Frequently asked questions
i. Does the fund have a minimum holding period?
Answer: Yes. The minimum holding period is 5 years as the fund’s strategy involves a medium term exposure to the growth in the Indian economy. Also, the fund would like to avoid any forced sales of property which could have a negative impact on final returns.
ii. What is the minimum investment level?
Answer: The minimum investment level is £50,000.
iii. When is the fund going to be launched?
Answer: The launch date of the fund is intended to be January 2009.
iv. How will my investment be affected by movement in the exchange rate between sterling and the Indian rupee?
Answer: Your investment will be converted into Indian Rupees immediately on launch and will thereafter be exposed to the exchange rate between the GB Pound and Indian Rupee until the property assets are sold or transferred and cash returned back.
v. I want to directly purchase commercial property in India but need some advice on how to invest – can you offer a service to help?
Answer: Yes. JPI offers a bespoke service to help investors locate a property according to their budget and investment objectives. JPI also offers a full end to end service to acquire the property and carry out all legal work and structure the investment vehicle.
vi. Why is the fund held in Mauritius?
Answer: The majority of investment into India goes via Mauritius with large multinational companies using this offshore location. Mauritius has a favourable double taxation treaty with India and helps to minimise the funds costs.
vii. Will the fund use leverage to acquire assets?
Answer: The fund is currently not intending to use financing from banks as the high borrowing rates would actually reduce the return on equity of the funds
viii. How will the NAV of the fund be calculated?
Answer: The fund will calculate a Net Asset Value (NAV) based on an annual valuation of its property assets by an independent surveyor.
ix. Will the fund pay any dividends?
Answer: The fund is not intending to pay dividends as it will use rental income to either purchase further property assets or invest in Real Estate Investment Trusts. If there are any interim capital gains from disposal of assets before the fund is closed a dividend may be paid.
