GUERNSEY-based Argyll Investment Services has launched one of the first funds to invest in the Serbian property market. The appropriately named Belgrade Pioneer Fund was launched on 31 October and has an opening investment period lasting until tomorrow.
The fund, with a duration of five years, has a minimum investment level of 15,000 euros and is expected to raise up to 10m. euros.
‘Mentioning Serbia usually conjures up memories of civil war, hyperinflation and the regime of Slobodan Milosevic. Despite the continued uncertainty over Kosovo’s future, the reality of Serbia today is markedly different from that description,’ said Argyll director Stuart Place.
‘There is increasing political stability, including in external affairs, which is providing the foundation for strong economic growth.’
Argyll was again one of the first on the scene when it launched the Montenegro Investments Ltd property fund in 2005.
‘Interestingly, back in 2005 part of the case for Montenegro was that it was not Serbia. Now given the political and economic situation - with foreign direct investment at its highest ever levels, labour costs half those of some of its neighbours, corporation tax at an attractive 10% and the promise of further privatisation - there is a strong case in favour of Serbia.’
The Belgrade fund is targeting returns of more than 20% per annum net. It will have a spread of investments, although the main focus will be on residential developments in Old Belgrade.
Guernsey-based service providers to the fund include administrator Bordeaux Services, banker Kleinwort Benson, auditor KPMG and legal adviser Carey Olsen.
Peter Niven, chief executive of promotional agency GuernseyFinance, said the launch of the fund demonstrated the high quality of investment management expertise that existed in the island.
‘This is an understated but vital element of the funds industry that certainly deserves recognition for its commitment to excellence.
‘In addition, the Belgrade Pioneer Fund illustrates how the breadth and depth of services available in Guernsey mean that the island can provide a one-stop shop for investment funds.’
It is anticipated that a larger, listed, Serbian property fund will be launched in the second quarter of 2008.
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