Cordea Savills is to launch its second residential land bank fund, it was announced this morning
Serviced Land No.2 has been designed to achieve returns by acquiring and improving the value of land that could be sold to residential developers.
The launch of Serviced Land No.2 comes six months after Cordea Savills’ debut Serviced Land opportunity completed its investment programme with the acquisition of three assets with a combined cost of £11.9m.
The opportunistic fund, which is structured as a limited partnership with feeder funds for pension investors, is targeting a return of 15% over five years. Cordea Savills hopes to raise around £50m and third party debt will be utilised to increase returns to investors. The minimum investment will be £25,000 for private investors and £250,000 for institutions.
Steve Taylor, director at Cordea Savills, said: ‘Serviced Land No.1 was aimed primarily at private investors. Following its early success, we have received a high level of interest from institutions keen to take advantage of the dynamics of the land sector.
‘Market conditions are ideal for investing in land: the under-supply of housing means that the value of land remains high, while there is a substantial difference in price between land with and without planning consent. The stability of the housing market adds to the strength of the land market.’