The additional share offering for London Central Portfolio’s (LCP) third fund, London Central Apartments (LCA), is now over-subscribed just three weeks after launch.
The number of additional shares on offer equated to 10 per cent of the initial share issue and sold at the original price of GBP10 per share.
With the additional equity, LCA will continue to expand its portfolio of one and two bedroomed flats in the prime postcodes around Hyde Park. These are designed to appeal to the blue chip tenant, with the potential for a significant uplift in value.
“The mounting global interest in Prime Central London residential property as an asset class is increasingly evident. No longer commercial property’s poor relation, investors are clearly recognising the consistent returns and longevity that it offers as an investment vehicle. We are delighted at the speed of the uptake which has outperformed our expectations,” says Naomi Heaton, chief executive of LCP.
LCP’s third fund has attracted a new breed of investor, with more than 50 per cent of the uptake coming from the UK for the first time. Many are professionals who want to diversify their investment portfolios and get a foothold in this safe haven, as economic forecasts remain unpredictable. As base rates remain at a historical low (0.5 per cent) and cash holdings are generating almost no returns, investors have taken particular advantage of the fund’s SIPP eligibility.
The biggest uptake in LCA after the UK domestic market is from Middle Eastern investors. With Islamic investment options increasingly important on the world stage, the fact that LCA is the UK’s first Sharia compliant residential property fund has proved a significant draw.
“In light of the very successful performances of the first two funds and the appetite for shares in LCA, LCP can also reveal that we will be rolling out the launch of our fourth fund imminently,” says Heaton.