Knight Frank Investment Management’s first open end fund – the KFIM Long Income Property Unit Trust – has acquired six assets at a value of approximately £40m (€51.2m), since launch in February.
The vehicle’s investment criteria have been designed to provide investors with a low risk, consistent long term income return. All acquisitions are to be securely let for terms in excess of 15 years, mainly benefitting from guaranteed rental growth, with a size range between £3m and £20m (€3.8m to €25.6m).
Recent transactions have included small format food stores in a range of locations, a healthcare asset in Cumbria, a car showroom in Bristol and a block of affordable housing in Luton. In aggregate, the assets provide a property yield of 5%, an income duration of approximately 20 years, and with the majority of leases having assured rental growth via indexation.
In addition to the six completions, the Fund has now exchanged contracts on a further three assets, value approximately £20m (€25.6m) which will further enhance the yield and income duration characteristics.
Matthew McDonald, fund manager, KFIM LIPUT, commented: ”We are delighted with progress to date. Importantly, the quality and investment characteristics of the assets that we have acquired demonstrate the robustness of the Fund Strategy.”
