UK Land Fund No.8

Further Information:

The UK Land Fund looks to take advantage of the economic climate and the general conditions in the housing market by allowing investment into distressed UK land that will have the benefit of at least “outline” planning permission. The Fund, by virtue of its buying power, purchased land discounted against current RICS red book valuation, from developers and land owners in need of cash flow due to the lack of banks providing development finance. The fact that the land already has planning permissions granted speeds the re-sale process as opposed to trying to gain an approval over time, in some cases the seller requested the option to re-purchase the land from the Fund at the full asking price at a fixed future date.

The aim is to buy low and then re-sell at nearer the market value either immediately or in the medium term. Development is essential to meet not only the Government target of three million new homes by 2020 but also the general consumer demand. The land is owned from outset with no borrowing requirement and the Fund will not look to develop the sites itself merely profit from the cash flow pressures being experienced in the building/development sector.

Examples of completed purchases can be found via the following links:

http://www.cisx.com/listedsecuritynewsdisplay.php?newsID=43305
http://www.cisx.com/listedsecuritynewsdisplay.php?newsID=43962