The UK Property Fund is a leading ‘bricks and mortar’ fund from one of the leading commercial property managers in the UK. We focus on quality opportunities and look to enhance their value for investors by actively engaging with tenants and building managers.
Why invest in a commercial property fund?
Income and potential capital growth
In a low-yield environment, property income can offer an attractive level of income relative to cash and other fixed income assets.
Property offers diversification benefits alongside equities and bonds and may perform differently over the course of the economic cycle.
Focus on quality
Our investment process favours high-quality opportunities and when such opportunities are scarce, we will prefer to run a higher cash position than be forced to purchase a low-conviction property.
The economies of scale inherent in a large commercial property fund can be passed on to investors.
We offer two property fund vehicles to access the same underlying strategy.
UK Property Fund (PAIF)
Structured as a Property Authorised Investment Fund (PAIF) – ‘bricks and mortar’ funds normally have to pay 20% tax on income received from rent, reducing the level of income available to investors. A PAIF structure instead allows eligible investors – individuals investing through an individual savings account (ISA) or self-invested personal pension (SIPP) – to receive thisincome gross of tax.
UK Property Feeder Fund
We offer a feeder fund for investors who cannot access the PAIF. The feeder fund allows investors to access the same UK Property Fund strategy.
Property is a ‘hands-on’ asset class and a skilled investment manager can undertake a number of active investment initiatives to enhance a property’s value. Our real assets team has over 150 investment and specialist research professionals, covering real estate and private credit markets*.
The investment team is active in pursuing these value initiatives including strengthening leases, property refurbishment, relocating tenants, renegotiating rental levels and managing the vacancy to rate so as to provide a constant flow of income to the portfolio.
*as at 30 June 2017
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The value of investments and any income from them may fall as well as rise, and investors may get back less than they invest. Past performance is not a guide to future performance. Changes in exchange rates or medium to long-term interest rates may cause the value of an investment to fall. Where applicable, data source: Funds Library, unless stated otherwise.
Legal & General (Unit Trust Managers) Limited. Registered in England and Wales No. 1009418. Registered office: One Coleman Street, London EC2R 5AA. Authorised and regulated by the Financial Conduct Authority.