The commercial and residential property markets in the UK have seen demand increasing significantly in recent years. On top of this, tax regimes in the UK have altered, including the introduction of a buy-to-let tax. These two factors have resulted in a more challenging marketplace for investors and yields that are typically not as high as could otherwise be expected. In response to this, Marlborough Securities has formulated a fully asset-backed Bond based on the property sector with fixed returns for investors. This creates a unique opportunity for qualifying investors to ride the current challenges and benefit from market opportunities, both those already in existence and new and emerging opportunities post-pandemic.
Marlborough Securities will be issuing Secured Notes with a nominal value of GBP£1,000, EUR€1,000 or USD$1,000, up to a maximum of GBP£50 million. The experienced Marlborough Advisory Team will be managing all investment monies and will allocate a series of asset-backed loans within the UK through Marlborough Opportunities Limited. The lending will focus on bridging loans for SMEs, development companies and investors, providing seed financing for those in the UK construction industry. As short-term loans, these will be high-interest, over-collateralised loans providing excellent returns and protection for the investor.
The experienced Advisory Team includes Andrew Green, who established Grosvenor Bridging Loans Limited in late 2011. Mr Green, with his 25-year track record of success, has executed and redeemed over £300 million of loans with no defaults to date. Marlborough Securities has done £15 million of lending in the last six months alone, with another £10 million pending on deals – with most deals only out for 18 months.
This opportunity from Marlborough Securities will operate on a five-year investment cycle. The loans offered will not be limited to bridging loans but will take advantage of new opportunities as they arrive throughout the lifespan of the investment portfolio. Through selective investment in what is known to be one of the world’s most lucrative property markets in the south-east of England, Marlborough Securities is able to offer a fixed interest annual income rate of 9.25% GBP. Over the five years of the investment, this represents 46.25% Interest Distribution. Investors in euros or US dollars are guaranteed a fixed annual income rate of 8% and 8.5% respectively. All yields and coupons are paid gross to the investor, meaning no taxes are payable. There is a £100,000 minimum subscription but no maximum cap beyond that of the maximum number of Secured Notes.
Marlborough Securities has already secured several lucrative deals with asset-backed property loans, including both commercial projects and residential housing. Marlborough Securities only markets to sophisticated investors and self-certified high-net-worth individuals. Interest payments begin on the 15th month after investment, to allow time for ensuring legal compliance and to support the initial phase of project start-up. Following the initial payment, subsequent payments are to be made every 12 months until the completion of the investment lifecycle. On the repayment date, any accrued interest will be repayable along with the original investment.