London & Capital has launched its first real estate investment portfolio with a 9% projected annual return.
The Cayman Islands-based fund will invest in UK commercial properties, starting with a base of four that it will let to the Woolworth Group.
The London & Capital Property Satellite fund aims to achieve absolute investment returns of 9% pa with a low level of volatility.
The fund aims to build on London & Capital's experience in direct property investment on behalf clients and will be marketed to both the high net worth and institutional markets globally.
London & Capital has initially purchased four properties from across the UK, let to Woolworth Group. These will provide the base of returns for the fund. These initial investments will provide long-term income streams with fixed rental uplifts of 2.5%pa compound every five years (13.4% after five years). Each property has 23 years remaining on the lease.
The fund will add retail and retail warehouse properties to this initial portfolio.
London & Capital has been active over the past four years investing nearly $200m in commercial real estate with a particular emphasis on low-risk real estate investments that provide strong performance over the recommended hold period.
The London & Capital Property Satellite Fund is available in a US dollar or euro share class with a minimum investment of $50,000 or E50,000. It is an unregulated mutual fund and a share class of London & Capital's Cayman Islands open-ended investment company.
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