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Funds seeking the UK sites most likely to obtain planning permission for buildings

Capita is to launch two funds to snap up land that could be used to meet the government’s target to develop 4.2m homes over the next 20 years. Connaught Asset Manage-ment has been appointed by Capita as the specialist asset manager for the funds, which have taken nine months to construct and package.

The Cautious Strategic Land Managed fund is targeted to deliver an 8 per cent annualised return over a five-year investment period after all fees and expenses. The Diversified Land Managed fund aims to deliver a 15 per cent annualised return over a seven-year investment period after all fees and expenses. Both funds, which are in the form of limited partnerships with exempt unit trusts, will solely acquire a range of land in the UK. Each fund is designed to make strategic land investment accessible to a wider range of investors while reducing risk levels through site diversification, no gearing, constant monitoring with independent assessment of each site prior to purchase and throughout the term of the fund. The two offerings will only purchase sites within the UK if there is a strong likelihood of obtaining change in their permitted planning use to generate an increase in the sites’ value. Sites are identified and purchased by land planning, development and management expertise in Connaught Land.

Potential changes in use could be, for example, a change from agricultural or redundant industrial use to residential or commercial use. The funds will be offered as UK limited partnerships with exempt unit trusts for self-invested personal pension and Ssas investors. Profit from successful projects will be paid out during the term of the funds and both funds can only be invested in via intermediaries in the form of IFAs. John Doyle, asset director of Connaught Asset Manage-ment, said: “Through discussions with a wide range of businesses, including financial institutions and financial advisers, it became apparent that with the outlook for falling returns in property investments, and recent share price falls in the stock market, many sophisticated investors are looking to find a new asset-based investment opportunity. “They want it to deliver significantly higher returns than they are currently able to achieve.”
FUND FACTS Minimum investment: £35,000

For more information, contact Nigel Walter Chairman of Connaught Asset Management - www.connaughtam.com

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