Loan Note Matures after 21 months Producing a 28% Return

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.

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This marketing material has been provided for discussion purposes only. It is not advice and does not take into account the investment needs and objectives, financial position, risk attitude, liquidity needs, capital security needs and;or capacity for loss of any particular person. It should not be relied upon to make investment decisions.

Warning: The figures refer to the past. Past performance is not a reliable indicator of future results.

Warning: The return may increase or decrease as a result of currency fluctuations.