Ground rents fund launches

Coast Management and RCP Group have launched the Coast Freehold Income fund, a Jersey property unit trust that will offer investors income generation and capital growth through residential ground rents.

Regulated by the Jersey Financial Services Commission, the launch has been supported by State Street’s european real estate fund service team.

The fund will target a net annual total return of between 5 per cent and 8 per cent and targeted at high net worth and institutional investors.

According to the promoters an inflation hedge will be provided by regular reviews of ground rents, while capital appreciation will come from the shortening of leases over time.

RCP’s Clive Rayden says: “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.”