Property Bonds are popular with traditional physical property investors looking to diversify or simplify their income but are also still keen to protect their capital from volatility in the assets market.
Before the Property Bonds are issued, the assets used as collateral and security for investors are secured via a Legal Debenture, this is enforced via Regulated Trustee.
Funds are deployed for the development of sites that have been already acquired and Planning Permission achieved. These Bonds are always site-specific enabling the investor to easily comprehend the opportunity and how their position will exit.
Main Reasons to Invest:
-Security: Secured by property assets, offering a safety net for investment.
-High Yield: Higher potential returns than government bonds or savings accounts.
-Medium-Term: Suitable for investors with a medium-term investment horizon.
-Market Access: Exposure to the property market without direct management.
-Tax Efficiency: Can be held in an ISA for tax-free interest.
-Inflation Hedge: Property often appreciates with inflation.