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Empire Property Holdings – Full Property Bond Review

Empire Property Holdings

11 years in the business of developing properties with a view to retain, Empire Property Holdings have amassed somewhere in the region of 650 properties over the last decade. The company has always focussed on developing a properties with a view to retaining them for the longer term.

This makes for an interesting strategy and is sign of an incredible achievement in such a short period of time. The Empire property bond is a short term investment which is just two years in duration, the bond is accessible to investors with entry starting at just £10,000.

In total £6 Million is being raised from investors which will go towards 3 developments. Investors are guaranteed an interest payment of 10% in year one and 12% in year two.

There are two options available to an investor:

Empire Property Bond – Income Option

Investors benefit from a fixed annual return of 10% in the 1st year and 12% in the 2nd year with interest paid every 6 months. At the end of the investment term (2 years), the capital invested is returned in full.

Empire Property Bond – Growth Option

Investors benefit from a fixed annual return of 10% year 1 and 12% year 2, however, the growth bond allows the investor to leave the funds in place until the end of the 2 years when the bond finishes and the investment is returned with a 4% bonus on the original amount invested.

Empire Property Holdings are an established developer of Residential and Commercial properties throughout the United Kingdom. The company has established the property investment bond to provide easy access to property investing for investors seeking diversification.

Empire Property Bond

At a time when banks are being restrictive with their lending, the property investment landscape here in the UK has changed dramatically. It actually works out a lot cheaper for a company like Empire Property Holdings to offer the bond with the fixed returns than it would to go and get finance from the bank.

Typically, Empire Property Holdings is able to redevelop a development and get it refinanced within 12 months. Meaning the two year bond gives ample time for the company to develop several times prior to the maturity date.

  • Double-digit fixed annual returns
  • Asset backed security
  • Income and growth options
  • Fixed yields
  • Hands-off property investment
  • Low entry level
  • No hidden charges or fees

Property Investment Bond

Since the investor is replacing the bank on the financing of the deal, the investor has his/her capital protected via a First and Only Legal Charge on the properties. This is very similar to when you get finance from the bank, if you don’t pay the mortgage, the bank is going to come in and reposes the asset.

Therefore if the company goes bust, the assets are protected which in turn means your investment is secured.

Since the company was established as a special purchase vehicle, setup to acquire commercial property and then turn them into residential accommodation utilising the sister company, Empire Property Concepts. Empire is a special developer with an undisputed proven track record in both developing and letting properties to the market.

Empire Property Doncaster is in the business of sourcing suitable commercial properties in prominent towns and cities and then utilising the funds to redevelop the asset into high standard residential accommodation.

In general the company is able to purchase commercial properties and have them redeveloped into self-contained single or multi-occupancy properties that have been and are providing significant yields.

Example Investment £50,000 – Income Option:

2 year investment total return: 22%

6 month anniversary £2,500

12 month anniversary £2,500

18 month anniversary £3,000

24 month anniversary £3,000

Total returns £11,000 plus investment capital back.

Example Investment £50,000 – Growth Option:

2 year anniversary total capital is paid: 27.2%

£50,000 x 10%=£5,000

£55,000 x 12%=£6,600

£50,000 x 4%=£2,000

Total returns £13,600 plus investment capital back.

Key players in the property bond:

NCM Fund Services Ltd: The Security Trustee will act as agent and security trustee on behalf of the Note holders in connection with the Debenture.

DLP Planning: DLP provides Empire with planning consultancy on all projects undertaken. DLP provide the initial appraisal of all subject development sites, upon which a purchase decision and entry price is determined.

The property is either then developed using permitted development rights or full planning. DLP also deal with the discharge of conditions on approval and liaise directly with the local authorities.

Jackson Barrett & Gass: Jackson Barrett & Gass is an award winning law firm who specialise in property. They will deal with all conveyancing matters & ensure sound legal title for stakeholder security.

Brownill Vickers: Brownill Vickers are a large Sheffield firm of surveyors who have a good understanding of the local market and provide surveying and valuation services to Empire projects.

JMW: JMW is one of the North West’s leading full service law firms.They are responsible for the Loan Note & Information Memorandum (IM).

If you are looking for more information about the deal or perhaps a general review of everything, further information can be found by visiting the property investment bond page.

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