For HNWs or sophisticated investors
The Developer is offering loan notes to investors that are seeking a secured fixed return on their capital, with tangible security, via a first and only legal charge which is registered at the Land Registry. The legal charges are held by independent security trustees on behalf of the loan note holders.
- Please see the attached PDF brochure
The loan note holder is effectively ‘the Bank’ & is very similar in nature to residential development funding or bridging finance offered by UK financial institutions. It offers financial lending in return for a pre-agreed interest rate & security via a legal charge. The cost of every project and every future project can be standardised to provide a business plan for each property. The details of each potential project will be inputted into a feasibility spreadsheet and the viability can be quickly assessed. The main factors affecting the project are the purchase price of the property and the cost of renovation. These factors are controlled as explained below. Each room is given an average cost to complete, which takes into account all aspects of the renovation, project management, administration, licensing, and liaison with councils. The only other factor is the purchase price of the room and therefore in each case, they can identify the purchase price of each room that should not be exceeded.
- EXIT ROUTES
Loans for Property backed developments are generally being developed in order to retain as an investment. The preferred exit route will be via finance with one of a number of lenders used currently namely CCB, Lloyds, Shawbrook & Aldermore.The developers have already strategically sold existing Empire HMO portfolio properties to existing landlords and they have also assisted existing Empire clients to do likewise. Furthermore, due to the high yield they can achieve, they are being asked to purchase and develop properties with the intention that investor clients then purchase then from the developer.
- SALE TO THE OPEN MARKET
The developers have experienced an increased demand to not only produce larger developments, such as pubs and of offices but also market them via traditional estate agents. Foreign investors are particularly interested due to the UK’s rental demand & reliable legal system.The Empire Property Holdings Loan Note is structured by JMW Solicitors LLP, a leading North West law firm.
Income product (the “Income Product”) which is a 2 year fixed rate secured loan note which will accrue 10% simple interest in the first year and 12% simple interest in the second year. Interest is payable every 6 months in arrears and the subscription price is repaid at the end of the term.
Growth product (the “Growth Product”) which is also a 2 year fixed rate secured loan note which will accrue 10% simple interest in the first year and 12% compound interest in the second year. Interest is compounded annually and payable at the end of the term with a 4% bonus (equating to 4% of the subscription price) together with the subscription price. Security is a first and only legal charge on prime developments sites, with full planning permission or permitted development rights registered at the Land Registry and held by the trustees on behalf of loan note holders. Development work will be undertaken by a pioneering developer with a proven track record & lettings model. Empire Property Holdings & Empire Property Concepts welcome any professional due diligence or risk assessment. The developments will be retained within the group portfolio have exit financed lined up with mainstream lenders. In accordance with Inland Revenue regulations interest is paid net of withholding tax at 20%.
- LOAN NOTE HOLDERS SECURITY
On behalf of loan note holders leading independent security trustees, NCM Fund Services Limited will have, on behalf of loan note holders, the first and only legal charge on the development sites.
- Interest starts he day after your funds are received by the Company.
- Interest only 10% year and 12% year 2
- Interest payable every 6 months
- Growth option of 10% year 1 and 12% year 2 with a bonus of 4%
- Site visits and face to face meetings can be arranged
- Loan Note holders will have first legal charge on the Properties
- 2 year investment term
- Due diligence pack available on request
- Security Trustees to control investor funds