Secure partnership investment – SPI – What is an SPI lending investment
Each SPI opportunity has one of the brand’s portfolio properties as underlying security, with variable return cycles according to whether the property is in the development stage or fully operational as an income- generating asset.
The basic opportunity is to earn between 9% and 15% from 1 to 2 years, with an entry level of just £15k.
Assets backed by commercial real estate
are a popular choice with investors, not only because rising prices increase the resale value of the property over time, but because real estate can also be used to generate rental income. In other words, underlying real estate assets get protection from two sources: capital appreciation and rental yield.
Additional Inflation Protection
The UK is in the grip of rising inflation which means that the cash in our pockets is losing value as each day passes. A short term investment vehicle such as an SPI that is supported by real estate, serves to protect your capital from rising inflation, locking-in the value of your cash for its 1 to 2-year term.
What Is So Unique About The SPI?
Aside from real estate investment trusts (REITs) or specialist funds, there are no low- entry level short-term vehicles for property investors who prefer the security of tangible assets. The SPI has underlying prime property assets valued at more than £450m owned by the Group, making it ideal for investors with a low risk-appetite.
Interest rates considerably higher than other inflation-sensitive investments serve to provide healthy returns that are completely impervious to volatile market movements. Because the entry level for the SPI is just £15k, this is the perfect vehicle for protecting and building wealth, without tying up large sums of capital.
SECURED PARTNERSHIP INVESTMENTS OFFER BETTER VALUE THAN BUY-TO-LET
Not only is the UK’s BTL market becoming increasingly difficult to profit from, its limitations are set to become greater as more new rules come into play between now and April 2022. One minute the British government is encouraging investment in its property and the next, they make it much harder to do so. It’s getting tougher for private investors to find good value in the current landscape and the situation is set to get worse.
An SPI investment allows you access to lucrative income-generating property assets, without all the red tape and taxation. Because entry level starts from just £/$/€15,000, it’s possible to invest across the large asset portfolio which includes hotel stock, flexible offices, bars & restaurants and private residential development. This allows you to diversify within the most popular asset classes in affordable allocations.
There are three exit strategies available with this investment, as follows:
- Both capital and interest returned at maturity
- Rollover of capital and interest into another group investment
- Capital and interest reinvested into residential/ commercial property owned by the group
As the world continues to embrace progress and innovation, we’re at risk of losing touch with our past. Formerly majestic buildings that graced Britain’s landscapes, marking important periods in our nation’s history have largely been neglected by the councils owning them. With budget priorities focused elsewhere, it has been left to developers like us to rescue, restore and repurpose them, which is what we have made our mission to do.
The group is far from indiscriminate when it comes to selecting new property assets, despite the brand’s meteoric expansion of recent years. In many cases, the building already has a compelling story in its DNA that is uncovered during its restoration, and these elements are incorporated as design accents in the hotel to help provide a historic narrative to guests.
In other cases, the architecture itself is the most important part of a selected building, which is celebrated in the restoration. However, it is an integral part of the success formula that each hotel has a story to tell that goes beyond its bricks and mortar. This is when we use the opportunity to commemorate local heroes by setting their life story into the core of the asset’s design, which creates greater synergy for a satisfying guest experience.
Storytelling through the creation of luxurious hotel experiences in heritage buildings…
Invest with strong partners:
- The 2015/2016 financial year saw gross profits of £5.9m, a whopping increase of 262% on the previous year
- In 2016/2017 that number rose to £13.05m, representing further growth of 224%
- 2017/2018 is on track to hit in excess of £34m, which is truly exponential growth (again) of 265%
- In 2017 the bricks and mortar asset value reached £101,585,000 with GDV fast approaching £450m
- The latest balance sheet shows the Group has equity NET of liabilities of a very healthy £61m
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