Clavis Walden to launch new commercial property fund

Clavis Walden has announced plans to launch a new commercial property fund which will pay dividends on a gross basis.

The boutique hopes to launch the Property Authorised Investment Fund this November, subject to approval from the Financial Services Authority and HM Revenue and Customs, and it is targeting a gross income of seven per cent a year net of a total expense ratio, reports Citywire.co.uk.

Run by the firm's founder Iain Keys and Robin Hills, the vehicle will invest 80 per cent in bricks and mortar and 20 per cent in listed securities.

Mr Keys told the news provider: "We feel it's the right thing to do. We feel it's where market demand is. The structure is the most tax-efficient and transparent route. We are focusing on investors who are really looking for income."

He added that he believes commercial property is a long-term concept and investors are seeing the opportunities it can offer.

Last week, Gavin Haynes, managing director of Whitechurch Securities, said that commercial property can be "an attractive component of a balanced portfolio".