PCM offer private investors the opportunity to invest into income producing UK real estate assets on an equity loan basis offering fixed income returns and a profit share on capital appreciation. Focussing on high performing sectors such as healthcare, student, PRS residential blocks and innovative commercial, this opportunity is open to sophisticated and high net worth investors.
It enables like-minded investors to gain entry into market sectors that have shown excellent returns and growth, at a relatively low capital outlay. What’s more, each property is already income producing and investments are secured directly against the asset offering the investor much more security than off plan property investments or other debt instruments.
The simplest and most efficient method of investment is by way of an equity loan secured against the asset for an average period of 36 months, which is both tax transparent and tax efficient, and suitable for a variety of investors. This investment can also be referred to as bridging finance or mezzanine finance.
Given current market conditions it is intended that initially PCM will source income opportunities, based on prime location, covenant and length of lease, targeting investment returns of between 6 – 10% per annum, excluding capital growth.
All investments are within closed ended funds and funds are raised on a deal by deal basis providing investors with security that their investments are held against specific income producing assets. The anticipated lifespan of between 2 – 5 years.
There are many reasons for investors to choose PCM’s investment model:
- Quick to set up
- Instant income as you are buying an income producing asset (Not an off-plan)
- Low start up costs
- Low running costs
- No front end deduction fees, annual asset value fees, early exit penalties or profit sharing fees
- Higher returns because of low costs
- Tax efficient return structures
- Suitable for a variety of investors including SIPP’s/SSAS’s
- Direct security held against the asset
- Enables smaller investors to actively participate in larger and better properties
- Enables investors to spread risk over several properties