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The completed units will typically be sold by one or more local agents following a competitive tender process, or a developers’ sales team.
The sale price is determined by a consensus of local agents, historic sales price data and analysis of similar developments in the local area. Projected sale prices are based on current market conditions and do not attempt to account for future house price growth.
A number of processes are put in place to ensure that properties are sold during the investment term and for the right price. If it is not possible to achieve a sale at the target sales price for any reason, then a decision will be made in the best interests of the investors to target as high a return as possible.
After a project has completed, all profits have been distributed to investors and all outstanding obligations settled, the SPV will commence a capital reduction exercise which will reduce shareholder equity (including share capital and outstanding retained earnings) to a nominal amount and allow the SPV to make a final dividend to shareholders.
Please see our terms and conditions and the articles of association for the relevant SPV for more information.