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 pays out the loan payments to the borrower
- 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.
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 to reflect 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 repossessed and sold for more than the value of the mortgage interest and principal sum combined then the investor will realise a greater return than initially projected.
INVESTORS / DEVELOPERS
If you are a risk averse investor looking for the best fixed income return for your capital
If you are a property developer looking for achievable property development finance
EMEA OFFICE (os)
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+62 (0) 877 5836 5211
The DevDosh Ltd fixed income investment product is not suitable for everyone. Please visit our suitability page to gain a deeper understanding of your compatibility with the product. As with all investments capital is at risk and there is a chance that you will get back less than you invested.
The information on this website does not constitute or represent a financial promotion; nor it is financial advice or a personal recommendation. Do not make investment decisions based purely on the information contained on this website and seek professional advice if you are unsure of your best investment choices. We have made every effort to ensure all information on this site is accurate. However we cannot guarantee that to be the case.