Introduction With the strong Rand, being one of the best performing currencies in 2009, there are many opportunities overseas to secure discounted First World assets and income. IPS, in conjunction with LCP, have developed a vehicle to provide investors with a very affordable, efficient and effective method to take advantage of the opportunities in London and make excellent returns. A new investment opportunity in London Targeting the “bullseye” of the capital, the only closed ended fund exclusively exploiting discounted opportunities in areas like Knightsbridge, Mayfair, Chelsea and Kensington is being launched. Seeking to capture the bottom of the market, it will stock pick a portfolio of individual properties with potential to add value. These will be refurbished, furnished and let to blue-chip corporate tenants, providing quality rental income and capital growth. An increasing desire to invest in tangible assets makes it a compelling alternative to the stock market. Geared to maximise investor returns, the Fund can borrow at just base +1% giving it exceptional buying power. Investment Objectives • Target Return 15% average annual growth, doubling an investor’s equity stake in 5 years. (This does not even take into account the further advantages of the Rand Hedge and the prospects of the Rand devaluing by roughly 5% each year over the 5 years.)
• Target Fund Value £23 million+ Equity Contribution £10 million+
• Eligibility UK resident, non-resident and non-domiciled investors, SIPPs, SSASs, PEPs and ISAs
• Investment Term Closed ended Fund running for 8 years or less with early exit options. Due to be listed on the Channel Islands Stock Exchange
• Minimum Investment very affordable, please enquire. • Gearing 65% Loan to value at 1% over base provided by MeesPierson (C.I.) Limited (formely Fortis Bank)
• Annual Management Fee (including valuation, audit, trustees etc) less than 1% of Fund value
• Property Manager London Central Portfolio Limited - 20 years experience
• Administrator Inter Trust Fund Services (Guernsey) Limited Fund Strategy • Capital growth fund capitalising on supressed pricing due to credit squeeze and predicted long term market growth
• Opportunistic acquisition of residential assets with potential for added value through renovation
• Development of well balanced investment portfolio across the niche micro markets of prime London Central
• Selection of units using rigorous financial criteria based on rental yields and capital growth potential
• Focus on smaller units (1 and 2 bedroom properties) to target the robust mainstream rental sector
• Competitive line of pre-arranged credit to maximise investor returns, financed by rental income
• Tax advantages via investment through UK personal pensions
• Exemption from CGT in the UK on disposal of shares for non-resident and non-domiciled investors
• Income tax mitigation through offsetting rental income vs loan interest The case for London Central residential: • Only 6 square miles around Hyde Park, it is not just the capital of the UK, it is a global
powerhouse. It consists of two boroughs - the Royal Borough of Kensington & Chelsea and the City of Westminster
• Home to some of the best known addresses, its appeal is unabated, its scarcity value increased by strict limits on land development
• Underpinned by robust fundamentals and significant supply constraints, it offers a unique combination of long term capital growth and consistent rental return
• The current cyclical price correction, exacerbated by the credit squeeze, presents exciting opportunities for the shrewd investor
• The forthcoming 2012 Olympics will further intensify the international spotlight on London Central. A prime performer with diversification benefits • London Central has significantly outperformed the UK stock market and commercial property. Since 1996 residential has seen a 400% increase in total return (capital and income), double that of UK commercial and eight times the growth of the UK stock market. • As London Central is neither closely correlated to the UK housing market nor global equities, investment provides important diversification benefits in a balanced portfolio. The current
weakness of sterling is also a major driver for foreign investment A consistent performer with robust fundamentals • Residential property has shown exceptional growth. Since 1969 prices in London have doubled every 7 years on average and shown a greater return than commercial property. Values have increased more than 60 times, combined with rental income, funds invested could have seen a 90 fold return
• Today, well selected residential property continues to provide consistent rental income and attractive investment yields in comparison to cash deposits
• The Recovery Fund provides an opportunity to access this exclusive market without the cost or management responsibility of direct investment London Central Portfolio Limited (LCP) in conjunction with IPS • IPS, a South African company, started in London, was establised in 2003. The company has helped over 1500 people invest internationally. IPS has stratgically partnered with the "Best of Breed" LCP to provide their clients with the unique opportunity of investment in Central London. • Established in 1990, LCP provides an accountable, one stop service for high net worth investors. Market leaders and innovators, LCP
have more than £300 million of assets under management and have outperformed the market by almost 50% since 2000
• Specialists in identifying the best market opportunities, LCP maximise value through refurbishment and furnishing. Followed up by expert letting and management, LCP represent the investor’s interest throughout the life-cycle of their investment
• In 2007, LCP successfully launched the first ever closed ended Fund investing in prime London Central residential and are experienced contra-cyclical Fund Managers
• It is anticipated that the new Recovery Fund will benefit from exceptional buying opportunities given current market dynamics leading to substantial returns. Conclusion Since IPS starting assisting people invest in London in 2005, the company has been looking for a easy, affordable, transparent and effective solution to help their clients invest in existing quality properties in Central London.
Scott Picken originally made his money in London by buying undervalued properties, renovating to create an immediate uplift and improve the rental yields and then renting out to a captive market. We have found it tremendously difficult for our clients to do the same, until we found the "Best of Breed" company LCP, who along with IPS would be able to provide an End-to-End solution to our clients. Scott Picken, "We are very excited about this opportunity, it provides everything I was looking for to recreate the success I originally had in London and now even more importantly we have the opportunity to buy investments during the best time in 50 years!" |