As the UK property market continues to evolve, investors are increasingly looking for structured, high-yield investment opportunities that balance risk and reward. Consulco, a specialist in UK real estate-backed investments, has introduced Compartment C within its London Credit Fund—an offering designed to capitalize on the growing demand for residential development finance. To delve into the specifics of this offering and understand its potential for investors, read the following interview of our own Michael Tannousis, Director of Investment Services at Consulco. He provided insights into the fund’s unique positioning, its investment criteria, and how it differentiates itself from traditional real estate investments, offering a compelling opportunity for those seeking robust returns in a dynamic market.
Q: Can you tell us about the launch of Compartment C and what it means for investors?
A: Absolutely. We’re excited to introduce Compartment C of the London Credit Fund. This new compartment aims to provide investors with access to higher yield investment opportunities in the UK residential property development market. Given the increasing demand for new housing and the UK government’s push to accelerate housebuilding, development finance is more crucial than ever. Compartment C allows investors to participate in short-term lending secured predominantly against residential development projects in high-growth areas, such as Greater London and other major cities.
Q: How does Compartment C differentiate itself from the other compartments in the London Credit Fund?
A: While Compartments A and B focus on participation in short-term lending predominantly secured by residential and commercial properties, respectively, Compartment C specifically participates in lending for refurbished and residential development projects in London and main cities. This means we are working with experienced developers to fund new small projects that align with London’s pressing housing needs. Compartment A targets returns of 5-6% for investments in Sterling and Dollar, and 4-5% for investments in Euro while Compartment B targets returns of 6-7% to its Sterling and Dollar investors and 5-6% to Euro investors. Compartment C aims to offer even higher returns, ranging between 7-8% annually for its Sterling and Dollar investors and 6-7% annually for its Euro investors. The London Credit Fund is trusted by a diverse group of investors, including high-net-worth individuals, pension funds, banks, and insurance companies, who seek attractive investment opportunities in the UK real estate market.
Q: What are the key investment criteria for loans under Compartment C?
A: London Credit, our UK based lender, applies a rigorous underwriting process to ensure the security and viability of all projects. Loans are secured against UK real estate, with a conservative Loan-To-Gross-Development-Value (LTGDV) ratio capped at 70%. We finance business-purpose loans only, avoiding primary residences, and work exclusively with qualified RICS valuers, UK-based solicitors, and experienced developers. Our investment strategy is designed to balance risk while delivering robust returns.
Q: What makes London Credit uniquely positioned to offer development finance?
A: London Credit has been a trusted name in UK property finance for over 14 years and has, to date, approved and granted over 616 short-term loans worth more than £267 million. Our London based lender’s expertise in structuring, underwriting, and servicing loans gives an edge in identifying high-quality lending opportunities. The loans within Compartment C are administered and managed throughout their entire lifecycle by London Credit, ensuring professional oversight and security for investors.
Q: How does this investment compare to traditional real estate investments, and what should potential investors consider before committing?
A: Compartment C is designed for investors seeking high-yield opportunities with a structured, asset-secured investment approach. It offers more liquidity than direct property ownership, with structured exit strategies in 18 months. Unlike traditional property investments, it provides a well-balanced risk-reward profile with a strong due diligence process, experienced management, and an opportunity to participate in London’s thriving property development sector through a regulated fund with a minimum investment of €125,000 and a minimum lock-up term of 18 months. Redemptions occur with a 6-month notice and dividend payments are expected annually. Additionally, investors can benefit from exposure to the real estate market without the hassle of owning a property, dealing with tenants, taxes or maintenance.
Q: How can interested investors get involved?
A: Investors can contact us directly via our offices in Nicosia or Limassol. Our team is available to provide comprehensive information on Compartment C and guide potential investors through the process. Having successfully operated since 2011, we have built a strong track record over the years. With the steady growth of the UK property market due to drops in interest rates, now is an opportune time for investors to benefit from this structure and enjoy higher returns in a short-term investment period, paid out annually.
For more information, visit consulco.com or reach out to our team at invest@consulco.com.
[LC London Credit AIF V.C.I.C. Public Ltd (“London Credit Fund”) – Licence Number: AIF50/2018]
Disclaimer: Please refer to the LC London Credit AIF V.C.I.C. Public Ltd (“the Fund”) prospectus before making any investment decision and consult your financial advisors. There are various risks to consider, including currency fluctuations, which may affect returns. Past performance is not indicative of future returns. The Fund is available only to Professional and Well-Informed investors.