Saturday, August 13, 2022

Long income REIT by Brooks Macdonald Funds

Brooks Macdonald Funds is to expand its property range with the launch of a hybrid bricks and mortar counterpart to its existing Ground Rents Income fund.

The Brooks Macdonald Long Income real estate investment trust (REIT) hopes to raise £100 million in new capital by the end of this year. It will carry an annual management charge of 0.65%.

James Agar, the firm’s investment director, will manage the fund. He runs the firm’s £108 million Ground Rents Income fund.

Ground rents are the underlying rights behind leasehold properties, entitling the owner to regular payments by the leaseholder.

The entitlements tend to be tightly held with a low supply of new contracts coming to market: a factor which Brooks Macdonald says has heavily constrained the potential growth of the portfolio.

Agar told Wealth Manager, “The intention is to offer investors assess to a market that they presently cannot really get access to”.

“The characteristics that have made the Ground Rents fund successful are very secure and predictable index-linked income streams and that is what we are hoping to provide in the Long Income fund. It’s that next little step up the risk curve.”


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