OPPORTUNITIES
Bridging the Cap
The Fund offers investors exposure to the real estate market focusing on the UK, without the price risk of changing valuations.
A specialized real asset backed bridge financing managed by proven property experts. Liquidity will be provided quarterly, diversification through experience and growth from proven ability.
What is Real Estate Bridge Financing?
Bridge loans are applied to residential or commercial purchases allowing for swift execution on property deals or to take advantage of short-term opportunities in order to secure long-term financing.
Bridge loan are typically paid back when the property is sold, refinanced with a traditional lender, improved or completed, or a specific change that allows for a subsequent round of mortgage financing to occur.
Main Features:
- Typically have a higher interest rate
- Lenders may require cross-collateralization and a lower LTV ratio
- Normally short term, 3 to 12 months
- More Profitable
Benefit for the Investor
The Fund will exploit short to medium-term bridging and mezzanine funding opportunities secured against UK real estate.
The Fund’s expert advisory team of real estate investors will offer investors key benefits:
- Anticipated return in the region of 10%
- Low correlation to stock markets
- Predictable returns with low volatility
- Access to asset class previously reserved for institutional investors
- Quarterly liquidity
- Experienced risk management process enhanced by asset backed security and diversification
Fund Key Features
The Fund is designed to generate returns irrespective of market condition through opportunistic financing and expert asset management of residential and commercial real estate.
- The Fund offers investors a rare opportunity to invest in growth market coupled with underlying security held on real estate assets at sub 100% loan to value
- Targeted return of 10% per annum
- Typical investments period: A minimum of 3 months up to a maximum of 24 month terms to maturity diversification
The Opportunity
The fund can exploit a long term opportunity by lending to real estate market participants, currently restricted by lending conditions on finance.
This opportunity provides the fund investors with an excellent opportunity to finance prime and secure value add real estate opportunities such as situations that require refurbishment or partial or 100% change of planning use.
- Finance off market distressed acquisitions that main lenders will provide long term senior finance, however the purchase requires a swift closure to secure the asset at sub market values.
- Established real estate companies seeking short-term finance to reposition or leverage existing assets.
Return Profile
- Fund returns are asset backed with properties in key locations
- Chosen properties have low depreciation risk, solid collateral for investors
- Loans accrued on individual properties, rather than aggregated across whole portfolio to reduce risk. Managers will not cross collateralise debt
- Portfolio with stable, predictable returns and low volatility anticipated
- Investors know what, where and to whom they lend