18 Month Loan Note paying 18% Interest

Investment Case

A recent government research paper on UK housing stock numbers show an expected 210,000 new households to be added to the demand on available housing every year for the next 22 years. In order to keep up with demand, 250,000 new homes each year are required to be added to current stock, with current new homes added being around 30% short of that figure.

The House of Lords Select Committee assert that, in fact, 300,000 new homes are required each year in order to keep up with future demand and also to clear up the current backlog. It is widely believed that even 250,000 new homes per year is an unachievable number.

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"The Private Rental Sector (PRS) in the UK has grown substantially in recent years and accounts for approximately 16.5% of all UK households. In ever increasing numbers both large institutional and individual investors are buying up properties for the purposes of ‘buy to let’ – benefiting from both value rises in their acquired assets (UK house price rises) and from rising rents. It is clear that PRS is here to stay and will grow significantly over the next few years."

Jeannette Veldkamp (IR, ARB, RIBA) Associate Director, Chapman Taylor.

"The proportion of households living in the Private Rented Sector (PRS) has doubled in the last 10 years or so, and it is expected to continue to grow – by the end of 2021 nearly one in four households will be living in the PRS.”

Knight Frank, UK private rented sector study.

 

Key Investment Highlights

• 18 Month loan notes offering.

            > Double digit returns 18% paid at end of term or
            > Nominal returns 5% paid every 6 months until end of term

• Security - 100% asset backed against the group's portfolio which stands at £34m GBP via Security Trustee.
• Low Entry Level.
• Short Term Exit with provable delivery of returns, similar notes issued over the last 12 months.

  

Company Profile

• £26 Million profit for the group in 2016 
• Current GDV of Groups Projects – £320 Million 
• Partnerships with some of the UK’s largest blue chip Asset Management Companies 
• Award winning developer 
• Proven track record in PRS, residential, hotel and student markets