Property Funds

Property funds are less liquid and less volatile than real estate investment trusts.

A property fund is a means by which private investors as well as institutional investment funds (pensions and the like) participate in real estate. Specialists in both undeveloped land and developed real estate professionally manage the investment.

Property funds can offer advantages over publicly traded financial instruments (stocks and bonds) and alternative investments (commodities, hedge funds and private equity and exchange funds) owing to the nature of real estate. With historically low price valuations of many properties – due to the economic downturn – many investors see this as a time of opportunity, while other types of investments are at best erratic in their performance. Also, many investors realise certain tax advantages from investing in real property.

As compared with real estate investment trusts (REITs), property funds are less liquid but also less volatile. For UK investors, a property fund investment can be placed in an ISA (individual savings account) wrapper, which avoids taxes on dividends and capital gains. Further, a property fund does not involve paying commissions to brokers, as is the case with a REIT.

Property funds, like REITs, are managed to avoid the exposure a single investor might face if his or her portfolio were limited to one or a small group of properties. With multiple investors, fund participants can amortise risk across multiple, well-researched and -managed parcels of land.

Lucent's particular focus is in acquiring land and making it "oven-ready" for a developer to take it on and start building.

Display #
Title Published Date
UK Houses: Accusations of Ugly – and Ideas for Building Prettier 08 March 2016
Quality of Life Index 2015: How UK Cities Rank – and How Housing Factors In 08 March 2016
Building Upward: How the British Feel About High Rise Living 19 January 2016
Has Localism Failed? Osborne Gets Tough on Local Planning Authorities 05 January 2016
Inside Housing’s Top Non-Grant Funded Developments 2015: Characteristics of privately-financed housing 31 December 2015
Inside Housing’s Best Designed Developments 2015: Distinguishing Characteristics of Innovative Design 31 December 2015
Does the Conservatives’ 2015 Victory Mean More Houses Will Be Built? 16 November 2015
England’s North West: What Rising Rental Values Might Mean There 19 October 2015
Why are UK Property Funds a Good Investment? 09 September 2015
How Investors Can Choose the “Right” Property Fund 09 September 2015
The Current State of Lending to UK Homebuyers: Options and Constraints 21 August 2015
What Are Some of the Negative Impacts of the UK’s Housing Shortage? 23 July 2015
What Makes Development on 9 Per Cent of UK Land a Set Point? 10 June 2015
How Well Are UK Cities Planning for Growth? 18 March 2015
Why Are Homebuilders Only Now Beginning to Answer the High Demand for Housing? 28 January 2015
Why Institutional Investors are Taking Another Look at UK Land 27 December 2014
What Development Hurdles do Large Landowners Face - and What Advantages do Strategic Land Consultants Bring? 26 November 2014
Vetting Property Fund Managers: Whom Do You Trust with Your Land Investment? 29 October 2014
What are the Relationships Between Land Fund Managers, Local Governments and Planning Authorities? 28 October 2014
The Roles and Responsibilities of Property Fund Managers 28 October 2014
How Much Reporting Transparency Should Investors Expect from Property Fund Managers? 28 October 2014
Does a Land Investor Working with a Property Fund Manager Require an IFA? 28 October 2014
What Are the Opportunities for Investors in UK Rental Housing? 23 September 2014
Property Funds vs. REITs: How Investor Timing Needs Matter 26 June 2014
How Property Fund Investors Can Fare Better than Real Estate Developers 01 May 2014
How Have Property Funds Performed Since 2010 01 May 2014
Land Value Appreciation Versus REIT Income 31 March 2014
Might the Answer to the UK Housing Shortage Be Found on Disused Farms? 07 February 2014
The Battle Over Land Planning Reform in the UK 07 January 2014
Can Investors in Property Funds Participate at Varying Levels? 28 June 2013
Property Fund Partners 25 September 2012
Property Fund Management 25 September 2012
Understanding Property Funds 25 September 2012

Before you can access the full information on this site, you must read the disclaimer below and agreed to it by clicking "I Agree".

The Lucent Strategic Land Fund is a Dedicated Fund of KMG SICAV–SIF, a Luxembourg-registered "Société d'Investissement à Capital Variable" organised under Luxembourg Law of 13 February 2007 relating to specialised investment funds (SICAV–SIF). The KMG SICAV–SIF is domiciled in Luxembourg. The Luxembourg regulator is "Commission de Surveillance du Secteur Financier" (CSSF). In accordance with the risks associated with the Lucent Strategic Land Fund, the shareholders have to be "well-informed," "institutional/professional" investors. No guarantee is given or intended as to the completeness, timeliness, or adequacy of the information provided herewith.

The information on this site is intended only for the use of Independent Financial Advisors (IFAs) and other professionally recognised financial intermediaries and institutions. While the information available on this site may be used by IFAs and financial institutions to make recommendations to their clients, it is not intended for direct use by members of the public. Should you proceed to access this site, you will be representing and warranting that you are an IFA or other professionally recognised financial intermediary or financial institution.