St Mark Homes (NEX: SMAP), the housebuilder operating mainly in London and the South East of England, has completed its full P2P investment lifecycle with Crowdstacker. The St Mark Homes Bonds offered to investors a 6% p.a. return over a 30-month term, and over 531 investors took up the opportunity. The bonds raised £3,465,157, which was used to build properties across the South East of England.
A great example of Crowdstacker investments in action
The St Mark Homes Bonds completed the investment term and Crowdstacker investors received their full capital repayments as well as interest in early July 2020.
“We focus on businesses that need to raise larger sums of money to help them grow, create jobs and reach the next level of success,” explains Karteek Patel, CEO of Crowdstacker.
“The process of directly linking investors with businesses that need to diversify or increase their funding lines is becoming more established every year.
“St Mark Homes Bonds is a prime example of an investment that has enabled investors to earn an inflation-beating 6% p.a. return on their money over a 30-month term, at a time when savings accounts or cash ISAs are struggling to do the same.”
Building throughout the South East of England
St Mark Homes develops residential-led projects located in London and the Southern regions of the United Kingdom. The business primarily targets the sub £1,000 per square foot residential sales market with a particular emphasis on developing schemes which consist of units that can be made available for sale under the £600,000 London Help to Buy limit.
The Group typically undertakes its business within special purpose vehicles and on a joint venture/profit sharing basis with other housebuilders. This strategy has helped the Group to generate profits and increase distributions to shareholders in recent years.
St Mark Homes has undertaken joint venture projects on sites in Sutton, Hounslow, Battersea, and Wembley as well as projects in St Margarets Waterside, Richmond, London.
Throughout the term of the Bond, investors were able to stay updated with St Mark Homes projects and business, periodically, through their investor dashboard.
How the Bonds worked
The funds raised were lent to St Mark Homes Plc and used to finance residential-led property developments, eligible to fit in with the Governments ‘Help to Buy’ scheme. Investors were able to invest from £500 for a 30 month period. Investors received a highly competitive, fixed, 6% gross per annum return, paid quarterly.
Crowdstacker investments can offer built-in security and tax efficiency
The focus with St Mark Homes Bonds was on putting in place security.
The Bonds were secured over the assets, property, and undertakings of St Mark Homes Plc via a first ranking debenture.
ISA eligible investing
The Bonds were eligible to be held in an Innovative Finance ISA account (IFISA) as well as the standard P2P Account, where investors could benefit from the Personal Savings Allowance (PSA). This offered investors the ability to access tax-efficient investments, subject to their own individual tax status.
Your capital is at risk if you lend to businesses. Lending through Crowdstacker is not covered by the Financial Services Compensation Scheme. Tax treatment is dependent on an individual’s circumstances and may be subject to change in the future. For more information please see our full risk warning.