It is fair to say that any lending opportunity is only as safe as the security offered and the skills and experience of the borrower. Those who follow investment markets will be well aware that UK base rates are near their historic low. As we also live in an era where Private Rental Accommodation is in short supply and high demand, what better investment opportunity than to bring the two together.
As a consequence, there are many opportunities to fund property developments in exchange for potential double-digit percentage returns with a partner with the experience and skills to fulfil market demand.
• Buoyant property market
In order to crystallise a return on initial capital used to fund property developments there needs to be strict control on costs and long-term demand for the accommodation. There are many areas in the UK that fulfil these criteria:-
• Purpose Built Student Accommodation
Through the boom times and the recessions the UK government continues to plough more and more money into the education system. As a consequence, both domestic and international demand for UK university places has led to a significant increase in demand for student accommodation. In what can often become a self-fulfilling prophecy, cities with high numbers of graduates often have prosperous business markets thereby tempting many graduates to remain there after finishing university. This creates more demand for private rental properties, as well as the constant flow of demand for student accommodation.
• Built to Rent Properties
The cost of climbing onto the housing ladder is now out-with the reach of many couples and single people in the UK. The risk averse strategies employed by numerous lenders on the high street has seen many people put their dream home on hold for the moment and look towards private rental accommodation. As a consequence this has led to significant redevelopment of city centre land to accommodate numerous apartments with communal areas. This type of accommodation is perfect for single people, families and business people.
“Prosperity Capital have been in investing in the UK regions for more than five years now, particularly in the Midlands where we have invested more than £80m since 2014. With our new Build to Rent project in Manchester we will invest more than £150m over the next 3 years in an iconic regeneration project for the city centre. The regions are providing compelling investment opportunities which are delivering robust returns for our investors.”
CEO, Prosperity Capital
• Working with Local Authorities
Over the last few years we have also seen a new style of public/private partnerships emerging across the UK. Councils and local authorities are now working hand-in-hand with private companies to redevelop previously underutilised land. In what is a win-win situation, the redevelopment of previously underutilised land creates a valuable asset and attracts more people to city centres. This then creates a knock-on effect to the local economy and so the cycle continues.
• Lending Opportunities
As we touched on above, the key to any lending opportunity is the ability to secure quality assets against outstanding loan liabilities. Companies such as Prosperity Capital have experience in this particular market creating value in new property developments and potential double-digit interest rate returns for Investors/Lenders. The often relatively short term nature of these loans offers an added degree of flexibility for lenders. In general there are three different types of clients eligible to take part in capital raising exercises by Prosperity Capital which are:-
• Professional clients/Elective professional clients
• High net worth individuals
• Sophisticated investors
The Know Your Client exercise that they have in place accesses the knowledge and experience of the investor and their eligibility to invest and determines if any of the loan opportunities are suitable.
Interest is accrued, often on a double-digit interest basis, and paid at the end of the term with the repayment of capital.
Leading Property Developer
Prosperity Capital has offices in Dublin and Manchester with an array of lending opportunities across the North of England. The company has identified Student Accommodation; Build to Rent accommodation and inner-city redevelopments with local authorities/councils as offering potentially attractive returns. If you require further information on any of the Prosperity Capital Investment Opportunities, there are further details on the company website as well as contact information.
Please note that the value of Investments including property and income derived from them can go down as well as up. There is no guarantee of the potential return being met.