A new fund investing in land sites in the south east of England has been launched with the aim of delivering an annual return of 12 per cent a year.
The Consilium Strategic Land fund will focus on land investment opportunities that managers feel are at the most profitable stage in their development cycle – those sites that are in the ‘change of use’ or ‘re-zoning’ phase and can be promoted to obtain a change of planning status.
The fund, launched by Orsini Property Limited, will target land administered by local councils in the south east that do not have a five-year housing supply, which means these sites have the potential to be accelerated through the planning process.
The fund intends to invest 20 per cent in short-term opportunities of between one and three years, 30 per cent in medium-term investments of between three and six years and 50 per cent in long-term investments of between four and eight years.
The fund is an unregulated, eligible investors fund domiciled in Jersey with a minimum investment of US$1m (£662,000).
Land sites identified by local governments as strategically important for future residential or mixed-used development, but which do not have outline or detailed planning consent, will also be considered by the fund.
Joanne Luce, managing director of Aqua Fund Services, will lead the fund’s management.
The fund’s investment adviser is Lightwood Planning, a subsidiary of Lightwood, which is a strategic land consultancy group that specialises in providing advice, planning, valuations and support services to developers and planning agencies on large-scale planning projects in the UK.
It works with local authorities and national house builders on all aspects of the planning including land valuation, feasibility studies and site acquisition/ecological and environmental consulting.
Based in Esher, Surrey, since 2001, Lightwood has helped secure planning consent on over 650 units.
It is currently promoting over 600 acres for new development across the UK through its subsidiary Lightwood Strategic, with around 450 acres identified or allocated within draft local plans for consent, which would deliver a total of 3000 units.
Ms Luce said: “The nation is in desperate need of new housing. In 2004, nearly 60 per cent of 25 to 34-years-olds were owner occupiers and now it is just over a third.
“With the pressure mounting to build new homes, demand for land will increase, making this an attractive investment opportunity. We believe the experience of our team means we are well positioned to capitalise on this opportunity – particularly in the south east.”
emma.hughes@ft.com
