A new opportunity to invest in prime central London property is now open to investors.
London Central Portfolio (LCP) has announced London Central Apartments (LCA) III, its latest listed residential property investment company. Alongside its tax benefits, LCA III is set to take advantage of current market conditions.
The chance to invest in the new scheme will close on Monday 25th July.
LCA III offers investors an opportunity to subscribe for shares in a quoted investment company holding around 40 high performing properties. Further acquisitions are expected to be made, targeting central London’s buoyant private rental sector. A projected portfolio return in excess of 10% per year is forecast.
Why invest in prime central London property?
Prime Central London Property Investment Opportunity
Prices in the capital’s prime market have risen by 10.2% per year on average over the past 20 years, now standing at over £1.67m.
Although past performance may not be repeated and projected returns may not be achieved, growth in the market is supported by many factors:
- Central London’s international appeal
- Strength in the City of London
- Strong education sector
- Rule of law
- Political and economic stability
Additionally, stock is limited in the capital and demand substantially outweighs supply. Each year, on average, just 289 new units are developed.
Current market conditions
Following the UK’s vote to leave the EU and the resignation of the Prime Minister, David Cameron, prime central London property is expected to benefit from a flight to quality and the security of blue-chip tangible assets, against a background of highly volatile financial markets.
LCA III focuses on the private rental sector, which represents 38% of prime central London’s residential market. The company intends to take advantage of the predicted bounce-back following the Brexit.
For international investors, LCA III is a chance to capitalise on attractive foreign exchange rates, as sterling has been driven to historic lows. It is expected that the Bank of England will at least keep interest rate rises on hold, although a cut is probable, further benefitting investors.
The scheme
LCA III will acquire a portfolio of one and two-bedroom units in prime locations, add value through refurbishment and professionally let and manage the properties.
Although recent tax announcements could be subject to change, LCA III is exempt from most of the new UK residential taxes being introduced – such as a reduction in mortgage interest tax relief – providing investors with higher returns than direct buy-to-let investment.
LCP believes that the Brexit vote creates an investment opportunity for new investors, but is obliged to warn potential backers that there is investment risk and a possibility that the value of any investment may go down.
However, it claims that despite the negative sentiment surrounding the UK economy post-Brexit, prime central London property will prove resilient to the downturn and will respond in a similar way as it did following the global financial crisis, when prices surged.
It adds that this strength is likely to contrast to the rest of the housing market across the country and commercial property funds, which are both much more susceptible to a domestic economic downturn.
With a very short window to invest in the scheme, find out more information here: http://www.londoncentralportfolio.com/Hidden-Files/LCP/LCA-III/LCA%20III%202016%20V30.pdf