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The minimum investment in each project is £500 and we would strongly advise members to spread their investment across a number of projects with us to diversify their risk. One of the benefits of investing through Homegrown is the ease of building a diversified portfolio, which is very difficult to replicate through private investment.
Please note that under the Money Laundering Regulations (2012) you will be required to upload a copy of photographic ID (Passport or UK Driving Licence) where you make two or more investments or invest £7,500 or more with Homegrown in any 12 month period. You can upload this documentation any time here. Alternatively, a member of our Investor Relations team will contact you to request this documentation if and when it's required.
We will only ever launch projects on the platform that have been independently reviewed by our team, met our strict investment criteria and we believe will be attractive to you. But, we do not expect you to take our word for it, so all relevant information about each investment (such as the development appraisal, financial assumptions, market reports and sensitivity analysis) will be available on the platform with each listing so you are able to review this information before you invest.
Projected returns are calculated as:
(Gross Development Value (GDV) - Total Costs) x Share of Profits
Gross Development Value
Calculated as the market value of all completed units, based on current (not a projected future value) completed comparable sales in the local area.
Includes all costs associated with the development, including; Development Costs (eg land and build costs); Finance costs (eg interest on bank loans); Cost of sales (eg sales agent and marketing costs); and Fees and Corporation tax.
Share of Profits
Development profits are typically split between the developer and investors.
We have a strict investment criteria and will only launch properties on the platform that we believe will be attractive to you. But, we also aim to be completely transparent over the work we have undertaken to review each property, so you can make your own assessment of the opportunity and risk before making an investment.
A breakdown of funds raised will be included with each investment listing. But, typically funds raised by Homegrown, other equity investors and any bank debt will be used to fund development costs, which typically includes land and build costs, professional fees, statutory costs.
The objective of the funds raised is to cover the projected costs associated with building the development (including a contingency fund for unforeseen costs), but to ensure that excessive funds are not raised so as to negatively impact the overall return on investment.
Please note we will never ask you to invest more than the original amount you have invested.
We aim to invest in projects that are at a relatively advanced stage, where bank finance has been secured and planning permission received, which reduces the risk of a project not going ahead as planned. However, in the unlikely event that the development doesn’t go ahead we will immediately return all funds raised without deduction to each investor’s e-wallet where it can be withdrawn or reinvested.
The project plan and timeframes will be different for each property, but will be made clear on each investment listing and you will be kept up to date regularly on the progress of each investment through emails and your personal investor dashboard.
Our typical target investment term is 18-36 months from the date funds are raised to the date the project completes and all units are sold. The target investment term will be clearly set out on each investment listing to enable you to invest in projects that most closely align to your investment timeframe. These timeframes are of course informed estimates and may not be relied upon.
Yes. Following a successful investment, you will become a shareholder in a SPV, which has been set up to make an investment in your selected development. As a shareholder you have a right to vote on a number of key decisions that impact the investment, such as the approval of fees, disbursements and expenses made by the company, the frequency of management information, extension of the investment term and sale of the investment (listed as restricted matters in the SPV’s articles of association).
You may also propose other matters to vote on where at least 10% of shareholders support the proposal. The platform operates a chat forum post-investment which allows investors to easily communicate with each other and management.
For each matter you will receive an email and a notification will also appear on your investor dashboard inviting you to cast your vote by clicking on a link. Each vote will be open for a fixed timeframe. A special resolution will be passed where 75% or more shareholders approve a decision. You are under no obligation to vote on any matter. Where you opt not to vote within the relevant timeframe, it will be deemed that you have voted in favour of the special resolution proposed.
No. You will never be asked to put more money into a project after your original investment. All future costs will be met by the developer.
You can make an investment on the platform free of charge by using a debit card or by making a bank transfer. We accept investments made by credit card, but a charge of 3% will apply. You can also use any funds held in your e-wallet or rewards/credits to make or top-up an investment.
Funds made by bank transfer must be received within 48 hours or the associated investment may be cancelled. Bank transfers should be made using the following details:
Bank Name: SANTANDER UK PLC
Account Number: 10502606
Sort Code: 09-02-22
Please note that under the Money Laundering Regulations (2012) you will be required to upload a copy of photographic ID (Passport or UK Driving Licence) where you make 2 or more investments or invest £7,500 or more with Homegrown in any 12 month period. You can upload this documentation any time here. Alternatively, a member of our Investor Relations team will contact you to request this documentation if and when it's required.
There is a limit of £10,000 on card transactions. Investments in excess of £10,000 should be made by bank transfer.