From This is Money:
Savers can also benefit from up to 15% of any rise in the value of properties invested in, but risk a maximum fall of 30% if the portfolio’s value drops.
The fund receives two years’ rent from the landlord upfront, which translates into a 13.5% interest payment for investors over that period. They will receive this as soon as the opportunity to invest in the fund closes, which is expected to be at the end of 2009.
The properties will be sold or refinanced after two years with the fund sharing in 15% of any profit. The maximum exposure to falling property values is 30%, dubbed a ‘downside protection.
Derek Uittenbroek of Smith & Williamson, which is marketing the fund, says: ‘Investors get their income upfront, rather than having to worry about rent collection or occupancy rates.
‘Meanwhile, the downside safeguard shields them from fluctuations in the market, while still allowing them to enjoy a share of any potential gain.’
While Sipp savers investors can also re…