8% FIXED RATE SECURED BONDS 2022

Transcription

1 MAX PROPERTY INVESTMENT GROUP PLC 8% FIXED RATE SECURED BONDS 2022 This brochure should only be read in conjunction with the Information Memorandum relating to the Max Property Investment Group plc 8% Fixed Rate Secured Bonds 2022 Max Property Investment Group Plc A

2 Risk Warning This investment is directed exclusively at and intended to be used only by those persons categorised as a Self- Certified Sophisticated Investor or High Net Worth Investor for the purposes of FSMA The material in this document is for general information only and should not be regarded as constituting an offer or a solicitation to buy or sell any securities, or investment advice. It is not directed to any person where (by reason of nationality, residence or otherwise) the availability of the bonds is prohibited. If you invest your capital is at risk, you may lose all of what you invest, and the money may not be readily accessible until the project is completed. This investment is not covered by the FSCS. 1 Max Property Investment Group Plc

3 Why Max Property? Max Property Investment Group plc ( Max Property ) is operated by established property, finance and legal professionals with long-standing careers, as well as personal property investment experience in the UK. The international team behind Max Property has identified three investment opportunities based on fiscal, legal, political and economic factors. The launch of the UK operation follows the success of Max Property Fund in the Netherlands and precedes the launch of an additional property investment structure in Germany. Managing Director, Mark Lloyd, is a property investment specialist with over 30 years of business experience behind him. He has successfully built a Property Sourcing Company, which locates undervalued property deals throughout the UK. Through his training company, Property Mastery Academy, Mark passes on his knowledge to budding property investors. He is uniquely positioned to apply his knowledge and contacts to source high yielding UK properties for Max Property for the benefit of investing bond holders. The UK property market remains an attractive and stable investment with prices 8% higher this year over last year. By investing in the Max Property 8% Corporate Bond, individuals can achieve the benefits of investing in the UK property market without the responsibilities, liabilities and potential problems associated with being a private landlord. Max Property Investment Group Plc 2

4 Your Money In Safe Hands Intertrust clients include: 70% of the Top 10 of the Fortune Global % of the Top 50 of the Fortune Global % of the Top 50 of the Private Equity International 300 Our Partner, Intertrust, are the global leaders in corporate and trustee services. Their role is to act as company secretary, perform all the necessary administrative functions and control the bank account holding the investment monies. This means that the money collected cannot be spent without the approval of Intertrust, ensuring that only property that meets Max Property s strict investment criteria can be purchased. A restriction of sale is registered in Intertrust s name on all the properties purchased by Max Property; this means that the properties cannot be sold without their permission. These two safeguards ensure that your money will only be invested as set out in Max Property s Information Memorandum. Intertrust roles include: Company Secretary Bookkeeping Administrative functions Supervision Control of bank accounts Restriction of sale on properties Intertrust is a global leader in delivering fund and corporate services, capital market solutions, private wealth and employee benefit solutions to multinationals, fund managers, financial institutions and business entrepreneurs worldwide. 3 Max Property Investment Group Plc

5 Invest in UK property-backed corporate bonds Bonds are secured against UK property assets. Monies are controlled by our UK trustee (Intertrust), the global leaders in corporate services, operating since % fixed interest per annum (+ 30% Profit Share) * 5 year investment term (option to exit on third anniversary) Minimum investment 10,000 All The Way Max Property Investment Group plc is a UK registered company with UK offices and UK directors. We use a UK trustee and UK bank accounts, and invest only in UK property. Target fund raise 4,250,000 Target portfolio value 10,000,000 Investment 100% secured by UK property * Profit share paid out at end of term after portfolio has been sold and the audited accounts have been signed off. ALL THE BENEFITS OF BEING A LANDLORD WITH NONE OF THE HASSLE Max Property Investment Group Plc 4

6 Now? The Perfect Storm? Expert analysts and industry commentators believe that there has never been a better time to invest in UK property. The question is HOW? Max Property believe that the 8% property backed corporate bond provides one way of enjoying an attractive yield without having to deal with the potential pitfalls of being a landlord or directly owning property. The Reasons Why Whilst the cost of living continues to rise (now at its highest since September 2013), poor or mediocre performance of pension funds and low interest rates mean that many investors are frustrated whilst others are feeling the pinch. Keeping your money in the bank or investing it in a pension may no longer be the most appropriate investment strategy. If you already own UK property you will know that although prices have fluctuated during our lifetimes, overall they have risen steadily and sometimes spectacularly. The accepted wisdom is that houses are a safe and excellent investment for the long term. Indeed the 1874 expression as safe as houses is still in use today. However, regulation of the mortgage market, has meant that many would-be investors just can t obtain the mortgages they need to step on to and up the housing ladder. Census data tells us that in 2011 private renters accounted for 46% of all households under the age of 35 across England and Wales, a figure that rose to 54% in London. Among year olds the level of private renting almost doubled between 2001 and 2011, to account for one in five households nationally. Young people, it seems, are priced out of buying their own homes. Savills are forecasting that the number of private rented households in England and Wales will increase by 1.2m over the next five years and levels of owner occupation will fall by 202,000 households. This would mean that by the end of 2019, over 24% of all households across the UK would be in the private rented sector. Among the under 35s, the proportion of households in the private rented sector would increase to 66%, with homeownership falling to just 16% of the total. Even in the next age band (35-49), home ownership would fall to just 55% of all households, with private renting accounting for 28% of households rising to 38% in London. Landlords incur expenses relating to the acquisition of a property, (e.g. sourcing, legal, surveyor, stamp duty, estate agency and financing fees), management (e.g. maintenance and repairs, refurbishment, gas and 5 Max Property Investment Group Plc

7 electricity checks, periods of vacancy, council tax, insurance, replacement of broken appliances (if the property is furnished), rent collection, eviction costs, accountancy expenses, cleaning, bank charges, depreciation, advertising and travel) and sale of properties (e.g. capital gains, legal fees, estate agent fees). When these costs are factored in, the net yield can be considerably lower. With Max Property s fixed rate corporate bonds you enjoy an attractive yield of 8% p.a. for 5 years plus 30% profit share without the hassle that goes along with being a landlord. The minimum investment is 10,000, which means that you do not have to commit to the larger amounts typically needed to invest directly in UK property or to take on a mortgage to finance the property. Amount Invested Year1 Year2 Year3 Year4 Year5 Year6 Year7 Total yield 100,000 Max Property Yield 8,000 8,000 8,000 8,000 8,000 8,000 8,000 56,000 Average BTL yield 4,500 4,500 4,500 4,500 4,500 4,500 4,500 31,500 50,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 28,000 Average BTL yield 2,250 2,250 2,250 2,250 2,250 2,250 2,250 15,750 25,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 14,000 Average BTL yield 1,125 1,125 1,125 1,125 1,125 1,125 1,125 7,875 With our expertise, access to the market and proven investment strategy, we are able to acquire high yielding buy-to-let properties to back the Max Property fixed rate corporate bonds. Not only that, we take care of all property management issues allowing you to enjoy your 8% fixed interest yield free of the worry, hassle and complexities of being a landlord. On exit the monies you have invested will be returned to you. If, at the end of the Term, the properties held by the Company have increased in value and the final Company audited accounts show a profit in the Company, 30% of the profit will be shared with the Bondholder ( the Profit Share ). The potential Profit Share will be paid 30 days after the audited accounts have been finalised. We supply quarterly statements of our performance to bond holders to that you can also monitor our performance. Investments are not free from risk and you should be aware that your capital is at risk. Max Property Investment Group Plc 6

8 Legislative Changes Maintaining a buy-to-let property portfolio in the UK can be challenging due to the associated expenses and requirements such as lease extensions, running repairs and dilapidations, major works and tenancy agreements. Various schemes, regulations and changes have recently been introduced which make the responsibilities of the private landlord in the UK even more onerous, costly and time consuming. One example is the Home Office issued right-to-rent scheme, which places the responsibility of verifying a tenant s immigration status upon the landlord. A rigorous procedure must be followed and failure to comply can result in hefty penalties and even criminal charges against the landlord. Landlords renting to 3 or more sharers have to comply with Houses of Multiple Occupation regulations. The process is not straightforward, as in order to be approved for a licence, the landlord must ensure that the property is refurbished in accordance with specific regulations (e.g. which include the installation of fire doors, locks, special lighting, smoke alarms and the up keep of a register of checks on the property). Other regulations include the tenancy deposit protection scheme, which often requires the use of an inventory clerk and requires the landlord to conform to a list of administrative regulations. There are also regulations requiring landlords to pay all estate agent commissions and preparation of contract fees, and a host of procedural limitations which apply when a tenant fails to pay rent and requires eviction, resulting in months (and sometimes years) of potential loss of income. 7 Max Property Investment Group Plc

9 Tax Changes The fiscal landscape is already complex for buy-to-let landlords. Landlords need to understand, apply, and more importantly, comply with many obligations across a wide range of taxes (e.g. stamp duty land tax, income tax, capital gains tax and inheritance tax). The buy-to-let tax changes introduced in 2017 have received a great deal of attention because they have the potential to affect the profitability of a privately owned rental property portfolio, taking landlords with large mortgages from an income to a loss by way of income tax deductions alone. Many unprepared landlords will be forced to sell over the coming months as the properties they thought were assets will become liabilities. In addition, landlords need to be aware of the abolition of the 10% wear and tear allowance, council tax discounts for empty properties and capital gains tax allowances for non-residents; 3% stamp duty charge on second properties and potential taxation on enveloped dwellings. Max Property Investment Group Plc 8

10 Sterling Exchange Rate Since the Brexit referendum Sterling has hit historically low exchange rates against other major currencies, thus making investments in the UK for Euro, USD or other foreign currencies excellent value. Experts predict further volatility for sterling exchange rates following the triggering of Article 50 of the Lisbon treaty in March If you are purchasing a foreign currency with sterling or are converting a foreign currency back into the pound it s important to note economists are split to whether the triggering of Article 50 will bring certainty to the pound which would cause the pound to strengthen and buying foreign currency would become cheaper or whether the triggering of Article 50 means there is no going back for the UK and therefore the pound could weaken. 80% are predicting sterling weakness compared to 20% sterling strength. 9 Max Property Investment Group Plc

11 Investment Process You complete the Subscription Form and send it together with your Anti-Money Laundering ( AML ) documents (see Subscription Form for more details) to our address info@maxpropertyfund.com. Intertrust will confirm receipt of monies and will issue a Certificate to confirm your investment You have read this Brochure and the Information Memorandum ( IM ) and you would like to invest in the 8% Fixed Rate Secured Bonds. Once Intertrust has processed your AML and you have been approved, investment monies will be requested and you will have three working days to transfer the funds into the Intertrust controlled Lloyds bank account (see Subscription Form for details). Your investment starts the day the monies are received in the Lloyds bank account. Buy-to-Let properties will be purchased according to the Investment Criteria set out in the IM to ensure the interest payments are covered. After the Term the portfolio will be sold and the monies will be paid into the Intertrust controlled bank account A sale restriction will be registered in the name of Intertrust to ensure the portfolio cannot be sold without the approval of Intertrust. At this stage your original investment amount will be returned to you. A bonus interest payment will be payable depending on the increase in equity achieved Your money will be controlled by Intertrust from start to end. Max Property Investment Group Plc 10

12 Max Property was founded by a syndicate of property investment professionals, with over 20 years of experience in the industry. Through careful analysis and due diligence research, a small selection of highyielding investment products were developed with the intention of providing the main benefits of property portfolio ownership without many of its disadvantages. Max Property s team is highly experienced in the investment and property markets, having developed, managed and marketed developments in various parts of the world. Each of the Max Property companies is established through a local special purpose vehicle (SPV) and with local directors. Quarterly management accounts and the annually audited accounts are provided to all investors for full transparency and control over their investment. Mark Lloyd Mark is a professional property investor, with over 30 years of entrepreneurship and property investment behind him. Along with his longterm business partner, Jackie Reeves, Mark has grown 6 successful businesses with 2 of these having been sold on the open market. He owns a successful Property Sourcing Company, which looks for undervalued property deals throughout the UK. Property Mastery Academy is a private training company that, based on Mark and Jackie s considerable experience, educates property investors across the UK through workshops, seminars and a comprehensive mentorship program. Paula Ruffell Paula is a lawyer specialising in Corporation Tax Dispute Resolution. Having worked in the Solicitor s Office of Her Majesty s Revenue and Customs (HMRC) for nearly 9 years before moving to the private sector, she now advises global companies on UK corporate tax issues such as diverted profits tax, permanent establishment and transfer pricing and High Net Worth individuals on issues such as domicile and residence. Paula has been investing in property herself since 2006 and has experience in refurbishing and managing London and Scottish property. During his career, Mark has built up a large portfolio of properties in various areas of the UK, incorporating residential, commercial and development activities and has become an authority in the field of property investing. 11 Max Property Investment Group Plc

13 FAQ Why do you think you can get better properties then a private property investor? Most property portfolios never reach the open market but are offered and sold between professionals. Mark Lloyd is a property investment professional and conducts property investment seminars throughout the UK. Through our strong network of property investment professionals we believe we can access better deals than the average property investor. How do I know my money is safe? All investment money is transferred into an account controlled by Intertrust, and this money can only be used to purchase buy-to-let property according to the Investment Criteria as set out in the IM. The properties are also protected by a restriction of sale to ensure we cannot sell the portfolio without Intertrust s approval. What happens if you cannot pay out the promised interest payments? If for some reason the interest payment cannot be paid, or there is not sufficient money in the company account controlled by Intertrust, the missing interest will accumulate and be added to the next interest payment. Can I invest through my SIPP/SASS? In principle yes, as secured bonds are allowed to be included in SIPPs and SASS, however each SIPP Trustee has different guidelines and you will need to write to your own SIPP provider for confirmation that your investment in Max Property bonds would qualify as a SIPP/SASS eligible investment. Will commercial property be included? Although Max Property s focus is primarily residential, we will consider commercial opportunities that fit the Investment Criteria. How do I know that you will conform to the fiscal and legal obligations that landlords are obliged to adhere to? Ignorance of the law is no defence. We are experienced professionals and ensure that our lettings and management teams are fully trained and adhere to the highest standards of conduct. Max Property Investment Group Plc 12

14 Will I have access to company accounts so I can see how my investment is performing? Yes. Quarterly management account and the annual accounts will be provided to investors. Can I exit early if I have to? Yes. There is the option to exit on the third anniversary of the fund. You will have to inform the company a minimum of three months before this date if you would like to exit. The bonds are transferrable and so there may be a possibility of transferring your investment to another investor. Why are the interest rates so high? The interest rates are high because they reflect the high yield basis of our model as demonstrated in the IM. What happens if property prices fall during the investment lifetime? UK property prices fluctuate, however over the long term they have steadily risen. Our investment model and the yield we offer is based on rental demand rather than relying on an increase in the capital of the properties. Further, we invest in a range of cities across the UK which means that the portfolio is diversified. Who will be in charge of the property management? Each property portfolio will be managed by local property management agents. The rental income will be paid to the bank account that is controlled by Intertrust. What happens if you do not achieve the total fund raise? A minimum of 425,000 needs to be raised for Max Property to start purchasing properties. As soon as this milestone is achieved, properties will be bought and full details will be made available on the website. Can I invest through my company? Yes, you can invest through a corporate structure as long as your AML documents are accepted by Intertrust. What are the income tax and inheritance tax implications of investing through you? Investors will need to seek their own legal/ accounting advice on the impact of their investment. We do not provide financial, investment, tax or legal advice. When is the start date of the investment calculated from? Interest starts to accrue the day after your monies are received in the company bank account. When are interest payments made? Interest payments are made on fixed dates, being the 5th of January, 5th of April, 5th of July and 5th of October of each year. 13 Max Property Investment Group Plc

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16 Contact Us Max Property Investment Group Plc +44 (0) Great St. Helen s London EC3A 6AP United Kingdom UK Company registered number Max Property Investment Group Plc