In this video we review the Fixed Income 10% and 12% per annum return loan Note investment: Godwin Capital . UK Development Investment
This article we will be doing an analysis on the Fixed Return Income Loan note Investment from Godwin Capital.
*DISCLAIMER: This video is simply a review of an existing publicly available investment. It is not mean to be taken as financial advice and Compare Return takes no liability for any losses incurred. This investment is reserved for High Net Worth investors and you should always seek professional advice before investing.
Due Diligence: the importance of undertaking that process before investing in godwin income investment return notes.
1. Do you have at least a 10 year track record?
2. Do you have manage at least 1 billion dollars of assets?
3. Do you go through an FCA regulated security trustee?
4. Have you ever defaulted on any payments in your history.
Who are Godwin?
Godwin are a privately owned business set up in 2003. The company has two halves, the development half and the capital half. The two work hand in hand.
Board of directors: The company really took off when the ex KPMG, and Natt West directors came on board and they started to expand.
They have some real talent and experience on their board.
Now have offices in Mayfare London, Birmingham, Nottingham. Very much a national operation with over 1bn of pipeline and assets under it’s control.
They also have a board of 8 advisors which means that you’ve got a full set of 12 eyes and ears across any development.
What do Godwin invest in?
1. Roadside Retail: Drive through fast food/restaurants. Then you’ve got Euro Garages who are the fourcourt, fuell supplier and operator. Across the A road/motorway networks across the UK.
a. It’s open 24/7
b. Massive exposure
c. More people are now using drive through/delivery especially with Covid-19.
The operators sign 25 year leases. These are signed by the parent companies, not the franchisees which is a major bonus. With the buildings and the lease attached to them are now sold onto pension funds/family offices or income fund managers/insurance companies or finance institutions. This is the exit of selling these investments to financial institutions is where the profit lies.
2. The discount supermarket arena: Smaller supermarket chains focused on the ‘basics’ daily purchases.
52 new Supermarkets for Aldi and 60 for Lidl’s.
3. Build To rent: B2R, residential property that is for lease only.
This is a massive growing market in the UK now. In 2019 it was the most heavily invested in housing sector in the UK as the average age of a first time buyer in the UK is now 45 years old. Capitalising on the 18-45 buyer.
What is the offer? It’s a short term investment a ‘loan note’ which is a 2 year investment.
There is two structures. Either an income basis which is paid semi annually of 5% every 6 months (10% per annum) or a deferred option, which is where you receive one payment of 24% (12% per annum). This is alongside the return of your initial capital.
Security: An investment means absolutely nothing unless I understand the security. You can tell me how great an investment is or how great a company is, but unless I understand the security, then I am not investing. Godwin income investment return structure is outlined below.
There have been 8 rounds of Godwin so far. In the past 15 years 100% of Godwin investments have paid back clients every single coupon plus their original investment. They have a 100% on time and full payment track record. Blue water capital are the security trustee. They act as the FCA Authorised security trustee. You as the investor have the first ‘legal charge’ over the assets that Godwin invest in. This is the same level of security that a bank would have over a house if say you were to take out a mortgage. A first legal charge structure is one of the most secure ways possible of investing in property. There is also a debenture around the Godwin Capital bank account for the Godwin Capital 8 investment. This means that if Godwin Capital go insolvent, then they can’t access the clients money within the Godwin 8 account.
This article was put together by Ryan Cullinan – ACSI, DipFA: