| “90% of the world’s millionaires got there by owning property” - Expat focus |
The Garratt Residential Property Fund is an open-ended SICAV SIF portfolio domiciled and regulated in Luxembourg with a five-year fixed term. It is available to professional and well informed investors in the UK and overseas.
Features
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The Investment Advisor
With over 80 years combined experience in the property industry Garratt Property Group Ltd., the Fund’s Investment Advisor, have the proven ability, through their knowledge, industry contacts and extensive buying power, to obtain properties at a discount of 15-20% to the current day valuations.
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The Investment Objective
Properties for the Fund will be purchased at a discount of 15-20% off current day valuations*, with an average rental yield of 6% per annum.
The Fund aims to generate income from both rental yields and capital growth from a portfolio of ‘discount to market’ properties.
* set by the Royal Institution of Chartered Surveyors [RICS]
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Potential Returns
“Anticipated returns of 35-40% are expected even if the housing market remains flat. However if property values increase from this point, as they are forecast to do, then the potential for higher returns will increase considerably.”
(Amanda McHugh, Director, Garratt Property Group Ltd.)
The average growth in property prices over the past 20 years has been more than 7% p.a.**
**source: Nationwide Building Society
Recent research from Savills forecasts positive growth for the next five years as illustrated below.
Savills annual forecast for house price growth
Over the five year term of the Fund, significant capital appreciation is expected from this anticipated rise in market values.
With this forecast growth in the market, returns could be in the region of 80-100%.
| Average Annual Growth |
0% |
5% |
10% |
| Capital Invested |
£50,000 |
| 5yr NAV |
£72,208 |
£106,504 |
£144,109 |
| Gross Profit |
£22,208 |
£56,504 |
£94,109 |
| Net Profit* |
£17,767 |
£44,963 |
£75,287 |
| % Profit |
36% |
90% |
151% |
*After performance fees.
Please check Fund Offering Document for full details.
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Low Level Entry in to the Property Market
The low entry level of £20,000 in to the Fund, allows investors access to the property market at an ideal time, without the hassle and risks involved with direct ownership. The fund purchases properties while considering the same terms an individual might, when building up a portfolio; including the process of gearing and risk diversification.
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