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Placement Document

Secured Serviced Apartments

Debt Bond

Invest in the new way to buy to let with this 6.5% p.a bond!

Register Your Interest

The Opportunity

An opportunity to invest in a new bond issue secured against the freehold title of Number 10 The Abbey, which is home to 20 self-contained serviced apartments Since the 10 months of its opening, Number 10 The Abbey has generated £241,980.62 in gross revenue. The average gross monthly income is around £30,000 therefore meaning it’s on schedule for achieving £300,000+ by the end of the trading year.

Investment into the bond provides an attractive return of 6.5% net per annum, in a low interest rate environment. Investors are able to invest from £5,000 in a bond issue of £2m. The issuer will use the proceeds from the bond to repay the current fixed charge with the remainder going towards the development of further serviced accommodation blocks throughout the UK.

Investors benefit from:

  • Security against the freehold title
  • Net returns in a business able to service 3 times over
  • Independent RICs survey confirming the freehold value as £3.1m
  • Bond 64.5% of freehold value
  • Due diligence undertaken by Prosper Capital LLP
  • Independent Receiving Agent & Bond Registrar
Overview
Instrument Unlisted secured bond
Issued By Wymondham Abbey Project Limited
Coupon 6.5% per annum paid bi-annually
Term 36 months
Asset Land and building comprising 20 serviced apartments
Security First charge over the freehold title of the land
Tranche A Capped at £2M
Minimum Subscription £5,000 for Tranche A

How does it work?

The bond issuer is the freeholder of Number 10 The Abbey which is generating an income via the 20 self-contained serviced apartments within the building. Returns are generated by charging interest on a secured loan against the freehold title of the property. The strategy is therefore one of lending money and being secured by holding the first charge thus meaning there is no other debt.

The returns are paid from the income being generated by the serviced apartments business, Number 10 The Abbey. The business is on schedule for achieving £300,000 gross income with the annual returns to the bond holders being £130,000 giving a debt to burden ratio of 43.33%.

The Bond

The term of the bond is 36 months and it carries a 6.5% per annum coupon with the returns being paid bi-annually. The bond issue is limited to 64.5% of the value of the property (as confirmed by an independent RICS building survey). The bondholders will hold the first charge security over the land and assets of Number 10 The Abbey.

At maturity, it is the bond issuer’s intention to repay the bond issue in a single payment via either the issuance of a new 36 month bond or a commercial term loan. The investment capital is collected by Woodside Corporate Services Ltd and held in trust until the total bond issue of £2m is achieved.

Who can invest

The bond is a non-readily realisable security and therefore only the following categories of investors may apply:

  • Certified high net worth investor in accordance with COBS 4.7.7
  • Certified sophisticated investor in accordance with COBS 4.7.7
  • Self certified sophisticated investor in accordance with COBS 4.7.7
  • Certified restricted investor in accordance with COBS 4.7.10R
  • Professional clients in accordance with COBS 3.5.1R
  • Retail clients of an authorised firm that is complying with the suitability rules

Risks

Your capital is at risk and the coupon is not guaranteed. Should the bond issuer default, you could lose the whole value of your investment. Before making an investment, you should read the full information memorandum document and consult an independent financial advisor. The bond is not readily realisable. Tax treatment depends on the circumstances of the individual investor.

Neither the bond issuer nor Prosper Capital LLP will give financial or tax advice to individuals. The financial services compensation scheme (FSCS) deposit protection does not apply to the Secured Serviced Apartments Debt Bond. A full list of risk factors can be found in the information memorandum.

Next Steps

The information memorandum (placement document) and application are available by contacting us directly. If you would like to speak to us in more detail, please contact Matt Mason on 01603 552046.

Important Information

For direct investors only. Your capital is at risk and returns are not guaranteed. Bonds are not readily realisable, transferable nor can they be held in an ISA. This financial promotion is issued and approved by Prosper Capital LLP, FRN 453007, which is authorised and regulated by the Financial Conduct Authority.

Woodside Corporate Services Ltd shall not be liable to investors in the unlikely event of the insolvency or other failure of any financial institution in which investors’ funds are held, nor on any investors’ inability to access their funds from such financial institution for any reason which is outside of its control. Please refer to Woodside's T&C's.