Colonial Capital Fixed Rate Bonds
Launched in February 2014, the express objective of these fixed rate bonds are to re-house up to 2,000 famlies in the Chicago area, United States.
THE INVESTMENT:
This asset backed, 3 year investment is a socially responsible investment (SRI). The aim of the bond is to re-house up to 2,000 very low income families in Chicago.
House prices in the United States have plummeted over 50% in some areas since 2006/2007. As experts predict we may have reached the bottom of the market, it is easy to see why this is an area of interest for investors at this present time.
WHY NOW?
Although property prices have dropped, foreclosures have soared, forcing many out of their homes. Ths hasincreased the demand for rental properties, particularly as US banks are being cautios with mortgage lending.
The restriction of credit is also forcing first time buyers into the rental sector. This makes for an excellent opportunity for investors to get back into the US property market.
HOW IT WORKS:
12% per annum returns are on offer from the Colonial Capital Group plc 3 years US Social Housing Bond. The investment is asset backed and secured upon the shares of Colonial Capital LLC.
If the investor fails to receive payment, the bondholders could take control of Colonial Capital Property LLC and the property portfolio (subject to any prior claims of any relevant trade creditors)
KEY STATS:
Returns: Fixed returns 12% per annum
Term: Three years
Exit: Early exit not permitted
Security: Shares in Colonial Capital LLC.
Charges: No initial or annual charges-or upheld until 2015