HIGH-FLYING LONDON PROPERTY COMPANY JOINS FORCES WITH CROWDBNK TO LAUNCH EAST LONDON PROPERTY BOND PAYING 10%

– UK investors can take part in the regeneration of east London and earn 10% (gross) per annum paid monthly in cash.
– The mini-bond aims to raise at least £9 million to invest in the ongoing regeneration of the Barking area.
– Offers investors the security of an underlying property development, in this case the Barking Magistrates’ Court residential site
– The mini-bond is offered via CrowdBnk, the specialist crowdfunding platform which is democratising the investment market by offering retail investors access to small and medium-sized businesses which would previously have been off-limits.
LMSL Group, the property investment and development company, has today (September 7th, 2015) announced the launch of a mini-bond to raise £9 million to help drive the ongoing development of east London.
The East London Property Bond is a five-year, initial fixed-term mini-bond offering an interest rate of 10% gross interest per annum for investments starting from £1,000.(1)
The Bond is secured against the Barking Magistrates’ Court residential site, independently valued at £10.25 million by Lambert Smith Hampton.
The income is generated from LMSL’s extensive property portfolio situated across London, and built up over the last two decades.
As well as providing an annual income, payable monthly, the mini-bond also provides investors with an element of security as their investment is secured against bricks and mortar collateral. The mini-bond is structured so that investors have first claim over LMSL’s latest development at Barking Magistrates’ Court.
The recently completed site – made up of 37 rental apartments finished to the highest standards – provides investors with an additional layer of protection.
LMSL founder and chief executive Lahrie Mohamed says: “We are delighted to offer this mini-bond to investors keen to participate in the ongoing expansion of some of the most attractive areas of London’s booming property market.
“As a business which has spent 20 years investing in property across London, we believe strongly in the attractiveness of the asset class and its ability to generate attractive returns for investors over the long-term.”
The LMSL Group has teamed up with crowdfunding specialist CrowdBnk to launch the East London Property Bond. Since it was founded in 2013, CrowdBnk has established itself as a leading platform providing UK investors with access to some of the fastest-growing businesses in the UK.
Taking a fresh approach to crowdfunding, CrowdBnk places due diligence and its responsibility to investors at the heart of the fundraising process, and also invests in every business that successfully funds on the platform. Since launching, CrowdBnk has raised £17m for businesses, via a combination of both equity and debt-raisings.
Lahrie Mohamed added: “CrowdBnk’s approach to fundraising, which places the investor at the centre of the process, sits perfectly with our own ethos, focused on investing prudently and sensibly for the long-term. By offering the opportunity to invest in our business, we hope to help investors who may otherwise be unable to benefit from rising London property prices.”
CrowdBnk founder and CEO Ayan Mitra said: “Having helped a number of businesses raise over £17m from investors, we are delighted to launch the East London Property Bond.
“We vet all investments which we promote extremely carefully, with investor protection pivotal to what we do.
“Having met with Lahrie, we believe we have found a company which firmly believes in both the long-term potential of property, and in the concept of crowdfunding to provide retail investors with more access to fast-growing businesses.”
For further details on the mini-bond, please visit www.crowdbnk.com.