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L1 Capital U.K. Residential Property Fund

Seeks to generate strong risk-adjusted returns by investing in residential real estate assets in attractive markets and at opportune points in the cycle.
Invest in modern, income generating blocks of apartments in tier-one cities (outside of London) such as Birmingham, Manchester, Leeds, Nottingham and Newcastle.
Apply operational excellence to identify compelling assets with strong scope for value-add upside.
Proven track record in delivering strong rental growth and capital appreciation through active asset management.

Seeks to capitalise on the compelling risk adjusted return profile of U.K. Residential property

Fund manager

David Lamm

Chief Executive Officer | L1 PropertyView bio

Investment opportunity

L1 Capital believes the outlook for U.K. residential property (excluding London) offers a compelling opportunity. The combination of high rental yields, low borrowing costs and attractive long-term supply-demand dynamics makes for an attractive investment case. The investment strategy is centred on purchasing large blocks of day-one income generating, tenanted apartments in Tier-1 U.K. cities (such as Birmingham, Manchester, Leeds, Nottingham and Newcastle).

Fund overview

Investment strategy
The Fund is focused on investing in existing and modern residential property in major U.K. cities (excluding London) that provide an attractive and reliable income stream with the potential for capital growth. The Fund typically purchases in bulk and is able achieve a discount to retail value and a discount to replacement costs which provides strong downside protection.

As part of the due diligence process, we complete a comprehensive market assessment (‘macro’ and ‘micro’ location analysis) and an assessment of the operational upside. We seek to add value by bringing capital to assets that have been underinvested historically in order to increase rental income generation and accelerate price appreciation.
Investment approach
Investing directly in U.K. residential property seeking to add value through property improvements and optimising rental and sales value.
Investment objective
To deliver a total return of at least 10% p.a. to clients (net of fees and expenses, before tax)
Benchmark
None
Geography
U.K. Tier-1 cities (major cities outside London)
Distributions
Paid half-yearly
Unit currency
£, A$
Fees
Management fee 0.5% p.a. on gross asset value
Performance fee 15% performance fee (7.5% IRR hurdle*, with catch-up)

*Hurdle rate of A$ 3-month BBSW + 1.00% for first year (as fund not fully deployed), 7.5% thereafter.
Fund details
The Fund was established to invest in high-yielding residential assets that can deliver strong and growing income, along with significant capital appreciation. To date, there have been four Fund raises.

Fund I
Inception date September 2017
APIR ETL3930AU
Class Unhedged and Hedged

Fund II
Inception date September 2018
APIR ETL0680AU
Class Unhedged and Hedged

Fund III
Inception date September 2019
APIR ETL4432AU
Class Unhedged

Fund IV
Inception date September 2020
APIR ETL1318AU
Class Unhedged A$ and Hedged £
Investment manager
L1 U.K. Property Investments Pty Ltd (ACN 619 264 096), (an authorised representative (no. 1255692) of L1 Capital Pty Ltd (ACN 125 378 145, AFSL 314 302).

Performance | Fund I

Data as at **DATE**. Net of fees and including distributable tax credits. Fund inception is September 2017. Past performance should not be taken as an indicator of future performance.

Performance | Fund II

Data as at **DATE**. Net of fees and including distributable tax credits. Fund inception is September 2018. Past performance should not be taken as an indicator of future performance.

Performance | Fund III

Data as at **DATE**. Net of fees and including distributable tax credits. Fund inception is August 2019. Past performance should not be taken as an indicator of future performance.

Performance | Fund IV

Data as at **DATE**. Net of fees and including distributable tax credits. Fund inception is September 2020. Past performance should not be taken as an indicator of future performance.

How to Invest

This Fund is currently closed to new investors. Please contact us for further assistance.

Information contained in this page
Equity Trustees Limited (“Equity Trustees”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the L1 Capital Australian U.K. Residential Property Fund I/II/III/IV. Equity Trustees is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT).

This page has been prepared by L1 U.K. Property Investments Pty Ltd (ACN 619 264 096), (an authorised representative (no. 1255692) of L1 Capital Pty Ltd (ACN 125 378 145, AFSL 314 302) and its officers and employees (collectively “L1 U.K.”), to provide you with general information only. In preparing it, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither L1 U.K., Equity Trustees nor any of its related parties, their employees or directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. All performance numbers are quoted after fees. Past performance should not be taken as an indicator of future performance. You should obtain a copy of the Product Disclosure Statement (‘PDS’) before making a decision about whether to invest in this product.

The offer made in the PDS is available only to persons receiving this PDS in Australia and New Zealand (electronically or otherwise). The offer is not available to UK investors. This PDS does not constitute a direct or indirect offer of securities in the US or to any US Person as defined in Regulation S under the US Securities Act of 1933 as amended.

Copyright
Copyright in this publication is owned by L1 U.K. You may use this information in this publication for your own personal use, but you must not (without L1 U.K.’s consent) alter, reproduce or distribute any part of this publication, transmit it to any other person or incorporate the information into any other document.

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