Walls & Futures London Growth Fund
Walls & Futures a specialist property investment company has launched the Walls & Futures London Growth Fund. Targeting Central and South West London, the fund intends to raise up to £10m GBP of equity/investors subscriptions, with conservative gearing, will create a fund size of £20m GBP.
The fund is a closed ended Scottish Limited Partnership with a life of 5 years. It is eligible for investment via SIPPs, SSAS and direct investment with a minimum subscription of £25,000 GBP. The asset manager will also co-invest alongside the limited partners.
Historically the UK property market has been seen as an asset class offering strong capital growth and income potential due to the imbalance between supply and demand. London has been a focus for global investors given its position as one of the most desirable places to live and work.
Research from Knight Frank estimates that while there will be some 15,000 new homes built in 2009 this is still 20,000 less than the Greater London Authority (GLA) believe is needed. Based on current projections London could face a shortage of 60,000 homes by 2012. This could see London property prices rise sharply over the next 5 years.
The objective of the fund is to generate returns by investing in quality properties in the Royal Borough of Kensington & Chelsea, Hammersmith & Fulham, Wandsworth and Merton. These will be refurbished or redeveloped and let to young professional tenants, providing rental income and capital growth.
Joe McTaggart Walls & Futures Managing Director commented:
“There is a fantastic opportunity for investors to re-enter the market however many are unable to do so due the constraints in buy-to-let lending. According to the Land Registry over the last 20 months the average house price in London has fallen from £355,934 to £306,934. However the deposit required by an investor has increase 130% from £53,390 to £122,785, leaving property funds as an ideal way to invest”
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