Westlin Kent Care Home
Loan Note Matures after 21 months Producing a 28% Return
The Westlin Kent Care Home project was one of a series of loan note based investments promoted by Harvest to its client base over the past three years. This involved the purchase of a site in Kent and a proposal to seek planning permission for a care home. On completion of this process, the plan was to dispose of the site to an operator or an institutional investor. The planned exit date was to be April 2019. Once the site was acquired, the planning submission and negotiations with potential purchasers of the planned site were conducted in parallel. This allowed an early finalisation of the project as the sale completed within a relatively short time of the planning permission being successfully acquired. Capital plus interest at an annualised rate of 16% has now been repaid to investors.
While Harvest does not view these loan note investments as core or mainstream for any portfolio because of their high risk nature, the levels of return available make them very attractive particularly in the current low interest rate environment. However, we generally advise clients to consider investing smaller amounts in two to three such investments rather than putting all of their eggs in one basket.