Ripley moves into residential

RIPLEY Asset Management has taken its first step into the residential property market with a £560,000 investment.

Harrogate-based Ripley has bought three five-bedroomed houses in Surrey for £560,000 on behalf of the Longcross Investment Fund.

Michael Hardman, fund manager at Ripley, said: “This is a tremendous off-market acquisition for us at a very attractive 20%.

“The houses let in two weeks, producing a rental return of £95,000, on a 12-monthly rolling lease. The initial yield is of circa 6% is very attractive. We feel this is a very sound investment for our first foray into the residential property market.”

Mr Hardman, former partner in Yorkshire Bank’s structured property finance team, said a debt restructuring had created a £2m ‘war chest’ ready to invest.

“There are now signs that both the residential and the commercial property markets are beginning to recover, albeit slowly, and we are ready to seize attractive investment opportunities when they arise across the country.

“We already have a unique mixed-use property portfolio and we are looking to build on this in the coming months.”