Equity. Investors purchase shares in each limited company SPV which is reflective of the sum invested £1 = 1 share.
An SPV means a Special Purpose Vehicle, which is a separate legal entity created for a specific purpose used to isolate assets in relation to a particular investment. In this case, this would be ownership of each individual block of apartments.
The value of each SPV equates to the acquisition price of the property / properties based on a 6.7% gross initial yield.
Example:
£10,000,000 Property Purchase Price
£670,000 Annual Rent
6.7% Gross Yield
Nurtura Living was founded with a social mission: to provide safe, stable housing for vulnerable individuals who need it most. We are committed to putting roofs over the heads of society’s most overlooked individuals.
Our first fund has an initial target to acquire approximately 1,000 properties, reflecting an acquisition value of circa £250m.
Based on a target acquisition of 1,000 units, an approximate rental income of £16,750,000 Gross, and £12,562,500 Net before rent review and CPI increase. Corporation Tax at 25% has been assumed (*relevant for the initial 5 years).
The gross sum of 6.7% is the total sum received.
The net sum is 5% after allowing for corporation tax. Nurtura Living Management Charges and Mara Invest Charges are not applicable for the first 5 years.
If we exit by either (i) publicly listing the SPV company or (ii) via an institutional sale, the target yearly gross return will be 8-10%
It is cost prohibitive for Nurtura Living to commence as a REIT in the early stages of growth. Prior to a potential exit by IPO or Institutional Sale, it may be advantageous migrating to REIT status, which will bring tax efficiencies as there is no corporation tax payable, which could be better received by the market at public offering or by an institutional purchaser.
Within 5 years of incorporation and prior to publically listing or an institutional sale.
Nurtura Living SPVs acquire properties and leases them on 40-year terms to Housing Associations, who are facilitated by the Department for Work and Pensions (DWP). When profits are available, rental income is distributed to shareholders as quarterly dividends.
Investor security is underpinned by direct ownership. Investors own the company, which in turn owns the properties outright, with no bank debt or external financing. As such, the properties themselves serve as the investors’ security, providing asset-backed protection and long-term capital stability.
After the first 5 years, Nurtura Group have first right of purchase of investor shares at the original investment value. Please note that before this period, shares will be illiquid and may be difficult to sell as there is no public market for these shares.
Dividends are paid monthly, subject to availability of distributable profits.
Nurtura Living will deploy investor capital to acquire existing, income-producing properties with tenants already in place. These properties are secured under 40-year leases, ensuring rental income from day one.
Plan A – 5 Year Exit by Company Flotation at a yield of 5.3% or lower.
Plan B – Institutional Sale of Portfolio in 5 Years at a yield of 5.3% or lower.
Plan C – Long Term Hold of Income.
An industry body representing UK Housing Associations, would be responsible for appointing an alternative appropriate operator to ensure the uninterrupted and housing of the vulnerable tenants.
The Housing Association enters into a 40-year lease and is responsible for managing and rotating tenants as needed. Tenant changes do not affect the continuity of rental payments, as the lease is facilitated by the Government Department for Work and Pensions (DWP) for the full 40-year term.
FRI means Fully Repairing and Insuring, which means there is:
Mara Invest is a UK-based fintech platform that provides access to private market investments. It enables individual investors and wealth managers to
invest using SPVs at lower entry barriers.
marainvest.com
