Property investment platform Brickowner has launched its first REIT, Brickowner Residential Income REIT (Brickowner REIT).
The REIT, which is tied into the Brickowner platform, is initially targeting £6m worth of assets in the UK residential sector but is understood to be targeting up to £80m over the longer term.
A company spokesman said the aim was to provide “sophisticated” high net worth investors “regular and stable income, as well as potential for capital growth over the medium and longer term”.
The REIT will be open to investors with as little as £2,500 to invest, and accessible by ISAs, SIPPs, SSAS accounts as well as offices and institutions. It is understood that Brickowner is also speaking to companies with existing portfolios interested in reversing those portfolios into the REIT.
Founder and chief executive Frederick Bristol (pictured) said it was a good time to launch a new REIT. “We believe this is the right time to be launching a REIT targeting UK residential property,” he said. “For the assets we are looking at, which are properties that would otherwise have been bought by an amateur buy-to-let landlord, it’s a buyer’s market.”
He added that the REIT was already eyeing a number of assets. “We will probably buy in cash and get some gearing, but very little, no more than 30%,” he said.
The platform currently has no institutional investors, but Bristol said it had already started to have discussions with several parties. He added that it intended to launch more REITs and funds, potentially targeting sectors other than residential.
Brickowner REIT is hoping to deliver 5% annual dividends and 3% growth for investors.
Bristol said: “Recent increases in interest rates, mixed with tax changes, have made direct residential investment unviable for a lot of amateur landlords who are now starting to sell their properties. We see this as an opportunity to buy at below-market values.”
The intention is to list the REIT on The International Stock Exchange (TISE).
Bristol launched Brickowner in 2017 with the aim of “democratising” property ownership and making it more inclusive. The business claims that its technology cuts the time to onboard and invest in property from weeks to minutes.
