Institutional
Investors

Cherry offers bespoke opportunities for institutions, backed by residential property.

Cherry has already developed products which are bringing revolutionary opportunities to institutions, allowing investment in the growth in the housing market without having to own property directly.

Dependent on the size of the investment, and length of term, Cherry will tailor a solution to match the needs of each institution. For further information, please contact us.

Investment strategy

We’re building a portfolio of UK residential property, choosing each asset on its individual merits. We invest in geographic areas with strong economic fundamentals, and avoid places that have undergone substantial re-pricing.

 

We identify available assets which match our acquisition criteria. Our approach is research-led, with a focus on evaluating:

  • Macroeconomics
  • Microeconomics
  • Property suitability

Once we’ve acquired a property, we’ll carry out any remedial work it needs. When that’s sorted, 50% of each CoBuy home is sold; the remaining 50% is rented to the CoBuy homeowner. Credit and affordability checks carried out by the mortgage provider in line with regulatory standards give assurance regarding the quality of the unique rental income of the retained portion. The total return on investment can be based on the size and term of investment.

Investment options

For institutional investors, including fund of funds, fund managers, pension funds and charities, Cherry are able to offer multi strategy investment programmes.

Income purchase

For institutions that need to match long-term income requirements, including potential liabilities or exposures to RPI, Cherry can offer long-term income streams generated by CoBuy. They provide investment security, thanks to asset-backing by UK residential housing.

Income purchase investments opportunities are usually 10 – 40 years in duration, and benefit from annual RPI uplifts to offer a hedge against inflation. These long-term income streams behave like a Residential Mortgage Backed Security (RMBS), because they’re affordability checked by a regulated financial institution.

Other Opportunities

Cherry offers opportunities based on both the UK HHPI and the RPI. These are again designed on a bespoke basis to suit institutions’ individual investment strategy requirements.

Structured Notes

Cherry offers short-term and long-term bespoke structured notes in the residential property market, providing value returns. We can offer full hedging facilities for a variety of currencies.

Vanilla

Cherry can create various offerings, ideal for institutions looking to tap into to the largest asset class in the UK: residential property. UK residential property has historically been a difficult asset class to invest in, due to the lack of liquidity and cost of entry.

Got a question or would like to find out more? Get in touch »