Lending for Growth Investment Opportunity Waterfront Studios Ltd.
Risk Statement Your capital is at risk if you lend to businesses. Peer-to-peer ( P2P ) lending is not covered by the Financial Services Compensation Scheme. There is a risk that business may default and that the loan won t be repaid. Newable Lending for Growth is targeted at investors who understand these risks and make their own investment decisions. Newable Lending for Growth does not give investment advice or provide analysis or recommendations regarding investment opportunities. Investments can only be made by members of Newable Lending for Growth on the basis of information provided. Newable Lending for Growth takes no responsibility for this information or for any recommendations, opinions or predictions. P2P Risks include Loss of Capital Lending to businesses can lead to a loss of your capital and there is a risk that the companies you lend to may default. You should not lend more money than you can afford to lose. If you are unsure about any aspect of the information provided, you should seek advice from an independent financial adviser. Illiquidity Any lending you carry out through Newable Lending for Growth will be highly illiquid. There is currently no active secondary market for the loans you take part in, although they are transferable if you are able to find a willing transferee. Even for a successful loan that is being repaid on time by the borrower, the underlying principal debt you have lent will not be accessible to you until the loan expires. In particular, if you are over the age of 60 at the time of lending you should consider the effect this illiquidity could have on your lifestyle. Diversification Lending to businesses should be done as part of a diversified portfolio. This means that you should invest small amounts in multiple asset classes as opposed to a large amount in one or a few. You should also invest only a small proportion of your investable capital in this asset class, with the majority of your investable capital invested in safer, more liquid assets. You are able to further diversify by lending to multiple businesses on the Newable Lending for Growth platform as opposed to just one. authority or where Newable Lending for Growth is not authorised to provide such information or services. Some products and services described in the Site may not be available in all jurisdictions or to all clients. Advice Newable Lending for Growth does not give investment advice or provide analysis or recommendations regarding investment opportunities. Investments can only be made by members of Newable Lending for Growth on the basis of information provided. Newable Lending for Growth takes no responsibility for this information or for any recommendations, opinions or predictions. Tax You are responsible for the administering of your own tax affairs, which may include capital gains and/or income tax. Each time you lend, you must satisfy yourself prior to making any commitment that you understand and accept the tax consequences to you. We do not provide tax advice and you should seek this independently before lending if you are unsure of your position. It is your responsibility to ensure that your tax return is correct and is filed by the deadline and any tax owing is paid on time. If you are unsure how this investment will affect your tax status, you must seek professional advice before you lend. Tax treatment is dependent on the individual circumstances of each client and may be subject to change in the future. Financial Services Compensation Scheme Lending through Newable Lending for Growth is not covered by the Financial Services Compensation Scheme. Past performance Past performance is not a reliable indicator of future results. You should not rely on any past performance as a guarantee of future investment performance. Future performance Companies may provide forward-looking statements with respect to future results. Forwardlooking statement are not guarantees of future results or performance and many different factors could cause actual results to be different from those that may be expressed or implied by such forward-looking statements. As such, forecasts are not a reliable indicator of future performance. Lack of operating history Many companies on Newable Lending for Growth are recently formed entities and have no substantive operating history upon which prospective investors can evaluate likely performance. Jurisdiction The information and services provided on the Site are not provided to, and may not be used by, any person or entity in any jurisdiction where the provision or use thereof would be contrary to applicable laws, rules or regulations of any governmental authority or where Newable Lending for Growth is not authorised to provide such information or services. Some products and services described in the Site may not be available in all jurisdictions or to all clients. Newable Lending for Growth Ltd is an Appointed Representative of Resolution Compliance Ltd which is authorised and regulated by the Financial Conduct Authority (FRN. 574048). 2 3
About Newable Dream big Get going Grow together Always improve Pass it on Founded in 1982, Newable is a company limited by guarantee whose members are the London Boroughs and the City of London Corporation. Originally known as Greater London Enterprise (GLE), we rebranded as Newable to reflect our increasingly national footprint. Newable has a balanced commercial and social purpose. We aim make a healthy profit but we also reinvest all profit in our services in order to help more businesses. We aim to help enterprises across the country to start-up, to scale-up and to internationalise. Whether that is through making funding available or commercialising an innovative idea, exporting goods or services to new markets, integrating into a global supply chain or through the development and management of affordable work premises. Newable is one of the UK s largest providers of Responsible Finance for business. Our angel investment network aims to help entrepreneurs get their new ideas to market. In parallel, we deliver programmes for Innovate UK and Europe Enterprise Network. We are one of the Department of International Trade s leading delivery partners, helping businesses to start exporting and expand into new markets. We are a values driven business. Our values inspire how our teams work together and how we work with our clients and partners. www.newable.co.uk
Summary INTESTEST RATE TO LENDER 3.25% p.a. interest paid monthly BUSINESS Ownership and management of Waterfront Studios business centre. LOCATION London, England TYPE Limited Company YEARS TRADING 14 Waterfront Studios Ltd TOTAL BORROWING AMOUNT 9,800,000 LOAN TO VALUE (LTV) 70% TERM 60 months INTEREST RATE TO BORROWER 4.5% p.a. includes Newable Management Fee of 1.25% p.a. fixed payable monthly and on the Final Repayment Date in accordance with the Loan Conditions. SECURITY First charge over property LOAN PURPOSE The loan will be used to grow the business of the ultimate beneficial owner of Waterfont Studios Limited. REPAYMENT Interest only loan. Single bullet repayment on the Final Repayment Date with monthly payments of Interest. Lending is subject to the terms of the Service Agreement and the Loan Conditions. This is a summary only. Detailed terms of a loan contract are on our website. 7
About Waterfront Studios The security for the loan Waterfront Studios is a business centre based at West Silvertown, London. The centre covers 115,000 square feet of office, light industrial and storage space. It benefits from close proximity to Canary Wharf and good links to The City. Constructed in 2003, Waterfront Studio offers tenants, mainly SMEs, support in their early developing years by providing what is believed to be affordable space, high quality premises and a convenient location. As at 20 November 2017, Waterfront Studios has approximately 110 current tenants. Revenue is principally derived from rental and service charge income. Offices are sized from 150 sq. The light industrial units range from 900 sq. ft. to 3,200 sq. ft. There are also meeting and training rooms that are available to rent on a daily basis. The studio aims to fulfil a significant market need by providing working space for businesses of different sizes and from diverse sectors. These spaces are competitively priced and serviced to attract clients forced out of more expensive locations. As a consequence Waterfront Studios enjoys consistent demand and occupancy levels well above the 90% levels. The company s immediate parent is Newable Properties Limited which is ultimately owned by Newable Limited. www.waterfrontstudios.biz Key financials Source Waterfront Studios Limited company accounts. Financial year 31st March. P&L 2017 2016 2015 2014 2013 Turnover 1,816,768 1,673,359 1,386,734 1,139,198 1,014,585 Cost of Sales 503,933 558,405 565,440 436,734 614,592 Gross profit 1,312,835 1,114,954 821,294 702,464 399,993 Operating Costs 131,400 118,561 157,527 120,787 30,361 Operating Profit 1,181,435 996,393 663,767 581,677 369,632 Interest paid (received) 0 169,074 320,163 0 0 Property revaluation movement 600,000 1,650,000 1,700,000 600,000 (15,000) Tax paid (received) 160,793 243,481 351,193 37,182 (5,702) Profit and Total Comprehensive Income 1,620,642 2,233,838 1,692,411 1,144,595 360,334 Balance sheet 2017 2016 2015 2014 2013 Total assets 14,270,492 13,488,878 11,862,259 10,196,281 9,661,415 Current assets 320,492 138,878 161,010 193,805 257,712 Fixed assets * 13,950,000 13,350,000 11,701,249 10,002,476 9,403,703 Total liabilities ** 6,722,132 7,561,160 7,168,379 6,684,049 5,293,678 Shareholder Funds 7,548,360 5,927,718 4,693,880 3,512,232 4,367,737 * Includes property revaluation movement on Waterfront Studios ** Total liabilities comprise primarily of unsecured intercompany balances payable to fellow subsidiaries of Newable Limited. Past performance is not a reliable indicator of future results. 10 11
How Lending for Growth works How to become a lender A business makes a borrowing request The business makes an initial borrowing request that is subject to our underwriting process. Our underwriting team perform a series of checks before posting the borrowing request on our platform. The value of the property, business risk band and type of charge determines the amount of interest they will pay. Funding the loan Once on our platform the borrowing request is available for our lenders to review, assess and pledge against. If the borrowing request receives sufficient funding, the borrower will be able to sign the loan documents and complete the loan. Repayments Interest and capital loans are designed to be paid back in the form of monthly interest and capital payments, starting approximately one month after the loans are active. Interest only loans pay monthly interest instalments, starting approximately one month after loans are active, with a single principal payment at the end of the loan s term. If a loan defaults If a loan defaults, we will instigate the collections and recoveries process and, if necessary, take charge of the security and sell the asset to distribute the proceeds to lenders. Step One: Create account Sign up and create a Newable account online. Successfully complete investor certification questionnaire. Step Two: Register as a Lender Enter personal and business (if applicable) details. Submit preferred investment criteria. Step Three: Pledge and fund a loan. View loan information in My Account Pledge your investment amount in one or more loans. Minimum of 10k investment per loan Step Four: Transfer Funds You will have up to 5 business days to transfer your pledged amount to your Newable account to make your pledge Funded. Once the loan is live, you will be eligible to receive monthly payments. There is no limit on how many loans you can fund through our Platform. 12 13
Newable is dedicated to helping people start, sustain and scale their businesses. newable.co.uk