A new Jersey-domiciled investment company has launched providing access to Swedish pre-let residential properties.
EPH Sverige plc, a closed-ended trust from EPH Partners, plans to target between 20 and 200 opportunities offering expected yields of between 5% and 8%. The portfolio may also contain commercial property.
The founders of EPH Partners are Paul Hogarth, who launched both Bankhall Investment Management and IFA support services firm Paradigm Partners, along with PH Property Holdings' Philip Hughes, Nigel Evans, Bill Ridge and Huw Evans of property fund specialists Evanridge.
Up to 30 million participating shares are being offered in EPH Sverige at a subscription price of £1 per share. The target aggregate subscription amount for EPH Sverige is £25m before expenses and it has an expected closing date of 31 March 2009.
Hogarth says: "Over 60% of the Swedish population live in rented or co-operatively owned accommodation and rental demand for residential apartments consistently exceeds supply in our target areas – the commuter towns surrounding Stockholm and Gothenburg.
"As a result of State-controlled rent reviews, inflation-linked rental growth is guaranteed."
Hogarth adds EPH Sverige will use hedging instruments to limit the risk of movements in exchange rates.
"Given the current turmoil and volatility of equities, coupled with the dire state of the UK property market, EPH Sverige offers a particularly attractive investment and risk/reward ratio," he says.
EPH Sverige anticipates a five to seven-year term, with a maximum life of 10 years.
Minimum investment is £10k, with multiples of £1k thereafter. The investment is also suitable for both Sipp and Sass clients. IFA commission is up to 6%, with additional trail of 0.75% of equity invested.