Garratt Property Group is planning to launch the Garratt Residential Property Fund to gain exposure to the anticipated recovery in the UK residential property market. 

The fund is targeting an aggregate return of 70-100 per cent over its five-year term. The National Housing Federation has predicted that house prices will be 20 per cent higher than current values by 2014, when the fund's five-year term ends.
 
The fund will invest in below market value residential property throughout the UK, with properties purchased at an average discount of 15-20 per cent from their current day Royal Institution of Chartered Surveyors valuations. 
 
The fund, which is available to institutional and well-informed investors, has a GBP20,000 minimum investment. It aims to raise GBP50-100m. 

The fund was set up in conjunction with KMG Capital Markets Luxembourg and will be domiciled and regulated in Luxembourg.
 
Initial investments will be paid back as a priority at the end of the investment term.  Garratt Property Group as the investment adviser will only take performance fees on profits after initial investor capital has been returned. IFA commission will be three per cent, with 0.5 per cent trail.
 
Amanda McHugh, director of Garratt Property Group, says: 'The fund was developed to give investors access to Garratt's considerable experience of purchasing residential property at significant discounts to market value. It represents the smarter way to invest in residential property, a great opportunity for investors to gain exposure to a diverse portfolio of UK residential properties. The fund is also aimed at investors who want exposure to UK residential property without the inherent management headaches often involved with direct property ownership. The residential property market is starting to trend upwards, making now an ideal time to invest.'