Welcome to The Piccadilly Fund

The UK’s first Property Authorised Investment Fund (PAIF); the Fund utilises a new HMRC approved tax structure which gives it a greater level of tax efficiency than all other UK authorised open ended funds and REITs (Real Estate Investment Trusts). The Fund will look to provide a sustainable income, with long term capital growth through a diversified portfolio of UK commercial properties and property related assets.

Exempt from corporation tax on property rental income and capital gains, the Fund will focus on delivering sustainable and growing dividends via investment into the UK commercial property market. The target yield is 7% pa, net of charges. With a transparent structure, strong corporate governance and modest running costs, the Fund will have a total expense ratio of circa 1.2% p.a. (X-share).

Unconstrained by sector or geography, the managers will seek assets, from a broad base, which are ideally suited to providing and preserving the income credentials of the Fund. Initial asset sizes of between £2m and £6m will be sought, above the reach of most private investors and below the normal level for institutions, so avoiding the areas of greatest competition and improving buying opportunities for the Fund.

Targeting good quality property and locations (i.e. property fundamentals) rather than just long leases with fixed rental uplifts, provides better value and by holding approximately 10% of its equity in a portfolio of REIT’s, property company shares and other liquid assets, a sound level of liquidity is maintained. The Fund may gear by up to 20% of Net Asset Value (NAV) to enhance income.

Each property considered for inclusion in the Fund is measured against the Clavis Walden matrix of 16 defined variables covering physical attributes, growth potential and income quality. This ensures a consistent approach across all assets from acquisition to disposal.