This post will look into the details of Ashbrookes loan notes offering.
Ashbrookes oversees residential developments, Houses in Multiple Occupation, and student housing in the Middlesbrough real estate sector. It has continued to have full occupancy and substantial capital growth since 2021.
However, investing in loan notes always carries big risks, and you could lose all your money.
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Some of the facts might change from the time of writing, and nothing written here is formal advice. So, potential investors shouldn’t invest or decide not to invest based on this review alone.
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Ashbrookes Loan Notes Investment
Investors can subscribe in pounds, euros, or US dollars, with minimum investment options of 20,000 pounds or 100,000 pounds.
The investment seeks to raise 3.5 million pounds under its Series 1 offering and 1.5 million pounds for Series 2.
The expected value of the developed assets is 7.5 million pounds.
Ashbrookes Loan Note Series 1
Offers an 18-month term with three options:
- Option 1A: With a minimum investment of 20,000 pounds, this choice pays out 18% interest in 18 months at a quarterly rate of 3%.
- Option 1B: This offering requires a minimum investment of £20,000 and offers a 20% interest rate which is paid as a lump amount at maturity.
- Option 2A: With a larger minimum commitment of £100,000, this alternative offers an 18% profit that is paid out monthly at a rate of 1%.
Ashbrookes Loan Note Series 2
This investment is structured for a shorter 12-month term and includes two options:
- Option 2B: Offers a 12-month interest rate of 12% with quarterly payments of 3% for a minimum investment of 20,000 pounds.
- Option 2C: Offers a 12% interest at a 100,000 pound investment minimum threshold, paid monthly at 1%.
The second phase of the John Street student housing project by Ashbrookes Group Limited is moving forward.
The Ashbrookes loan notes are backed by the property, which acts as the underlying asset and development project.
The John Street project is ideally situated for student housing because it is near Sunderland University and the city center in the Sunniside neighborhood. The industrial, aerospace, and digital technology sectors in this university town increase the area’s attractiveness to investors.
Pros and cons of Ashbrookes Loan Notes
Loan Note Advantages
- Interest payments provide income without the hassles of actual property ownership. The project backs the profits that loan note investors were promised.
- The assets connected to these projects might be traded to raise money if Ashbrookes were to default.
- If everything goes according to plan, Ashbrookes will be able to expand the company and pay the interest on the notes, which will indirectly help investors.
Loan Note Disadvantages
- It’s a very risky investment.
- Despite being backed by assets, the loan notes’ performance is nonetheless susceptible to changes in the market and the developer’s capacity to finish projects successfully.
- There is always a chance that the developer won’t make loan payments, which could result in issues like capital loss or foreclosure.
- After being invested, capital is usually kept locked away until maturity, which restricts access to money during that time. That means the investment is illiquid.
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