In an era of economic unpredictability, savvy investors are no longer just looking for “growth”—they are looking for resilience.
By focusing on high-yielding, inflation-protected assets, we are getting close to what we call the 8% Yield Club. Two of our standout performers, properties on Holderness Road and Whippendell Road, recently demonstrated exactly why this model works, receiving significant yield boosts that have outpaced traditional market benchmarks and are pushing towards yields of 8% At this yield you are looking at doubling your money within a decade.
But what is the “secret sauce” behind these returns? It comes down to one of the most powerful tools in commercial real estate: Upwards-only rent reviews.
“Upwards-only”: Your Wealth’s Safety Net
Most investors fear inflation because it erodes the “real” value of their income. If the rent you receive stays flat while the price of goods rises, you’re losing money.
Our leases are structured with upwards-only rent reviews linked to inflation indices (like CPI or RPI). This creates a “ratchet effect” for your investment growth:
- Inflation hedge: When inflation rises, your rental income is adjusted upward to match. This ensures your purchasing power remains intact regardless of the performance of the wider economy.
- Floor mechanism: The “upwards-only” clause is your safety net. If inflation dips or market rents stagnate, your rent does not go down. It remains at its previous level, giving you a greater margin
- Compound growth: Because the base rent only ever moves in one direction, each increase compounds on top of the last. Over a 5- to 10-year period, this creates a massive divergence between your yield and that of a standard fixed-rate investment.
Real-World Success: Holderness Road and Whippendell Road
Theory is great, but results are better. At the time of writing our property at Holderness Road is yielding 7.7%. This block of apartments in Hull, which is leased to Halo Housing, provides its residents a fantastic home with all the care and support that they need. With a rent review due in September we may see the first if our properties join the 8% Yield Club at current prices.
It’s a similar story at Whippendell Road which is leased to a local Watford charity who provides homes to homeless men in the area. This lovely period property has recently seen a “yield boost” of 0.5% thanks to our inflation-linked structuring and now offers a yield of 7.7% on the Exchange. This is a direct increase in the annual return for our investors up towards 8%.
These properties aren’t just buildings; they are income engines. By securing long-term leases with high-quality tenants with rent payments backed by the UK government, we ensure that the “8% Yield Club” is becoming a reality.
In a world where ‘real’ returns are hard to find, upwards-only reviews provide the certainty institutional investors have used for decades. We’re bringing that same power to you.
Are you ready for yields of 8%?
Don’t let inflation eat your portfolio. Join a community of investors who are building wealth that grows with the economy.