Maven Capital Partners has launched the Maven Ground Rent Fund 1, aimed at professional and sophisticated investors.
Aiming to deliver a 5 per cent annual yield to investors, the fund will invest in ground rents – the contractual payments made by leaseholders to the landlord of a residential or commercial property. It will target an equity fund raising of £20m.
Maven will identify ”well researched” ground rents through a relationship with Greenbelt Holdings, a specialist property manager, for the fund.
Maven partner Andrew Craig says: “Ground rents are an overlooked asset class, which combine the security of property with preservation of value and access to a predictable income.
“There is an active market among institutional investors, such as pension funds seeking diversification and reliable low risk yielding investments, for acquiring ground rents portfolios for their income characteristics, which should provide an ultimate exit route for investors.”