HJ Collection Property Loan Notes Review

HJ Collection property loan notes are offered as an investment option for those who wish to gain an entry into the UK property market without actually owning one, or those who are looking for an alternative to investments like buy-to-let.

HJ Collection is a UK-based property developer that focuses in transforming abandoned commercial buildings into residential communities by leveraging Permitted Development Rights in Tier 2 and Tier 3 cities. The firm searches for a development site, finalizes or refinances said location, and rents it out or sell it.

If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me (advice@adamfayed.com) or WhatsApp (+44-7393-450-837).

Ultimately, investing into loan notes always carries big risks, and you could lose all your money.

Before making an investment, investors should do extra due diligence on the underlying real estate and the investment’s terms.

HJ Collection Property Loan Notes: What are they?

Property loan notes are usually offered by individual developers, and investment returns are dependent on the skills and undertakings of that particular developer.

The HJ Collection property loan notes offer an enticing fixed yields.

Who can invest in HJ Collection property loan notes?

• High Net Worth Investors – those with yearly incomes over £100,000 or savings surpassing £250,000
• Sophisticated Investors – individuals with past expertise in comparable or different investing opportunities

HJ Collection Property Loan Notes Investment Performance

In February 2022, HJ Collection reportedly repaid more than 5 million British pounds to its investors.

HJ Collection Property Projects

Previous projects include:

–Wakefield’s New Commerce House

–Halifax House

–King Charles House

–Globe Works

–63 Bradshawgate in Bolton

These developments have all been created to a high standard, offering town center accommodations that satisfy the demands of green living. These developments resulted in improvements in property values ranging from 27% to 125%.

The projects with 10 to 63 units that make up HJ Collection’s current property bond portfolio are intended for a variety of developments and conversions.

HJ Collection’s current property bond portfolio consists of projects with 10 to 63 units, targeting various conversions and developments. It involves turning buildings in Bracknell, Ipswich, and Stafford into apartments.

Weybridge and Bracknell have remarkable Gross Development Values (GDVs) of £9.80 million and £6.77 million, respectively.

Every project is designed to increase value and satisfy consumer demand.

Pros and cons of HJ Collection Property Loan Notes

Advantages of property bonds 

• HJ Collection property loan notes are well-diversified
• HJ Collection says it doesn’t charge a direct fee
• Compared to direct property management, property bonds offer a simplified, hassle-free option

Risks of property bonds 

• Investors can lose all money invested as it’s an investment with high risk
• These are illiquid, so investors might encounter difficulties selling them before the investment period expires
• Investors might not get their original investment back or even their anticipated returns if HJ Collection or the underlying property developers default on the bonds.
• Inflation risk affects property bonds because rising inflation can lower the value of the underlying assets
• Overall the risk-adjusted returns, in our view, aren’t good.