Rugby Estates is planning to launch two new property funds.
The listed property company, run by David Tye and Andrew Wilson, is in the early stages of creating a land fund and a private investor fund.
It is hoping to take advantage of the demand for housing in the UK, as well as the large amount of wealth in the hands of private individuals.
‘The land fund would be focused on the concept of the housing supply shortage in the country identified by Gordon Brown,’ David Tye, company chairman, said. ‘It would strategically target land we think will increase in value, and be FSA regulated so individual investors can get involved with it.’
He said the private investor property fund would target high net worth individuals reviewing where to allocate their assets. ‘We would create a system where they could bolt on to the existing management structure and expertise.’
Tye was speaking as Rugby revealed positive results for the six months to 31 July. The company saw its triple net asset value increase 2% to 518p a share, and the value of the company’s portfolio increased 24% to £96.8m, with £21m of purchases and £6.7m of sales undertaken.
The company’s profits increased by 280% to £4.2m, while Rugby Asset Management, the company’s co-investing asset manager, saw profits rise 50% to £1.7m.