Investment Highlights:

  • Pays interest of 9% per annum
  • Interest payments are made quarterly (2.25%)
  • Asset Backed
  • Listed Bond – Euronext Dublin
  • Investment from £10,000
  • Bond Matures May 2023
  • IFISA wrapper available for UK based clients.

How Funds are deployed:

The bond issuer are a UK based commercial lender. We specialise in short term bridging, development and mezzanine finance. The company was started in 2012 and has a current existing loan book of just over £12 million.

The Bond enables investors to ultimately become a lender without the day to day headache of running a financial business. The bond issuer finance projects (short term) from a carefully selected set of property developers. By investing through the bond, you could earn significant interest without having to deal with the day to day headaches involved in financing. The series is listed on the Irish Stock Exchange and each bond has a maturity date of 31st May 2023 and is due to a yield of 9% per annum. There is a minimum investment of £10,000 with interest being calculated and paid quarterly.

All loans hold a first, second or equitable charge over a security asset. While we can lend up to 80% Loan to value across our entire loan book we have an average loan to value of around 46%.

Investment example:
Investment Amount: £100,000
Quarterly Return : £ 2,225
Annual Return: £9000

Total Investment Return 4yrs: £36,000

Investment of £100,000 returned in full 31st May 2023 on bond maturity date.

Key Market Highlights

  • 45% average loan to value for UK Bridging – less exposure to risk with higher security values than traditional lending.
  • 83% of Bridging loans hold 1st Charge
  • In the year to June 2017, UK gross bridging lending amounted to £4.3bn.
  • Strong historical growth at a compounded annual growth rate (CAGR) of 26.1% since 2013.
  • Mintel expects the strongest growth to be seen in the commercial and development markets. £2.3 billion 2018 – £3.7 billion 2022.
  • Bridging lenders generally believe that the UK market provides sufficient growth opportunities for their business. The primary route to expansion is geographically in the UK rather than going international.

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Commercial Growth

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All of the independent market forecasts I have found online are in agreement that the most growth in the UK Bridging market will be seen in this specialist lending market of development and construction.  Great time for clients to invest in a growing market.

 

Latest News

Bridging Lending Breaks new records in 2019.

https://www.theastl.org/index.php/news/13-news/236-bridging-lending-breaks-new-records-in-q2-2019

Certainty is Key in current Market.

https://www.theastl.org/index.php/news/13-news/235-certainty-is-key-in-the-current-market

Borrowers Prioritise Speed over rates.

https://www.financialreporter.co.uk/specialist-lending/bridging-borrowers-prioritise-speed-over-rates.html

Is Short term lending market robust enough to deal with Brexit?

https://www.mortgageintroducer.com/short-term-lending-market-robust-enough-deal-fallout-brexit/

Does Brexit affect the Bridging loan Market?

https://londonlovesbusiness.com/does-brexit-affect-the-bridging-loans-market/