BPOF said the London Growth Share Class will aim to achieve long term capital growth from a market which it said remained robust even during the downturn suffered by much of the UK over the past few years. The company said the market strength within Central London can largely be attributed to the scarcity of supply which was recently described as being at “record lows” by Gerald Ronson, chief executive of property group Heron International.
Bill McClintock, chairman of BPOF’s investment committee, said: “The whole of London’s property market is going through a mini boom.
“Over the past two and a half years in particular, demand for purchasers and tenants has hit record levels, forcing rental yields up by more than 25% over that period. Because of this, many banks are still willing lenders for property in central London, which promises to continue to fuel the demand from property investors.
"It therefore remains an attractive investment proposition for many UK and international investors, especially if they use an investment vehicle like London Growth that has no legacy issues from properties bought at the last cycle peak, so all new investments will be dedicated to optimising gains for investors.”
The Cayman domiciled Oeic is managed by Horizon Asset Management. The new London Growth share class has a 3% initial charge and a 1% annual management fee. Minimum investment is £65,000 for direct investments or £3,500 through a wrapper such as a platform or a personal portfolio bond.
