Clavis Walden is sticking with its plans to launch one of the UK's first property authorised investment funds (Paif), despite delaying it for eight months.
The firm postponed the initial launch of the Piccadilly Paif in February, saying uncertainty over the UK election outcome and European sovereign debt concerns were dominating investor thinking.
Iain Keys, founding partner, says although Clavis has not set a new launch date for Piccadilly, Clavis will start talking to investors this month to gauge interest.
He says the firm's original target launch size of £25m to £30m is still realistic.
"Property is still a good income provider and inflation hedge. With inflation coming back, property will come back on the radar for investors," Keys says.
"We are just waiting for the time when investor sentiment turns back towards property."
Keys adds the Paif structure remains a "strong selling point". In contrast to other onshore property funds, Paifs do not suffer 20% corporation tax at source that cannot be reclaimed.
"It still remains a pretty unique vehicle, and our investment rationale and philosophy still stands," Keys says.
Clavis will use 90% of the Piccadilly fund to buy non-residential properties worth at least £8m, with the rest going into Reits and property company shares, for a target 7% dividend.
Although total returns from UK property rose 6.7% since February, according to industry monitor IPD, Keys says Clavis still sees reasonably priced deals.
"We are confident of getting good quality stock to produce the dividend, because we are investing in markets above private investor levels, but below where institutional investors would move in."
Royal London Asset Management's existing Property fund is believed to be the first Paif.
