the premier diversified property fund's four separate teams of specialists will ensure all disciplines are covered
Premier has launched the Premier Diversified Property Fund (PDPF) that will invest in the UK commercial property market.
Domiciled in the Isle of Man, PDPF aims to appeal to intermediaries looking for a non-volatile investment for their clients.
The PDPF is aiming to achieve returns of 8%-10% in sterling and 7%-9% in euros over a five- year period.
Four team of property specialists will be used for valuation, management, acquisition and strategy.
This includes Allsop & Co, Allsop Commercial Management, Lewis & Partners, and TIS Property Services. The fund will be actively managed.
The portfolio will use four different teams of specialists as the company does not think any one firm of surveyors can be top in every discipline.
Property assets may include high quality commercial offices; retail units situated in major shopping areas; modern warehousing and light industrial property with good distribution links; and good quality tenants and long-term leases. The portfolio does not hold large amounts of cash.
Property will be selected according to current market conditions in order to diversify risk. Selected assets will also be purchased from a range of providers and fund management groups or collective investment funds.
The aim is to acquire properties with lease terms in excess of 10 years, although shorter terms will be considered if, on balance, the property is thought to be an attractive investment proposition.
Tenants should be financially sound covenants and in the main, properties will be situated in town centres or recognised distribution/retail warehouse locations with good transport links.
After the core purchases are made the addition of higher yielding properties may be considered which may provide a potentially higher income return to the fund and overall lot sizes should be in the region of £2m-£5m.
As the fund develops, consideration will be given to broadening the range of property assets to provide additional diversification and access to alternative property markets.
These assets may be acquired through the purchase of units in collective investment funds or directly, although to avoid undue volatility, shares in publicly quoted property companies will not be considered.
Mike Richardson, director of the Premier Diversified Property Fund, said: 'The commercial property market has all the characteristics that appeal during times of weak stock-markets: steady returns built upon secure streams of rental income, a lack of volatility, and it is also an asset that has been acknowledged by analysts as being non-linked to the equity market.'
Investing in the fund will be on a monthly basis. In addition, special arrangements have been put in place with major banking institutions to ensure that, in most circumstances, disposing of shares/units will also be possible each month.
The minimum investment is £11,000.
The annual management charge is 1.5%. The exit penalty is reduced from 9%-0% over five years.
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