Consortium - Investment Management

Case Study

SIPP / SSAS Property Solutions

Case 1

A national firm of accountants had 3 SIPP clients who held, via their SIPPs, a securely let commercial property, the equity within which they wanted to use to build a larger property portfolio enabling them to spread their risk over a wider asset base. After initial meetings with the advisers to the clients, an EPUT was established for the 3 individual SIPPs. The existing property was then contributed by the SIPPs to the EPUT in exchange for units to the equivalent value.

The property was now in the EPUT environment and was re-geared with a UK bank. The released equity was used to purchase 2 more commercial properties sourced by Consortium.

Case 2

A leading firm of IFAs had 4 clients, who each had SIPPs with different SIPP providers, wishing to collectively invest their SIPP money in the same commercial property. The various SIPP providers were unable to co-own the investment for their own administrative reasons.

Consortium therefore established an EPUT for the clients with each of their existing SIPPs investing equal funds into it. With the aid of limited recourse bank funding the commercial property was acquired (the bank only has recourse to the property, not to investor's pension funds). The clients' concerns of joint ownership in a syndicate were addressed by using the EPUT structure as the application process involves a binding agreement including flexible provisions regarding death, divorce, and disinvestment, not normally available in a direct SIPP syndicate.

Other Case Studies

  1. Fund Service
  2. Property Funds
  3. Property services
  4. Consortium Venture Funds
  5. Offshore Property Funds
  6. SIPP / SSAS Property Solutions