Growth fund to target London

Published on Wednesday 2 September 2009 21:05

SPECIALIST property investment company Walls & Futures has launched a fund targeting London, but backed by Scottish asset management and law firms.

The Walls & Futures London Growth Fund, focusing on the centre and south-west of the city, aims to raise up to 10 million of equity to create a 20m fund.

It has been set up as a Scottish limited partnership by Walls & Futures with Paisley-based Dunadd Asset Management and Brodies law firm.

Joe McTaggart, managing director of Walls & Futures said he wanted to capitalise on Scotland's traditional reputation as home of wealth management. He added that Scottish limited partnerships are allowed to physically own assets, unlike English versions.

The fund is designed to allow investors to put their money into the property market without taking the risks involved with buy-to-let. Individuals must invest at least 25,000.

McTaggart said one of the reasons behind the launch of the fund is the capital growth offered by London property. Figures indicate that London could face a shortage of 60,000 homes by 2012. This means prices could rise sharply.

McTaggart said: "There is a fantastic opportunity for investors to re-enter the market, however many are unable to do so due the constraints in buy-to-let lending."

Research by comparison site Moneysupmarket.com yesterday revealed that inquiries for buy-to-let mortgages have increased by nearly 50 per cent since August 2008, while available products have diminished by more than 70 per cent.