C&G Properties unveils UK residential land fund

The Cavendish & Gloucester Land fund - which will be open for investment to investors until mid July - aims to take advantage of the demand for new-build housing when the property market recovers.

Timing of the launch has been set to coincide with the UK government's plans to create 654,000 new homes in the South East by 2026.

Peter Murphy, chairman of C&G Properties, said property would remain a key investment theme when the UK economy recovers.

He said: "Despite the decline in financial markets over the past year, property remains one of the most powerful types of investment for building wealth and should be a key part of a diversified investment portfolio."

Murphy said the new fund aimed to deliver a guaranteed annual income of 5 per cent during the fund's five-year investment term.

The fund will also seek to improve the value of the land by submitting planning changes and purchasing additional land.

Jeremy Leaf, member of the property advisory board to the fund, said the squeeze on credit had left a number of property developers with portfolios of land but no cash to pay lenders.

He added: "We believe the next 12-24 months will offer the best potential to purchase discounted land from these developers then re-sell back to the market once there is an upturn in residential developments."

Minimum investment in the fund is £25,000 and can be used in Sipps and Sass, or held as a direct holding.