Concept
Loan Notes linked to the UK property development sector offer alternative fixed income investment opportunities that will return an attractive regular fixed return (typically every 6 months) or a deferred higher return after a defined term e.g. 2 years. The rates of return comfortably exceed bank fixed deposit returns.
These Loan Notes are similar to corporate bonds, whereby investment capital together with a final interest payment is returned at the end of the defined term.
Summary
Given below is a summary background from one of the leading Loan Note providers in the UK Property Development sector called Godwin Developments.
Godwin Developments is one of the UK's fastest growing property companies.
Formed in 2003 with offices in London, Birmingham and Nottingham
Godwin specialise in the development of road side retail, discount supermarkets and PRS/BTR - Private Rented Sector/Build-to-Rent
Roadside retail parks that include McDonalds, KFC, Subway, Starbucks, Costa, Burger King and Greggs
Leased to the parent companies on 20 - 25 year leases - not franchisees
Godwin are a key strategic partner of Lidl and Aldi; the 2 fastest growing supermarket chains in the UK - see link and scroll down at https://www.visualcapitalist.com/ranked-the-most-valuable-brands-in-the-world
PRS/BTR - Private Rented Sector/Build-to-Rent is the fastest growing institutional investment sector in UK property - see link https://www.savills.co.uk/insight-and-opinion/tagged-articles/Private-rented-sector
A strictly controlled funding structure with fully audited checks and balances using a FCA regulated Security trustee called Bluewater Capital.
No impact from market disruption caused by inflation, war, etc.
Loan Notes for this company's property development projects are offered by its sister company, Godwin Capital, to investors who qualify as either High Net Worth (HNW) or Sophisticated according to Godwin Capital's definition.
Investment Opportunity
The latest Loan Note offering from Godwin Capital is
Godwin Capital No 8 (Series 4) with the following key features:
Security is offered by way of a first legal charge on the assets - equal to a bank's security
No bank debt involved, therefore the investor is the principal lender
Unconditional coupons of 10% PA paid semi-annually
Deferred income option of 12% PA if income rolled up
Available in EUR, GBP and USD
Minimum investment: €25k/£25k /US$25k
Fully FCA Authorised Bluewater Capital act as security trustee for clients
The Godwin Group has an 18 year track record and has never defaulted on any payment of interest or capital repayment. There is undoubted risk applicable to all fixed income investments of this nature but in Godwin's case the risk is mitigated to a large degree by the Loan Note structure, diversified development strategy, a fully regulated security trustee, and Godwin Capital's excellent track record.
Loan Note Offer Details Available On Request