This article is being written in response to meetings held last week with directors of the property bond we are currently raising funds for. The Empire Property bond phase 1 sold out at the back end of 2016 and has since launched the second phase aptly named “Empire Property Holdings 2”.
Empire Property Concepts have set up an SPV (Special Purchase Vehicles) for each bond issue and once the funds have been raised the SPV stops accepting investment.
- The first property bond: Empire Property Holdings £6 Million.
- The second property bond: Empire Property Holdings 2: £18 Million.
It is worth noting that the number of properties completed over the last 11 years now total an incredible 1,050. Empire Property Concepts fund the majority of their developments themselves, they also make use of funds from the bank where appropriate.
The advantage of using funds from investors is that they can:
- Grow quicker
- Buy with cash immediately
- Refurbish several developments over the lifecycle of the bond.
With the new 4 year option, it means that the investors funds can be used multiple times throughout the 48 month period to fund, develop and repeat.
Property Bond Example:
Purchase a building for £1 Million and refurbish it for £600,000 – property is now worth £2.5 Million and they can then refinance the deal at say 70%.
Empire Property Concepts have been working away at the UK property market for the best part of 11 years, the owner of the company is Paul Rothwell and he has built the business since 2004.
Paul has been a successful property developer and investor since 2004, and is a member of the National Landlords Association. He acquired his first property at University and has grown his personal and family property portfolio significantly.
Paul has extensive experience of property acquisition, development management, and a thorough knowledge and understanding of planning, housing and regulation departments, which has led to his successful strategy to acquire and develop land and property.
He has prepared proposals for suitable investments, and has developed a growth strategy utilising both private and commercial investment. Paul has worked tirelessly with planning consultants,architects, and Local Authority Officers, to perfect his HMO strategy, ensure full compliance, and achieve significant rental yields.
Paul transferred the intellectual property he has acquired through his personal portfolio, to a tangible ready to market service. Paul is also the sole shareholder and sole director of Empire Property Concepts Limited (the Developer) and through his role at this company he has generated many useful contacts within the property development, management and investment industry together with multiple income streams from consultancy roles and joint venture arrangements.
The owner and the company itself, clearly know what they are doing when it comes to making money from property. Utilising investors funds means they are able to scale their model at a rapid pace and just as important, they are able to pay a very good return to the investor. Added bonus is that there is a security trustee which is your protection should the company default.
Your position in the deal is as strong as if you were a bank giving the company a mortgage on a property. Knowing the capability of the borrower (the company) we can agree that they are a more than suitable candidate for acquiring the finance.
With investors acting as the bank, it works out as cheap finance for the company over a 24 month period. The company is able to redevelop several developments over the 2 year period and therefore maintain their 100% track record of delivering what they say they will.
Equally for the investor, the returns are very good. This is why it works. The company wins by getting cheap finance and therefore they are able to achieve their commercial objectives, secondly the investor wins by achieving a safe return on his investment capital knowing that he has invested in a secure property bond.