Gravis Advisory Limited (Gravis Advisory) has launched the VT Gravis UK Listed Property Fund (GULP) which will aim to provide access to best-in-class UK-listed property securities that target consistent, long-term cashflows.
GULP will be managed by Gravis’ newly appointed head of real estate securities, Matthew Norris. Investments will chiefly focus on UK REITs, but will additionally include property related closed-ended investment companies, corporate bonds and equities. The fund will have minimal exposure to the UK retail sector, and will not hold any direct property investments. Gravis Advisory believe that REITs are structurally suited to provide liquid access to an illiquid asset class, and are consequently able to provide long term portfolio returns. It aims to avoid repeating the post-Brexit situation in June 2016, when multiple funds holding properties directly were forced to temporarily close due to liquidity issues.
It will launch with an offer period that will run from 1 – 31 October. It will be available on all major platforms, with minimum investments starting at £100. In line with the existing Gravis range, GULP is expected to deliver a regular quarterly dividend, low volatility and capped charges taken from capital. The target yield will be 4 percent per annum. Daily dealing will be offered with the fund.
Commenting on the fund’s launch, Mr Norris said: “GULP will offer investors exposure to a diversified range of specialist UK real estate securities. It will focus on the UK property sectors supported by the most powerful current trends, which we identify as: an ageing population, urbanisation, technological development, and changing residential requirements. Each of these trends is changing the real estate landscape and creating new opportunities for investors.”
Managing director of Gravis Advisory Limited, William MacLeod added: “GULP will provide exposure to the strongest trends in the real estate market that have already arguably changed the investment landscape forever. In addition to offering the steady, dependable returns and low volatility Gravis funds are renowned for, investors will also be able to access the Fund through offshore bonds, which are currently reviewing and, in some cases, suspending their holdings in open ended property funds.”
Gravis Advisory is a subsidiary of infrastructure and real estate investment specialist Gravis Capital Management Limited. Some of the companies established trusts include GCP Infrastructure, GCP Student Living ans GCP Asset Backed Investments.
