How Can Acorn Provide Security To Investors
At Acorn, we understand just how important security is – especially in times of uncertainty, it’s why we insist on transparency and robust practices that safeguard your investment.
To date, we’ve repaid more than £210 million in loans and paid nearly £40 million in interest, illustrating our commitment to investors – here’s how we’ll continue to ensure that we protect the trust you’ve placed in us.
Bonds are secured by debenture which is in essence an agreement ensuring investor capital is protected if interest or capital can’t be repaid. It means that in the event of default, assets can be seized and sold to repay investor loans.
In addition to a debenture, our parent company RST Group Holdings Limited, provides a corporate guarantee to ensure investments are protected. With a total group fair value of £60 million and net assets worth £18.8 million, we’re confident that our payment obligations can be met.
To further protect investors, our independent security trustee regularly monitors our ability to fulfil our responsibilities. This is supported by quarterly reports that include progress updates which are assurance that our business plans are adhered to.
Prime market positioning
As well as providing asset backed security, we employ a robust and carefully executed business strategy that strengthens our ability to reassure anyone who chooses to invest in Acorn property bonds.
A central part of that strategy is our market position. As housebuilders with 25 years’ experience, our five regional offices develop only in areas of high demand and provide much needed quality homes to meet the market needs.
Our regional officse and staff give us a wide network of expertise from which to draw, they also provides us with unique insight into local markets – enabling us to identify those areas with low supply but high housing demand.
As a result, our focus has been to provide homes which appeal to a broad audience in all age groups and primarily those who are owner/occupiers. Our concentration on building homes at a reasonable and competitive price point has also meant that Brexit uncertainty has had a limited impact on our overall business. We also believe that our strategy to continue to provide quality, high spec homes in desirable locations is well set up to weather the storms of any future economic uncertainty.
Robust risk assessment
Our business strategy is built around our Optimum Development Solution process. This extensive procedure allows us to identify project risks at all stages from site selection through to detailed market demand analysis.
By following these strict guidelines, we can identify and navigate potential risks, minimising stumbling blocks while maximising the opportunities to boost profits. All our projects are assessed by our regional teams who take into account planning applications, project deliverability, construction costs and, of course, profitability. Projects are only given the green light after further rigorous evaluation by the group board.
Hand in hand with due diligence go our stringent multiple stage tender processes that ensure costs our construction costs are both fair and realistic. We use vetted professionals, supervised by our own teams in order to maintain the high standards synonymous with homes built by Acorn.
Managing risk with a diverse portfolio
Risk is an inherent part of any investment, but we’ve gone to great lengths to mitigate the risks you, as our investor are exposed to. Investing in Acorn property bonds isn’t just a way to diversify and strengthen an existing portfolio – with a choice of fixed interest options, it’s also an opportunity to obtain a secure income stream.
To invest you’ll need to be a certified high net worth investor, certified or self-certified sophisticated investor able to invest a minimum of £5,000. If you can reinvest, you’ll also benefit from an additional 3% bonus at the end of the agreed term, further bolstering your return on investment.