Eaton Investment Management is to launch a £20m opportunity fund for private investors to capitalise on ‘exceptional market conditions’.
Directors at Eaton and its sponsor, LLPServices, will be investing in the Eaton Active Special Opportunities Fund which expects to deliver returns of 20% a year over five to seven years from ‘prudent gearing’ and ‘planning gains’.
It is looking to raise £8m equity to which it will add £12m of debt to buy up to £20m of property.
The fund will target ‘low density, income-producing properties that can benefit from planning gains and the application of active asset management techniques to enhance capital value over the medium term’.
It has already seeded the fund with £3.9m of properties which it said were ‘good location, high yield, good covenant profile, low built density with significant future redevelopment potential’.
In order to attract retail investors, the investment manager has introduced a ‘nil-cost’ SIPP for Eaton investors, and has offered independent financial advisors (IFA) a 6% commission.
The minimum direct investment will be £50,000 over an investment period of five years.