Sandstone launches REIT for property investors
Peter Grant: interest from client groups
Sandstone, the UK-based private property investment and management company formerly known as Grant Property, has launched its long-anticipated Sandstone Residential REIT.
It is focused on traditional residential property across ten UK cities. Family offices, fund managers, charities and private clients with SIPPS are the target client market.
Sandstone REIT will hope to benefit from growth in the UK’s property market which in March rose at its fastest rate since 2007.
Grant Property has helped clients from the UK and overseas build portfolios in 3,000 residential properties, which are then rented to students. The portfolio represents a net asset value of around £1 billion. The launch of the Sandstone REIT was seen as a logical next step.
The company has achieved returns of 28% per annum, over the past 25 years, based on 75% loan-to-value gearing. Occupancy in the portfolio has been above 95%, and rental income rose by 12% in 2020.
Peter Grant, founder and CEO of Sandstone Group, said: ““We are already seeing interest from client groups in the UK and Europe, as well as Singapore, Hong Kong and across Asia.
“There are very few residential REITS in the UK, and our new Sandstone Residential REIT has been created with large institutional investors in mind.”
Grant, who is now based in Utah in the US, added: “It offers investors exposure to a really attractive asset class, which combines low risk and high returns.
“We operate within the student rental market, which has proved resilient, despite the pandemic, with occupancy averaging 95%.”
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