Property fund specialist Evanridge is turning its attention to Sweden for its latest vehichle.
Huw Evans, director of Evanridge, said he had opted to launch Evanridge Swedish Property Two LP as a limited offer with a 5 April closing date because of the current state of the Swedish property market.
Mr Evans said he felt the Swedish property market represent and excellent low-risk investment opportunity as a result of the strongly performing economy, which combined with recently introduced reductions in personal taxation, supported increasing levels of disposable income per capita and growing property values.
In addition, he said Sweden has a shortage of rental property and a large rental market with limited development activity, which should provide secure inflation-adjusted income flows when combined with low vacancy and tent turnover rates.
Aimed at high net-worth individuals, Mr Evans said the fund aims to rate up to £10m of investor's equity with a minimum investment of £50,000 required.
The funs is suitable for Sipp, Ssas or direct investment and projects a return of more that 12 percent a year.
Mr Evans said a investment of £100,000 is projected to return a minimum of £172,000 in 2012, net of Swedish taxation and all fees and expenses.
He said: "Swedish real estate prices remain strikingly low by European standards
"This enhances the prospect of healthy returns on the sale of Evanridge property portfolio, particularly given that institutional investors are increasingly attracted to Swedish property for its low stable income flow and rental growth prospects."
With a fixed intial term of six years from the closing date, investor's returns will be generated on the sale of the properties at the end of the investment period.
Mr Evans said" As the UK property market reaches the top of its cycle, we anticipate a growing interests in overseas property investment portfolios as a hedge against the correction in the domestic market."
The launch comes after Fidelity International said back in January that region-specific property funds could become increasingly common following the global emergence of Reits.
Steve Buller, fund manager of Fidelity International Global Property fund, said the time was now right to launch such region-specific property funds because of the emergence of Reit-like structures in certain markets around the world.
He also cited the greater maturity of some property markets as a galvanising factor.