By Andrew Batt:
The Monetary Authority of Singapore (MAS) has approved an investment fund which lends directly to property owners in the United Kingdom.
The Montello Income Fund, which has been listed as a permissible collective investment scheme by the Singapore authorities, provides short term bridging loans to residential property purchasers, focusing mostly on the London market.
Montello’s Managing Director Christian Faes (pictured) said the fund is “quite popular to offshore investors, particularly in Asia” and that the company now has a “good stable of IFAs that support the fund from Hong Kong, and we can now expand that distribution on to Singapore”.
The fund’s loans are secured by registered first charges, and it aims to keep a conservative loan-to-value ratio of between 50 percent and 60 percent. It aims to provide returns of 8.5 percent per annum for its investors who are required to invest at least S$50,000.
Faes added: “We have had a number of very positive developments for the Montello Income Fund lately. We are finding that the Fund is particularly popular with investors that are looking for yield, and we believe that the fund provides a superior risk adjusted return.”
Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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