Usually property investments aimed at our community offer either equity in an SPV in the hope of capital gains or a coupon on a loan note to provide income during or at the end of the development project.
Through our Chairman’s contacts we are able to bring a new investment that combines the two wealth streams in a single opportunity. This experienced and successful developer has a knack for spotting where value can be added to a property, for example in commercial to residential conversion.
During the anticipated three year term this fund will combine a 3.5% annual coupon paid quarterly with anticipated capital gains of around 12% per annum to give a total return over the period of around 46%.
The fund will focus on projects for which planning is already in place and where there is potential to add value by extension or by subdivision into smaller units. Over 20% of the equity in existing projects comes from the board so there is plenty of personal skin in the game.
If a balance between regular income and significant capital gains in a three year period meets your criteria this could be worth a close look.