Coyne Group


+44 (0)1275 866445
info@coyne.global
Frequently Asked Questions

Who are the Coyne Group?

We are a leading asset management firm based in the South West. We identify and manage real estate opportunities whilst delivering high returns from our expertise in land planning, financial planning and our investment process.

How do we add value?

Throughout your investment process, we ensure value is added through clever planning application, stunning architectural design and a thoroughly planned exit to your investment. Ensuring your heightened return arrives back to you as quickly and smoothly as possible.

What is 'Special Purpose Vehicle/Entity' (SPV)

A special purpose vehicle/entity (SPV/SPE) is a subsidiary company with an asset/liability structure and legal status that makes its obligations secure even if the parent company goes bankrupt.

What is Coyne’s investment strategy?

We operate across three asset classes; student, residential, retirement. Our goal is to earn our investors considerable returns on their investment. Our strategy centres upon several key points; including investing in technical advances in property investment, ensuring we maximise the available profit from all land we purchase, and leverage investment money against senior debt and produce a low loan-to-value.

Coyne investment model simplified

A visual representation of our model is available on the Our Model page. To explain the model, essentially, we leverage investor equity using senior debt, either as a bridging loan or development funding, as appropriate, to complete projects and achieve an enhanced ROI. The loan is then geared against investor equity in our detailed financial appraisal to provide a low loan-to-value of the project.

Why do you offer the SPV shareholder and the Loan Note investment structure?

The Loan Note was introduced for the benefit of overseas investors who did not want to become a shareholder in the SPV. We want to provide a product that is as flexible as possible, and can cater for the majority of investor needs.

If I enter as a Loan Note where does my capital go?

Whether you invest into your project of choice via Loan Note or as a Shareholder, none of your capital is received by The Coyne Group. Regardless of what investment route you choose, your capital is placed in the project specific SPV bank account with your documents attached to the limited company.

How is my investment secured as a Loan Note?

Your Loan Note investment is secured via a second charge on the asset. By signing the Loan Agreement, Second Charge Document and the Management Agreement they connect the second charge and the loan & interest to the SPV.

How long does the whole process take?

This is entirely dependent on the investor’s situation, i.e; how quickly the investment funds can be made available and how available you are to complete the required documents.

We usually see a motivated investor complete the process within 14 days.

Will Personal Guarantee's (PG's) be required?

PGs are mostly extinct in an SPV scenario, however we will require them in a build out. As the asset is owned by you, the investor, when the project enters the construction phases we may be required to adhere to your PG. This is due to the lender asking for a guarantee against their loan. This is totally normal and accepted across the market.

PGs can affect you in two ways; The amount of PG required is dependent on what funder is chosen. Usually, 10% of the total amount loaned in senior debt is required as a PG.

Do I always have to sign a PG document?

Not always. This depends on how you chose to store your funds. If you decided to store your funds in a secure Escrow account a PG is not required.

Will I be required to go through AML & KYC checks more than once?

Yes. Anti Money Laundering (AMY) and KYC checks must be completed every three months, as per UK law.

We must receive the relevant forms to this deadline otherwise we are unable to proceed with your investment.

Details of the Commitment Fee

In order to proceed with your investment we require a commitment fee in addition to your investment funds. This fee is refundable upon your second investment with us, and the amount is dependent upon the amount you invest; however the maximum is capped at £5,000.

Corporation Tax

We are not authorised by the Financial Conduct Authority to provide taxation advice and therefore cannot provide tax advice. We always recommend you seek independent financial advice if you are in doubt. We accept no responsibility in relation to any advice given.

Corporation tax is liable on the profit/uplift of all Loan Note & SPV Shareholders at a rate of 19%. Below is an example of how this looks based on £100,000 investment.

  • Investment Asset: Annual ROI-29%
  • £100k Invested: via Loan or SPV route
  • Annual Profit: £29,600
  • Deduction: 19% Corporation Tax= £5,630
  • Total Profit: £23,970 NET

What documents do I receive?

You receive the: Loan Agreement, Management Document and Second Charge Document (all available in draft format).

When is my return paid?

Your loan and interest are paid when the said asset has concluded the exit, as per the financial appraisal which we produce in-house.

Why do I need to register?

Registration is an integral part of becoming an investor. We can only send you the comprehensive legal pack after you have completed registration with us.

The legal pack which you will receive contains details the entire process, we are on hand when-ever you require to provide additional guidance, should you need it.

When will I be required to deploy my investment funds?

As soon as the Know Your Client (KYC) checks are completed and signed off you will be asked to transfer your investment.

Occasionally, if the SPV opens after the KYC checks are completed, the funds can then be deployed.




offices:
Bristol

Quays Office Park
Conference Lane
Portishead
Avon
BS20 7LF

+ 44 (0)1275 866445






copyright 2018 Coyne Group
+44 (0)1275 866445 info@coyne.global