Intelligent Partnership’s latest industry report takes a detailed look at the Long Income Property (LIP) market. Sponsored by TIME Investments, this report provides due diligence on the market along and insight into how it has become a viable investment opportunity to retail investors alongside the traditional institutional investors.
Read the launch press release from Intelligent Partnership below:
It is well known that UK commercial property values and returns are correlated to wider economy and given the stock market falls since the Brexit vote, panic about an impending recession has seen UK retail investors are ditching property funds, keen to cut losses and find somewhere safer for their money.
However, the latest research by Intelligent Partnership on Long Income Property (LIP) demonstrates how LIP has the potential to outperform conventional safe haven asset of gilts and other property sectors: research shows stable market performance over a decade surpasses the performance of other commercial property sectors over longer timeframes.
The keys are taking a long term outlook, picking freeholds with long leases (15 years plus) or ground rents (60 years plus) with the best long term tenant demand drivers, targeting returns that are not over-ambitious (and therefore potentially risk-laden) and avoiding knee-jerk reactions in economic downturns. And since LIP funds focus on income rather than capital growth (although this is always possible), as long as their ongoing rental payments are secure, they can afford to wait out any dips in market value; a fire sale of assets at the bottom of the market is very unlikely.
More details can be found in the 2016 Long Income Property Report. The report provides an easy to read overview and consolidates all of the information on the sector as well as the routes to long income property investment, in one place, providing advisers with a single, CPD accredited resource on the topic.
- Long lease commercial freeholds reflect the UK economy, albeit to a lesser extent than the general property market
- The long term nature and contractually fixed returns that cannot be revised downwards during lease periods removes much of the potential downside
- LIP funds might target conservative returns of 3% to 4% pa, but statistics show they are fully capable of doubling that and more and outperforming much more risky asset classes over the long term
- LIP can be a reliable income generator with the added potential for growth, but like any asset class, it is important to select the right opportunities in the right sectors and favourable geographies, at the right time
- For retail investors, the opportunities have now expanded to include authorised funds, at least one of which has as its main goal, the acquisition and exploitation of long income property
Benefits of the LIP report:
- Find out the size, make up and growth rates of the market
- Discover how gilt yields, interest rates and investor sentiment all influence the investable universe
- Evaluate the risks in varying market conditions
- Get an understanding of the investment types available and their regulatory standing
- Review the fees and charges that may apply to an LIP investment
About TIME Investments
TIME is an award winning investment manager specialising in long income property funds and tax efficient investment solutions. TIME’s original fund TIME:Freehold, dubbed “the best fund in the universe” by Trustnet, boasts an impressive 23 year track record of delivering steady, positive returns and sustained liquidity for investors. TIME:Commercial Freehold*, the sister fund to TIME:Freehold, was launched in 2014 and invests in long income property targeting annual distributions plus the potential for capital growth. The fund is a fully retail open ended fund structured as a NURS, with all the tax advantages of being a PAIF and is available via financial advisers for direct investment or through ISAs, SIPPs and offshore bonds.
TIME:Commercial Freehold was commended for the ‘Innovation Award’ at the 2016 Moneyfacts Awards.
*Investor consent to exchange units in CFF (and its dedicated feeder trust, CFFT) for equivalent units in a new FCA authorised fund, Commercial Long Income PAIF (“CLIP”) (and its dedicated feeder trust TIME:Commercial Long Income Feeder Trust (“CLIFT”) was approved on 22 March 2019. For more information, click here.
If you have any questions or would like to find out about any of our investment opportunities, please contact us on 020 7391 4747 or email@example.com.