Manchester property investment firm completes first 'Share Deal'
11 September 2014
Harewood Associates, a property investment company located in Bolton, Greater Manchester, has successfully completed its first ‘Share Deal’ residential development, earning investors a 29.2% yield in less than 12 months.
The organisation bought and redeveloped a property in the Ingol area of Preston. The three-bedroom property was purchased and redeveloped for £116,102 and transformed into a zero-carbon, ultra-modern home before being sold for £150,000, netting a gross profit of £33,898 divided amongst investors, the firm claims.
The ‘Share Deal’ allows investors to put in a minimum of £5,000 into a residential development owned by a single purpose vehicle (SPV) – a private limited company set up by Harewood for the sole purpose of buying, developing and selling a single residential development.
Each investor owns shares in the SPV and when the property is sold, they receive a share of the profits – typically between 15% and 25% per annum with the Share Deal – in proportion to the amount of shares held.
Peter Kiely, Director of Harewood Associates, said: “From start to finish, everything about this development went exactly to plan and we’re delighted to have completed the project on time, securing our investors a quick and profitable return on their money.”
“The UK property market is enjoying a real boom period and it makes sense for people with money in the bank to take advantage of this and make their savings work harder, rather than leaving them sitting in savings accounts that are often paying interest rates of less than 1%.
“This particular project was a single property but many of our projects are multi-home sites in highly sought after areas. The key thing is to ensure our investors get the best returns possible and we’re delighted to have earned almost 30% with this development.”