The Coast Freehold Income Fund ends 2014 with a net return to investors of 10.46%.
- Properties with 999 year leases (represented by the Very Long Lease Index) increased in value during 2014 by 10.41%. Properties with 125 years lease (represented by the Long Lease Index) increased in value during 2014 by 3.28%.
- With ramping up finalised Coast generated net income for investors from April 2014. Further purchases in the current pipeline represent an increase to levels in excess of 3.25%, in line with the overall target of 4%.
- The fund is experiencing a solid flow of potential purchases, growth of its agreed pipeline and investor inflows.
Coast Freehold Income Fund completes Canary buy
Coast Freehold Income Fund has completed its acquisition of the freehold interest in Wharfside Point, a block of 250 apartments in Canary Wharf, E14, as well as a further 80 flats located in the Thames Valley, Kent and Essex.
Clive Rayden, Director, RCP Group said:
- The total investment by the fund in these recent deals has been £1.4m and marks a significant addition to CFIF's growing portfolio of residential ground rents located across England and Wales.
- It brings together over 25 years ground rent experience of the principals of RCP Group and the 25 years of bond / structuring experience of Sven Miserey of Capital Advisory Partners.
- The fund is structured as a Jersey Property Unit Trust and has a targeted net annual return of 8%, with an additional embedded inflation hedge and no lock-up period for investors.
"Transactions of this size in the residential ground rent asset class are exceptionally rare, so we are very pleased to have completed the acquisitions of the freeholds of 330 flats over the summer, on behalf of our existing and potential investors. We are currently in advanced discussion on a number of other opportunities that offer similar compelling income-generating characteristics, as well as the potential for capital growth.
We are continuing to see strong appetite from institutional and high net worth investors for access to the benefits of investment, in long-dated residential ground rents. We have no doubt that the appeal for the safe, secure returns delivered by this highly specialised product is increasing."
Press Release Date : 7th October 2013
Allenbridge Yadgaroff research gives Coast Freehold Income Fund AA+ rating
- Fund is an opportunity to invest in long leased freeholds
- Ground rent investments are highly over collateralised and close to no defaults
- Target to double investment over 10 years
Allenbridge Yadgaroff Research has awarded Coast Freehold Income Fund a AA+ rating in a recent report.
The fund is a Jersey Property Unit Trust (JPUT), with a targeted net annual return of 8% only with an additional embedded inflation hedge and no lock-up period for investors. The fund will invest in a portfolio of freehold residential ground rents across England and Wales, providing diversification and all the ground rent leases will be in excess of 95 years at the time of purchase.
Allenbridge Yadgaroff research said:
“The Fund offers investors an easy way to access the ground rent market whilst benefiting from a unitised structure that provides monthly valuations, better liquidity than a direct investment, a more diverse portfolio and economies of scale.”
“The investment management team provide a high level of oversight and rigour for investors and they aim to provide institutional levels of transparency, reporting and processes. This is coupled with a very experienced property management team to deal with all the property related issues, which are key to the Fund’s performance versus the market.”
“Ground rents are highly over collateralised and experience close to no default. In addition to the ground rents, freeholders enjoy other potential income streams. The income yield, net of costs, should be significantly higher than gilts. As this fund concentrates on long-term leases there will be little initial exposure to property prices. Furthermore, where ground rent reviews are linked to RPI or HPI there is direct protection against inflation. The Fund provides an attractive, viable alternative to gilts or AAA corporate bonds.”
“Overall we feel that the ground rent market is attractive for investors. Funds, such as this one, which concentrate on long-term leases offer investors an attractive net income yield underpinned by the very secure ground rents.
The Coast Freehold Income Fund is well structured, has a sensible cost structure and provides investors easy access to the market combined with the expertise of its property and investment management teams.”
Clive Rayden, Director, RCP Group said:
“Investors be they individuals or institutional are looking to find income and this is proving problematic for them. In essence it is the Holy Grail given the continued economic turmoil and we expect this to only increase in demand due to the demographic changes in our population. Ground rents present an ideal investment to package within a fund, as they provide predictable income streams through stable cash flows There is also minimal risk of default asthey are secured by the underlying flats and the freeholder ranks above the mortgage provider.”
“The Allenbridge Yadgaroff research provides an independent view on the fund, it is well respected and provides a rating of AA+.”
Press Release Date : 26th March 2013
Allenbridge Report on Coast
Click here to view the in depth review of the Allenbridge Report on Coast.
Press Release Date : 8th March 2013
Coast Freehold Income Fund Completes First Investment
Coast Freehold Income Fund, the dedicated residential ground rent fund, announces that it has acquired the freehold interest in three blocks of flats, in the South East of England, for an undisclosed sum.
The Coast Freehold Income Fund offers investors access to income generation and capital growth through owning a portfolio of residential ground rents located across England and Wales.
The large number of ground rents provide diversification and all the ground rent leases will be in excess of 95 years at the time of purchase. The fund which is structured as a Jersey Property Unit Trust (JPUT), has a targeted net annual return of 8% with an additional embedded inflation hedge and no lock-up period for investors.
The fund provides HNW and institutional investors with a unique structure, monthly valuations and an experienced management team with access to a pipeline of new product and a strong commitment to the market and investors.
Clive Rayden, Director, RCP Group said:
“The Coast Freehold Income Fund is an exciting venture and we are pleased to have completed our first investments on its behalf. Ground rents appeal to investors as they provide predictable income streams through stable cash flows with minimal risk. We expect to be able to announce further investments in the coming weeks.”
Press Release Date : 8th January 2013
Ground Rent Fund Launches Today: Coast Freehold Income Fund
Coast Freehold Income Fund launches today, a new secure income product which brings together over 25 years ground rent experience of the principals of RCP Group (RCP) and 25 years of bond / structuring experience in Sven Miserey, of Capital Advisory Partners (CAP).
The fund offers investors access to income generation and capital growth through owning residential ground rents.
The establishment of Coast Freehold Income Fund was supported by State Street Real Estate Fund Services’ specialist European onboarding team.
The fund which is regulated by the Jersey Financial Services Commission (JFSC) is structured as a Jersey Property Unit Trust (JPUT), has a targeted net annual total return of 8% only with an additional embedded inflation hedge and no lock-up period for investors. The inflation hedge is provided through regular reviews of the ground rents, together with capital appreciation resulting from the leases shortening over time.
The fund will invest in freehold residential ground rents across England and Wales, and all the underlying leases will be in excess of 95 years at the time of purchase. The fund provides High Net Worth (HNW) and institutional investors with a unique structure, monthly valuations, experienced management and a strong commitment to the market and investors.
Coast Freehold Income Fund offers investors:
- Targeted return of 8% with an inflation hedge through rent reviews and capital appreciation
- A regulated real estate fund offering a monthly independent valuation of all assets
- Rental income secured by the individual properties (ground rents constitute regular payments required under the lease to the freeholder and rank above any claim on the leasehold including mortgagees)
- Long duration asset life
- Limited exposure to macro-economic activity
- Minimal default risk
- Transparent JFSC regulated Property Unit Trust Open-Ended Expert Fund
- Long term capital gain resulting from leases shortening over time
- No property value speculation at purchase
- Independent surveyor valuations with monthly mark to market valuations
- Monthly dealing
- Coast Management (Coast) (the investment manager) is authorised by the JFSC and CAP (the investment advisor) by the Financial Services Authority
The fund is co-managed by RCP and Coast, providing investors with access to both ground rent and bond / structure expertise. RCP will manage the ground rents and source purchases. Coast will instruct RCP as to the maximum price to be paid on properties, based on yield to investors.
Clive Rayden, RCP said:
“The Coast Freehold Income Fund is an exciting venture that sees over 50 years combined experience in ground rent management and also bonds / structuring. The Fund will provide investors with a secure income return through access to freehold residential ground rents across England and Wales. When purchased, the leases will have in excess of 95 years to run and produce an annual income with periodic reviews as well as future capital gains.”
Sven Miserey, Capital Advisory Partners added:
“Both HNW and institutional investors are looking for secure income flows at this time. It is the Holy Grail given the continued economic turmoil and we expect this to only increase in demand due to the demographic changes in our population. I have spent many years structuring funds & investment products and ground rents present an ideal investment to package within a fund, as they provide predictable income streams through stable cash flows. The rental income is secured by the underlying apartments and rank above the mortgage provider, with close to no risk of default, making the targeted 8% return a compelling investment.”
Press Release Date: 19th November 2012