A capital protected account that pays a return of capital plus 50% on 1st May 2011 or capital plus 26.4% on 1st May 2010. Ideal for those inclined towards business oriented investments.

THIS OPPORTUNITY HAS NOW CLOSED - we hope to have further opportunities of this type available again soon

Returns reduce in a straight line at 1.38% per month for the 3 year contract and 1.1% per month for the 2 year contract.

What is the aim of the opportunity?

The opportunity arises as a result of an International resort building group (based in the UK) wanting to:

• Increase the type of investment product it offers to introducing advisers and their clients
  
• Raise funds to enable the swift completion of individual plot buildings

What is the opportunity?

To earn a high rate of income or capital return over fixed periods, by lending funds in multiples of £25,000 to the company.

How safe is my investment and how does it work?

£25,000 is received into the segregated client account of the company and is secured on a land plot which, once a house is built on it, will be worth £100,000 to £135,000 (recent Savills valuation). On receipt of the £25,000, the plot is sold with an exchange deposit to a regulated Guernsey fund which aims to purchase the property at about a 30% discount. As the company receives the deposit payment from the Guernsey fund, the £25,000 can be released for the building. The fund hopes to benefit from the discount and property value increases over the next few years, as the resort is built. To date these property prices have been increasing.

Apart from the contract with the company, the investor has the security of the plot, the principle being that the plot is worth a lot more than £25,000. The fact that the building has received an exchange deposit from a known and recognised source to buy the plot in 2-3 years time gives some comfort.

Will I benefit from the property growth and what is in it for the company?

No, there is no growth other than the promised fixed return. The company is providing this system to investors because it is cheaper and more flexible for them to do this than it is to deal with International Banks (and their lawyers) to raise funds on land plots that have no individual legal tenure for mortgage purposes until the buildings are complete. By paying about £12,500 over 3 years, the company has secured its building costs and has an end product it can sell for £70,000 plus.

Who can Invest?

You can invest personally, from your company or business, or from your pension fund.

Can I exit within the fixed term?

Yes, but there are fixed penalties.

What is a Segregated Client Account?

A segregated account is an account used by a variety of firms and organisations to keep customer’s assets separate from the firms. If the firm becomes insolvent the customer’s funds are readily recognisable and will not be tied up in litigation for extended periods of time. Segregated accounts are used extensively. These accounts are segregated in line with FSA regulations which have been developed to protect client funds in the event of fraud. The rules provide that any asset which attaches to a particular segregated account shall not be used to meet liabilities to creditors and shall be absolutely and for all purposes protected from the general shareholders of the holding company and from the creditors of the holding company who are not creditors in respect of the particular segregated account.

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This type of investment is not regulated or protected by the Financial Services Authority. It is a business proposition for business minded individuals, sophisticated or high net worth investors.