Bonds  

London property bond offers 7% a year interest

London property bond offers 7% a year interest

Regenerate London is offering a five-year fixed rate bond paying 7 per cent gross interest.

The new bond, which will be available until 31 October, will pay 7 per cent a year, on a quarterly basis.

Offered by Regenerate London, the bond gives investors the opportunity to gain exposure to the property market or seek a higher income on their capital. 

Article continues after advert

The company behind the bond has identified a range of prospective deals within the Crossrail footprint, including such diverse options as filling stations, retail parades, pubs leisure facilities and municipal buildings. 

Investors will be doing their bit to alleviate London’s housing crisis, by helping with projects that will bring jobs and homes to areas that are in need of regeneration.

Currently the capital is in need of 64,000 new homes, representing 1.9 per cent of all London stock, each year. 

John Wheeler, chairman of Regenerate London, said: “We will be focusing on development opportunities which help to address the chronic housing shortage in London, which provide tangible community benefits and an attractive rate of return to those investing in our bond.

“We are fully committed to the creation of a legacy for future generations.”

Martin Dodd, partner at Midlands Investment Agency, said: "Certainly 7 per cent is a very attractive proposition, provided the investment is regulated and there is a clear exit strategy.

"I'd be tempted by it if I could find out about the exit point and more detail in general about the bond."

dan.moore@ft.com