I am looking into investment bonds, and considering investing into Blackmore. Does anyone have any thoughts ? Roy M.
Its not a winner for me. Nunn and McCreesh have barely ever been FCA regulated (one was as a trainee with Aviva years ago) despite purporting to provide various forms of “advice” and having companies that appear to have had connections with pensions (big no no). Ninn McCreesh had only one regulated person, a James Robson. Virtually all their companies are very new. They appear to be financing through to Blachmore Estates via Preference Shares no Debnentures. Although its an internal thing, it coudl weaken investors security if they take out other forms of debt.
There is no significantmention of this development in the “real” press rather than just on blogs and/or someone posting a CAD video which means nothing. Some houses do seem to be being built on Alston Bank, but who is the real developer? Someone nearer Preston might be able to answer the latter point. Where Alston Bank houses are listed on Rightmove, they were listed obver a year ago, and have been reduced in price. This could be pre-marketing but for me, it smells wrong and no thanks.
Finally, this looks precisely like all the other disguised CIS that are being shut down right now.
Lastly, as Brian says above, 8-9% for secured development capital is very very expensive for a borrower even in the current climate and as Brev has illustrated, the return on net capital needs to be somewhere in the 12%-15% range to return this on the gross capital investors have lent. This is the sort of price you’d pay for first loss risk capital on an insurance company not a secured, asset backed deal..Against that, this is a tough time for selling property and especially new builds. I would expect to see Help to Buy all over their house sales material.