Castel Global has launched a specialist fund, Castel, to invest in UK residential properties that will be leased into the supported accommodation sector through a charity.
Providing investors with accessible exposure to this asset class, the investment strategy of the fund is to purchase quality, freehold properties in desirable postcodes.
As well as the potential capital appreciation, Castel provides a secure, inflation-protected income typically through long-term leases of 20 years.
Castel brings together complementary parties: BeST is a not-for-profit provider and manager of social housing and North-West-based property developer PPI renovates and maintains the houses to a high specification.
Isle of Man-based Creechurch Capital will act as the master distributor of the fund through its specialist offering, Creechurch Advisory Services.
John Greenwood, chief executive at Creechurch Capital, says: “Castel has been created to give investors an effective and proven option to incorporate UK residential property into a well-diversified, long-term portfolio.
“This unique, fully managed fund addresses the risks typically associated with investing in property. It is ideally placed to take advantage of the fact the UK residential market has made an average eight per cent annualised capital return since the 1950s.
“It overcomes the usual issue of liquidity and voids when investing in property as well as complete peace of mind that all ongoing maintenance is taken care of, leases are secure and ultimately the asset is very saleable.
“We’ve been overwhelmed by the initial positive response from the market and the most compelling attraction has been that Castel offers a six percent plus inflation-linked income.”
The minimum initial investment is GBP10,000 with a targeted overall return of eight per cent pa plus long-term capital appreciation.
Castel has also engaged the services of the Manchester office of the international PR agency Weber Shandwick to support and amplify the fund launch across various media and multiple territories.