Build-to-let MBS by Unihousing

Unihousing (a property developer and letting business) successfully funded its October 2014 issue of of 12% Fixed Rate Loan Notes due 2019 ( Savings Bonds). The Bonds are a financial promotion so available to retail investors. Funds will be used to construct, and then let properties for student accommodation near Birmingham University.

Update Sep 2016: all apartments are now let

Dr Permjit Singh, proprietor of Applied Corporate Finance, arranged the transaction and commented:

“This is a great achievement for Unihousing – designing a bond that has successfully tapped new corporate and retail investor bases to fund modern student build-to-let properties. The bond structure provides flexibility and an attractive return with substantial security. We now have a great platform to launch further bonds for investors to invest in more of Unihousing’s student build-to-let projects.”

Dr Fickert, founder of Unihousing, said:

"Unihousing is very pleased to announce it has successfully funded its first retail bond, raising over 80% of its target amount of £1 million. The Unihousing bond is unique because investors may invest multiple times so it is a savings product, and they may withdraw their investment after two years without penalty. Our bond has enabled us to diversify our funding base and build modern, safe, and attractive student accommodation.”

Bond features:

An option to redeem after 2 years (and annually thereafter) up to the final 5 year term

• A fixed rate of 8% rising to 12%pa

• No arrangement or annual management fees

• Investment in Bonds may be made more than once

• A personal guarantee by Dr Fickert

• Investors have a first fixed legal charge over the property

Bond documents have been approved by by a firm (authorised by the Financial Conduct Authority) as a financial promotion under FSMA 2000

The Bonds will not be listed and are offered to the public directly through Unihousing’s Receiving Agent, Applied Corporate Finance