LCP funds show strong performance as fourth fund opens for subscriptions
The annual RICS accredited valuation just issued for London Central Portfolio’s (LCP) funds have seen them powering up the Citywire’s league table, knocking four of the top five down the list.
Returns have outstripped that of Premier Pan European Property Share (39.6 per cent over three years), SWIP European Real Estate (22.9 per cent over three years), Legal & General UK Property (13.9 per cent over three years) and Schroders Global Property Income Maximiser (13.8 per cent over three years).
LCP’s fourth fund is now taking subscriptions and benefits from new SIPP and ISA saving measures put in place by the government at the recent Budget.
The first fund, the London Central Portfolio Property Fund (LCPPF), was closed in September 2007. The portfolio has increased in value by 58.6 per cent since acquisition. Closed two and a half years later, the second fund, the London Central Residential Recovery Fund (LCRRF), has increased in value by 50.8 per cent since acquisition.
The audit also marks the first full set of results for LCP’s third fund, London Central Apartments (LCA), which was fully invested in December 2013. It has already increased in value by 27.8 per cent since acquisition.
“The key to the funds’ success is LCP’s proven business model, which buys and ‘does up’ what the private rented sector really wants – one and two bedroom flats in trophy locations – small but very, very stylish,” saysNaomi Heaton, CEO of London Central Portfolio.
LCP’s newest offering London Central Apartments II (LCA II) will replicate the business strategy of all the previous funds. It will acquire a diversified portfolio of up to 100 small flats each under the GBP1 million price point in areas like Mayfair and Kensington, which are competitively prices with the potential to add value through reorganisation and renovation.
The minimum subscription is set at GBP85,000 for direct investors but there is no minimum limit through a ‘regulated entity’ such as SIPPs or ISAs. It is projecting returns of 14 per cent per annum over a five year period. By virtue of undertaking a ‘genuinely commercial activity’, LCA II is also exempted from higher rate 15 per cent SDLT and the Annual Tax for Enveloped Dwellings and is eligible for SIPPs.
“Thanks to these measures, LCP’s Central London residential funds are set to become the investment vehicle of choice. They are investing in a sought after marketplace which avoids the wild gyration of equity markets. They offer diversification by investing in multiple assets, they are ‘pre-geared’ so investors do not have the hassle of getting a mortgage and they allow investors to enter the market at a far lower ticket price,” says Heaton.
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