Property fund manager Clavis Walden has delayed launching a planned UK commercial property fund, pointing to investor uncertainty in the face of macroeconomic instability.
The Piccadilly fund, which will invest in direct property, Reits, and property shares, was originally slated for launch on 22 February.
Iain Keys, founding partner, says a new launch date has not been set for the product, which the group claims is the first to use the tax efficient property authorised investment fund (Paif) structure.
He adds the fund had received cash or commitments close to the £25m to £30m Clavis Walden targeted for the launch.
Keys says: “There has been uncertainty among a number of investors about potential tax changes in the UK, the outcome of the UK election, and Greece, but we still intend to launch the fund. We have had good support from a broad spread of investors.”
He says: “Investors have grown impatient. If they have property earmarked, whoever is selling it to them will not wait forever.
“Some properties slip away, but other opportunities are coming through. We are confident of renewing the pipeline of properties.”
A key selling point for the fund is that its Paif structure means it does not suffer 20% corporation tax which cannot be reclaimed, in contrast to other property funds.
UK commercial property, as measured by the IPD UK All Property total return index, is up about 20% between its low point in mid-2009 and 31 March.
Scottish Widows Investment Partnership is one of several groups that have expressed an interested in launching Paif funds or converting existing property funds to Paif structures, although none have yet come to market.
