The Threadneedle Property Unit Trust opened for subscription this week. This fund was f...
The Threadneedle Property Unit Trust opened for subscription this week.
This fund was formed by moving the former Sackville Property Unit Trust from the UK to Jersey and in the process converting it to a Jersey unit trust.
As an unauthorised exempt UK property unit trust, the fund was previously only open to UK pensions and charities. After the move to Jersey, the fund will be open to a broader range of investors.
The fund is aimed at professional portfolio managers and investors seeking a longer-term commitment to a diversified portfolio of UK commercial property. It will have a minimum subscription of £25,000 for clients of recognised professional advisers or £250,000 for direct investors. The fund is managed by Chris Morrogh.
The annual charge is 1.25% where renewal commission of 0.5% is paid to intermediaries. The fund has no initial charge. The fund has a bid-offer spread of around 7.5%. This reflects 4% Stamp Duty and the other costs of buying and selling property. This spread can be in part avoided through secondary market matchings currently occurring at around mid price.
Don Jordison, Director of Threadneedle Property Investments, said: "What has damaged property values in previous cycles has been excessive speculative development. This has resulted in a bulge of unlet buildings which has ruined valuations. But this has not happened in recent years. All the excess capital seems to have been wasted on telecommunications networks instead. This means we should be moving into an economic recovery with little development in the pipeline - which bodes well for the protection of capital and should provide good prospects of sustainable returns."
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