13

Net Yield

2

Term

20000

Invest from

UK COMMERCIAL PROPERTY LOAN NOTE INVESTMENT

UK Commercial Property Loan Note. The developer has been established to raise funding from a range of sources to include loan note instruments, listed bonds, ISAs and public listings. Funds raised are utilised to finance a full range of real estate transactions.

The focus is to target returns for their investors that are uncorrelated to market cycles and from any systematic factors. They work with a variety of parties in the real estate sector including other property developers, joint venture partners, PRS funds, family offices, institutions and high net worth and sophisticated investors.

The developer focuses on all aspects of real estate funding to include property development and conversion, portfolio restructuring, debt refinancing, bridging finance, long term investments and indeed, sometimes taking an equity position in development projects.

The developer is expert at mitigating risk by identifying the end user prior to project commitment. Utilising strong contacts, agreements can be made prior to land purchase with, for example, housing associations, pension and PRS funds as well as retailers such as McDonald’s, Lidl, Aldi, Subway, Costa and Starbucks. It would be rare for them to be involved with speculative projects, hence the end user is usually identified before funds are committed.

Investment Returns:

2 Year Bi-Annual Income Product

  • 10% fixed rate loan notes with simple interest payable in arrears bi-annually (paid every 6 months).

2 Year Deferred Income Product

  • 12% fixed rate loan notes with simple interest to accrue annually and payable on the final redemption date with the return of capital.

4 Year Deferred Note

  • 13% fixed rate loan notes with simple interest to accrue annually and payable on the final redemption date with the return of capital.

INVESTMENT SUMMARY

  • Short term investment opportunity
  • Loan note terms of two to four years with income and deferred interest options
  • Minimum investment of £5,000
  • Interest earned will be 10% to 13% per annum gross dependent on type of loan note chosen
  • Secured with a first legal charge over properties purchased and a fixed and floating charge
  • Security Trustee appointed to represent the interests of the loan note holders
  • A number of pension companies have approved these investment products

SECURITY OFFERED

Notes are secured by a debenture over the developer in favour of the Security Trustee, In addition, the Security Trustee will hold a first legal charge on behalf of loan note holders over the land and properties purchased.

DEVELOPER PROFILE

The developer behind the Loan Note has been established to raise funding from a range of sources to include loan note instruments, listed bonds, ISAs and public listings. Funds raised are utilised to finance a full range of real estate transactions and if a project passes their stringent investment criteria. The focus is to target returns for their investors that are uncorrelated to market cycles and from any systematic factors.

The developer works with a variety of parties in the real estate sector including other property developers, joint venture partners, PRS funds, family offices, institutions, high net worth and sophisticated investors. The developer focuses on all aspects of real estate funding to include property development and conversion, portfolio restructuring, debt refinancing, bridging finance, long term investments and indeed, sometimes taking an equity position in development projects.

The developer is expert at mitigating risk by identifying the end user prior to project commitment. Utilising strong contacts, agreements can be made prior to land purchase with, for example, housing associations, pension and PRS funds as well as retailers such as McDonald’s, Lidl, Aldi, Subway, Costa and Starbucks. It would be rare for them to be involved with speculative projects, hence the end user is usually identified before funds are committed.

The developers have never failed to secure planning permission for a site. This is because no investment is undertaken until comprehensive due diligence and close consultation with planning departments has taken place.

Combined with this realism, is the drive to invest in developments that are relevant, innovative and lucrative. It’s a balancing act between risk and return, between lower and higher yielding investments, with a resulting portfolio that optimises the value and timing of returns and cash flow. The overriding desire is to provide the customer with a seamlessly reliable and profitable experience through the application of integrity, accountability, diligence, perseverance and rigour.

PROJECTS AND INVESTMENTS

The Developers’ projects portfolio is spread across residential and commercial property sectors, multiple geographies in the UK, private and public sector customers, so diversifying risk for the business, its investors and stakeholders. The project types that the Developer will consider for investment are develop out, planning gain, refurbishment and strategic land purchases. These are outlined in Project Types below.

The business has investment criteria including a target return for each project type against which each opportunity is assessed when determining which ones to pursue and invest resources in.

All opportunities will be evaluated for their investment or resale potential. The decision to hold for investment or resale at any point in time will be influenced by a number of factors. These include the financing structure, judgement on timing of disposal to maximise return, the opportunity cost of holding and economic factors such as the general economic environment, interest rates and investment demand.

The Developer, along with its partners, has the experience, knowledge and expertise to deliver the full property development lifecycle for customers from site identification through to development and asset management. The developer has an excellent track record in gaining planning permissions for its sites. This is the result of the high level of due diligence undertaken on every opportunity and the relationships built with the planning departments before deciding to invest and are proud to work with well known brands including:

  • Burger King
  • Greggs
  • Lidl
  • McDonald’s
  • KFC
  • Starbucks
  • Subway

PROJECT TYPES

  1. Develop Out Land acquisition and construction of residential or commercial units
  2. Planning Gain Land acquisition to secure planning and sell on for development by a third party
  3. Strategic Purchase Acquired for strategic purposes including option deals

SECTORS

The developers pride themselves in the relationships they build working in a variety of sectors.

In the residential sector, they have a particular focus on opportunities in:

  • Private Rental Sector (PRS)
  • Housing Associations
  • City Living
  • Rural

In the commercial property sector, there is a focus on opportunities in:

  • Food Stores
  • Fast Food retail
  • Roadside
  • Neighbourhood Centres
  • Trade Centres
  • Distribution
  • Warehousing

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  • Full Investment Pack
  • Current Availability Report
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You can simply call and speak with your expert Portfolio Manager on +44 (0) 207 097 5107. If you prefer to email or would like us to call you back please fill out the enquiry form.

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