Investment Options - Jan 2015

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1 Investment Options - Jan 2015 Unregulated Investments DOLPHIN GERMAN BOND 3 or 5 year term PINERGY 3 or 5 year term COLONIAL CAPITAL 3 year term PARK FIRST 6 year term PACIFIC TYCOON - 3 Years plus January IPS FINANCIAL ADVICE

2 UNREGULATED S RETURNS In the past few years bank deposit interest rates have hit an all time low. The average annual interest rates now do not exceed 2% per annum. Alternative investment options are available to Irish customers which may significantly increase the return on their investments. However, the risk involved in investment products varies and should be understood before making any investments. For these purposes, IPS Financial Advice carries out a risk assessment evaluation of all our prospective clients. REGULATION The Central Bank of Ireland regulates some investment products, but others are not regulated. Unregulated investment products are investment vehicle set up for asset classes that are unable to follow the Central Bank of Ireland specific rules on matters such as liquidity, leverage or cash reserves. Since there is no central regulation for these types of investments, there is no capital guarantee or minimum return guarantee. Although unregulated investments themselves are not directly authorised by the Central Bank of Ireland, persons carrying on activities related to these investments are themselves subject to the Central Bank of Ireland regulations. INCREASED RETURNS ON Unregulated investments are traditionally associated with higher return rates, but also higher risk of investment. Even so, if carefully researched, unregulated investment products may suit some investors and provide them with return rates in the range of 8 15% per annum. UNREGULATED AND YOUR FINANCIAL ADVISOR Your IPS Financial Advisor, in speaking to you about these investments is acting in an unregulated capacity. The Central Bank of Ireland does not regulate these investments. Clients do not have the protection afforded by such regulation, nor the protection of the Investor Compensation Act or of Professional Indemnity Insurance. All UNREGULATED investments are placed through a separate legal entity, Irish Pension Solutions Ltd., 64 O Connell Street, Limerick. IPS FINANCIAL ADVICE 2

3 DOLPHIN CAPITAL - German Listed Buildings Option of 3 and 5 year term for all cash investment Options of 3 and 5 year term for all pension and ARF investment Minimum investment 10,000 Returns of 12% per annum secured on property This is an opportunity for Irish investors is to provide loan finance to a German Company Dolphin Capital GmbH, to purchase listed properties in Germany. To encourage redevelopment, the German authorities give marginal rate income tax relief on 100% of the renovation costs of these properties over a 12 year time frame. Dolphin s Professional Team of architects and contracting/development experts identify projects with viable costing perspectives and good resale potential. The company secures building licences, contractors with fixed price contracts, end purchaser contracts with approved stage payment loan facilities and resale of these listed properties in short periods of time with excellent profit margins. Tax Break is removed: Germany has 5 Year Federal Budgets, the tax relief was rolled over in 2014 and is now fixed in place until Collapse of the Euro: If the Euro currency were to collapse, it may be considered an advantage to have your saving/pension funds in Germany and in German property. Collapse of German Property Market: Most commentators consider this unlikely. The German economy is quite robust, retail interest rates are low and trending lower. Certified Owners Land Charge Certificate: While your money is being used you have the security of Certified Owners Land Charge Certficate against the property it is being used to purchase no other charge can supercede it. Legal Control: When the property has been sold on to the German Citizens, your money is held by the firm of Solicitors, Bottermann Khorrami ( ) in their client account and will not be released for use again until another legal charge is issued. The solicitors control the release of your money not Dolphin. Purchase Price: Because the properties are bought well below market value even a significant drop in the market may not affect the security of your investment and /or return. German Euro: Having your funds in German Euro will be worth far more to you in the unlikely event the Euro does collapse. Experience: With over 50 years combined experience of the German Listed Building market, the three directors have specialised knowledge of the market. IPS FINANCIAL ADVICE 3

4 PINERGY LOAN NOTE Option of 3 and 5 year term for all cash investment Minimum investment 10,000 Returns of 6.75% per annum PINERGY is to be a leading player in the domestic pay as you go (PAYG) electricity market segment. New Measured Power Ltd had developed the PINERGY brand as one of only 5 licensed electricity suppliers in the domestic electricity market. The company has been participating fully in the regulated electricity supply market since January Pinergy presently has 19,000 customers in Ireland, generating over 3m gross profit per annum. Every 1000 invested adds 4 customers and generates 768 annual profit thereafter. Competitors: In a strong growth market, no apparent risk of price competition New Entrants: Little risk of the current electricity suppliers entering the market as they see it as lower end and they rather chase the higher value clients. Smart Meters Roll Out: PINERGY are smart meters. National roll out of Smart Meter program not likely before 2019 as incumbents have higher priorities. Meter Supplies: Supplier UK based, ISO certified, 15million installed, $200m T/O. Price of Power: All suppliers pay the same price regardless of volume. Default: If PINERGY is unable to meet its loan note obligations, then the default clause operates, converting loan notes to equity. The value of the Company would then be determined by the sale value of future cash flows from its client base. The Industry: Pinergy is a Utility Company Electricity, utilities are durable in that they perform well in improving or falling markets. People still use electricity. The People: Pinergy is managed by Enda Gunnell, a Chartered Accountant who previously was a partner in Mazars. Group Sales Director is Stephen Mackeral who was CEO of Carphone Warehouse Ireland from 1999 to The Investors: Apart from the management, significant investors in the Company include Peter Coates (owner of Bet365 and Stoke City FC) and Eddie O Connor (ex. Airtricity) these millionaire investors completed their due diligence and invested. Regulated Market: The electricity market is heavily regulated by the CER (Commission for Energy Regulation) it is likely that CER would intervene to ensure that clients do not lose their electricity supply and also to ensure that the business is sold. Pinergy lodges a 40 bond with CER for every customer ( 760k). IPS FINANCIAL ADVICE 4

5 COLONIAL CAPITAL 3 year term for all cash investment Fully SIPP/SASS complient structure Minimum investment 10,000 Returns of 12% per annum Colonial Capital Group PLC was formed in February 2014 to take advantage of the dislocation taking place in the US housing market and the demand for social housing. Since April 2012, companies controlled by Colonial Capital Group PLC have successfully sold over 40 properties in the Chicago area with an average profit margin of 53%. All properties are acquired direct from the US banks by an experienced team of property negotiators. Each property is refurbished and rented out under the social housing voucher programme in the USA and at year three is sold at 20% margin. Interest on these Bonds can be compounded or taken as paid. These Bonds are issued quarterly, the next starting date is February 1, 2015, which will mature on January 31, 2017 and interest will be paid half yearly on 3 July and 1 February each year. Housing Voucher Program: The removal of the housing voucher program in the USA will mean that the acquired property will have to be rented privately which will be less stable. The Housing Programe is in place since the 1930 s, so the chance of it being removed is slim. Sale of Property: The properties have to be discharged at year three. If there is a drastic change in the US property market, the properties may not sell at the projected profit margins and or the repayment of loans may be delayed. First Charge: All bond holders have a first charge over the shares of the US based Colonial Capital Properties LLC company. This company holds all of the property acquired with the funds raised in each funding tranche. Security Trustee: Blackstar Wealth Management A Ltd, the security trustee division of Blackstar Wealth Management Ltd act as security trustee on behalf of all lenders. 85% Rule: The amount of Bonds in circulation cannot exceed 85% of the value of the property portfolio. IPS FINANCIAL ADVICE 5

6 PARK FIRST - Parking Spaces at Glasgow Airport Real Property Investment with Title Deed for each parking space. Stg. 20k per space all in, rising to 25k on 31 March Leaseback arrangement with Carpark Operator Operator returns 8% pa in Years 1 and 2, 10% Yrs 3 and 4, and 12% yrs 5 and 6 Park First is a division of Group First that has introduced a new commercial property investment opportunity that has a low entry level, and they believe is low risk and highly profitable. An investor buys an individual long stay airport parking space, that is leased back and managed on your behalf by a well established airport parking company with over 20 years experience. Purchase price of the Carpark space is Stg. 20,000 until end March, then 25k. Rents payable in Advance in years 1 and 2! Each Car Park Space has a current RICS valuation of Stg 30,000 capital growth! Glasgow Airport had just 6190 spaces serving 7.2million customers, demand for Long Term parking spaces is expected to be 17,900 by Occupancy at Park Firsts 1 and 2 carparks over 2014 was over 90% most weeks - effectively full occupancy! EXIT After 4 years, the Developer may buy back the parking space from the investor at the price paid by the investor. At any time, the investor can sell the car park space on the open market just like the sale of any other real estate. Parking spaces in Mayfair London recently sold at 281,000 each! Sale of the Property on Exit: The exit sale of the property may be delayeddepending on market demand. Rental: The rental is guaranteed only for years 1 and 2, in fact it is lodged in a holding account at commencement of contract. Rental rates (10, 10, 12, 12) for years 3 to 6 are not guaranteed, but are forecast based on conservative estimates. BuyBack: The Developer offers to buy back the parking space in the 5th year, but may not be able to do so, open market value may be higher or lower than purchase price. Title Deed: The investment is secured by a title deed on the property. Current RICS valuation for the carpark space is Stg. 30,000. Future value not certain. Other Information Group First offer other investment options commencing from Stg though their Store First Company. All Group First investments are available through Irish Pension Solutions Limited. IPS FINANCIAL ADVICE 6

7 PACIFIC TYCOON Price for container $ 4100 low entry point! Lease can be terminated with a month s notice The investor owns the container Contractual Returns of 12% per annum Or 30% of actual rental income, aggressive lease Pacific Tycoon Ltd. Is in the business of renting Shipping containers to companies requiring them to transport cargo. Pacific Tycoon invites interested parties to purchase shipping containers and then lease them to Pacific Tycoon to be rented out to shipping companies. This benefits Pacific Tycoon by having others provide the capital required to purchase the container fleet. The company is incorporated in Hong Kong and is a wholly owned subsidiary of Moritzclear Research S.A., a container management company. Insolvency: Pacific Tycoon may become insolvent and be unable to pay rental monies due under the lease. Demand: Demand for containers may drop and market fluctuations may affect the rents and market prices of containers. Ownership: The investor is ultimately the owner of the container. At the end of the lease, the owner may incur transportation, demurrage and storage costs. Two Lease Options: The investor can choose between two lease options in order to best suit their requirements 12% Fixed Rate Lease, or Maximised Rental Agreement earn 30% of the actual rental received returns in 2013 averaged 26% for the year. If you own 5 or more containers, then payment is monthly on 23rd of month to account. Less than 5 containers and payment is made quarterly. Ownership: The investor remains the owner of the container which can be sold. Registration: Every container has a number plate and will be registered to the investor and is trackable. Insurance: Every container is insured by Pacific Tycoon whilst on lease. Buyback: After 3 years, Pacific Tycoon will buy back the container at purchase price. IPS FINANCIAL ADVICE 7

8 HOW TO INVEST? It could not be easier! If you would like to inquire further about the investment options, contact IPS Financial Advice and meet one of our dedicated financial advisors. IPS Financial Advice are independent financial advisors with specialist expertise in investment and financial planning. Our Team of 15, means you have access to this advice, wherever you are in the country. As these are unregulated investments, all introductions are through our unregulated company Irish Pension Solutions Limited, 64 O Connell Street, Limerick. Your Financial Advisor is acting in an unregulated capacity when talking to you about unregulated investment options and acts only as an introducer of business to Irish Pension Solutions Limited. All Investment Options shown are available for both Pension and Non-Pension Investment. Please review and contact us with any questions. IPS Financial Advice 64 O Connell Street, Limerick T: E: eamon@ipsfa.ie IPS FINANCIAL ADVICE 8