The key objective of the Fund is to use the expertise in the Management Team to acquire well researched, high quality commercial property investments that will provide a decent income from the rent throughout the hold period and present angles that will enhance the value so there is a capital gain at the point of sale.
Castlelaw believe there are investment opportunities in the price bracket lying between £2 to £10 million, where average individual investors cease buying and the large investment funds start. In this bracket there are lower risk investments, with excellent investment prospects, that can be purchased for reasonable sums with yields and terms that match our investment criteria.
Commercial property will form the backbone of the portfolios. Property that has a lucrative alternative use value as residential will be considered, as will residential property that is ancillary to the main commercial property. Student accommodation is also a possibility but pure residential buy-to-let will not be considered.
Unless there are compelling reasons to diverge from the following, the Investment criteria of this Fund are:-
Strong locations within the UK, i.e. major towns or cities with population of over 200,000 persons.
Robust, Full Repairing and Insuring (FRI) leases in place with unexpired term in excess of 5 years
Tenants of sound financial status
Preference will be given to single or low numbers of tenancies
It is desirable but not essential to have evidence of asset management opportunities.