London Central Portfolio’s (LCP) fourth Prime London residential fund, London Central Apartments II (LCA II), is now open for subscriptions.
LCP announced the fund’s launch at a press conference hosted by chief executive Naomi Heaton at the Club at the Ivy, in London’s Covent Garden.
The journalist audience actively participated in a panel discussion, facilitated by the BBC’s John Humphrys, on the importance of Central London residential property on the investment map and its long term potential.
The mandate for the new fund repeats the model of LCP’s third fund, LCA I. It will acquire a diversified portfolio of one and two bedroomed properties in all the prime postcodes surrounding Hyde Park which will be renovated and interior designed to add value and appeal to blue-chip tenants.
The five-year fund is projecting an IRR in excess of 14 per cent pa and will be regulated and approved by the Jersey Financial Services Commission and the Channel Islands Stock Exchange. It is structured to be Sharia compliant, allowing it to be globally accessible to both conventional and ethical investors. The minimum subscription for investors applying in their own name is set at GBP85,000 but reduces to GBP25,000 if invested through regulated entities such as SIPPs, ISAs and offshore portfolio bonds.
According to LCP, LCA II already has a significant number of investors on the waiting list, but will, however, be open to all interested parties on a first come, first served basis.
Heaton says: “The new fund, LCA II, offers investors access to a high performing alternative asset class without the usual obstacles of buying property and the management responsibility of owning it. It provides the benefits of buying power and diversification which investing in a single asset cannot provide.
“With Land Registry All Transaction Data for 2013 showing average prices now at GBP1,447,894, the fund also offers private investors access to all the best postcodes in Prime Central London at a fraction of the direct investment cost. Another bonus is the fund’s eligibility for various tax efficient investment wrappers, such as ISAs and SIPPs, at a time when people are searching to allocate their savings effectively.
“Since the credit crunch, Prime London Central residential has firmly earned its credentials as a player in a balanced investment portfolio. We are delighted to be launching a new offering to enable a wide spread of investors to benefit from the returns, longevity and diversification of this premier asset class.”
