Good times for the UK property investment sector

by International Commercial Investment on May 30, 2014

Currently, the UK property investment sector has reasons to celebrate. According to the last report about this market published by the Economic Voice, the UK is one of the cheapest places to invest in properties.  These details were collected by Taxland–one of the largest independent organisations of tax advisors to international businesses–in accordance with what they call ‘Total Tax Take’. This concerns the total cost of taxes, which are related to property buying and selling, property development and property rental.

Many companies have known how to take advantage of this positive aspect and offer several opportunities of investing in this area. A clear example is the commercial investment consultancy International Commercial Investment (ICI), based in London, which has a wide range of this kind of product among its investment opportunities. In addition, ICI has recently launched an exclusive opportunity of investing in properties: Keeper’s Chase, a development of ten new detached homes with 4 bedrooms in Longridge, near Preston (UK).

One of the main objectives of International Commercial Investment is to bring investors the opportunity to invest safely, and thanks to Keeper’s Chase—among other products—this is possible due to an expected return of over 16% within 12 months. Sherwood Homes Limited will carry out the development works.  It is very important to emphasise that the developer has a long professional record of success spanning many projects. Moreover, the Local Authority, whose principal task is to ensure Building Regulation compliance, will oversee all works and will emit a Certificate of Building Regulation Compliance at the end of the activity.

Regarding Keeper’s Chase’s shares, there are 1000 available at £2,512.13 each and the minimum investment required is 4 shares (£10,048.52). These shares are available to purchase in the Single Purpose Vehicle (SPV), which is set up by a leading Manchester law firm that owns the site exclusively.

According to the Economic Voice, the United Kingdom has the second lowest tax rate on property development at 8.88%, following very closely Luxembourg’s 8.46%. The fact that there is no tax on land ownership­­—unless the property is not occupied—makes the UK even more attractive for property investments and supposes an interesting option also for international investors.

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International Commercial InvestmentGood times for the UK property investment sector

New Investment Opportunity through ICI

by International Commercial Investment on June 6, 2013

ICI are delighted to announce a new investment opportunity with a UK based PLC Property Management Company created to purchase distressed assets in key markets in the US and Europe. They specialise in developing those assets into long term profitable property investments.

With annual returns (paid quarterly) and a fixed yield of 8% per annum, Investors will be securing investment into distressed property bonds which already have property assets within Europe and the USA. Investors will receive a quarterly income for the duration of the investment.

Investments start from as little as £5,000 and are capped at £4million with multiple bond placements. The investment offers a 7 year asset backed corporate property bond with an annual variable coupon estimated to be approximately 2.4%.

The PLC company is targeting assets with available discounts of up to 70% off the market value purchased through main street banks and then they rent them out to produce positive cashflow with a view of selling the assets during the term or at the end of the investment. These assets will be a mixture of residential, commercial, office and hospitality assets.

There is a clear exit strategy after 3 years, where the PLC company will offer to buy back your investment. The PLC company uses the services of a UK FCA authorised trustee who are used for the collection of funds on behalf of the bond placement. This is an authorised non regulated product, signed off by the FSC.

To learn more about the opportunity, please contact us.

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International Commercial InvestmentNew Investment Opportunity through ICI

ICI Announces New Partnership

by International Commercial Investment on June 6, 2013

ICI are pleased to announce a new partnership with Totus, an international wealth management company. This partnership will allow ICI to offer SIPP and Pensions through Totus to its’ Clients under the FCA guidelines. Our partners are normally able to reduce charges on typical pension products by around 50% and by 33% on ISA´s, PEPS and unit trusts.

Totus is an international multi-disciplined wealth and tax management group. Whose main focus is to minimise exposure to tax and protect and maximise wealth by combining the expertise of tax consultants, lawyers, independent financial advisors and asset managers to offer a seamless and integrated service.

For further information about how you can invest your SIPP please contact us

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International Commercial InvestmentICI Announces New Partnership

Oil prices endure sustained slip

by International Commercial Investment on May 1, 2013

Source: Portfolio Adviser: Claire Wilson

The price of oil has fallen $20 since February on the back of weak data from the US and China, and the anticipation that gas will take a larger share of the energy market.

The Brent oil price is currently trading at around $100/bbl, compared to $112/bbl a month ago, while demand for oil may only grow by 0.9% during the year.

The fall in price coupled with increased expenditure by the big oil producers calls into question the sustainability of oil and gas company cash flows, according to analysts at Charles Stanley.
In terms of price performance, oil producers have significantly underperformed the FTSE All Share Index in the first three months of the year, posting a +0.3% rise.

Oil service providers have performed even worse posting a fall of 3.5%, and given the correlation between the performance of this sector and the price of oil, it could be a sign that the price of oil is set to fall further. Some estimate that the price could dip to $95/bbl by the end of the year.

A spokesperson for Charles Stanley said: “For investors, oil major dividend yields are attractive but the gas sector underperformance shows investors are not convinced. High capital expenditure and dividends are consuming operating cash flow and investors are concerned by high capital intensity which is putting pressure on returns on capital.”

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International Commercial InvestmentOil prices endure sustained slip

Investment Now Open for Expats QROPs

by International Commercial Investment on October 8, 2012

ICI is one of the first companies to offer alternative investments to Expatriates with QROPs. Until now alternative investments have been open to Cash, SIPP and Frozen pension investors. With ICI now offering clients with QROPs the same opportunities, you can ensure all you investments can be utilised to their full potential.

What is QROPs? A transfer of a UK pension funds to a pension scheme provider in an overseas location such as Guernsey, Isle of Man, Gibraltar and Malta, via a Qualifying Recognised Overseas Pension Scheme or QROPs, pronounced “queue-rops”. A QROP is only for clients living outside of the UK who had previous frozen pensions.

To view more about our investment opportunities visit our website

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International Commercial InvestmentInvestment Now Open for Expats QROPs

What is an Alternative Investment?

by International Commercial Investment on October 3, 2012

There is actually no definitive explanation; alternative investments can be as wide ranging as Stamp Collections, Cemetery Land Purchase or Hedge Funds. Perhaps the simplest way to categorise them would be to say that they are considered alternative because they are different to the more traditional assets and investments investors have been familiar with in the past, such as stocks, shares or bonds. Alternative investments can however be classified as directly held non regulated investments.

Of course alternative investments have always been available and utilised by shrewd investors in the past but they are now becoming a more attractive and recognised option too many investors, particularly with the marked increase in popularity of SIPPS. A report by Cap Gemini and Ernst & Young estimated that high net worth investors regularly put over 10% of their wealth into alternative investments, attracted by their strong performance and the diversification of their portfolio.

It is now widely accepted that diversifying your portfolio is the smartest way to invest; should one area weaken, this can be offset by an upturn in another. The downturn in the market in 2008 exposed many investors to the unpleasant reality that many of their investments were correlated and all performed badly simultaneously, the three most common groups being shares and bonds, property and cash held in banks or building societies.

The crash in 2008 quite literally highlighted the benefits of alternative investments which would have in many cases buoyed many investors throughout that period. Indeed alternatives are now viewed by many as an essential factor of their portfolio, particularly whilst today’s markets and economies are not viewed as stable or predictable.

Gold for example, has always been an alternative and has proven to be a far better investment than most managed funds over the last 10-15 years. There are now an increasing number of alternatives available and they have the benefit of being directly held assets; something tangible that will always retain a value, unlike stocks for example which can be wiped out in the event of a stock market crash. In addition to this, many alternative investments give fixed annual returns, a degree of security which investors can monitor and rely on. They also give the consumer the opportunity of personalising their investment choices unlike a managed fund.

The last few years have established a very different economic environment for investors; traditional choices, previously considered to be “no or low risk” now have little appeal; low interest rates, high inflation and unstable currencies have led many to reconsider their investment strategies, particularly those saving for retirement and who are now opting for SIPPS or QROPS.

Many alternative investments are SIPP acceptable and give investors greater choice and control of their personal finances. The variety and range of the alternative market is considerable and constantly expanding; this inevitably means that the quality of alternatives can also vary and it is more important than ever for the product to be subject to stringent due diligence and provided by credible partners with established backgrounds and understanding of the financial industry.

There are several factors to consider when investing in alternatives; transaction costs, the availability of clearly documented information, independent research that validates the asset value, legalities, ownership and clear exit strategies; with all of these elements in place, alternatives can give consumers strong investment opportunities. Alternative investments are directly held and clearly defined and the investor derives all the returns from this asset be it gold bar or a piece of land. The interest in alternatives is growing as consumers seek tangible alternatives to previously considered “safe” but underperforming options such stocks and shares in an uncertain economic environment.

All of our advisors are FSA qualified with strong financial backgrounds. To review your portfolio and see where the alternative market could benefit you please Contact Us.

Garry Friel
Managing Director

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International Commercial InvestmentWhat is an Alternative Investment?