Commercial property has proved to be one of the best-performing asset classes over recent years. Research by the BVCA* shows that commercial property produced average returns of 6.5% per annum between 2000 and 2010, compared with 3.7% for the FTSE All-Share over the same period. However, direct investment in commercial property has mainly been the preserve of institutional investors because of the large capital sums required.
Hotbed has helped to open up this market to private investors. We offer our clients the opportunity to invest directly in individual commercial property schemes, typically in units of £25,000.
Members can choose which schemes they wish to invest in and vary the amounts committed, keeping control of their capital up to the point of investment. This flexibility is generally not available through property funds, the most common route to commercial property investment for private individuals.
Each investment we offer to Hotbed members has been carefully reviewed by our property team and is detailed in an investment memorandum based on a format used by institutional investors. After completion, participating members receive regular progress reports.
Wherever possible, we employ structures that allow investors to take advantage of tax efficient vehicles such as SIPPs, SSASs and offshore trust vehicles. Most of our commercial property schemes are structured as Limited Partnerships (LPs).
*BVCA Performance Measurement Survey 2010