Member Article

Brexit: New London property fund to capitalise on ‘renewed appetite’ from foreign buyers

Property firm London Central Portfolio (LCP) is launching a new residential property fund to capitalise on the renewed appetite of foreign investors in London’s property market in the wake of sterling’s devaluation.

The London Central Apartments IV (LCA IV) fund will aim to give investors a return of over 10% over a five-year period, with LCP cherry-picking properties in high-end London postcodes and submitting them to a full refurbishment and interior design programme.

The move comes as continued uncertainty surrounding Brexit has sent the value of the pound plummeting, making the capital’s property market an even more enticing proposition for foreign investors looking for a bargain.

LCP Chief Executive, Naomi Heaton, said that the asset managers had been inundated with investment queries following sterling’s dive on the money markets, and described current market conditions as ‘ideal’ for investors looking for profit opportunities.

She said: ““Demonstrating a loose parallel to the Global Financial Crisis (GFC), weak sterling and low interest rates will once again be a major draw for investors. Indeed, with most equity markets trading strongly, investors are generally in a much stronger position than in 2009, so we anticipate a high level of appetite for our new fund.

“Over the last couple of weeks, we have seen interest pick up substantially and despite the fact that we have not been marketing a fund, the number of investment enquiries has increased more than 10-fold, one of the factors prompting our decision to launch a new vehicle.”

LCA IV will be the organisation’s fourth fund, although it will be the first to offer income and capital return for shareholders, which it plans to tout around to investors in the South East during a tour of the region in November as well as Middle Eastern investors in the new year.