Special Purpose Vehicles (SPVs)
A company created for a very specific purpose - usually to isolate and manage risk linked to a particular asset or project.
SPVs are commonly used in property investment, especially for buy-to-let portfolios, where investors want to keep assets organised and financially separate from other business activities.
How it works:
An SPV is typically set up as a limited company, but it is “ring-fenced” to focus on one area, such as property ownership or development. This structure helps keep risks contained. If one investment performs poorly, it does not directly impact other business interests owned by the investor.
Typical SIC Codes used for property SPVs:
- 68100 – Buying and selling of own real estate
- 68209 – Other letting and operating of own or leased real estate
- 68310 – Real estate agencies
- 68320 – Management of real estate on a fee or contract basis
💡 Best suited for: Property investors and developers who want a structured, efficient way to manage real estate assets while limiting risk exposure to specific investments.