Buy-to-let becoming big business
Each of the funds will be capitalised at £1.5 million and will be geared to £2.5 million in mortgage lending, with the intention of producing a £4 million fund for investment in residential property in Greater London.
The minimum investment is £30,000 for a maximum of 50 shareholders. The fund will be split in two with 75 per cent being invested in buy-to-let properties and 25 per cent being used to acquire London residential properties for refurbishment and resale.
All profits and gains are to be reinvested each year, and the assets realised and redistributed to shareholders after five to seven years.
Andrew Reeves, chairman of the Andrew Reeves Group, said: “We are offering investors the opportunity to spread their funds across a buy-to-let portfolio and share in the profits from the refurbishment and resale of property. With the current softening of rental returns likely to last, a professional approach to acquisition, management and resale is the way forward for many buy-to-let investors, whether they are experienced or new to the market.”