Your capital is at risk and investments are not covered by the Financial Services Compensation Scheme (FSCS).

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Your capital is at risk and investments are not covered by the Financial Services Compensation Scheme (FSCS).

ISSUER

Land Club Bond 1 LTD

TERM

3 Years

COUPON

6% per annum
(paid 6 monthly)

CLOSING DATE

31st January 2019

MINIMUM INVESTMENT

£1000

ISA

IF ISA Eligible

SECURITY

Debenture over Land Club Bond 1
Security Trustee
Security Over Investments

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Investment Overview

Our business model for the Land Club Bond is simple. We will raise funds to acquire land around existing and future transport hubs throughout the UK and will work with local authorities to obtain planning permission for these sites. The land will then be sold to developers or built out by a delivery partner.

Target schemes include vacant sites or existing sites with some commercial element such as leisure facilities, municipal buildings, pubs, former pubs, petrol filling stations, tertiary and secondary retail parades etc. where the company can enhance the value through obtaining planning permission for higher density usage.

  • Location We will acquire land around existing and future transport hubs throughout the UK.
  • Target Sites sites such as; leisure facilities, municipal buildings, pubs, former pubs, petrol filling stations, tertiary and secondary retail parades
  • Community We work with local authorities to obtain planning permission.
  • Delivery Once planning is obtained, the land will then be sold to developers or built out by a delivery partner.
  • Secured Lending The Bond will make secured loans to the entities owning the strategic land asset and align the interest rate and term with the coupon payments and maturity of the Bond.

To see some cast studies Land Club have worked on in the past, please click here.


Projects ready for Investment by The Land Club Bond

Being so well connected in deal origination, Land Club have already lined up two projects ready for investment by the Land Club Bond. Both projects are wholly or partly owned by our backers Affinity Global Real Estate meaning we get preference on investment into the development schemes.


Moodiesburn

  • Type: Residential led mixed use scheme
  • Location: North Lanarkshire, Scotland
  • Key Transport: Glasgow City Centre
  • GDV: £84.2m
Read More

Well situated, 60 acre site just outside of Glasgow within an area bookmarked for residential development.

Planning achieved for a scheme made up of:

  • 480 dwellinghouses
  • Supermarket
  • 5 retail/commercial units
  • 2 family restaurants
  • Health Centre
  • Petrol Station

Chessington Golf Course

  • Type: Residential led mixed use scheme
  • Location: Chessington, London Borough of Kingston Upon Thames
  • Key Transport: Chessington South marked as a Crossrail 2 station
  • GDV: £250m
Read More

28 acre site with development plan to provide up to 300 homes. The site is in a highly prominent position with good Central London connections. Currently a green belt site but with the strong possibility of obtaining planning consent to provide new family housing and work opportunities.

Higher Tax Rate Payer Basic Rate Tax Payer Held in an IFISA
Investment Amount £10,000 £10,000 £10,000
Interest Rate (p.a) 6% 6% 6%
Tax Rate Payable 40% 20% 0%
Gross Interest Earned £1,800 £1,800 £1,800
Tax Payable £720 £360 £0
Net Interest Earned £1080 £1440 £1800
Total Capital & Net Interest Earned (at End of Term) £11,080 £11,440 £11,800
Interest Rate Required to achieve the same level of interest if Bond is held in an IFISA Wrapper 10% 7.5% N/A

Payments of interest are made after deduction of income tax at the basic rate (currently 20%), unless the Bond is held in an IFISA. You should note that capital is at risk and returns are not guaranteed.

The Land Club Bond

This is an opportunity to invest in a Bond issued by Land Club Bond 1 Ltd, a UK company that makes loans secured against property. A Bond is a type of loan to a company. The company agrees to pay you a fixed rate of interest on your subscription amount over a defined period of time. At the end of the period, your money is repaid.

Land Club Bond 1 Ltd is launching a bond to fund the purchase of strategic land. A strategic land investment opportunity generally refers to land that has significant residential or commercial development potential, due to close proximity to key transport links, high demand for housing and nearby community amenities.

Read More

The Land Club Bond is your opportunity to participate in and contribute to the one of the most important property initiatives in the UK; the need to address the UK's nationwide housing shortage.

Land Club will help local authorities to meet their new housing targets by making unutilised or underutilised land development-ready, with fully optimised planning permissions for high density, mixed-use developments. All the development schemes will seek to be sustainable, regenerative and create a legacy for the communities they serve.

Bond Security

Investor security is a priority. To achieve this, we understand that the business must be viable and built on a strong foundation of decision making and maximum investor security.

The Company has put in place a process to ensure you have as much protection as possible.

In the event of a default (a non-payment of interest or capital in accordance with the Bond Instrument), the following measures have been applied:

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1 | Debenture over the assets of Land Club Bond 1 Ltd.
The Company has put in place a floating charge so that Bondholders have first charge over all the assets (including cash, investments, charges and equipment) of Land Club Bond 1 Ltd.

2 | Security over the investments made by Land Club Bond 1 Ltd.
The Company is expected primarily to invest, either in whole or part, in land on which it will take a charge.
In the event that bank lending is available to support the Company’s purchase of any individual asset and the directors consider it best business practise to utilise such lending, the Company’s security will rank below that of the bank’s.
If the security held by the Company is greater than its liabilities, the Company may use the ‘excess’ to fund the purchase of options on land. These will form an asset of Land Club Bond 1 Ltd. and are intended to be available to settle with Bondholders if required.

3 | Security Trustee
Land Club Ltd has been appointed to act as Security Trustee.
If the Company defaults on any payments due to Bondholders, the Security Trustee can enforce the debenture over any assets of Land Club Bond 1 Ltd, acting solely in the interest of Bondholders. It should be noted that if a security has been granted to a bank this will rank above the security for the Company. The Security Trustee cannot guarantee return of monies in a default situation.

The Strategy

Market Research
Land Club targets specific areas that have been identified for potential growth in value. These locations may be shortlisted for various reasons that can include:

  • proximity to major infrastructure projects;
  • areas identified by local authorities for regeneration and;
  • areas where local councils cannot meet Government targets in terms of required housing supply and are consequently under pressure to release sites for housing.

Deal Sourcing
By utilising Affinity’s extensive network of introducers and strategic partners we are able to specify our investment criteria to our partners and subsequently source a target site.

Read More

Site Analysis & Acquisition

Sites are filtered through a rigorous assessment of all planning policy considerations, the planning history of the site and surrounding area to create a shortlist of those with the best development potential. This research can uncover past planning permissions and refusals, along with any onerous planning obligations which could impact the viability of a scheme.

Land Club, together with our advisers undertake comparable valuations of recent sales transactions to assess the likely value of a proposed development. It is necessary to look at market conditions and the costs of employing specialist consultants, as some planning applications need to be accompanied by detailed assessments with regard to issues such as contaminated land, heritage, trees, archaeology and ecology.

Affinity have in-house models which have been designed and tested to remove possible complications and, by forecasting returns, model out best and worst case scenarios.

Site Assembly

Once a site is acquired and within our remit, a dedicated team of internal and external experts will be assembled to compile a detailed business plan, budget and planning timeline. Once the methodology is established, the assembled team works as one to deliver the objective.

Exit Strategy

Once we obtain planning permission for the site, the land will then be sold to developers or built out by a delivery partner; which may or may not be associated with the Affinity Group.

Bond Opportunity

“Buy land, they’re not making any more.” – Mark Twain

This is your opportunity to earn a target 6% gross interest per annum over three years whilst also helping to address the UK's housing crisis.

The opportunity to invest in strategic land arrives at a significant moment in our country’s history. A lack of good quality, available housing is a national problem, where construction of new and suitably community-orientated developments have not kept pace with our economic and population growth.

Consequently, local authorities are coming under increasing pressure to approve planning applications and oversee the development of promising sites. One of the government's key challenges in meeting this target is to find the land on which to build. Let’s help them and secure potential returns in the process.

Read More

Our business model for the Land Club Bond is simple. We will raise funds to acquire land around existing and future transport hubs throughout the UK and will work with local authorities to obtain planning permission for these sites. The land will then be sold to developers or built out by a delivery partner. Where the planning permission demands it, and/or where it makes good business sense, the Company may seek a development partner who may be part of the Affinity Group or in partnership with them or a developer that has been approved by us.

Target schemes include vacant sites or existing sites with some commercial element such as leisure facilities, municipal buildings, pubs, former pubs, petrol filling stations, tertiary and secondary retail parades etc. where the company can enhance the value through obtaining planning permission for higher density usage.

The Bond itself is issued by Land Club Bond 1 Ltd, a subsidiary of Land Club Ltd. Land Club’s management team consists of property and finance experts who, collectively, have been directly involved in over £3.5bn of real estate transactions across the world, over a 20-year period.

Our management and specialist strategic advising expertise, connections and property knowledge will be important to the Bond’s success in seeking out suitable investment opportunities and working to gain the necessary planning to add value.

Further Questions

If you have a question about this property, please click below and submit a question to us directly.


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