HJ Collection property loan notes are high-risk, illiquid investments issued to finance UK property development projects.
Investors do not own the underlying properties, and repayment depends on the issuer’s ability to complete its projects, generate sufficient proceeds and meet its obligations.
These investments are not comparable to holding cash, conventional bonds or directly owned property.
Investors could lose some or all of their capital, may be unable to exit early and may have limited protection if the issuer defaults.
This HJ Collection Property Loan Notes review examines the risks, structure and suitability of the investment. It is mainly intended for investors living outside the UK.
Before investing, investors should independently assess the issuer, underlying developments, security arrangements, repayment terms and consequences of default.
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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 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:
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Wakefield’s New Commerce House
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Halifax House
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King Charles House
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Globe Works
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63 Bradshawgate in Bolton
These developments offer town center accommodations for green living.
The projects that make up HJ Collection’s current property bond portfolio are intended for a variety of developments and conversions.
HJ Collection’s 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.
Pros and cons of HJ Collection Property Loan Notes
Advantages of property bonds
- Compared to direct property management, property bonds offer a simplified, hassle-free option, but this comes with massive risks.
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.