The principal features of the Fund include:
- Each fund is typically established for a fixed duration of seven years from incorporation which may be extended with the approval of its investors for further periods up to a maximum of two years.
- Subscription monies are to be paid upon closing.
- Opportunity for paying out 5% each year on all investments from year one.
- Net profits from sales and net rental income will be distributed to investors on an annual basis.
- Subject to agreement, distributed profits may be reinvested into the Fund.
- Desk-top valuations will be carried out on a quarterly basis.
- T Group Property recommends that investors should engage Barclays Wealth or RBC Trust Company (International) Limited as Administrator to provide services to the Fund. However subject to our discretion investors are free to recommend an alternative provider of those services.
- Tailored and flexible approach to align with investor preferences.
- Clients retain the right to veto any particular investment the fund wishes to purchase.
FUND & MANAGEMENT COSTS
The fee structure is as follows:
- Fees are split into base fund management and performance fees
- TGP is incentivised to deliver performance
- Base management fees cover administration and property advisers services
- Performance fees are paid when profits meet the threshold of 10% IRR
- Management fees only charged on capital deployed
BASE MANAGEMENT FEES
- 1% on purchase and trading of property
- 1.5% of gross portfolio value pa
- 5% management fee for all rental income
- 20% of profits above 10% IRR hurdle rate
- 25% of profits above 20% IRR hurdle rate
SET UP COSTS FOR THE FUND
Legal, tax, accounting, financial and promotion fees for the Fund are expected to be around 1% and will be met by the Fund.