The asset manager, which has over £300m in assets under management, said it believes that the new product, the London Central Apartments Fund, is the only Shariah compliant fund investing in these assets on the market.
“The world’s super rich are viewing prime London residential property the same way as they do gold and there is limited supply of both,” says Naomi Heaton, chief executive officer of LCP.
“Investors buy into London for its lifestyle and accessibility but particularly now they are looking for alternative assets that can ride out market fluctuations while offering upside potential.”
Heaton added that, even taking into account the impact of the credit crisis, prices in prime areas of London have risen by an average of 8.2% per annum over the last 15 years. Heaton also highlighted rental yields which she said currently run at around 4.5% per annum.
The fund is eligible for both ISAs and SIPPS and gains will be taxed as capital gains tax at 28%, although LCP confirmed non-doms should not be taxed on the product at all.
IA fund facts
Fund name: London Central Apartments
Target return: 10-13% average annual growth
Target fund value: £50m+ Equity Contribution: £30 million, Shariah-compliant structured finance: £20m
Minimum investment: £50,000 (or less, subject to eligibility)
Investment term: Closed ended fund running for 5 years (with 2 annual options to extend)
Listed on: Channel Islands Stock Exchange, domiciled in Jersey
Eligibility: UK resident, non-resident and non-domiciled investors, SIPPs, SSASs and ISAs
