Property Investment for Pensions will be listed on the Alternative Investment Market from April, offering investors a chance to take a stake in the London residential property market.
The company will be run by Invest-in-Property, which has been sourcing and buying properties for investment since 1989.
Andrew Reeves, chairman of Invest-in-Property, said: ‘Over the last seven years, residential property prices in Greater London have increased annually by an average of 19%, compared with average annual increases in the FTSE 100 Index of 1% over the same period. Average annual values of residential property in Greater London have declined just three times in the last 33 years. Rental yields in the areas we will be targeting tend to be above-average and relatively stable in uncertain markets, compared with accommodation in marginal areas. The capital value of such properties is likely to hold up well, even if house price inflation overall slows significantly.’
Advisers will earn commission of 2.5% with investors being required to take a minimum stake of £10,000. Tenants are expected to be young professionals, from abroad, requiring fully-furnished accommodation which will be paid for by their companies.
Tom Hulme, tax-efficient solutions executive for stockbroker Teather & Greenwood, which is sponsoring the listing of Property Investment for Pensions, said: ‘There are definitely a lot of people, who would have gone into buy to let on an amateur basis, who will be attracted. Not only will they get attractive tax releases, but they will have a professional property investment company making the decisions and have access to a massive portfolio.’