DevDosh Ltd Special Purpose Vehicle (SPV)

DevDosh Ltd use Special Purpose Vehicles (SPV’s) to protect our investors

Special Purpose Vehicle (SPV)
A Special Purpose Vehicle (SPV) is a stand alone (ring fenced) legal company created for a specific purpose over a set time frame. SPV’s are set up to operate independently of their parent company and as such can not be affected negatively should the parent company have financial or other problems.

Why do DevDosh Ltd use SPV’s
The Special Purpose Vehicle (SPV) is the foundational element of DevDosh Ltd’s fixed income investment approach. The reason we use separate SPV’s to administer each 1st charge real estate development mortgage individually is to afford investors the greatest level of protection.

Firstly the independent nature of an SPV means that should DevDosh Ltd run into any difficulties the smooth running of the investment will not be affected. To reinforce this every SPV has their own banking facility in the form of a regulated commercial escrow service and solicitor to make them truly independent profit centres and stand alone businesses in their own right.

Secondly the SPV holds all the capital and security for the mortgage. To further reinforce the protections in place;

• the SPV’s banking facility holds all capital and disburses pays to the borrower, investors and professional fees
• the SPV’s banking facility receives all mortgage repayments directly from the borrower
• the SPV issues the 1st charge real estate development mortgage naming itself as lender and holds the 1st charge over land/development rights/structures
• the SPV pays interest and repays capital directly to investors

On this basis the SPV is the proprietor and operator of the loan and controls all legal security and cash.

Shareholders
The SPV’s that DevDosh Ltd creates are incorporated at Companies House as private companies limited by shares. DevDosh Ltd investors are issued shares in the SPV in proportion to their level of investment.

Shareholders have legal rights afforded to them by the Companies Act 2006 which provide a greater degree of protection and control than regular investors receive. For instance if for any reason shareholder expectations were not being met they could demand a general meeting to address any issues. Furthermore shareholders receive a percentage of the SPV’s profits. On this basis if a developments was possessed/foreclosed upon and disposed of for more than the value of the mortgage interest and principal sum combined then the investor will receive a greater return than initially projected.