Empire Property Holdings Loan Note - Phase 3

Investment Summary

 LOAN NOTES?

 

Phase 3 Launch for Empire Property Holdings Loan Note - crowdfunding real estate

Empire Property Holding was incorporated on 14 August 2015 as a special purpose vehicle (SPV) set up to attract new inward investment.. The Company will acquire commercial properties for development into residential accommodation by the Developer (the “Developments”), Empire Property Concepts.

The Developer is a separate limited company that will project manage the Developments. The Developer will also manage the lettings of the Properties and will liaise with its private and council letting contracts to secure lettings in order to provide funds out of which the capital and interest returns to Subscribers will be met. The opportunity is available only to certain specified persons and involves a subscription for the Loan Notes. The subscription funds received by the Company will be used solely to purchase and develop the Property.

 

After the successful 6m GBP raise for Phase 1, Empire Property Holdings Ltd are now launching phase 2 and are again 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.

 

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.

 

 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.

 

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.

 

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.

There is also a 4 year compund only offering a net yield of 60% over the period.

 

 SECURITY OF INVESTMENT

 

There 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.

 KEY FEATURES

 

  • Interest starts the day after your funds are received by the Company.

  • Site visits and face to face meetings can be arranged

  • Loan Note holders will have first legal charge on the Properties

  • Due diligence pack available on request

  • Security Trustees to control investor funds

  • 6 million GBP raised on phase 1

  • Minimum investment £20,000

  • A secure, fixed return investment in the UK property market

  • Low Entry Level - £20,000 minimum investment

  • The option for income or growth and a short, 2 or 4 Year term.

  • 2 Year income option –10% per annum year 1 and 2 paid every 6 months.

  • 2 Year capital growth option – The interest is compounded and a yield of 24% is generated over the 2 Year term

  • 4 Year Growth option - 60% Interest paid at the end of the 4 Year term

  • Investors funds are secured by way of first legal charge (handled by independent security trustees)

  • The developer has a proven track record of developing hundreds of properties with a value in excess of over £33m in the past 7 years.

  • There is a clear exit strategy where you will receive the return of capital at the end of the 2 or 4 Year investment term.

  • SIPP and SSAS Compliant

Actual example -Development 1 - Commerce House, Wakefield

The plan would be to convert the building to 45 self-contained apartments using the permitted development right which allows conversion of B1 offices to C3 residential accommodation.

  • £370,000 - Purchase price

  • £1,280,000 - Development costs: (40 x £32k)

  • £1,650,000 - Total cost

  • £260,000 - Income (40 x £125 x 52)

  • £3,250,000 - Valuation based on 8% yield

  • £2,275,000 - Refinance exit (70% LTV)

 

Next Step?

 

For detailed information on this investment please contact us by filling out the form below or calling us +44 (0)203 432 5474 We can send you:

For detailed information on this investment please contact us by filling out the form below or calling us +44 (0)203 432 5474 We can send you:

  • Brochure once you complete a simple factsheet

  • Please note this is only for HNW or Sophisticated investors

  • Please ask us any questions that you may have!

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