How Can Acorn Pay Investors A Monthly Income Payment?
At Acorn, we’re constantly striving to raise the bar, it’s one of the reasons why we’re an award-winning housebuilder. But it’s not just about building houses, it’s about building homes that communities actually want, while generating a constant and secure income for our investors.
Property bonds – an opportunity to earn a secured income
Acorn property bonds are an opportunity to invest in the creation of communities. Your investment helps us expand our business and deliver the homes needed in areas with low supply and particularly high demand, notably in the South-West. Our existing portfolio of sites will create more than 2,000 high specification homes over the next few years. The total value of this pipeline development is estimated at more than £1.1 billion.
We’re currently offering two fixed-rate income bonds providing monthly interest payments of 7.5% or 8.5% across a choice of two terms. As an alternative asset class, investing in Acorn bonds is a way to not only diversify your portfolio, but to earn a secured monthly income at a time of looming long-term economic uncertainty.
Based on a £50,000 investment, your yields would be:
|Three-year bond with interest at 7.5% pa||Five-year bond with interest at 8.5% pa|
|Total interest in each year 1 £3,750||Total interest in each year 1 £4,250|
|Total interest over 3 years £11,250||Total interest over 5 years £21,250|
|Return on investment 22.5%||Return on investment 42.5%|
If you’re an investor with the ability to plan further into the future, we also offer two fixed-rate growth bonds with compound interest payable annually at a rate of 9% or 10% depending on the chosen term. A three-year commitment would generate total interest payments of £14,751, a return on investment (ROI) of 29.5% while a five-year investment would result in total interest payments of £30,525 equating to an ROI of 61.05%.
How Acorn mitigates risk
While all investments come with inherent risks, we’ve endeavoured to mitigate them and have safeguarded bonds by debenture and a corporate guarantee issued by our parent company which has a group fair value of £60 million.
In addition, we employ a rigorous due diligence framework, ensuring we approach every project in the same meticulous manner in order to continually strike the right balance between creating desirable homes while maximising investor returns.
Integral to our approach is our different by design ethos which recognises communities and locations are unique and that the homes being built should reflect this. It means considering individual environments and landscapes, sourcing local materials and skills in order to sustain existing communities while enhancing them with beautiful and much needed homes.
Our combination of due diligence and innovative design has cemented our reputation as experienced, quality housebuilders and we’re proud to be a development partner of choice for numerous national and regional agencies and landowners. Nurturing these deep and long-standing relationships enables us to continually expand and fulfil our vision in addition to delivering the returns our investors have come to expect.
As an investor you can also take reassurance from quarterly reports filed by an independent security trustee that detail project plans and assesses budget management. The trustee also holds security on behalf of investors in the event of default.
Who can invest in property bonds?
To invest in one of our four fixed-income bonds, you’ll need to fall into one of the categories shown below and be able to meet the minimum investment requirement of £5,000:
i. Certified high net worth investor
ii. Certified sophisticated investor
iii. Self-certified sophisticated investor
As an investor, you won’t be able to redeem bonds early or transfer them. With this in mind, we would always recommend that you speak with your financial advisor prior to making an investment, as you would with any financial venture.
How to invest in Acorn property bonds
To find out more about our bonds, you can send queries via our contact form, email us at firstname.lastname@example.org or telephone us on 0203 858 9881. Alternatively, you can also apply to invest online.
If you’d like to see examples of the types of homes we design and build, you can explore our collections by lifestyle or discover our most recent developments including Hope House in Bath, Brandon Yard in Bristol and The Links in Porthcawl.