AN INVESTMENT vehicle which has experienced strong returns from the Swedish property market, is launching a third fund.
Evanridge Properties was founded by Pembrokeshire milk producers, Nigel Evans and Bill Ridge, along with former tax inspector Huw Evans, in 2005.
Its first two funds have achieved annual growth rates of 15% for investors – generated from rental income from its Swedish portfolio of properties.
The capital growth funds raised £5m and £3m respectively, with half the investors high net worth individuals based in Wales. The proceeds of the funds will be reimbursed to investors after seven years.
Evanridge is now looking to raise £5m of equity funding for a third fund, for which it has agreement to leverage further finance of £15m with Swedish bank Handelsbanken. The £20m would be used to acquire further property interests in Sweden.
And the fund has scope to increase equity funding to £10m, which would take total funding to £40m.
Evanridge, which oversees its own fundraising activities, is looking for minimum investments of £50,000.
The firm’s current portfolio in Sweden extends to 185 homes with ownership of a number of industrial properties as well.
In contrast to a floundering UK property market, Evanridge has driven positive year-on-year returns for investors in its first two funds.
Mr Ridge of Vaynor Farm near Narberth said: “Property prices in Sweden haven’t experienced the same turbulence as the UK housing market. Prices have remained firm and we are confident that there is more opportunity.”
Evanridge has invested in fully- let apartment blocks in commuter towns in south-western Sweden. Only 40% of the population are homeowners in Sweden and it is the only country in Europe where rents are regulated.
However, deregulation is now on the political agenda.
Mr Evans, who runs Spittal Cross Farm near Haverfordwest, said this would have positive repercussions for property values.
He added: “If the rental market is deregulated, rents will increase.”
The success of Evanridge has taken the partners away from the day-to-day running of their farms, but stress the skills they have gained in the agricultural sector have been invaluable.
Mr Evans said: “There is a misconception that farming isn’t like any othe rbusiness, but that just isn’t the case.
“The skills needed to run a farm business are no different to any other. Farming involves property and financial management, so for us Evanridge is just an extension of this.”
The partners, who have been joined by former farm business consultant and MBA graduate, Bryony Fitzgerald, had formed a property syndicate before launching the business.
Evanridge’s existing investors range from farmers to city professionals, with many seeing its potential for capital growth benefiting their retirement or succession planning strategies.
A third fund is being created because existing clients want to increase their capital commitment and also have family and friends who wanted to invest.
Evanridge is hosting a series of meetings for anyone interested in hearing about its existing activities and possible future opportunities for investment. The first presentation will take place at Plas Hyfryd, Narberth, on November 4.