Property Portfolios
What’s going right?

In light of on-going Market volatility worrying stakeholders, it is a comforting thought to know there are Funds that have been specifically set up to avoid the machinations of the Worlds’ Stock Markets, in selected Sectors enjoying very strong demand.

by Tim Whiteley

Stock Markets have generally rallied over the period since the 2008 nancial crisis, however, the fact is that recent declines have left the major Indices oundering well below 2007 levels. Simply put, had your money been linked to the main indices from then until now, you would still be showing a loss and in ation, albeit at a low level, would be further eating away at your capital.

One particular Sector that continues to shine is the Holiday Park leisure business. When we remember the 60’s and 70’s image of the then Holiday camps, it is usually with distain, however, gone are the days of grotty chalets and depressing venues. With a huge modernisation programme providing vastly upgraded facilities, this is one of the Sectors attracting more and more attention. Apart from the fact that it’s on a growth path, a signi cant number of UK Local Authority Pension Funds have invested in such Funds, along with many big UK Corporate household names. Consequently, we have looked at the Sector in depth.

It’s not often we’ve been able to identify a particular Fund that has demonstrated the business acumen required to deliver good Investment performance right throughout the turbulence. The UK Leisure Park business is currently a 3 Billion GBP per annum business and growing. The purchase/rental of prime sites and signi cantly upgrading the facilities is one part of the equation. ‘Camp’ sites are being replaced with modern, xed units/

log cabins and amenities, resulting in both increased Capital values and higher Revenue streams.

One particular organisation, with its Institutional Funding, has been able to put in place an impressive development and acquisition schedule over the coming years, which is likely to ensure continuing worthwhile returns into the medium term. In addition, it won the ‘Alternative Investment Manager of the Year’ award at the 2015 European Pension Awards.

Keep in mind, there is no correlation between this Fund’s strong performance and the Stock Markets. Once again, we see the scenario that has proved successful in recent times; a dominant position in a speci c Sector that’s enjoying very strong demand, with rising values/income, without direct connection to the ups and downs of the Markets.

As with all property or hard asset linked Funds, there is always the question of liquidity. The holding of real assets, by its very nature, means they cannot be disposed of overnight. Nonetheless, the liquidity level maintained in this Fund is well above the industry norm, whilst still achieving worthwhile returns for its stakeholders. There is a ‘bull’ growth period in the UK Leisure Holiday Park Market which is generating substantial pro ts, however, that is not likely to carry on at this level inde nitely. Industry experts forecast a 10 to 15 year window in which the UK’s domestic Leisure Parks will be brought up

to World Class standards. In the meantime, there could well be an opportunity to reap rewards from this increasingly successful business.

The only issue for potential Investors, as we speak, is that this Fund has reached its desired funding level and subscriptions are only being accepted where they replace redemptions through death, or other financial necessity. For interested parties, current availability is on queued ‘request’ basis only.

Important Note – is article contains general information only and is not intended to be taken as specific financial, investment, or tax advice. A personal analysis should always be obtained.

Tim Whiteley of IFA International has over 25 years as an IFA, advising International Investors and Expatriates, both Onshore UK, and O shore in Asia. IFA specialises in Wealth Protection Services, O shore Trusts, QROPS UK Pension Transfers and QNUPS, creating tailor made Investor

 

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