Fund to book gains on deal with Amazon
INVESTMENT fund manager Tritax is trying to shake off the industry gloom with the launch of an innovative property venture after securing a long-term rental deal with Amazon.
The £47.2m investment is in a 1m sq ft purpose-built distribution warehouse near Dunfermline, north of Edinburgh, which has been let for 20 years to Amazon, the world’s largest electronic retailer.
The investment fund, which will last four-and-three-quarter-years, has been designed to take advantage of government tax breaks offered for property schemes. Tritax said the scheme would provide a yield of 17 per cent a year to individuals paying the 50 per cent tax rate.
Mark Shaw, chairman of Tritax, said the fund is aimed at Britons and non-residents, as well as self-invested personal pension plans.
“In these low interest inflationary times, holding cash is an expensive option the problem for investors at the moment is partnering capital security with a decent level of income.”
Tritax, which manages commercial property investments for private equity capital and pension funds, has a €1.5bn portfolio including offices, industrial buildings and hotels.
Demand for distribution warehouses greater than 700,000 sq ft has steadily increased because of the slump in property development since 2008. Yesterday’s deal comes nearly two years after Tritax teamed up with Cedarwood Asset Management to launch a property fund, designed to capitalise on the UK’s North Sea oil and gas market, after buying an industrial estate in Aberdeen.