It provides investors accessible exposure to this historically attractive asset class, allowing them to benefit from future long-term capital gains, combined with a secure, inflation protected income.
Castel is offering a unique approach to address the risks typically associated with investing in property.
The investment strategy of the fund is to purchase quality, freehold, residential properties in desirable postcodes. A secure, inflation protected-income is generated by leasing into the supported accommodation sector through a charity.
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Following the economic downturn in recent years and subsequent sharp adjustment of the property market, the UK residential property market is once again offering attractive opportunities to investors.
Castel has been created to give investors an effective and proven option to incorporate UK residential property into their portfolios.
The UK residential property market has made an average eight per cent (per annum) capital return since the 1950s. To take advantage of this, Castel takes a unique approach to removing the pitfalls usually associated with this asset class.
To achieve this, Castel is acquiring freehold, residential properties in suburban locations that are renovated to a high specification in order to be placed into the supported living sector. This ensures the properties fulfil their initial and future value.
Through its partnership with not-for-profit accommodation provider, BeST, the houses are then secured with long-term leases (20-years), on an index-linked basis and with all ongoing maintenance taken care of.