industry news tilney shores up its relationship with allsop and fpd savills in order to enhance Opal Strategic Residential Property Fund
Opal, the alternative investment division of the Tilney Group, has moved to a multi-developer strategy for its property fund, and also strengthened its relationship with FPD Savills and Allsop.
From its initial advisory role, FPD Savills has been appointed primary acquisitions agent for the Opal Strategic Residential Property Fund, while Allsop has been appointed property adviser. FPD Savills will also be responsible for sourcing and negotiating investment opportunities for the fund.
Frances Clayton, investment director of the fund at Tilney Investment Management, said: 'The fund was tied to a single developer, but in order to move forward a multi-developer strategy was needed to increase the diversification of properties in the portfolio.'
There are two developments in the portfolio, which are run by the fund's current developer, London Town ' Westbourne Grove in London and Richmond Terrace in Brighton.
Allsop has been appointed as property advisers to the fund and will provide analysis, opinion and due-diligence on proposed investment opportunities. This will include looking at the properties valuation; forecast outlook and broader market; and quality of developer.
However, Tilney Investment Management will take the final investment decision. Allsop will also provide comprehensive valuation services to the fund, thereby enabling it to offer monthly dealing.
The Opal Strategic Residential Property Fund is designed to provide private investors with access to a range of different ways to invest in UK residential property with a level of sophistication and diversification normally only available to institutional investors.
The fund was launched April 2002 and began official valuation in June 2002 ' over the first year the fund achieved 8% growth despite challenging conditions in the prime residential markets.
The fund is designed to be used as part of a balanced portfolio and is run with the express aim of delivering steady, positive returns throughout the residential property market cycle. Tilney insists it is a complement, rather than replacement, for more traditional equity and bond-based investments and particularly appeals to investors who like their investments to be backed by tangible assets.
Clayton said: 'Most investors can intuitively relate to the intrinsic value and enduring utility of residential property. The fund enables them to access the steady long-term growth potential and low volatility associated with residential property without the hassle and legal responsibilities of direct investment property ownership. They also enjoy a more innovative and better diversified portfolio than would be realistic for them to accumulate on an individual basis.'
Shares are available via intermediaries and can either be purchased as an individual investment. In this option there is a 3% initial charge and 1.5% annual management charge. It is also available via offshore bonds from Clerical Medical and Axa.
The majority of financial advisers (85%) believe the number of self-invested personal pension (SIPP) providers will continue to fall in the coming year, according to Dentons Pension Management research.
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