LCP unveils sharia-compliant London property fund
Asset manager London Central Portfolio has launched a sharia-compliant residential London property fund.
Naomi Heaton, chief executive for LCP, said the London Central Apartments fund would appeal to some of the more wealthy clients, both domestic and overseas investors, who are looking to invest in property in the capital.
She said: "The world's super-rich are viewing prime London residential property the same way as they do gold and there is a limited supply of both.
"Even taking into account the effect of the credit crisis, prices in this tiny six-square mile area have risen by an average of 8.2 per cent each year over the past 15 years. Rental yields run at approximately 4.5 per cent a year.
"Our new fund will offer institutional and private investors access to a professionally managed and diversified portfolio in all of the recognised postcodes."
She added that, at a time when people are struggling to invest their pension pots, one of the main draws of the fund is that it is eligible for self-invested personal pension funds, as well as Isas.
Gains from the fund will be taxed as capital gains tax. For non-doms there should be no tax at all.
The minimum investment is £50,000 or less, subject to the individual investor's suitability. The fund is a closed-ended fund with a five-year term and two yearly options to extend this.
Jason Witcombe, financial planner for London-based Evolve Financial Planning, said: "There are dozens of new products launched every day and they all sound appealing on the face of it.
"This is not something we would research for our clients, but I am sure other advisers could find it useful for theirs."