How Do We Mitigate Risk

First Charge Security and Asset-Backed Protection

Risk Mitigation: For Debt-Free Syndicate investors, a Security Trustee holds a first charge on the property on behalf of all investors. This charge ensures that investor capital is secured by a direct claim on the asset, giving priority over project assets in the event of any issues.

Benefit for Investors: By securing investments with a first charge, we provide an additional layer of protection, giving investors confidence that their capital is closely tied to the physical asset.

Debt-Free Structure for Enhanced Stability

Risk Mitigation: By operating with a fully debt-free structure, we remove the need for third-party loans and interest-bearing debt, minimizing financial pressures and reducing exposure to lender demands. This approach lowers overall project risk, ensuring that returns are not diminished by interest payments or loan obligations.

Benefit for Investors: This debt-free model offers a more stable investment environment, aligning well with both ethical finance principles and the goal of capital preservation.

Independent Escrow Management for Fund Security

Risk Mitigation: All investor funds are held in an escrow account managed by an independent Escrow Agent. Funds are released only upon receiving a Certificate of Reimbursement from an Independent Monitoring Surveyor, ensuring funds are used only for verified, completed work.

Benefit for Investors: This escrow system safeguards capital by ensuring that funds are not prematurely released, providing accountability and controlled fund distribution.

Independent Escrow Management for Fund Security

Risk Mitigation: An Independent Monitoring Surveyor conducts monthly inspections to verify that the development is progressing according to plan. Each stage of the project must be certified before any funds are released from escrow, preventing cost overruns and ensuring quality control.

Benefit for Investors: Regular monitoring by an independent surveyor ensures that funds are managed effectively, progress aligns with projections, and project quality meets expectations.

Structured Tranche-Based Funding

Risk Mitigation: We raise funds in four tranches, each representing a specific project stage. This phased approach allows us to allocate capital as needed, reducing idle funds and ensuring funds are released only when necessary.

Benefit for Investors: Tranche-based funding lowers risk by limiting the amount of capital tied up at each stage. It also allows investors to choose their preferred risk and return level based on tranche selection.

Legal Agreements and Transparent Investor Rights

Risk Mitigation: Investors enter into clear, structured agreements with the SPV, outlining all rights, obligations, and security measures in place. Debt-Free Syndicate investors receive Loan Agreements, while Equity investors gain Shareholder Agreements that outline rights to participate in key project decisions.

Benefit for Investors: These legal agreements provide transparency and enforceable rights, ensuring investors have full clarity on their investment protections and decision-making influence.

Risk-Averse Exit Strategy with Defined Liquidity Timeline

Risk Mitigation: Our development projects are located in areas with strong market demand, such as Swaffham, Norfolk, where the residential property market is attractive to both owner-occupiers and investors. The project’s 18-month timeline includes construction and sales, providing a clear path to liquidity and a straightforward exit for investors.

Benefit for Investors: A defined exit strategy allows for predictable timelines, ensuring a timely return of capital and profits, which is essential for risk-aware and pension-based investments.

Comprehensive Insurance and Contingency Planning

Risk Mitigation: Each project is backed by comprehensive insurance policies covering key risks, and we allocate a contingency fund to handle any unforeseen expenses.

Benefit for Investors: This additional layer of protection ensures the project remains financially resilient, even in the event of unexpected challenges, safeguarding investor returns and project timelines.