Abacus was approached by an investor wishing to group together a small number of HNWI and family offices to invest into various UK property development opportunities.

Whilst Isle of Man companies and fund structures are ideally suited for property investment structures as either property funds or special purpose vehicles, a closed-ended arrangement suited the client best.

The closed-ended structure, which is closed to new investors after the initial offer period, has a defined duration which can be extended by the agreement of all, or the majority, of the investors. This is well placed to hold illiquid assets which may be difficult to price during various stages of the investment’s life.  

An Isle of Man 2006 company was utilised, these can be formed easily and quickly as the corporate vehicle for a choice of suitable fund structures. These can be used for either closed-ended schemes,  Exempt International, Specialist Investment Fund or Qualifying Investment Funds. (Further details are included elsewhere on the website regarding these scheme types)

The properties were held in separate special purpose vehicles, for ease of administration and subsequent sale or transfer, which were in turn held by the closed-ended scheme. 

Abacus can help to advise what company type and fund structure would best suit your needs for a property fund. We have well established relationships with other service providers and can liaise with them on a client’s behalf to ensure that the fund is established efficiently and successfully.