London Property Fund Launched For HNW Investors

Ian Allison

8 March 2006

The London Central Portfolio Property Fund has been set up to provide investors with at least £100,000 the opportunity to buy into property in the capital without the commitment of direct investment or the responsibility of individual ownership. The fund aims to raise £11 million from investors to reach its target size of £20 million. It will stay open for four months from the beginning of March. The London Central Portfolio has been appointed investment advisor and property manager by the fund. LPC will be responsible for the sourcing, refurbishing, letting and management of the properties in the fund’s portfolio. The fund intended to run for eight years and is an offshore special purchase vehicle. It is expected to offer at least a 50 per cent return on equity invested over this period. Projections are for continuing sustainable growth, augmented by the “halo effect” of London hosting the Olympic Games in 2012. Naomi Heaton, chief executive of LCP, said in a statement: “We have every confidence in the growth potential of the Central London residential market over the medium-to-long term. "The diminishing stock of quality accommodation in the heart of London has created a valuable asset that attracts global investors. This is likely to be reinforced by the significant investment into the capital’s infrastructure and architecture in the run up to the 2012 Olympics."