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Real estate fund

Montello launches real estate bridging finance fund

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London based real estate bridging finance firm Montello Private Finance has launched the Montello Income Fund.

The fund will provide investors a return of 8.5 per cent per annum, paid quarterly.

Montello says the property market in the UK has fallen dramatically and is now showing clear signs of stabilising, particularly the residential market which the fund will focus on.

However, banks are still not lending freely into the marketplace, and even sound borrowers with good assets are finding that it can take months to obtain finance.

Montello provides fast access to capital to these borrowers.

“Prospective borrowers are seeing opportunities pass them by because they can’t access capital from traditional sources in a timely manner,” says Christian Faes, co-managing director of Montello.

The fund will focus on loans that are between one and 12 months in duration and secured against residential real estate in England, particularly in London. All loans will be secured by a legal first charge against the property in each instance; and a reputable independent valuer will certify that the loan to valuation for each loan does not exceed 75 per cent of the current market value.

The fund will be the only open fund in the UK that lends solely to bridging finance end-borrowers and directly takes first charge security (in the name of the fund).

The fund will be offered as a UK limited partnership with an associated exempt unit trust for Sipp and Sass investors.

The fund will be promoted through intermediaries and will be operated by Park Caledonia Capital.

The fund will be open-ended and investors can redeem their investment in the fund on a quarterly basis.

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