The Providence Value Property Fund

An exciting opportunity for private investors, SIPPs and SSASs to participate in a fund investing in a diversified portfolio of UK property at a substantial discount to market value where the anticipated yield of 7% per annum payable to investors will be protected by rental pre-payments.

Key Features

• Acquisition of properties directly from FreshStart Living Limited (“FSL”) and other developers
• Aims to acquire property at a minimum 25% discount to the lower of two independent market valuations
• Aims to achieve capital growth without property speculation
• No Debt
• Diversified portfolio to minimise risk spread across student accommodation, key worker homes, commercial and affordable housing
• Already identified up to £15 million of assets to be held by subsidiary of the Fund (“PVPS”)
• Exit to be achieved through sale of shares of PVPS or of individual properties
• Closed-ended Fund with a 3 year life (unless extended as a result of a vote by a majority of investors at a general meeting for up to two extension periods of one year)
• Aim to deliver a cash yield for investors in the Fund of 7% per annum on entire investment
• Properties to be let at below full market rent to the developer
• Entire rents to be paid up-front for the period up to the end of the third year of the Fund
• Rent on unsold property to be paid annually in advance on the third anniversary of the fund and each subsequent anniversary
• Properties to be leased back by PVPS to FSL or another developer at a rent representing a minimum net yield of 9.2% which may be a rent that is below the prevailing market rent. The net yield is net of service charges and ground rents.
• The obligations of FSL under any leases with PVPS will be protected by FreshStart Holdings (Manchester) Limited, the parent company of FSL and its sister companies
• Shares and loan notes to be listed on the Channel Islands Stock Exchange (CISX) which is an HMRC recognised exchange. It is intended that a matched bargain facility will be arranged for investors, although investors exiting early may suffer a loss as the price achieved may not reflect the net asset value of the assets of the Fund.
• Applicants will be required to subscribe in the ratio of one ordinary share for £1 each and £9 of 7.77% loan notes
• Minimum investment: £10,000
• Maximum size of the offer to direct individual investors: Sterling equivalent of EUR 5 million
• Available to SIPP and SSAS investors (as the Fund will be a genuinely diverse commercial vehicle with residential property assets worth more than £1 million and it will hold at least three residential properties and any single property shall not have a value in excess of 40% of the assets)