Ground Rents Income Fund preference shares convert into the ordinary shares of Ground Rents Income Fund plc at a price equivalent to the fund’s net asset value. The conversion will take place on or before 24 May 2014.
The fund aims to provide secure long-term performance through investment in long dated UK ground rents, which have historically had little correlation to traditional property asset classes and have seen their value remain consistent regardless of the underlying state of the economy. The investment objective of Ground Rents Income Fund is to acquire a portfolio of freeholds and head leases, offering the potential for income generation from ground rents, that is both secure and hedged against inflation, and the potential for capital growth from active asset management.
The company’s income is from ground rents and associated income. Ground Rents Income Fund seeks to generate consistent income returns for shareholders by investing in a diversified portfolio of ground rents including freeholds and head leases of residential, retail and commercial properties located in the UK.