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LARES Prop­er­ty

LARES UK Afford­able Hous­ing For fur­ther enquiries con­tact: investor@blackmanta.capital Dig­i­tal Bond Invest­ment
Oppor­tu­ni­ty
Reg­is­ter PE Firm

Dig­i­tal debt instru­ment gen­er­at­ing fixed returns from UK Social Impact real estate

LARES is an oppor­tu­ni­ty to invest into income pro­duc­ing assets, which rep­re­sent frac­tion­al par­tic­i­pa­tion in a pre­ferred debt instru­ment to finance acqui­si­tion of high-yield­ing, afford­able res­i­den­tial homes in the Mid­lands and North­ern England.

LARES is debt financ­ing of an afford­able hous­ing project — “UK Com­mu­ni­i­ity Homes Group — Impact Inno­va­tion Income” (UKCH), which is seek­ing to acquire up to 10,000 ten­ant­ed afford­able hous­ing prop­er­ties (main­ly 2–3 bed­room hous­es and apart­ments and HMOs) in the Mid­lands and North­ern Eng­land. With a com­bi­na­tion of pur­chas­ing pow­er to buy large col­lec­tions of prop­er­ty at a time, and the reduced costs of economies of scale in man­age­ment, the project is achiev­ing gross rental yields of 8–12% p.a.

 

The port­fo­lio will take advan­tage of long-term mar­ket trends (short­age of afford­able hous­ing in the UK, more peo­ple rent­ing, gov­ern­men­tal pref­er­ence of pro­fes­sion­al land­lords etc…) to pro­vide val­ue while pro­vid­ing an oppor­tu­ni­ty for work­ing-class fam­i­lies and indi­vid­u­als to get qual­i­ty hous­ing at an afford­able price.

LARES Investors pur­chase dig­i­tal bonds issued by IDAP Alter­na­tive Invest­ments S.à r.l., with matu­ri­ty in March 2025 with 100% redemp­tion price and a 7% annu­al return paid in sev­en semi-annu­al coupons.

HIGHLIGHTS

The UKCH team has over 80 com­bined years’ expe­ri­ence in real-estate and cor­po­rate finance.
The UKCH team has a proven track record in the afford­able hous­ing sector.
Cur­rent occu­pan­cy rates of tar­get prop­er­ties are over 90%.
Rents in the afford­able hous­ing sec­tor are sup­port­ed by the UK gov­ern­ment, lead­ing to increased stability.
The unique com­bi­na­tion of invest­ment strat­e­gy and prop­er­ty man­age­ment tech­niques allow for com­pet­i­tive, risk-adjust­ed returns in the marketplace.
UKCH financ­ing is man­aged by XEG Prime Real Estate Fund AIFLNP V.C.I.C. LTD, an EU licensed real-estate fund.

INVESTMENT STRATEGY

UKCH is acquir­ing, pri­mar­i­ly, ten­ant­ed 2–3 bed­room, ter­raced hous­es and apart­ments in the Mid­lands and North­ern Eng­land using a net­work of local sourc­ing and prop­er­ty man­age­ment firms. These regions are rel­a­tive­ly dense with gov­ern­ment-sup­port­ed areas that are per­fect for steady rental yields from work­ing fam­i­ly ten­ants, which tends to be a rental prop­er­ty seg­ment unaf­fect­ed by downturns.

The goal is to acquire cash-flow gen­er­at­ing, res­i­den­tial assets in the UK with no per­mit­ting or build risk. Most prop­er­ties are ten­ant­ed upon acqui­si­tion and there­fore cash flow pro­duc­ing from day one. The aver­age rents of GBP 500–600 have been sta­ble over sev­er­al decades and can be well sup­port­ed by aver­age wages in the area of GBP 1,200 per month. Due to the local short­age of afford­able homes the occu­pan­cy rate is kept high, often exceed­ing 90%.

 

Apart from a sta­ble source of income, the UKCH invest­ment strat­e­gy is also to have its own pos­i­tive impact strat­e­gy regard­ing improved ten­ant liv­ing con­di­tions and sup­port of local communities.

 

UKCH is already acquir­ing prop­er­ties using its seed cap­i­tal, qual­i­fied investor funds, and local UK bank financ­ing, and is suc­cess­ful­ly rent­ing the prop­er­ties between 8% and 12% gross yield. LARES will enable UKCH to extend their acqui­si­tion by 5,000 to 10,000 addi­tion­al units over the next 36 months.

 

More infor­ma­tion about the com­pa­ny can be found under http://www.ukc-homes.com.

SAMPLE INVESTMENT

This acqui­si­tion in New­cas­tle is a per­fect exam­ple of a low-entry, poor­ly-con­di­tioned prop­er­ty in need of some clever refur­bish­ment to increase the mar­ket val­ue. This immac­u­late­ly pre­sent­ed, large 3‑bedroom ter­race prop­er­ty locat­ed in Hartle­pool, New­cas­tle, with a ten­ant pay­ing £500 per month has seen a cap­i­tal gain of 25% post pur­chase and refurbishment.

 

✓ £29,950 Pur­chase Price

✓ Ful­ly refur­bished £12,000

✓ Let out to sin­gle tenant

✓ £500 PCM rental Income at a yield of 11.3%

FAVORABLE MARKET CONDITIONS

Most UK PRS funds are acquir­ing new “build to rent” stock for mid­dle- and upper-mid­dle-class fam­i­lies, result­ing in a short­age of buy­ers for UKCH’s tar­get­ed prop­er­ties. Addi­tion­al­ly, dis­tress among ven­dors (eco­nom­ic cycle, Sec­tion 24, Brex­it and for­eign cap­i­tal exit, etc…) is caus­ing a large vol­ume of port­fo­lios to come on the mar­ket as exit-sales by pri­vate own­ers. These fac­tors com­bine to enable UKCH to acquire tar­get prop­er­ties at 10–15% below open-mar­ket value.

 

Obverse­ly, con­tin­ued lack of afford­able hous­ing in the UK (a short­fall of 300,000–400,000 homes per year) and the need for good pro­fes­sion­al land­lords to take care of the exist­ing stock, ensure high occu­pan­cy rates. That, com­bined with the fact that these ten­ants often have their rent gov­ern­ment sub­si­dized, sup­press­es cash-flow volatility.

 

These two fac­tors com­bine to enable UKCH to gen­er­ate 8–12% gross rental yields.

 

These con­di­tion have been heav­i­ly influ­enced by cur­rent events, such as Brex­it and Sec­tion 24, which have led to uncer­tain­ty in the mar­ket. A com­pa­ra­ble sit­u­a­tion occurred in Eng­land 17 years ago, with sim­i­lar indi­ca­tors not found in a typ­i­cal prop­er­ty cycle. This con­flu­ence of events and con­di­tions pro­vides a rare oppor­tu­ni­ty of which UKCH intends to take full advan­tage, and which rep­re­sent a unique invest­ment oppor­tu­ni­ty through LARES.

PROPERTY MANAGEMENT

As any buy-to-let prop­er­ty own­er knows, prop­er­ty man­age­ment can be a great deal of work. More­over, most prop­er­ty man­age­ment com­pa­nies are lack­ing in one of sev­er­al key areas:

 

✓ Geo­graph­ic coverage

✓ Scale

✓ Ser­vices

✓ Cost

✓ Pro­fes­sion­al­ism

 

To address these chal­lenges, UKCH has devel­oped a pro­pri­etary data­base of prop­er­ty man­agers. The estab­lish­ment of this data­base was both ardu­ous and time con­sum­ing, and it rep­re­sents a strate­gic advan­tage. With a tar­get of over 100 new acqui­si­tions per month, the abil­i­ty to quick­ly and effi­cient­ly assign a prop­er­ty man­ag­er who offers the pro­fes­sion­al­ism and ser­vices that are required for the social impact that UKCH desires to achieve, while simul­ta­ne­ous­ly oper­at­ing at a cost-point sup­port­ing tar­get yields, is crit­i­cal to long-term success.

 

After thor­ough analy­sis, UKCH has been able to assem­ble a vir­tu­al team of prop­er­ty man­agers who are able to address the cov­er­age, scale, and pro­fes­sion­al­ism required, pro­vide a com­pre­hen­sive man­age­ment pack­age, and gen­er­al­ly oper­ate at less than 10% of gross rent (before VAT).

 

Once UKCH has devel­oped a large base of assets and com­plet­ed the acqui­si­tion phase, it plans to shift its busi­ness strat­e­gy toward prop­er­ty man­age­ment and peruse the fol­low options:

 

✓ Devel­op own “In-House” prop­er­ty management

✓ Buy­out an exist­ing prop­er­ty manager

✓ White-label an exist­ing prop­er­ty manager

TEAM

UKCH has brought togeth­er a team of prop­er­ty, e‑commerce and tech­nol­o­gy experts that have helped build, shape and grow some of the UKs most well-known and inno­v­a­tive brands, includ­ing Dex­ters, Tesco, Sky, Thomas Cook, John Char­col, Won­ga and Trussle.

Jan Hybler, Paul Mor­ri­son, Craig Adder­son, Jaromir Smetana (from left to right)

Co-Founder / Director

Expe­ri­enced finance and real estate pro­fes­sion­al, asset man­ag­er and entre­pre­neur with main busi­ness pres­ence and focus on the UK and Euro­pean market.

Co-Founder / Director

Expe­ri­enced finance and real estate pro­fes­sion­al, asset man­ag­er and entre­pre­neur with main busi­ness pres­ence and focus on the UK and Euro­pean market.

Oper­a­tions Manager

Invest­ment and com­pli­ance spe­cial­ist with a record of deliv­er­ing & sup­port­ing invest­ment strate­gies inter­na­tion­al­ly that meet clients’ objectives.

Expert Com­mit­tee Member

2017- 2020 Mem­ber of the Expert Com­mit­tee with Raif­feisen Invest­ment Com­pa­ny (RIS) 2011- 2014 Mem­ber of the Expert Com­mit­tee with REICO Invest­ment Funds of Česká spořitel­na a.s. Mem­bers of the Expert Com­mit­tee — approves acqui­si­tions and dis­pos­als, as well as reg­u­lar val­u­a­tion of assets as required by the reg­u­la­to­ry body of the Czech Nation­al Bank.

DIGITAL BOND CLASSIFICATION

LARES Dig­i­tal Bonds will be issued by IDAP Alter­na­tive Invest­ment S.à r.l., a secu­ri­ti­za­tion plat­form oper­at­ing under the Lux­em­bourg Secu­ri­ti­za­tion Law. LARES Dig­i­tal Bonds are issued sub­ject to, and will be enforced in Lux­em­bourg, if applic­a­ble, in accor­dance with the pro­vi­sions of the Secu­ri­ti­za­tion Law 2004 and its Terms and Con­di­tions. LARES Dig­i­tal Bonds are issued as an unreg­u­lat­ed secu­ri­ti­za­tion under­tak­ing accord­ing to Secu­ri­ti­za­tion Law.

 

Bonds will be issued and reg­is­tered in elec­tron­ic form on the plat­form oper­at­ed by Globa­cap Lim­it­ed, an enti­ty licensed by the Finan­cial Con­duct Author­i­ty. Bonds do bear 7% annu­al coupon until its redemp­tion at matu­ri­ty day.

 

Elec­tron­ic form of bonds allows easy access by an investor to infor­ma­tion about his hold­ings at any time, and eas­i­ly to receive dis­tri­b­u­tions and redemp­tion. Dig­i­tal Bonds are ful­ly trans­fer­able until their matu­ri­ty, sub­ject to cer­tain restric­tions and limitations.

Step 1: Reg­is­ter and qual­i­fi­ca­tion as pro­fes­sion­al investor

Euro­pean investors inter­est­ed in pur­chas­ing LARES Dig­i­tal Bonds must reg­is­ter with BMCP GmbH and qual­i­fy as a pro­fes­sion­al client accord­ing to Annex II of DIRECTIVE 2014/65/EU.

 

Step 2: Com­plete sub­scrip­tion process
After com­plet­ing Step 1, we will con­tact you direct­ly and pro­vide you with the respec­tive invest­ment doc­u­men­ta­tion. Euro­pean investors inter­est­ed in pur­chas­ing LARES Dig­i­tal Bonds must obtain and read the Pri­vate Place­ment Mem­o­ran­dum (PPM) and Sub­scrip­tion Form of IDAP Alter­na­tive Invest­ment S.a r.l..

 

Step 3: Know Your Cus­tomer (KYC) and Anti-Mon­ey Laun­der­ing (AML) Compliance

We will walk you through a quick and easy iden­ti­fi­ca­tion and accred­i­ta­tion process online. This process pro­tects investors and ensures the integri­ty of the com­pa­ny. All poten­tial investors must pro­vide such infor­ma­tion to IDAP Alter­na­tive Invest­ment S.à r.l., as set forth in the Sub­scrip­tion Form to allow the Com­pa­ny to con­duct its required KYC and AML analy­sis and to oth­er­wise con­firm that the investor sat­is­fies any oth­er suit­abil­i­ty require­ments. IDAP Alter­na­tive Invest­ment S.à r.l. reserves the right to reject any invest­ment at its sole discretion.

 

Step 4: Pur­chase LARES Dig­i­tal Bonds
Send GBP, EUR or USD to Globa­cap Ltd. as the cus­to­di­an and Pay­ing Agent of LARES Dig­i­tal Bonds and obtain an eco­nom­ic inter­est in the LARES project in the form of LARES Dig­i­tal Bonds.

LARES DIGITAL BONDS

Tar­get Fund Raise

GBP 15,000,000

For pro­fes­sion­al investors from

Datei:Flag of Europe.svg – Wikipedia Europe

Issuer IDAP Alter­na­tive Invest­ment Sàrl
Juris­dic­tion Lux­em­bourg
Total Invest­ment Volume GBP 15,000,000
Min. Invest­ment Amount for EU Investors GBP 10,000
Prin­ci­pal Amount GBP 10,000 per Dig­i­tal Bond
Instru­ment Type Bond
Cur­ren­cies GBP, EUR, USD
First Clos­ing Amount GBP 5,000,000
Term 43 months after First Closing
Expect­ed ROI 24.5%
Inter­est Rate p.a. 7% paid semi-annually
Redemp­tion Price 100%
Sec­ondary Trading Yes
For gen­er­al ques­tions about Secu­ri­ty Token Offer­ings please read our FAQs or Con­tact us.
Investor Doc­u­men­ta­tion
Avail­able upon registration

Slide Reg­is­ter

Inter­est­ed investors must reg­is­ter and qual­i­fy as pro­fes­sion­al client accord­ing to Annex II of DIRECTIVE 2014/65/EU. A pro­fes­sion­al client is a client who pos­sess­es the expe­ri­ence, knowl­edge and exper­tise to make its own invest­ment deci­sions and prop­er­ly assess the risks that it incurs.

If qual­i­fied as a pro­fes­sion­al client, BMCP will con­tact you directly.

Legal Infor­ma­tion

The infor­ma­tion of this Dig­i­tal Bond Offer­ing is exclu­sive­ly intend­ed for per­sons who are not locat­ed in or res­i­dent of cer­tain oth­er restrict­ed juris­dic­tions, and who are oth­er­wise per­mit­ted to receive such information.

Accord­ing to Arti­cle 1 (4) of the EU Prospec­tus Reg­u­la­tion (Reg­u­la­tion (EU) 2017/1129 of the Euro­pean Par­lia­ment and of the Coun­cil of 14 June 2017 on the prospec­tus to be pub­lished when secu­ri­ties are offered to the pub­lic or admit­ted to trad­ing on a reg­u­lat­ed mar­ket, and repeal­ing Direc­tive 2003/71/EC), there is no oblig­a­tion to pub­lish a prospec­tus if the secu­ri­ties are only offered to legal enti­ties or indi­vid­u­als which are “qual­i­fied investor” as defined in the Prospec­tus Regulation.

The infor­ma­tion of this Dig­i­tal Bond Offer­ing does not con­sti­tute an offer or an invi­ta­tion to pur­chase secu­ri­ties in any juris­dic­tion in which such offer or invi­ta­tion is not autho­rised or to any per­son to whom it is unlaw­ful to make such offer or invi­ta­tion. Users of this infor­ma­tion are request­ed to inform them­selves about and to observe any such restrictions. 

An invest­ment involves con­sid­er­able risks and can lead to the com­plete loss of the assets invest­ed. In the inter­ests of risk diver­si­fi­ca­tion, only those amounts of mon­ey should be invest­ed that are not required or expect­ed to be returned in the near future. How­ev­er, the risk is lim­it­ed to the invest­ment sum made and there is there­fore no oblig­a­tion to make addi­tion­al contributions.

The com­pa­ny to be financed is sole­ly respon­si­ble for all con­tents and infor­ma­tion pro­vid­ed regard­ing the offer­ing. BMCP GmbH acts as a pure inter­me­di­ary and assumes no lia­bil­i­ty for the accu­ra­cy of the pro­vid­ed con­tent. BMCP GmbH works on a suc­cess fee basis of up to 5% of raised capital. 

DISCLAIMER

 

THIS PAGE DOES NOT CONSTITUTE AN OFFER OF SHARES OR A SOLICITATION OF AN OFFER TO PURCHASE SHARES MADE TO ANY PERSON IN ANY JURISDICTION IN WHICH IT IS UNLAWFUL TO MAKE SUCH AN OFFER OR SOLICITATION. THE DISTRIBUTION OF THIS OFFERING IN CERTAIN JURISDICTIONS MAY BE RESTRICTED BY LAW. FAILURE TO COMPLY WITH SUCH RESTRICTIONS MAY CONSTITUTE A VIOLATION OF THE SECURITIES LAWS OF THE RELEVANT JURISDICTION. NO ACTION HAS BEEN OR WILL BE TAKEN TO ALLOW A PUBLIC OFFERING OF THE SHARES IN ANY JURISDICTION. THE SHARES ARE INTENDED TO BE DISTRIBUTED ONLY ON A PRIVATE PLACEMENT BASIS.

 

THE OFFERING IS ONLY AVAILABLE TO INSTITUTIONAL OR PROFESSIONAL INVESTORS WHO HAVE EXPRESSED AN INTEREST IN INVESTING IN THE COMPANY.