lifetime although listing the company means that there will be liquidity for investors in emergencies, even if early selling may affect the returns.”

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