What are the fees paid by investors?

The fees relate to services that Property Partner provides:

1. Sourcing and diligencing investment grade property deals, often with significant discounts, by an in-house team of property professionals.
2. Ensuring that properties are let, managed and maintained to a high standard, and maximising dividend distributions to investors.
3. Delivering an end-to-end managed investment, including sourcing and arranging mortgages, corporate structuring through SPVs, financial statement preparation, corporate tax and VAT compliance, and adhering to regulatory and client monies protection requirements.
4. Providing a technology platform that facilitates online investment management and reporting, on an FCA-regulated trading exchange, allowing investors to trade their investments 24 hours a day, 7 days a week.

 Effective from 1 October 2021.

1. Assets Under Management Fee

The AUM fee is based on the equity value of each property’s latest independent valuation (“equity value” refers to that part of the property’s value that is owned by clients i.e. does not include the mortgage).

The AUM fee is 1.0% + VAT p.a. on portfolios valued up to £25,000 and 0.7% p.a. on the portion of portfolios valued over £25,000.

This fee only applies to investments in property equity, not development loans.

The AUM Fee will be drawn from each property SPV at the standard rate of 1.0% p.a. on a monthly basis, before dividends are paid. Clients with portfolios of shares valued at more than £25,000 will subsequently receive a cash rebate to reduce the AUM Fee paid on the portion of their portfolio over and above £25,000, to 0.7% p.a. This will be paid into your Property Partner account on dividend payment day.

Clients with portfolios valued at £325,000 or above on 5 August 2019 will receive a cash rebate to cap the total cost of the AUM Fee across this portfolio at £200 per month. Additional shares acquired after 5 August 2019 will be subject to the AUM Fee at 0.7% p.a.

Portfolio valuation is determined on the 5th of each month, or the first working day thereafter, at the same point at which investor's holdings are determined for dividend payment purposes. Your portfolio valuation is based on the latest independent valuation by a RICS chartered surveyor. 

2. Account Fee

From 1 October 2021, there is no longer an Account Fee on any accounts.

3. Transaction Fees

Investors pay a maximum of 2% transaction fee on investments, calculated on the value of the investment amount. Investors can benefit from reduced transaction fees in the following instances:

New Listing Property Investments

Premium clients have the opportunity to invest during Early Access, during which 0% transaction fees will be paid. Terms apply.

All investors have the opportunity to invest with 1% transaction fees during the first week of live funding. Terms apply.

Development Loan Investments

All development loan investments have a 2% transaction fee.

Resale Market Investments

Fees on all Resale Market investments are 1%. On Investment Plans and Discretionary Managed Services, the fee is 2%.

Cash Rebates for High Volume Investments

For total cumulative investment above £10,000 in Qualifying Investments, within a calendar month, investors are eligible for cash rebates according to the table below, effective from 1 October 2021.

Qualifying Investments include: 

1. Resale Market investments
2. 5-year anniversary block listings, where less than 50% of shareholders voted to sell 
3. Other qualifying investments as notified by Property Partner

Eligibility for the above incentive payments is always subject to an investor adhering to the terms and conditions of the MTF Rulebook.

Systematic trading that seeks to earn the payment as its primary purpose, rather than pursue a bona fide investment or trading strategy, is ineligible. Property Partner, in its sole discretion, reserves the right to withhold incentive payments if it deems it necessary to investigate any investor behaviour that may contravene the above. Shareholders electing to sell in a 5-year anniversary vote do not qualify for a cash rebate on block listing investments in that property. 

4. Sourcing Fee

We add a Sourcing Fee to the Purchase Costs for New Listings.

The Sourcing Fee is 3.0% + VAT of the purchase price; this is disclosed in the ‘Financials’ section of each New Listing. 

5. Selling Shares

There are no fees to sell shares.

Capital at risk: before investing please read Key Risks