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Secured Residential Development Bond – Support the UK housing industry with this 7% p.a. bond.

An opportunity to ‘co-invest’ alongside Oxford Capital managed investments in a new Bond issue. The Residential Development Bond is issued as part of Oxford Capital’s Estate Planning Service (“OCEPS”). OCEPS has been established to provide asset-backed, income generating investments to its investors.

Investment into the Bond provides an attractive risk adjusted return of 7% per annum, in a low interest rate environment, whilst also assisting in alleviating the shortage in UK housing supply through extra supply of capital. OCEPS provides finance to highly experienced UK housebuilders, who develop and provide quality housing units to homeowners. The issuer will use the proceeds from the Bond for its normal business activities of property development.

Investors therefore benefit from:

  • Security against real assets.
  • Real returns in a low interest rate environment
  • Due diligence already undertaken by Oxford Capital
  • Investment management experience of Oxford Capital

  • HOW DOES IT WORK?
  • The bond issuer makes loans to UK house builders. Returns are generated by charging interest and fees on these loans, not by investing in, or taking ownership of property. The business strategy is therefore one of lending money.
  • Loans are made subject to taking security over all of the assets of the development project, from the underlying land to all of the construction work and materials on the site.

  • THE BOND
  • The term of the Bond is 12 months and it carries a 7% per annum coupon. The Bond has been structured as a co-investment alongside Oxford Capital managed investments. The Bond issue is limited to 50% of the value of the underlying loan commitments held by the issuer, at the time the bonds are subscribed for by investors. As a co-investment, bondholders will hold security ‘pari passu’ to Oxford Capital managed funds, which hold security over the land and assets of the underlying development company. At maturity, it is the Bond issuer’s intention to repay the Bond coupon plus its par value to investors in a single payment.

  • APPLY ONLINE
  • Once you have downloaded and read the Placement Document in full, you can either apply using the regular application form, or you can also apply online through the Co-Investor platform.

  • RISKS
  • Your capital is at risk and the coupon is not guaranteed. Should the issuer default, you could lose the whole value of your investment. Before making an investment, you should read the full Bond Offer Document. The Bond is not readily realisable. Tax treatment depends on the circumstances of the individual investor.
  • The Financial Services Compensation Scheme (FSCS) deposit protection does not apply to the Residential Development Bond.

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High Net Worth Investor Statement

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-readily realisable securities. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

  • I had, throughout the financial year immediately preceding the date below, an annual income to the value of £100,000 or more.  Annual income for these purposes does not include money withdrawn from my pension savings (except where the withdrawals are used directly for income in retirement).
  • I held, throughout the financial year immediately preceding the date below, net assets to the value of £250,000 or more. Net assets for these purposes do not include:

(a) the property which is my primary residence or any money raised through a loan secured on that property;

(b) any rights of mine under a qualifying contract of insurance; or

(c) any benefits (in the form of pensions or otherwise) which are payable on the termination of my service or on my death or retirement and to which I am (or my dependants are), or may be, entitled or

(d) any withdrawals from my pension savings (except where the withdrawals are used directly for income in retirement).

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me to seek advice from an authorised person who specialises in advising on non-readily realisable securities.

 

 

I meet the FCA’s definition of a self-certified sophisticated investor

Self-Certified Sophisticated Investor Statement

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-readily realisable securities. I understand that this means:

(i) I can receive promotional communications made by a person who is authorised by the Financial Conduct Authority which relate to investment activity in non-readily realisable securities;

(ii) the investments to which the promotions will relate may expose me to a significant risk of losing all of the property invested.

I am a self-certified sophisticated investor because at least one of the following applies:

(a) I am a member of a network or syndicate of business angels and have been so for at least the last six months prior to the date below;

(b) I have made more than one investment in an unlisted company in the two years prior to the date below;

(c) I am working, or have worked in the two years prior to the date below, in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises;

(d)  I am currently, or have been in the two years prior to the date below, a director of a company with an annual turnover of at least £1 million.

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-readily realisable securities.

 

I am prepared to sign the FCA’s Restricted Investor Statement

Restricted Investor Statement

I make this statement so that I can receive promotional communications relating to non-readily realisable securities as a restricted investor. I declare that I qualify as a restricted investor because:

(a) in the twelve months preceding the date below, I have not invested more than 10% of my net assets in non-readily realisable securities; and

(b) I undertake that in the twelve months following the date below, I will not invest more than 10% of my net assets in non-readily realisable securities.

Net assets for these purposes do not include:

(a) the property which is my primary residence or any money raised through a loan secured on that property;

(b) any rights of mine under a qualifying contract of insurance; or

(c) any benefits (in the form of pensions or otherwise) which are payable on the termination of my service or on my death or retirement and to which I am (or my dependants are), or may be entitled.

(d) any withdrawals from my pension savings (except where the withdrawals are used directly for income in retirement).

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested.

I am aware that it is open to me to seek advice from an authorised person who specialises in advising on non-readily realisable securities.

 

I am requesting information on behalf of an FCA authorised firm, accountant or tax adviser and I will only communicate the information to certified sophisticated, high net worth or restricted investors.

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Richard Roberts

Richard is responsible for managing Oxford Capital’s direct clients.

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