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.
- 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)
The Value Property Fund focuses on the resilient sectors of affordable student, residential and commercial property. This Guaranteed 7% Net Yield fund will soon be available, so please contact us if you wish to learn more.
An offer of ordinary shares and loan notes in the Providence Value Property Fund (the “Fund”) is set out in detail in an investment memorandum (the “Investment Memorandum”). Any investment should be made solely on the basis of the Investment Memorandum. It is intended that an application to list such ordinary shares and loan notes shall be made to the Channel Islands Stock Exchange (CISX).
This summary is intended to elicit preliminary expressions of interest and is not an offer of securities. The details set out in this summary are not complete and are subject to change. It is intended that the Fund will be a cell of the LLP Property PCC Limited (the “PCC”), a closedended protected cell company incorporated in Guernsey.
The value of any investment in the Fund and the income arising from the Fund may go down and investors may not get back the sum originally invested. Any investment should be regarded as fixed term in nature to be held until the Fund is wound up after a period of three years (unless extended).
This website is issued by PF Advisors Ltd and is approved as a financial promotion by LLP Services Limited (authorised and regulated by the Financial Services Authority) under section 21 of the Financial Services and Markets Act 2000. PF Advisors Limited is an introducer appointed representative of LLP Services Limited.