The Coast Freehold Income Fund (the Fund) is a fund regulated by the Jersey Financial Services Commission.

The Fund invests in residential long-leased freeholds. It generates returns from grounds rents and various ancillary incomes. In addition, capital gains are earned over time due to our disciplined asset selection.

The Fund has a targeted annual net return of 8% with an inflation hedge component.

Investment highlights includes:

  • Predictable income through stable cash flows
  • Minimal default risk, secured by the underlying flat, ranks ahead of mortgage provider
  • Inflation hedging through ground rent reviews, annual reversion appreciation and lease extensions
  • Limited exposure to macro-economic or property market activity
  • Leverage of the Fund limited to 10% of AUM, with no financing risk

With outstanding lease terms to be in excess of 95 years at time of purchase, characteristics include:

  • Valuation homogenous across England and Wales
  • The manager applies sophisticated proprietary valuation methodology to determine the best yield at which to purchase freehold assets, not a real estate valuation
  • The Fund is the first such vehicle to mark to market all assets every month, based on an independently published index

The Fund is the result of a successful partnership between the property experts RCP Group and fund management specialist Capital Advisory Partners.

Principals of the management company, RCP Group (RCP), have extensive experience (each over 25 years) in the field of freehold sourcing and administration and ground rent collection.

Capital Advisory Partners (CAP) has extensive experience (over 25 years) in the fund management field, particularly in structuring and managing fixed income products.