London-based Gullwing Asset Management is to launch an exempt unit trust this month investing in ret...
London-based Gullwing Asset Management is to launch an exempt unit trust this month investing in retail and leisure commercial properties, aiming to deliver a net total return of 8.9% per year.
The trust is aimed at retail investors via intermediaries and minimum investment is £50,000. The fund, which will invest solely in UK assets, will not invest in the office property sector.
Closing to investment in December 2002, the trust is designed to appeal particularly to Sipp and Ssas holders and will also be marketed to overseas investors.
The fund will be geared at 75% and has a target size of £200m of retail and leisure properties, funded by £50m of contributions from investors and £150m of senior debt from a third-party lender.
The aim of the fund is primarily capital growth but income distributions may be made if an opportunity arises. The partnership will acquire an initial portfolio of retail and leisure properties for about £115.5m. Most of the properties, some 65% by value, are to be let on long leases to Woolworths plc.
Michael Lynn, managing director of Gullwing Asset Management, said prospects for the retail sector are much stronger than for office property, with retail and industrial sectors best positioned to perform over the next five years.
Contact: 020 7887 1483.
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