The FSA authorised has authorised the first property authorised investment fund (Paif) to invest in student accommodation available to retail investors.
The HC Mansion UK Student Accommodation Income and Growth fund, a non-Ucits retail scheme, is the first to make use of the tax-efficient structure.
All properties in the fund will be procured and managed by the Mansion Group, while Host Capital will act as authorised corporate director.
Mansion Group chief executive Shankar Ramanathan says: “We have become a significant player in the student accommodation market since our inception back in 2007, and our in house experience and expertise will benefit the fund.
“We feel the fund provides attractive return for growth and income for investors that want to invest in the student property market.”
The fund will charge up to 5 per cent initial fee, pre-RDR, and carries a 1.5 per cent annual management charge.