Close High Income Property Fund
Since 2002 we have worked with Close Investments Ltd setting up and managing Funds sold through IFAs.
At the launch of the Close High Income Property Fund ('CHIP'), we were appointed as joint Asset Managers for half the funds. We built up an initial portfolio of £30m high-yielding industrial and retail investments. After further fund raising we acquired another £40m of property.
Since the launch in April 2003, we have delivered performance enabling investors to benefit from a dividend return in excess of 7% plus capital growth.
In October 2008 we were appointed as Asset Managers on the whole CHIP Fund with property assets of over £150m.
Uplands Business Park, Walthamstow
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Purchased in April 2003 with a 20% void area and tenants on short leases. Unloved, with little maintenance, the site frequently suffered vandalism and break-ins.
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We carried out major refurbishments where necessary, both internally and externally, including bringing a 6000 sq ft Victorian office building back to its former glory. We installed new security gates, fencing and signage to the industrial units. We let the empty units and introduced new tenants, some on 10 and 15 year leases.
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Two years later we disposed of the site for a £7.25m net profit and a geared IRR of nearly 50% for investors.
Cartwright Industrial Estate, Stoke on Trent
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This 120,000 sq ft property was purchased in 2004. The estate presented poorly, had a 22% void and only 30% of the income was secured for over a year.
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c£150,000 of capital improvement works were completed including reconfiguring and refurbishing vacant buildings, resurfacing and clearing up external areas. Existing leases were re-geared and new tenants secured.
= Profit2
In 2006 the estate was sold for a £1.1m (net) profit, 100% let with 60% of the income secured on agreements with over 1 year remaining.
Wanderings Farm Estate, Surbiton
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When the owners wanted to sell this portfolio of 6 blocks containing 60 residential flats and high street retail/office development, we arranged the company purchase and finance for the client.
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Buildings were refurbished and altered, new commercial tenants introduced and leasehold interest in the residential flats were sold. Planning consent was obtained to extend one residential block and this interest was sold to a residential developer.
= Profit2
At the end of the 3 year project period we had made our investors a £1.5m (net) profit, a return of over 100% on equity invested.