Knight Frank Investment Management’s first open end fund – the KFIM Long Income Property Unit Trust – is making strong progress having completed the acquisition of six assets at a value of approximately £40 million, since launch in February.
The vehicle’s investment criteria have been designed to provide investors with a low risk, consistent long term income return. All acquisitions are to be securely let for terms in excess of 15 years, mainly benefitting from guaranteed rental growth, with a size range between £3 million and £20 million.
Recent transactions have included small format food stores in a range of locations, a healthcare asset in Cumbria, a car showroom in Bristol and a block of affordable housing in Luton. In aggregate, the assets provide a property yield of 5%, an income duration of circa 20 years, and with the majority of leases having assured rental growth via indexation.
In addition to the 6 completions, the Fund has now exchanged contracts on a further 3 assets, value approx. £20m which will further enhance the yield and income duration characteristics.
Matthew McDonald, Fund Manager, KFIM LIPUT, commented; ”We are delighted with progress to date. Importantly, the quality and investment characteristics of the assets that we have acquired demonstrate the robustness of the Fund Strategy.”