News and Announcements
Fund with 9.42% Targeted Interest Returns p.a. Allows Investors to Retain Property Development Profits, Capital Gains, and Rental Yield
- Published August 30, 2021 12:00AM UTC
- Publisher Wholesale Investor
- Categories Company Updates
“Make To Rent’s unique active investment approach means we control the entire construction, rental, and asset disposal lifecycle, making information available through personalised investor portals.
Not having to transform something behind the curve, our digital ecosystem has been assembled specifically for Make To Rent and monitors every aspect of our operations 24/7/365.
From any location, we can monitor progress and provide information to all those involved with the business—investors, construction partners, and tenants. We feel that this level of control will help us seek out every possible advantage for our investors.”
Tim Peppiatt, Portfolio Manager, Sturgeon Ventures LLP
Executive Summary
Sturgeon Ventures (trading as Make to Rent) is a property fund that invests in off-market and distressed properties, creating asset growth through buildings and refurbishments and securing dividends through rental income.
Make To Rent makes it easy for tenants to manage their tenancy. Tenants can enjoy living, leisure, and business facilities with all expenses included in a single monthly fee. They can use an app to manage the process from application, through rent payment, to issue reporting.
Investors can monitor the fund’s progress through secure and personalised portals.
Investment Highlights
- Target returns of 9.42% per annum.
- Rents have increased by 2.9% YoY in the UK, and build-to-rent development increased by 23% in 2020.
- The Financial Conduct Authority has authorised Make to Rent and approved its fund structure and operations.
- As a further layer of protection, investor funds are held in a custodian account until the investment committee approves the release of the funds to purchase assets. The investment committee instructs the custodian to release the investors’ money (to purchase assets) only when they have confirmed they are bona fide.
- As detailed in the PPM (Private Placement Memorandum), fund management fees of around 1% are returned to investors before the distribution of asset profit—potentially improving investors’ returns.
Investment Offering
Make to Rent is raising £20M through preference shares, with all net rental income distributed to investors via dividends.