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Investors who anticipate long-term recovery in the turbulent property market should consider a kick-out investment linked to the performance of the FTSE EPRA Europe Index, according to Meteor Asset Management.

The London-based firm has launched a six-year term Property Recovery plan which offers 10.5 per cent at the first anniversary, on the condition that the Index is at or above its opening level.

The plan then works if the Index is below its opening level and the plan runs into year two. If it is above its opening level on the second anniversary, it will pay 21 per cent. The plan will then stay open until the Index is at or above the opening level on any anniversary date and therefore would pay 31.5 per cent in year three, 42 per cent in year four, 52.5 per cent in year five and 63 per cent in year six, at maturity on 18 July 2014.

Graham Devile, managing director for Meteor, believes the plan will benefit those who are cautious and anticipate recovery in the long-term. He said: "Commercial property has seen a considerable downturn over the past 12 months. Commentators are suggesting that this may continue for another 12 to 18 months, albeit that the worst is over.

"Clearly this plan is not suited to those investors who anticipate a recovery and one that is fast and sustained as their return will be in effect capped at 10.5 per cent, if the plan kicks out in year one. Nevertheless, it is a good way to participate in the property market for those investors whose view of recovery is more conservative as if the plan rolls into year two a return of 21 per cent will be paid even if the Index is at its opening level."

Capital is only at risk in the event of the Index being below 50 per cent of its opening level at maturity. The capital loss will result in 1 per cent for every 1 per cent fall in the Index.

Minimum investment is £7200 for Isas, £7000 for Isa transfers and £10,000 for direct investments and pension funds. In addition, the plan is subject to capital gains tax on direct investments and interest will be paid at 4 per cent a year on all investments from receipt of cleared funds to the investment date.

Martin Bamford, director for Surrey-based IFA Informed Choice Ltd, believes the capital security of the product and similar plans is only ever as good as the financial strength of the underlying insurer.

He added: "Since the advent of the credit crunch, investors and their advisers are quite wary of the financial strength ratings applied by rating agencies. Also, what is not appealing is the uncertainty over the term of the investment.  Money could be tied up for as little as a year or for as long as six years depending on the level of the Index at certain points in time.

"As Meteor Asset Management is still a relatively new firm, it will take time to build credibility in the IFA market."