A DIVERSIFIED PROPERTY FUND FOR CHARITIES

Managed real estate investment tailored to the needs of charity investors

About the diversified property fund for charities

Eskmuir launched DPFC in 2015 as a tax efficient unit trust for charity investors seeking access to a diversified, actively managed commercial property portfolio with a clear investment strategy. The Fund currently has c.£100m of assets under management.

The Fund has attracted charity investors from a broad range of sectors including education, healthcare, nature conservation, animal welfare and medical research, with all seed investors having added to their initial investment since the Fund’s launch.

Under Eskmuir’s active asset management strategy, the Fund has consistently exceeded its performance targets and industry benchmarks, offering an attractive income profile for charity investors. Since inception it has delivered a total return of 104% (9.6% annualised) with 66% distribution return and 38% growth in net asset value. The distribution has grown or been maintained year on year (including during the Covid-19 pandemic) providing a distribution of c. 6% pa.

To find out more about Eskmuir visit our website.

ESKMUIR GROUP

Why invest?

Track Record

DPFC has outperformed the AREF and MSCI All Property Monthly benchmarks over 1, 3 and 5 years, delivering 9.6% Total Return annualised since inception. The distribution has grown or been maintained each year since launch, with an average increase of 2% pa.

Investment Strategy

The Fund’s investment strategy principally focuses on multi-let properties in strong locations, within the £3m – £12m strata of the market, which can be actively asset managed to enhance income and capital values.

Diversified

Provides risk managed exposure to real estate investment for charity investors using diversity of location, sector and occupier base to reduce risks at a portfolio and property level whilst creating opportunities for income and capital growth.

Target Returns

Targets a sustainable and growing distribution with an IRR of 7-9% pa over a rolling 5 year period.

Tax Efficient

DPFC is tax neutral for charity investors, ensuring the investment closely mirrors a charity investing directly in real estate with no stamp duty land tax, income tax, tax on capital gains or corporation tax.

Experience

Eskmuir brings a highly experienced and stable management team to this Fund with a proven track record of managing charity endowments invested in direct property for over 30 years.

Why invest?

The Charity Times Awards recognise, celebrate and promote the best practices among those supporting the charity sector. DPFC is proud to have received multiple nominations for these prestigious awards, under the Boutique Investment Management category, which recognises the service it is providing to support the charity sector.

Performance

9.6% annualised total return since inception

ESG

Targeting Net Zero Carbon by 2040

About the manager

Eskmuir is also a direct investor in real estate assets giving it a unique insight into creating long term risk managed capital and income growth accretive investments.

Provenance

Eskmuir was established in 1990 by the Laing family & their charitable trusts to manage their endowments invested in direct property. The Laing family’s activities in the real estate industry date back to James Laing in the 1840s. It was the philanthropic wish of the Laing Family and their charitable foundations to launch DPFC to enable other charity investors to benefit, in the same way they have, from the attractive returns the Eskmuir management team have delivered.

Track Record

Eskmuir has delivered 33 successive years of dividend growth to it’s family and charitable trust investors. A 10.6% annualised total return has been achieved since inception. The £16m initial investment in Eskmuir in 1990 has grown to £166m of shareholders funds in 2023. This is over 3.5 times the level of growth RPI would have been achieved in addition to which the average dividend on the seed investment is almost 14% pa.

Fund Management

Boston & Alexander LLP has been appointed by DPFC to act as its full scope AIFM. Eskmuir FM Ltd acts as Boston & Alexander LLP’s appointed representative. Eskmuir Asset Management Ltd undertakes the asset management of DPFC’s assets.

Approach

The key strands to Eskmuir’s Business Model are; Investment Management – acquiring properties to be asset managed and then sold once their bespoke asset plans have been completed; Asset Management – to unlock hidden value through enhancing income and capital values; Fund Management – managing third party investors’ endowments to deliver reoccurring dividend and capital growth in a risk managed way to optimise returns.

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