The Property Income Trust for Charities (“the Fund”) is a type of unit trust designed as a pooled property vehicle that is available to all charities and unit trusts whose members are all charities that in each case qualify for tax exemption. It is established to permit qualifying investors to co-invest in UK property in a manner that is tax efficient for both income and capital. It also has the advantage of allowing properties to be acquired free of Stamp Duty Land Tax.
The Fund operates both ethical and environmental policies and seeks to be a socially responsible investor.
The Fund’s aim is to deliver a relatively high and sustainable income yield whilst at least maintaining capital value in real terms over the economic cycle.
In order to enhance the distribution yield on equity, the Fund has the power to employ limited borrowings at target levels of leverage agreed in advance with the Investors’ Committee.
The Fund seeks to acquire assets which offer a combination of long-term capital appreciation (often with inflation or index-linked leases) and assets which may be enhanced by active asset management.
Given the long-term and conservative nature of the investor base, risk management provisions have been introduced in order to reduce risks to the Fund. Limits are placed on the maximum exposure to any individual property and to any single source of income. The Fund does not undertake any speculative development.
An Investors’ Committee has been established to represent the Unitholders and has quarterly meetings with the Manager.
The Fund is open-ended. Units may be acquired on a monthly basis and redeemed on a quarterly basis subject to market conditions.
This document provides a summary of the principal terms and conditions of the Fund. Full details are set out in the Trust Deed, which governs the Fund. Prospective investors should read the Trust Deed carefully prior to subscribing for Units.