Real Estate Investments
Monthly Income Bonds
Up to five years
You may give notice to have some or all Income Bonds repaid without penalty after holding them for thirty months.
4.90% per annum. Bond interest tracks changes in Bank of England base rate between 0.75% and 5.0% per annum, plus 4.40%. Interest is payable on the last working day each month.
5.00% average annual equivalent rate
2.00% per annum payable on the last working day each month.
An additional interest amount is payable on the fifth anniversary equivalent to 35% of the sum originally invested.
8.02% average annual equivalent rate
Please download the Information Memorandum to read full details
The Bonds are issued by Real Estate Associates (GP) plc. The directors have several decades’ property experience and have run this Company since 2003.
We will use finance raised by issuing the Bonds to make loan, equity and direct investments secured on UK property.
We intend to raise up to £20m by issuing up to 100,000 Income Bonds and 100,000 Capital Bonds at £100 each. You may select all Income Bonds, all Capital Bonds, or any combination.
The minimum subscription is £5,000 for 50 Bonds and then in increments of £100. There is no maximum subject to the overall £20m limit.
When making investments using finance raised from this offering, we will register first or second charges over specified UK properties and maintain a maximum average 75% loan-to-value ratio.
Bonds will be issued on the first day of the month following receipt of the application with interest commencing on the date of issue. Bonds will be repaid on the fifth anniversary of issue. You may redeem Income Bonds after thirty months. We may repay the Bonds at any time. The Bonds are not transferable.
On the repayment date the original amount invested (ie £100 per Bond) will be repayable. Capital Bonds also receive a Repayment Bonus.
Returns on this website are quoted gross of tax. The actual tax treatment depends on a Bondholder’s own tax status. Corporate investors, SIPPs, SSASs and other pension schemes may be entitled to receive interest gross. For most other investors we are required to withhold basic rate tax (currently 20% which may change in future), remit the tax to HMRC and provide you with a tax certificate. Bondholders subject to UK income tax at rates exceeding the basic rate may be required to pay additional tax.
The protections afforded by the Financial Services and Markets Act 2000 including recourse to the Financial Ombudsman Service and compensation entitlements under the Financial Services Compensation Scheme do not apply. The Bonds are not transferable. Bondholders cannot redeem Capital Bonds early. Early redemption of Income Bonds by Bondholders is subject to restrictions. You should not invest if you may need to realise your investment prematurely. Returns are not guaranteed and you risk losing some or all of your capital. Please refer to the Risk Factors section of the Information Memorandum for more details of the risks associated with investment in the Bonds. All prospective Bondholders are strongly recommended to seek advice on the suitability of this investment.