The London Central Portfolio, a firm which invests high net worth individual’s money exclusively in central London residential property, has...

The London Central Portfolio, a firm which invests high net worth individual’s money exclusively in central London residential property, has said its new fund is easily on course to meet its subscription target. LCP has been marketing the new fund since March this year and aims to close it at £20 million ($35 million) by the end of June. The Guernsey-based fund is the first of its kind, because it applies LCP’s bespoke property development approach in the form of a blue chip alternative asset class. Naomi Heaton, chief executive, LCP, spoke to WealthBriefing about the new fund. Ms Heaton said: “For the past 15 years we have attracting high net worth individuals from around the globe who want to invest in the central London property market. They tend to want to delegate the complexity of the process to someone else. We approach these cherry-picked residential properties as an alternative asset class.” In the past LCP worked from a brief and budget provided by the investors, from which the firm would go and source appropriate residential apartments. A short list of properties would then be screened and then refurbished, furnished and let out. The minimum investment for buying a property in central London, around Hyde Park, once stamp duty and other costs are considered, would be at least £400,000. LCP decided there was a gap in the service it provided. It decided to allow investors entry to this market by developing an investment scheme with a minimum threshold of £100,000. “We are not an estate agent. What we do is find the best possible opportunities. Everything will be financially analysed to ensure high returns,” said Ms Heaton. The rate of return is about 9.5 per cent per annum. Over about ten years investors would expect 100 per cent return on their investment. The new fund is structured over an eight year period. “We would not consider buying in areas like the Lee Valley, Docklands or the City. In the same way that HNWIs might use experts to invest in fine wine or art, we use our expertise in central residential property," she said. LCP said it was not looking to buy the most expensive apartments, but rather it aims for high quality residences with average of two bedrooms and two bathrooms, to ensure that these will be rentable right away. Once the fund is fully subscribed and its principles have been set, LCP said it will begin another fund.