Post by carthan81 on May 17, 2005 12:32:15 GMT 1
Looks like the City is taking note of the property potential...
EU accession reveals residential property fund prospects
Fledgling asset management house Tri Investments is launching into the market with a European residential property fund which aims to take advantage of markets in new EU member states.
Set up by Chris Finch, former head of pensions product development at HSBC Asset Management, the open-ended qualifying investment scheme will be putting clients’ money into flats in Warsaw and Praque, and property on the Adriatic coastline of Croatia.
Poland, the Czech Republic, Croatia and Bulgaria are seen as key targets following the launch on 24 June.
Investments will primarily be made off-plan to take advantage of strong capital growth driven by fast rising incomes and low supply of new and higher quality housing in the affected countries.
Around half the assets will also be sold before properties are completed to allow top-slicing of profits, with the remainder let onto the respectively local markets.
Tri Investments argues its fund acts as a substitute for European equities, meaning investors should not reduce existing exposure to bonds or other property.
Returns are targeted at 10% annually for the next five years, net of fees and expenses.
Stated AMC currently runs at 1.95%, with an initial charge of 5% - cut to 3% on investments prior to launch - while initial commission is 3% and trail of 0.5% on a minimum investment of £5,000.
Investments will be managed by Morley Fund Management – part of Aviva – and property sourced by consultant King Sturge. Morley is set to appoint a new residential fund manager, responsible for overseeing the new fund, Tri Investments says.
db.riskwaters.com/public/showPage.html?page=220134
EU accession reveals residential property fund prospects
Fledgling asset management house Tri Investments is launching into the market with a European residential property fund which aims to take advantage of markets in new EU member states.
Set up by Chris Finch, former head of pensions product development at HSBC Asset Management, the open-ended qualifying investment scheme will be putting clients’ money into flats in Warsaw and Praque, and property on the Adriatic coastline of Croatia.
Poland, the Czech Republic, Croatia and Bulgaria are seen as key targets following the launch on 24 June.
Investments will primarily be made off-plan to take advantage of strong capital growth driven by fast rising incomes and low supply of new and higher quality housing in the affected countries.
Around half the assets will also be sold before properties are completed to allow top-slicing of profits, with the remainder let onto the respectively local markets.
Tri Investments argues its fund acts as a substitute for European equities, meaning investors should not reduce existing exposure to bonds or other property.
Returns are targeted at 10% annually for the next five years, net of fees and expenses.
Stated AMC currently runs at 1.95%, with an initial charge of 5% - cut to 3% on investments prior to launch - while initial commission is 3% and trail of 0.5% on a minimum investment of £5,000.
Investments will be managed by Morley Fund Management – part of Aviva – and property sourced by consultant King Sturge. Morley is set to appoint a new residential fund manager, responsible for overseeing the new fund, Tri Investments says.
db.riskwaters.com/public/showPage.html?page=220134