Property fund manager Cordea Savills has launched a new development project under its Qualifying Property Companies ("QPC") structure. This enables participants to assume the role of trading developers and participate in commercial, residential and mixed-use property developments with the added benefit of assisting with their estate planning.
The QPC initiative has acquired a 0.6 acre site at Morley, a suburb of Leeds, with the aim of developing and then selling to owner-occupiers 13 residential properties comprising four two-bedroom flats and nine three-bedroom terraced and semi-detached houses. This will result in approximately 12,500 ft² of residential accommodation. The Development Manager is JS Bramley (Holdings) Limited.
Cordea Savills launched its first development project under its QPC structure in August this year. This project is developing 25,400 ft² of offices which will be sold to owner occupiers on a 1.45 acre site at Caxton Business Park, Warmley, near Bristol. The development manager is Chase Commercial, part of the Chase Midland Group.
The QPC structure requires participants to establish trading development companies. After two years' trading, each new company should qualify to receive the benefits of Business Property Relief subject to the necessary conditions being met. This would allow inheritance tax relief (currently at 100%) on the value of the shares in their development company. The minimum amount that can be invested in the Cordea Savills QPC structure is £75,000 and it is open to private individuals, trusts and existing trading companies. All projects are evaluated and selected by Cordea Savills.
Steve Taylor at Cordea Savills comments, "The site we have identified at Morley has excellent development potential and will fit well within our QPC structure. Such projects are ideal for QPC combining the benefits of a strongly performing property market with estate planning benefits. The trading companies retain control of the assets while enjoying the wealth preservation afforded by the structure and the expertise of its selected partners."
Cordea Savills is currently reviewing a number of additional schemes including projects in Surrey, Manchester and Essex. It will be announcing the next project imminently.
Source: Cordea Savills