JERSEY/UK- Threadneedle Investments has formed the Threadneedle Property Unit Trust by relocating the former Sackville Property Unit Trust from the UK to Jersey. Prior to the switch, the £110m fund was only open to UK pensions and charities. The move to Jersey will open it to a broader range of investors.
Threadneedle invests in industrial and commercial real estate in the UK and the fund is aimed at institutional investors. Annual charges for the fund are 0.75% or 1.25% where a renewal commission of 0.5% is paid to intermediaries. Minimum subscription is £250,000.
Don Jordison, director of Threadneedle Property Investments, is confident about the prospects for property. “The yield on the IPD index is 7%- higher than the gilt market or investment grade bonds.
With skilled and active management this yield can be improved and, with the prospect of rent rises and timely disposals and acquisitions, there are reasonable prospects of capital growth.”
Threadneedle Investments has £3bn of asset in real estate invested across more than 4,000 individual buildings.