Gravis launches specialist UK REIT fund
Gravis Advisory Limited, a subsidiary of Infrastructure and real estate investment specialist Gravis Capital Management Limited, has launched the VT Gravis UK Listed Property Fund (GULP), the firm’s third OEIC and a unique addition to the UK property fund sector.
GULP will be managed by Gravis’ newly appointed Head of Real Estate Securities, Matthew Norris, and will provide access to best-in-class UK listed property securities that target long-term, dependable cashflows. Investments will primarily focus on UK REITs, but will also include property related closed ended investment companies, corporate bonds and equities. GULP expects to have minimal exposure to the UK retail sector and will not hold any direct property investments.
In line with the existing Gravis range, the new Fund is expected to deliver a regular quarterly dividend, low volatility and capped charges taken from capital. Target yield will be of 4 per cent pa.
Commenting on the fund launch, Norris, says: “GULP will offer investors exposure to a diversified range of specialist UK real estate securities. It will focus on the UK property sectors supported by the most powerful current trends, which we identify as: an ageing population, urbanisation, technological development, and changing residential requirements. Each of these trends is changing the real estate landscape and creating new opportunities for investors.”
Importantly, the fund will offer daily dealing and will aim to remove the risk of gating. REITs are structurally suited to provide liquid access to an illiquid asset class and are therefore able to focus on long term portfolio returns. GULP aims to avoid a repeat of the situation that followed the Brexit referendum in June 2016 when a number of funds holding properties directly were forced to temporarily close due to a lack of liquidity.
Managing Director of Gravis Advisory Limited, William MacLeod, says: “We are excited about this new fund that we believe will offer investors peace of mind when investing in this vital asset class. GULP will provide exposure to the strongest trends in the real estate market that have already arguably changed the investment landscape forever. In addition to offering the steady, dependable returns and low volatility Gravis funds are renowned for, investors will also be able to access the Fund through offshore bonds, which are currently reviewing and in some cases suspending their holdings in open ended property funds.