20% - 24% returns through Midlands based experienced developer
BACKGROUND
Vine has been actively working with a Midlands based property developer who specialise in residential, commercial, and mixed-use freehold properties. They focus on sites that require planning permission which are then either developed, with the option to sell or hold for income.
This firm’s diverse portfolio includes retail projects with leading brands such as Burger King, McDonald’s, Lidl, Starbucks, Greggs, Euro Garages, and large Build to Rent (BTR) developments that have revitalised communities and provided well-managed homes for local residents.
OPPORTUNITY
The group is made up of a fundraising and investment arm. They invite inward investment and offer two double-digit investment models, both over a 2-year term.
2-Year Biannual Income Product
• 10% fixed rate interest which is paid biannually in increments of 5%
• Total return on capital of 20% over 2 years
2-Year Deferred Product
• 12% fixed rate interest to accrue annually and is payable on the final redemption date
• Total return on capital of 24% after 2 years
Security comes in the form of a first and floating legal charge over properties which are secured in the company’s portfolio. Independent security trustees are appointed to represent the interests of the investors.
INVESTMENT METHOD
Investor’s funds would be strategically deployed over the two-year investment term and utilised to secure planning gain for specifically identified developments. These sites would either be sold on with planning, or developed, and held within the portfolio for income.
This simple process helps generate significant revenue for the business and underpins the investors returns.
OUTCOME
There has been a recent valuation upon the entire development with interest in purchasing the completed project as a staycation business for the future rental yield by a family-office. The valuation is beyond initial expectations based on the property values alone, further enhanced with the staycation opportunity which further underpins the investment.
