In March of 2015 we announced we had completed the £15m sale of our clients’ investment in a portfolio of residential ground rents.
Each £25,000 invested in 2010 delivers proceeds of c£61,000, equivalent to an IRR of 24%. This return far exceeded the projected returns made at the time of the investment in 2010. “Ground rents” are the rental income paid by leaseholders of flats and houses to the freehold owner. The stability of the income, plus the legally-binding contracts, ensures that a portfolio of ground rents is able to pay a regular income to investors with little volatility. Our clients investment, made via an English Limited Partnership structure, was supported by bank debt provided by RBS.