The company said the Luxembourg domiciled Sicav SIF, called the Castel Property Fund, will purchase “quality, freehold properties in desirable locations”. The intention is that these properties will not only create capital appreciation, but will also provide inflation protected income through long-term leases of 20 years.
As part of the investment strategy, Castel will use BeST, a not-for-profit provider and manger of social housing and PPI, a property developer based in the North West of England which will renovate and maintain the houses to a high specification.
Isle of Man based advisory company Creechurch Capital is to act as the master distributor of the fund through its Creechurch Advisory Services subsidiary.
Creechurch chief executive John Greenwood said: “Castel has been created to give investors an effective and proven option to incorporate UK residential property into a well-diversified, long-term portfolio.
“This unique, fully managed fund addresses the risks typically associated with investing in property. It is ideally placed to take advantage of the fact the UK residential market has made an average 8% annualised capital return since the 1950s.”
The fund, which launches today, has a minimum investment of £10,000 and annual management charge of 1.95%. In addition there will be a performance fee of 20% on returns over 8% per annum.
