A total of 19 more charities have invested in The Charities Property Fund since September 2001. There are now 105 charities, which have invested a total of £40m in the Fund, the only common investment fund enabling all charities to invest in commercial property.
A total of 19 more charities have invested in The Charities Property Fund since September 2001. There are now 105 charities, which have invested a total of £40m in the Fund, the only common investment fund enabling all charities to invest in commercial property.
Launched in September 2000, The Charities Property Fund now has a portfolio of 10 properties, including offices in Colchester and the City of London, a high street shop in Winchester and warehouses in Manchester and Tewkesbury.
Ben Ruck Keene, estates bursar at Corpus Christi College, Oxford, has invested. He says: ‘The college has been directly invested in commercial property for some time but I took the view that as a medium sized investor it was more cost effective and sensible to invest in property collectively.'
By investing in a pooled property fund, such as The Charities Property Fund, investors can reduce management costs and gain exposure to a diversified portfolio of a wide range of property.
Charles Mesquita, charities specialist at investment managers Carr Sheppards Crosthwaite, points out that now could be a good time for charities which, like Corpus Christi, want to move from direct property ownership to the more cost-effective indirect property ownership via a vehicle such as The Charities Property Fund.
‘Many private investors are taking advantage of the current low interest rates to finance their first move into commercial property,' he says. ‘As a result, charities with small, underperforming property investments should consider selling them off before the froth goes out of the market. Charities can maintain their exposure to property by investing in The Charities Property Fund.'