LONDON: London Central Portfolio (LCP) plans to visit the Middle East to launch their new Prime London residential property fund from February 9th to February 16th inclusive.
The launch comes as the latest UK Government Land Registry Data posts results for the end of 2013, showing average prices reaching £1,543,102 in Prime Central London (PCL), following robust growth of 12.5% across the year. With all the main drivers for market growth– a safe haven, a financial, cultural and educational centre – still very much in place in PCL, LCP predict continued upward price appreciation in 2014.
The fund is targeting an IRR of 14% per annum with a potential return of 100% after a five year hold. It will be regulated and approved by the Jersey Financial Services Commission and the Channel Islands Stock Exchange. It is the only residential fund in London to be Sharia-compliant bringing the market to both conventional and ethical investors. Investors can buy shares directly or through regulated entities such as personal pension plans or offshore portfolio bonds.
Investors can subscribe to shares in LCAII for as little as £25,000 and get a piece of this globally sought after asset class for a fraction of the cost of direct investment. It offers investors access to a high performing alternative asset class without management responsibilities, whilst providing the benefits of buying power and diversification.
Their new fund, London Central Apartments II (LCAII), follows the proven and successful model of LCP’s previous three funds. It targets the increasingly important Private Rented Sector and will acquire a diversified portfolio of one and two bedroomed properties in all the prime postcodes surrounding Hyde Park. These will then be renovated and interior designed to have maximum appeal to blue-chip tenants.
Whilst performance figures have yet to be posted for their third fund, LCP’s previous funds have demonstrated exceptionally strong results at their most recent valuations. Closed in 2007 and 2010, these funds have shown 41% and 44% increases respectively in capital value since acquisition and are on track to achieve their target returns.
LCP, the property manager, has confirmed that LCAII already has a significant number of investors on the waiting list. It includes investors from the Middle East who missed out on the second share issue of LCA, which was oversubscribed in two days. It will, however, be open to all interested parties on a first come, first serve basis.
“Apart from providing a gateway to investing in Prime Central London, another bonus is that the fund is a highly tax efficient investment,” Naomi Heaton, CEO of London Central Portfolio, said.
“As an off-shore corporate vehicle outside the UK, it is not liable to income tax or inheritance tax. It is also expected to be exempt from any new CGT rules introduced for non-resident persons. The fund provides an alternative way to take advantage of this sought after asset class and is particularly attractive to people based overseas, who cannot be a ‘hands-on’ investor.”
They road show will be in Dubai on 9th and 17th February, Kuwait on 10th – 12th February, inclusive, and Oman on 13th – 16th February.