PF Advisors has announced the planned launch of the Providence Value Property Fund, a three-year closed-ended fund that will invest in a range of residential, commercial and student properties in locations across the UK.
PF Advisors has announced the planned launch of the Providence Value Property Fund, a three-year closed-ended fund that will invest in a range of residential, commercial and student properties in locations across the UK.
The fund, which is due be launched in August 2012, aims to give investors an annual yield of 7%. The yield will be protected through the receipt of upfront rental repayments on a lease-back of each of the properties.
Providence Value will focus on locations that have large populations with a lack of affordable properties and purchase the properties directly from the developer, PF Advisors said in a statement. The fund's ordinary shares and loan notes are planned to be listed on the Channel Islands stock exchange.
The fund's strategy is to acquire property from developers at a minimum discount of 25% to market prices, with the developers assuming any risk on the sub-letting and management of the properties by leasing back the properties from the fund for a projected yield of 9.2%.
PF Advisors said it has already lined up potential transactions to purchase and lease back property from a developer called FreshStart Living with a value of £15 mln.
