Westway ‘Social housing’ IFISA Targets 8.5 per cent Returns
Property developer Westway has launched its first Innovative Finance ISA (IFISA) offering, targeting returns of up to 8.5 per cent, per year.
The Westway IFISA allows investors to lend money to property developers in the supported housing sector. The money raised will be used to buy and operate residential and supported housing properties across the UK.
Westway’s IFISA investments will be structured via a transferable bond, which offers security in the form of a floating debenture and a charge on the property portfolio.
“Traditionally, property development projects of this scale have been funded by banks and institutional investors,” said a Westway spokesperson. “But the bond structure offers smaller private investors the opportunity to invest in large-scale projects in the UK housing market.”
All UK taxpayers are eligible to invest, although there is a minimum deposit of £10,000. Any further investments must be paid in £1,000 increments.
All investments must be held for the full five-year term, and interest can either be paid twice a year (in January or July) or rolled-up and delivered at the end of the loan term. This means that a £10,000 investment earning 8.5 per cent, per year, would be worth £14,500 after five years – a tax-free return of 45 per cent.
Westway is an established property developer whose management team has a proven track record with more than 30 years of market expertise. It specialises in the HMO and supported housing sectors.
“The provision of quality homes for people with support needs is a serious concern for both local and national government,” said a Westway spokesperson.
“Currently, there is a shortage of suitable supported accommodation, from both local authority provision and the private sector. The [we are] seeking to purchase property, predominantly across the South East with the focus on Kent and the Thames estuary.
“The directors believe that this strategy is expected to achieve a high yield from the acquired assets due to the rental income achieved through the various government allowances.”
Updated: Friday, March 15th, 2019