Hedge Funds

A Hedge Fund is a private investment fund open to a limited range of investors which is permitted by regulators to undertake a wider range of activities than other investment funds and which pays a performance fee to its investment manager.
Although each fund will have its own strategy which determines the type of investments and the methods of investments it undertakes, hedge funds as a class invest in a broad range of investments, from shares, debt and commodities to works of art.

Hedge Funds are typically open only to a limited range of professional or wealthy investors. This provides them with an exemption in many jurisdiction from regulations governing short selling, derivative contracts, leverage, fee structures and the liquidity of investments in the fund. A hedge fund will nevertheless voluntarily limit the scope of its activities via its contractual arrangements with its investors, in order to give the investors some certainty over what they are investing into.

The assets under management of a hedge fund can run into many billions of dollars, and this will usually be multiplied by leverage, meaning that their influence over markets is substantial. Hedge funds dominate certain speciality markets such as trading within derivatives with high-yield ratings and distressed debt.

Tax Relief and land Remediation benefits

Cock 

Frequently Asked Questions

Q. If land is such a good investment, why isn't it more popular with financial advisors and private investors?

A. Green field land has not been available on a plot by plot basis until recently. Changes to the law have facilitated the process of sub-dividing large tracts of land allowing companies such as Plott to offer smaller and affordable pieces relatively easily. In essence, a whole new market is being created and as time goes by this asset class will become the foundation for most successful portfolios.

Q. Will it get Planning Permission?

A. We cannot guarantee if, or when, planning approval will be granted. However, we concentrate on Greenfield land in prime locations, in areas given priority by the government for additional house-building.

Q. Why buy land without planning permission?

A. The aim of Plott is to make as much profit as possible through property investment. Land without planning permission can be bought incredible cheaply, representing the best value for investment via the biggest margins in this industry.


Q. Size of plots?

A. They vary according to price and all conform to government specifications regarding size.


Q. Red Tape?

A. Current housing pressures are sweeping many of these away. Government is keen to ensure enough adequate housing at affordable prices for potential voters. Building new houses is one way of achieving this. Legislation recently enacted has streamlined the whole process making it speedier and flexible. Council planning reviews have been shortened to every three years in some, and four in others.


Q. Why are the local people and councils often upset by the proposed development?

A. The UK is currently experiencing a massive housing shortage and more and more land is needed to accommodate these homes. This can be a very political issue and many local people are fiercely protective of their much-loved surrounding green areas. Having said this, the fact still remains that there is a housing shortfall and Plott sites are always in locations ear-marked for growth.


Q. What is the Local Plan, and how might this affect my plot?

A. Planning laws are continually changing to meet the demands of our housing needs. A recent change has been to make the planning system quicker and more flexible. Land will now be considered for allocation to residential development every three years instead of five. And in cases of a significant housing shortfall, it can be considered every 12 months.


Q. Are there any site maintenance costs that I may incur?

A. No. Unlike many land agents, Plott cover any costs that may be incurred in relation to their sites, providing you with complete peace of mind.

Q. Can I use my own builders, or build myself?

A. We do not suggest that you enter this investment with the expectation of building your own home. If our site is re-zoned, you can negotiate with a developer to build you a house within the overall scheme design in an agreed suitable location.

A developer may be happy to do this as it would gurantee a sale and avoid them having to buy your land. Obtaning planning consent for a single dwelling on the site is very unlikely and we do not recommend you enter any investment such as this if that is your ambition.

Q. What are the title deeds?

A. These are legal documents detailing the specifics of the land and who is the owner.


Q. What is the difference between outline and detailed planning consent?

A. If outline-planning consent has been granted, this means you have permission to build upon the land. Detailed planning consent relates to the specific type of property you want to build, i.e. type of brick, windows, number of rooms etc.


Q. What is an Article 4 notice?

A. An Article 4 helps to preserve the look of the land prior to development, and prevents individuals from erecting fences etc. around individual plots without planning permission.


Q. What is the UDP? (The local authorities Unitary Development Plan)

A. The UDP's Purpose: To identify the need for housing and what kind of housing is required, i.e. social, private where and how much building should take place.


Q. Do I need a solicitor?

A. Unlike a bricks and mortar property purchase, a solicitor is not essential however, some people prefer to use a solicitor for their own peace of mind. Using a recommended solicitor who already knows the sites and concept is advisable as this can save you a lot of time and money. The law Society ensuring that your best interests are their only concern regulates all solicitors. The solicitors recommended to Plott customers are a large, established and well-respected legal practice. For more information, please contact Plott.


Q. Can I use my own solicitor?

A. Yes you can. Plott are happy to deal with any solicitor of your choice, however you must keep in mind that a solicitor that has no knowledge of the concept or the sites on offer, may take considerably more time to complete. As a result, this can mean you incur unnecessary additional legal costs for yourself.


Q. Can I sell my plot?

A. Yes you can. You own the freehold title deeds to your land and may sell it at any time.


Q. Will the plot increase in value before it gains planning permission?

A. Yes, over recent years land has continued to increase in value. On average, land values have increased by 15% per year over the last 10 years. Given this recent history, it is reasonable to conclude that even without planning consent the value will continue to rise significantly.


Q. What surveys and/or checks have been carried out on the land?

A. A full legal and environmental search is carried out on every site offered by Plott. This ensures that each site fits all necessary criteria to be suitable for residential and commercial development.


Q. What is PPG3? (Planning Policy Guidance 3 : housing)

A. Planning Policy Guidance (PPG) sets out the Government's policies on different aspects of planning. It provides guidance on a range of issues relating to the provision of housing. It replaces the 1992 version of PPG3. Recent and proposed changes to PPG3 reflect the Government's recognition that private house builders are central to it's key objective to build more homes. And it also addresses the issues of planning for sustainable communities in rural areas.


Q. What is a Section 106 agreement?


A. A Section 106 agreement of the Town & Country Planning Act 1990, allows a local Planning Authority (LPA) to enter into a legally binging agreement (planning obligation) with a land developer over a related issue. The obligation is sometimes termed as a "Section 106 Agreement."


Q. What is the Site Owners Community (SOC)?

A. The Site Owners Community is a collective group of investors that have purchased land with Plott. A new community is created for each and every site, providing members with regular access to information, updates and news as to the progress of their investment sites. This services is completely free of charge to all of Plott's customers.


Q. How much of a return should I expect to make on my investment?

A. This figure is based on the current market values only and not a projection of how much it may be worth in 5 or 10 years. All plots offered for sale by Plott are sold at approximately 10% of their current market value if planning consent had already been approved. Taking into account the general inflation, the real return over a five to ten year period could be significantly higher.


Q. What are the tax implications when buying land?

A. Plott is not legally qualified to advise on taxation matters. If you have any questions or would like more information, we recommend that you speak to the tax office directly or seek professional advise from a trusted accountant.

Hedge Funds

Some of the country's top hedge fund managers are buying a slice of the countryside to make the most of the currant poor financial market conditions. 

The cost of farm land looks likely to soar as traditional British "lifestyle farmer" are joined by multimillion-pound investors hurriedly moving their wealth out of stocks and shares into farmland. Across the world, hedge fund managers, property developers and other investors are turning their eyes to farmland

"Country living February 1st 2008"  

Lifestyle farmers - typically city high-fliers have become the largest group involved in the buying of British farmland. According to Mark Ashbridge, of Savills Private Finance, 40 to 50 per cent of farmland purchases are now made by lifestyle farmers. Knight Frank put the figure at 38%.  Knight Frank says. This mounting interest combined with a shortage of supply, has meant increase of up to 40% in the price of UK farmland in 2007.

FACTFILE 

Land is much less freely available today than 50 years ago. According to Savils Private Finance, the amount of publicly marketed land has fallen form about 600,000 in the 1960's to 125,000 acres a year today. 

Foreign investors account for about 15% of UK farmland purchasers, with most interest coming form denmark and Ireland, where the prices of agricultrutural and is significantly higher than in the UK. 

Given the turmoil and unsettled nature of the financial markets, the 2007 astonishing farmland value increase of 25.3% represents the second highest annual rise on record. 

Comments

"Over the last 20 years residential properties in the UK have increased by 437% while land has shown a 1,348% growth"

Source: Valuation office agency, HM Revenue and Customs / HBOS

"Invest in the foundations of modern society"

"Buy land they don't make it any more"

Mark Twain. 

"While the rest of us are fretting about the credit crunch, land owners are enjoying the huge rise in their land values." 

Brownfield

Brownfield land is the term commonly used to describe previously developed land that is or was occupied by a permanent structure. It can also be derelict land, which can only be redeveloped after the removal of chemical waste risks and derelict buildings. These are preferred sites for redevelopment by government officials and local councils. However, brown field sites are few and far between and many of them are contaminated beyond repair. 

Greenfield

Greenfield is land that has not been previously developed. It includes forestry, agricultural land and buildings, as well as previously developed sites that have now been blended back into the natural landscape . Quite often, when councils and planning departments are looking to release land from the greenbelt for the residential development, they re-designate areas of the greenbelt to greenfield in advance of allowing development to take place. This enables them politically, when they release the land for development, to say that it was taken from greenfield sites and not the beloved greenbelt.