View more on these topics

Second land fund from Cordea Savills

Cordea Savills, the fund management arm of the Savills property services group is looking to raise £50 for a second serviced land fund.
Like the original fund launched last year, the serviced land fund 2 will trade in land and is available as a limited partnership and exempt unit trust for Sipp and SSAS investors.

The previous Serviced Land fund acquired three assets at a total cost of a £11.9m. The first asset – 7.7 acres of land in Norfolk, was bought for £7.62m. A developer has offered to buy the land for £9.24m – an increase of around 20 per cent – and Cordea Savills is in the advanced stages of contract negotiations. One of the other sites has been identified by the local authority as a large scale housing site.

The new fund will target returns in excess of 15 per cent a year over a five-year period. It will follow the same strategy as the previous fund, which completed its investment programme one year ahead of schedule. The strategy involves buying big tracts of land to be split into smaller plots that are more attractive to property developers. Improvements will also be made to the plots such as obtaining planning permission – particularly if changing the use of the land from industrial or agricultural to commercial or residential – putting in drainage systems, gas, electricity and telephone lines before the plots are sold to developers at a premium.

The fund will focus on adding value to the land it buys though changing the planning use, refine planning consent, installing the infrastructure and services, which may include building roads. Cordea Savills may also make joint venture arrangements with developers where land is sold in return for agreed share of sale of the houses that are built on the land.

On a positive note for the fund, an undersupply of housing means the value of land is high, while there is a difference in price between land with planning consent and land without it.

Although this fund does not get involved in finding tenants, investing in land can be risky as there is no guarantee that the required planning permission and enhancements can be made. The fund will also be geared by up to 50 per cent, which is not substantially high, but this will still magnify any losses if performance is poor, as well as increasing returns if the portfolio performs well.


Defaqto unfazed by Capita ownership of Synaptic

Defaqto has responded positively to the news that Capita has bought Synaptic Systems despite industry concerns that this puts Synaptic in a financially and strategically stronger position regarding the IFA market. Defaqto says with over 1,000 IFAs signed up to use Aequos Engage it is unconcerned, saying it welcomes the competition.Marketing director Kate Marsden says […]

Bills to set out pension reform

The Queen’s speech put forward a bill for state pension reform and possibly another bill on personal accounts.

Singapore cover image - thumbnail

White paper — Singapore International Insights

Jelf Employee Benefits assesses key trends within the international private medical insurance provision of organisations with employees in Singapore. Benefit structure, cost management and healthcare facilities are examined and key considerations are highlighted. This edition will be of particular interest to global human resource directors and benefit managers with local and expatriate populations in Singapore.


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