The company invests in ground rents in the residential, retail and commercial UK property markets and has announced its admission to trading both the London Stock Exchange and Channel Islands Stock Exchange.
Ground Rents Income Fund (GRIF) has been established to offer long term income returns from ground rents that have historically had little correlation to traditional property asset classes and have seen their value remain consistent regardless of the underlying state of the economy.
It will acquire a portfolio of freeholds and head leases which it says will have the potential for income generation from ground rents that is both secure and hedged against inflation and the potential for capital growth from active asset management.
GRIF’s portfolio will be managed by Braemar Estates and it is the intention of the Company to distribute at least 90% of its income profits by way of quarterly dividends.
Braemar Estates has £865m of real estate AUM and a long-term track record in asset management. It currently manages the Braemar Group PCC Limited Ground Rents Fund.
James Agar, investment director at Braemar, commented: “Ground rents are rare within real estate in their ability to offer high yields relative to the level of risk. The current economic climate makes the defensive, secure and predictable characteristics of long dated ground rents very attractive to investors, particularly when looked at in the context of negative gross redemption yields on the sovereign debt of what are considered to be lower risk nations.”
