Value Creation
Only when real value meets opportunity can something truly special be created
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Some of our investment offerings are only for qualified investors and are typically executed on a deal-by-deal basis. We provide our clients with the deal attributes, a clear business plan and a targeted return on investment.
We provide a full-service partnership including competent legal framework and efficient tax structures for sophisticated investment opportunities. Furthermore, we also have direct investment and joint venture options for private clients wanting access to high performing assets.
For traditional buy to let investors, we can help structure the most efficient portfolio when it comes to acquiring UK real estate. We will consider your position from a tax perspective, liquidity, financing capabilities and ultimate exit strategies when determining the best structure and types of property that are best going to serve your ultimate goals and ambitions.
This is not a one size fits all scenario and making sure you have this step-in place first, is imperative to optimising your future prosperity. Through our extensive network, we can help you build the portfolio you desire, while gaining you access to a consistent stream of suitable opportunities.
If this is something you would like to discuss further, then get in contact and one of our portfolio managers will be happy to have an initial consultation to discuss your individual situation.
This form of investing has become extremely popular with investors since the recession in 2006, as lending capital became more restrained from traditional banks, many major private equity firms and HNW investors have filled the void and taken full advantage by placing their capital directly into development projects. Savvy Capital works with ‘qualified’ investors raising capital in the form of mezzanine finance to work alongside our equity partners and senior debt lending facilities into wisely chosen development sites.
Our mezzanine investors sit above our equity partners on the capital stack and receive a clear fixed rate return of 15% per annum. This offering also comes with added security over the site in the form of a 2nd legal charge which is recorded & registered at the land registry department.
KEY PRINCIPLES
- Only available for high net worth, sophisticated or qualified investors
- Minimum loan requirement of £250K – secured over the asset via 2nd legal charge
- Loan terms typically between 12 to 24 months • Return on capital fixed at 15% per annum
- Fixed return not subject to cost overrun or delays in build or eventual sale
- Interest is earnt throughout project – until repaid in full
- FCA regulated security trustee to oversee loan
- Option to invest personally, through a corporate entity or pension
- Excellent tax benefits compared to traditional property investing
- Complete armchair investment with regular updates
We have two joint venture development models that provide opportunities over both the short and long term for qualified investors looking for higher risk options than direct purchases.
Our short-term offerings are very similar to our development finance model but as an equity partner, you share the added risk and reward of the development project. The focus is on acquisition of viable sites to develop and sell upon completion, with targeted returns of 22%+pa and timeframes typically between 12-24 months.
We also provide a long-term portfolio building strategy – where we build, refinance and jointly hold onto the asset with our equity partners. Any initial capital injection is paid back after refinancing, creating the opportunity to continually repeat the process. This will grow the portfolio’s asset column in-turn creating further asset management and financial engineering opportunities that can be taken advantage throughout the venture.
One of the key fundamental aspects to achieving superior returns and performance, is active management. This includes constant overview and analysis of assets, finding opportunities to improve and further enhance returns. We use both proven hands-on practices and innovative technology to keep each asset performance under regular review.
Over a sustained period, the difference between an actively managed portfolio and a non-managed one can be tremendous in terms of returns and profitability. Many individual investors are not actively monitoring the performance of their assets which compounded over many years, will have a negative impact on overall performance and is something that should not be underestimated.
We are extremely proactive and innovative asset managers, always focused on minimising risk, reducing operating costs and enhancing performance. Our full commitment to our partners means our focus and expertise are firmly concentrated on the objectives.
We aim to be the partner of choice when it comes to investing in the UK real estate market. We realise that to be effective, we must consistently deliver results above the standard. That focus and determination at being best in class keeps us motivated and driven to exceed expectations. We are extremely confident that once your investment journey begins with us, you will be a continuing partner for the foreseeable future.