1 0% fixed rate secured bonds 2022 · the accepted wisdom is that houses ... major works and...

Max Property Investment Group Plc | A

MAX PROPERTY

INVESTMENT GROUP PLC

1 0% FIXED RATE SECURED

BONDS 2022 This brochure should only be read in conjunction with the

Information Memorandum relating to the Max Property Investment

Group plc 10 % Fixed Rate Secured Bonds 2022

1 | Max Property Investment Group Plc

This investment is directed exclusively at and intended to be used only by those persons categorised as a Self-

Certified Sophisticated Investor or High Net Worth Investor for the purposes of FSMA 2000. The material in this

document is for general information only and should not be regarded as constituting an offer or a solicitation to

buy or sell any securities, or investment advice. It is not directed to any person where (by reason of nationality,

residence or otherwise) the availability of the bonds is prohibited. If you invest your capital is at risk, you may lose

all of what you invest, and the money may not be readily accessible until the project is completed. This investment

is not covered by the FSCS.

Risk Warning

Max Property Investment Group Plc | 2

Why Max Property?

Max Property Investment Group plc (“Max Property”) is operated by established property, finance and legal

professionals with long-standing careers, as well as personal property investment experience in the UK.

The international team behind Max Property has identified three investment opportunities based on fiscal, legal,

political and economic factors. The launch of the UK operation follows the success of Max Property Fund in the

Netherlands and precedes the launch of an additional property investment structure in Germany.

Managing Director, Mark Lloyd, is a property investment specialist with over 30 years of business experience

behind him. He has successfully built a Property Sourcing Company, which locates undervalued property deals

throughout the UK. Through his training company, Property Mastery Academy, Mark passes on his knowledge to

budding property investors. He is uniquely positioned to apply his knowledge and contacts to source high yielding

UK properties for Max Property for the benefit of investing bond holders.

The UK property market remains an attractive and stable investment with prices 8% higher this year over last

year. By investing in the Max Property 10 % Corporate Bond, individuals can achieve the benefits of investing in the UK property market without the responsibilities, liabilities and potential problems associated with being a

private landlord.


Intertrust clients include:

70% of the Top 10 of the Fortune Global 500

44% of the Top 50 of the Fortune Global 500

70% of the Top 50 of the Private Equity

International 300

Our Partner, Intertrust, are the global leaders in

corporate and trustee services. Their role is to act

as company secretary, perform all the necessary

administrative functions and control the bank account

holding the investment monies.

This means that the money collected cannot be spent

without the approval of Intertrust, ensuring that only

property that meets Max Property’s strict investment

criteria can be purchased.

A restriction of sale is registered in Intertrust’s name

on all the properties purchased by Max Property; this

means that the properties cannot be sold without

their permission. These two safeguards ensure that

your money will only be invested as set out in Max

Property’s Information Memorandum.

Intertrust roles include:

Company Secretary

Bookkeeping

Administrative functions

Supervision

Control of bank accounts

Restriction of sale on properties

Intertrust is a global leader in delivering fund and corporate services, capital market solutions, private wealth and employee benefit solutions to multinationals, fund managers, financial institutions and business entrepreneurs worldwide.

Your Money In Safe Hands


Bonds are secured against UK property assets. Monies

are controlled by our UK trustee (Intertrust), the global

leaders in corporate services, operating since 1952.

10.0% fixed interest (+ 30% Profit Share) = * p.a. 13+% Projected

5 year investment term (option to exit on third anniversary)

Minimum investment £10,000

Target fund raise £4,250,000

Target portfolio value £10,000,000

Investment 100% secured by UK property

* Profit share paid out at end of term after portfolio has been sold and the audited accounts have been signed off.

All The Way Max Property Investment Group plc

is a UK registered company with UK

offices and UK directors. We use a

UK trustee and UK bank accounts,

and invest only in UK property.

ALL THE BENEFITS

OF BEING A LANDLORD

WITH NONE OF THE

HASSLE

Invest in UK property-backed corporate bonds


The Perfect Storm?

Expert analysts and industry commentators believe

that there has never been a better time to invest in

UK property. The question is “HOW”? Max Property

believe that the 10 % property backed corporate bond

provides one way of enjoying an attractive yield without

having to deal with the potential pitfalls of being a

landlord or directly owning property.

The Reasons Why

Whilst the cost of living continues to rise (now at its

highest since September 2013), poor or mediocre

performance of pension funds and low interest rates

mean that many investors are frustrated whilst others

are feeling the pinch. Keeping your money in the bank

or investing it in a pension may no longer be the most

appropriate investment strategy.

If you already own UK property you will know that

although prices have fluctuated during our lifetimes,

overall they have risen steadily and sometimes

spectacularly. The accepted wisdom is that houses

are a safe and excellent investment for the long term.

Indeed the 1874 expression “as safe as houses” is still

in use today.

However, regulation of the mortgage market, has meant

that many would-be investors just can’t obtain the

mortgages they need to step on to and up the housing

ladder. Census data tells us that in 2011 private renters

accounted for 46% of all households under the age of

35 across England and Wales, a figure that rose to 54%

in London. Among 35-49 year olds the level of private

renting almost doubled between 2001 and 2011, to

account for one in five households nationally.

Young people, it seems, are priced out of buying their

own homes. Savills are forecasting that the number of

private rented households in England and Wales will

increase by 1.2m over the next five years and levels of

owner occupation will fall by 202,000 households. This

would mean that by the end of 2019, over 24% of all

households across the UK would be in the private rented

sector.

Among the under 35s, the proportion of households in

the private rented sector would increase to 66%, with

homeownership falling to just 16% of the total. Even

in the next age band (35-49), home ownership would

fall to just 55% of all households, with private renting

accounting for 28% of households – rising to 38% in

London.

Landlords incur expenses relating to the acquisition

of a property, (e.g. sourcing, legal, surveyor, stamp

duty, estate agency and financing fees), management

(e.g. maintenance and repairs, refurbishment, gas and

Now?


electricity checks, periods of vacancy, council tax, insurance, replacement of broken appliances (if the property is

furnished), rent collection, eviction costs, accountancy expenses, cleaning, bank charges, depreciation, advertising

and travel) and sale of properties (e.g. capital gains, legal fees, estate agent fees).

When these costs are factored in, the net yield can be considerably lower. With Max Property’s fixed rate

corporate bonds you enjoy an attractive yield of 10 % p.a. for 5 years plus 30% profit share without the hassle

that goes along with being a landlord.

The minimum investment is £10,000, which means that you do not have to commit to the larger amounts typically

needed to invest directly in UK property or to take on a mortgage to finance the property.

Amount Invested Year1 Year2 Year3 Year4 Year5 Year6 Year7 Total yield

£100,000 Max Property Yield 10£ ,000 10£ ,000 10£ ,000 10£ ,000 10£ ,000 10£ ,000 10£ ,000 70£ ,000

Average BTL yield £4,500 £4,500 £4,500 £4,500 £4,500 £4,500 £4,500 £31,500

£50,000 5£ ,000 5£ ,000 5£ ,000 5£ ,000 5£ ,000 5£ ,000 5£ ,000 35£ ,000


£25,000 2£ 5, 00 £2 5, 00 £2 5, 00 £2 5, 00 £2 5, 00 £2 5, 00 £2 5, 00 7£1 5, 00


With our expertise, access to the market and proven investment strategy, we are able to acquire high yielding

buy-to-let properties to back the Max Property fixed rate corporate bonds.

Not only that, we take care of all property management issues allowing you to enjoy your 10 % fixed interest yield

free of the worry, hassle and complexities of being a landlord.

On exit the monies you have invested will be returned to you. If, at the end of the Term, the properties held by

the Company have increased in value and the final Company audited accounts show a profit in the Company,

30% of the profit will be shared with the Bondholder (“the Profit Share”). The potential Profit Share will be paid

30 days after the audited accounts have been finalised. We supply quarterly statements of our performance to

bond holders to that you can also monitor our performance. Investments are not free from risk and you should be

aware that your capital is at risk.


Legislative Changes

Maintaining a buy-to-let property portfolio in the UK can be challenging due to the associated expenses and

requirements such as lease extensions, running repairs and dilapidations, major works and tenancy agreements.

Various schemes, regulations and changes have recently been introduced which make the responsibilities of the

private landlord in the UK even more onerous, costly and time consuming.

One example is the Home Office issued right-to-rent scheme, which places the responsibility of verifying a tenant’s

immigration status upon the landlord. A rigorous procedure must be followed and failure to comply can result in

hefty penalties and even criminal charges against the landlord.

Landlords renting to 3 or more sharers have to comply with Houses of Multiple Occupation regulations. The

process is not straightforward, as in order to be approved for a licence, the landlord must ensure that the property

is refurbished in accordance with specific regulations (e.g. which include the installation of fire doors, locks,

special lighting, smoke alarms and the up keep of a register of checks on the property).

Other regulations include the tenancy deposit protection scheme, which often requires the use of an inventory

clerk and requires the landlord to conform to a list of administrative regulations. There are also regulations

requiring landlords to pay all estate agent commissions and preparation of contract fees, and a host of procedural

limitations which apply when a tenant fails to pay rent and requires eviction, resulting in months (and sometimes

years) of potential loss of income.


The fiscal landscape is already complex for buy-to-let landlords. Landlords need to understand, apply, and more

importantly, comply with many obligations across a wide range of taxes (e.g. stamp duty land tax, income tax,

capital gains tax and inheritance tax).

The buy-to-let tax changes introduced in 2017 have received a great deal of attention because they have

the potential to affect the profitability of a privately owned rental property portfolio, taking landlords with large

mortgages from an income to a loss by way of income tax deductions alone. Many unprepared landlords will be

forced to sell over the coming months as the properties they thought were assets will become liabilities.

In addition, landlords need to be aware of the abolition of the 10% wear and tear allowance, council tax discounts

for empty properties and capital gains tax allowances for non-residents; 3% stamp duty charge on second

properties and potential taxation on enveloped dwellings.

Tax Changes


Since the Brexit referendum Sterling has hit historically low exchange rates against other major currencies, thus

making investments in the UK for Euro, USD or other foreign currencies excellent value. Experts predict further

volatility for sterling exchange rates following the triggering of Article 50 of the Lisbon treaty in March 2017.

If you are purchasing a foreign currency with sterling or are converting a foreign currency back into the pound it’s

important to note economists are split to whether the triggering of Article 50 will bring certainty to the pound

which would cause the pound to strengthen and buying foreign currency would become cheaper or whether the

triggering of Article 50 means there is no going back for the UK and therefore the pound could weaken. 80% are

predicting sterling weakness compared to 20% sterling strength.

Sterling Exchange Rate


Investment Process

You complete the Subscription Form and

send it together with your Anti-Money

Laundering (“AML”) documents (see

Subscription Form for more details) to our

email address info@maxpropert groupy .com.

Intertrust will confirm receipt of monies

and will issue a Certificate to confirm your

investment.

You have read this Brochure and the

Information Memorandum (“IM”) and you

would like to invest in the 10 % Fixed Rate

Secured Bonds.

02

Once Intertrust has processed your AML

and you have been approved, investment

monies will be requested and you will have

three working days to transfer the funds

into the Intertrust controlled Lloyds bank

account (see Subscription Form for details).

Your investment starts the day the monies

are received in the Lloyds bank account.

Buy-to-Let properties will be purchased

according to the Investment Criteria set out

in the IM to ensure the interest payments

are covered.

After the Term the portfolio will be sold and

the monies will be paid into the Intertrust

controlled bank account.

A bonus interest payment will be payable

depending on the increase in equity

achieved.

06

A sale restriction will be registered in the

name of Intertrust to ensure the portfolio

cannot be sold without the approval of

Intertrust.

08

At this stage your original investment

amount will be returned to you.

10

Your money will be controlled by Intertrust

from start to end.

01

03

04

05

07

09

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mailto:[email protected]


Max Property was founded by a syndicate of property

investment professionals, with over 20 years of

experience in the industry. Through careful analysis

and due diligence research, a small selection of high-

yielding investment products were developed with the

intention of providing the main benefits of property

portfolio ownership without many of its disadvantages.

Max Property’s team is highly experienced in the

investment and property markets, having developed,

managed and marketed developments in various parts

of the world. Each of the Max Property companies is

established through a local special purpose vehicle

(SPV) and with local directors. Quarterly management

accounts and the annually audited accounts are

provided to all investors for full transparency and

control over their investment.

Mark Lloyd Mark is a professional property investor, with over 30 years of

entrepreneurship and property investment behind him. Along with his long-

term business partner, Jackie Reeves, Mark has grown 6 successful

businesses with 2 of these having been sold on the open market. He owns

a successful Property Sourcing Company, which looks for undervalued

property deals throughout the UK.

Property Mastery Academy is a private training company that, based on

Mark and Jackie’s considerable experience, educates property investors

across the UK through workshops, seminars and a comprehensive

mentorship program.

During his career, Mark has built up a large portfolio of properties in

various areas of the UK, incorporating residential, commercial and

development activities and has become an authority in the field of

property investing.

Paula Ruffell Paula is a lawyer specialising in Corporation Tax Dispute Resolution.

Having worked in the Solicitor’s Office of Her Majesty’s Revenue and

Customs (HMRC) for nearly 9 years before moving to the private

sector, she now

advises global companies on UK corporate tax issues such as diverted

profits tax, permanent establishment and transfer pricing and High Net

Worth individuals on issues such as domicile and residence.

Paula has been investing in property herself since 2006 and has

experience in refurbishing and managing London and Scottish property.


Why do you think you can get better properties then a private property investor?

Most property portfolios never reach the open market but are offered and sold between

professionals. Mark Lloyd is a property investment professional and conducts property investment

seminars throughout the UK. Through our strong network of property investment professionals we believe

we can access better deals than the average property investor.

How do I know my money is safe?

All investment money is transferred into an account controlled by Intertrust, and this money can only be

used to purchase buy-to-let property according to the Investment Criteria as set out in the IM. The

properties are also protected by a restriction of sale to ensure we cannot sell the portfolio without Intertrust’s

approval.

What happens if you cannot pay out the promised interest payments?

If for some reason the interest payment cannot be paid, or there is not sufficient money in the company

account controlled by Intertrust, the missing interest will accumulate and be added to the next interest

payment.

Can I invest through my SIPP/SASS?

In principle yes, as secured bonds are allowed to be included in SIPPs and SASS’, however each SIPP

Trustee has different guidelines and you will need to write to your own SIPP provider for confirmation that

your investment in Max Property bonds would qualify as a SIPP/SASS eligible investment.

Will commercial property be included?

Although Max Property’s focus is primarily residential, we will consider commercial

opportunities that fit the Investment Criteria.

How do I know that you will conform to the fiscal and legal obligations that landlords are obliged

to adhere to?

Ignorance of the law is no defence. We are experienced professionals and ensure that our lettings and

management teams are fully trained and adhere to the highest standards of conduct.

FAQ


Will I have access to company accounts so I can see how my investment is performing?

Yes. Quarterly management account and the annual accounts will be provided to investors.

Can I exit early if I have to?

Yes. There is the option to exit on the third anniversary of the fund. You will have to inform the

company a minimum of three months before this date if you would like to exit. The bonds are transferrable

and so there may be a possibility of transferring your investment to another investor.

Why are the interest rates so high?

The interest rates are high because they reflect the high yield basis of our model as demonstrated in the IM.

What happens if property prices fall during the investment lifetime?

UK property prices fluctuate, however over the long term they have steadily risen. Our investment

model and the yield we offer is based on rental demand rather than relying on an increase in the capital of

the properties. Further, we invest in a range of cities across the UK which means that the portfolio is

diversified.

Who will be in charge of the property management?

Each property portfolio will be managed by local property management agents. The rental income

will be paid to the bank account that is controlled by Intertrust.

What happens if you do not achieve the total fund raise?

A minimum of £425,000 needs to be raised for Max Property to start purchasing properties. As soon as

this milestone is achieved, properties will be bought and full details will be made available on the website.

Can I invest through my company?

Yes, you can invest through a corporate structure as long as your AML documents are accepted by

Intertrust.

What are the income tax and inheritance tax implications of investing through you?

Investors will need to seek their own legal/ accounting advice on the impact of their

investment. We do not provide financial, investment, tax or legal advice.

When is the start date of the investment calculated from?

Interest starts to accrue the day after your monies are received in the company bank account.

When are interest payments made?

Interest payments are made on fixed dates, being the 5th of January, 5th of April, 5th of July and

5th of October of each year.



Contact Us

Max Property Investment Group Plc

+44 (0) 203 695 6110

[email protected]

www.maxpropertygroup.com

35 Great St. Helen’s London EC3A 6AP United Kingdom

UK Company registered number 10597801

mailto:[email protected]

http://www.maxpropertyfund.com/

1 0% fixed rate secured bonds 2022 · the accepted wisdom is that houses ... major works and...

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