The UK could benefit from Danish investors looking to sidestep their country’s prohibitive levels of income tax.
GVA Grimley has been instructed to place £150m in a series of small retail and leisure investments over the next two years by Griffin, a fledgling Danish syndicate.
Higher-bracket income tax in Denmark can be as high as 59%. But a loophole in the tax system means that individuals can offset investments in certain sectors, including retail, leisure and some industrial property, against their income tax.
GVA partner Neil Dovey said: “Danish syndicates like investing in the UK because leases are long, and they can sell after 12 years and still have time unexpired on the lease.”
Syndicates such as Griffin will typically invest £2m-£8m in a property, then sell off the equity element of the purchase to up to 10 Danish investors.
Dovey added that GVA was seeking investments for eight other syndicates, all looking to invest around £20m pa.
“The investments appeal to amateur investors because the cost savings are huge.”
