• Innovative Fund Partnering With Local Councils


Overview


The GB Strategic Land Fund offers investors the opportunity to invest in an innovative strategic land fund offering socially responsible investment opportunities through establishing partnerships with local authorities to secure planning approval for residential led mixed-use development sites. The partnerships aim to create a mutually beneficial working relationship between the Fund and regional Councils so as to facilitate the profitable development of Council owned land using the Fund's skills in achieving planning consents. Many developers prefer to deal direct with the private sector and these partnerships aim to provide that interface for local authorities.

Aim of the Partnerships

The Council invests its surplus land and shares its knowledge of the needs of its communities, while GBSLF invests capital and the professional skills of its team to secure planning permission. The Fund then liaises with potential developers and purchasers for onward sales of the individual sites with uplifted value through having achieved the planning gain.

The disposal of surplus assets is a key focus for many Councils to help them generate profits as well as fulfil the increasing lack of home building and new community facilities and re-generate under used areas of land within its control.

By enabling the development of surplus land in the Council’s ownership, the partnerships will help to support and sustain the growth and development of local communities by bringing new jobs, retail, housing and leisure facilities to the area, as well as generating funds that the Council can then reinvest in the local community and support the services it offers.  GBSLF and the partnerships aim to achieve financial returns in conjunction with commitment to the social good of the development sites to bring about positive social change.

The Market

Regional and National Housebuilders are increasingly focusing their efforts on housing delivery rather than investing in strategic land for development because of the constraints on their equity resources and the need to increase operating margins. Housebuilders are being forced to adapt to a less capital intensive model, which means finding ways of engineering down building costs and focusing on selling houses. Finding more capital effective means of acquiring land ready for development is essential to them.

This has created a gap in the market where the GBSLF is ideally positioned to act as the leading platform in preparing and delivering land ready for construction.
GBSLF undertakes the acquisition, design, master planning and promotion of strategic sites through the planning process and then sells consented land on to the housebuilder and developer market. This approach is fully aligned with the government’s housing delivery initiatives and Localism agenda.

Long term:

The key driver behind strategic land in the UK is demographics. Figures from the 2011 Census recently confirmed that the biggest ever growth in UK population has taken place over the last 10 years and that it is compounding the acknowledged problem of a shortage of housing in the UK. The Office of National Statistics expects the UK population to increases nearly 20% in the next 20 years. The UK Government is determined to increase the housing supply which is in turn increasing the demand for land with planning consent.

Medium term:

It is anticipated that the Government’s current efforts to encourage domestic economic growth in the UK by boosting housebuilding will impact as a further stimulus to the demand for strategic land over the next 5 or 6 years. The houses the Government wishes to see built cannot be built until first increasing demand for land with planning consent is met – exactly what the Fund delivers.

About


Fund Overview

The GB Strategic Land Fund GBSLF is an Open Ended SICAV-SIF domiciled in Luxembourg and regulated by the “Commission de Surveillance du Secteur Financier” (CSSF), the Luxembourg financial services authority. GBSLF commenced operations in September 2010 with the investment objective of providing capital gains in excess of 12% p.a. through a targeted programme of investment into land sites in high growth areas throughout England. The fund invests into land (or the contract to buy land) in areas which have been identified for residential development within a Local Authority’s Local Plan, but prior to the grant of planning permission. This targeted acquisition strategy is aimed at mitigating planning risk while enabling shareholders to benefit from the largest capital gain anywhere within the real estate cycle.

Investment Strategy

Regional and national house builders are increasingly focusing their efforts on housing delivery rather than investing in strategic land for development because of the constraints on their equity resources and the need to increase operating margins.

House builders are being forced to adapt to a less capital-intensive model, which means finding ways of engineering down building costs and focusing on selling houses. Finding more capital-effective means of acquiring land ready for development is essential to them.

This has created a gap in the market, where the GBSLF is ideally positioned to act as the leading platform in preparing and delivering land ready for construction. GBSLF undertakes the acquisition, design, master planning and promotion of strategic sites through the planning process and then sells consented land on to the house builder market. This approach is fully aligned with the Government’s housing delivery initiatives and Localism agenda.

Historic Performance

Valuation Methodology

The independent valuation of the Fund’s land assets is undertaken regularly by BNP Paribas Real Estate. The methodology of valuation prescribed by the Fund is in accordance with the Royal Institute of Chartered Surveyors ‘Red Book’ – the acknowledged methodology for the valuation of land assets in the UK

Annual Performance

2011 – +34.25%
2012 – +14.93%
2013 – +8.59%
2014 – +9.88%
2015 – +3.38%
Since launch – +92.82%

Board


The Board members of the AIFM are:

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Kevin Mudd

Director

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Paul Pavli

Director

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Andreas Alonefits

Director

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Socratis Socratous

Director

Professional Fund Partners


Alternative Investment Fund Manager

KMG Capital Markets Ltd

Independent Auditor

KPMG Luxembourg

Valuer

BNP Paribas Real Estate

Custodian & Principle Paying Agent

KBL European Private Bankers S.A.

Tax Advisor

BDO LLP

Registrar & Transfer Agent

EFA Luxembourg

Fund Bankers & Domiciliary

Kredietrust Luxembourg

Legal Advisors

Elvinger, Hoss & Prussen

Investment Advisor

KMG Capital Markets Ltd

Current Projects


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 Fund Offering Document Fund Appendix Private Investor Application Form Corporate Investor Application Form

 

The GB Strategic Land Fund is a Dedicated Fund of KMG SICAV – SIF (the “Company” or the “Fund”), a Luxembourg-registered “Société d’Investissement à Capital Variable” authorised and regulated by the Luxembourg regulator, the Commission de Surveillance du Secteur Financier (CSSF), governed by the Law of 13th February 2007 and qualified as an Alternative Investment Fund (“AIF”) of the specialised investment funds type, managed by KMG Capital Markets Ltd, an external Alternative Investment Fund Manager (“AIFM”), established in the Republic of Cyprus, in accordance with the Chapter II of the Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers (“AIFMD”) and regulated by the Cyprus Securities and Exchange Commission (“CySEC”). By accessing this information you shall be deemed to accept and agree to be bound by the terms of this notice. This communication is directed only at institutional investors and/or professional investors and/or Eligible Counterparties, within the meaning of Annex II to Directive 2004/39/EC (“MiFID”), and/or any other authorised financial intermediaries. It should not be distributed to, or relied on by, any other type of investors. The Fund cannot be promoted to investors for whom it has not been deemed appropriate. If you do not fall into this category do not read this website. The information contained herein is confidential and is intended only for the persons to whom it is transmitted by the company or authorised distributors. Any information that is specified in Article 23 (1) of the AIFMD will be delivered by the Distributor and/or the AIFM to the potential investors upon request, before they invest in the Dedicated Fund. This information is not directed at you if we are prohibited by any law of any jurisdiction from making the information in this website available to you and is not intended for any use that would be contrary to local law and/or regulation. The entire contents of http://www.gbstrategiclandfund.com/ are subject to copyright with all rights reserved. You may download or print individual sections of the site for your personal use and information only provided that you retain all copyright and other proprietary notices. You may not reproduce (in whole or in part), transmit (by electronic means or otherwise), modify, link into or use for any public or commercial purpose the site without the prior written permission of the Company. The information contained within this website is of a general nature and further information should be sought by contacting us with your specific requirements.

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