Property

Investment approach

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.

Diversification

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.

Cost-efficiency

The economies of scale inherent in a large commercial property fund can be passed on to investors.

Property funds

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.

Expertise

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 170 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 31 December 2019

Insights

We publish a range of articles and publications on a regular basis covering key themes in financial markets and topical investment commentary. These include long-term investment themes, market insights and client solutions-based thinking. 

Market Insights

Sharpening your focus on what matters in markets.

Long-term Thinking

Our research on the most important trends affecting the future of the global economy.

Investment Foresight

Our thinking in action. Sharing the strategy behind our solutions and how we implement them.

MiFID II

Information about the MiFID II regulations that came into effect in January 2018, including how costs and charges are represented for LGIM funds.

Additional asset classes