Protego Real Estate Investors has launched a UK commercial property investment fund that will invest...
Protego Real Estate Investors has launched a UK commercial property investment fund that will invest primarily in industrial and retail warehousing, as well as some leisure assets.
The portfolio has initially been seeded with £45m, funded by money from professional property investors, wealth managers and private banks. IFAs may also recommend clients to invest and the fund is expected to reach between £300m-£350m within the next 24-30 months.
The portfolio is to be managed by Nick Pink who will use active management to increase the distributing yield of the fund for investors from 5.4% pa to 6% within the next 12 to 18 months. He hopes to achieve this through improving the buildings to attract tenants, renegotiating leases and by rent reviews. His target total return for the product is 10% pa.
Debt on each building is up to 50% of the value of the property. Loans are interest-free because this helps mitigate the tax on the fund.
Min investment: £90,000
IFA commission: up to 4%
Annual mgt charge: 85bp
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till