Tenanted Inn Estates PLC
Tenanted Inn Estates PLC (“TIE”) invests in freehold or long leasehold public house properties located in England.
The fund manager aims to lease each public house to an operator, who will pay rent to the Fund, and trade the public house. This means that the Fund will not be directly exposed to the trading performance of the public houses for its own benefit. Suitable lessees will be identified by the Public House Manager.
The fund is targeting a total return of 7-10%* per annum, made up of income 4-7%* per annum and capital growth of 3%* per annum. Historically, capital returns from public houses have been strongly correlated to house prices. There are, however, certain differences which may have, in comparison to the residential sector, a beneficial effect on the return to Investors:
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the leases used in the public house sector tend to run for much longer periods than those in the residential sector; the Fund intends to grant leases which will run for 21 years whereas, in the residential sector, leases may be granted for only a few months;
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in the period since 1995 the housing market has seen a significant increase in the supply of rental properties because of the buy-to-let phenomenon; in many areas, this increased supply of properties has resulted in a reduction in rental levels. There has been no such expansion in the number of public houses in the UK; indeed over the last few years there has been a reduction in public house numbers.
TIE is an unregulated UK collective investment scheme and an Isle of Man experienced investor fund. The fund is unregulated in the United Kingdom.
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