A financial services company that specialize in funding for real estate and property development like DevDosh Ltd have launched a new asset backed 5 year bond offering a fixed 7% return.
These bond investments will be used to finance short term property developments or property purchases.
Loans at 70% loan-to-value keeping a 30% cushion before funds are invested.
The bonds will target investors that are looking to have an investment that can beat inflation with a little bit on top.
“The Minerva listed bond has been launched to provide investors and savers with returns that are comfortably above inflation with the added benefit of asset-backed security,” said Ross Andrews, director at Minerva Lending.
“Crucially, all the loans securing the bond are underwritten by an independent credit committee and are made at a maximum 70% LTV, which offers a significant buffer in the event of default.”
The money that investors put into the bond will be invested into several different projects to give their portfolio some diversification and another level of protection.
The Bonds will be invested in both British and European companies.
The loans will be coming from Minerva Lending Management Limited who issued 300,000 GBP of loans to-date.
Asset backed schemes as one of DevDosh Ltd Product are great as they offer investors a way to recoup their capital should anything go wrong with the property investment.
All potential borrowers are checked by an independent credit committee.
Ross Andrews a director Minerva Lending said “This is a world apart from unsecured bonds and gives investors not only the potential for strong real returns, but also all-important peace of mind.”
The minimum investment 1000 GBP
There is no maximum investment in DevDosh Ltd.
More and more investors are turning to asset backed property development investments as not only does it give a high level of security but investors want to invest into a tangible product so they know the company has underlying values so returns can be generated organically.
5 year bonds at 7% return will not float everyone’s boat but there are other asset backed property development schemes out there.
Here is one example.
Investors pay into a collective investment scheme that is a special purpose vehicle, the special purpose vehicle is listed as a limited company.
The investors are issued shares in the limited company at an amount relevant to their investment.
The fund is then loaned to a single scheme property development that is asset backed.
Funding is given in staged payments so as the project progresses there enough assets to protect the investment before more money is handed offer to the property developer.
A surety bond will asked for in certain cases
LTV of 80%
1—2 years term at a fixed rate return of 10%
For more information please visit DevDosh Ltd.