SarahBeenySpringIssue2017 - 75
Protecting your investment
What type of investor is most
likely to be interested in Thames
Property Nest Eggs?
The company sees this primarily as
an alternative/adjunct to pensions,
individual savings accounts (ISAs)
and self-invested personal pensions
(SIPPs). New government rules allow
for a 25% tax free withdrawal from
any of these investment vehicles, so
the nest egg model allows individuals
with funds currently invested in this
way to re-invest, tax-eﬃciently, to
join a London property syndicate with
other like-minded individuals.
Clearly the nest egg model will
have attractions to investors of all
kinds though, since it is a 'light-atthe-end-of-the-investment-tunnel'
opportunity, and investors will know
from day one exactly when they
can expect their investment returns
- which is always a big plus.
Also there are a lot of investors
who see the London property market
as a great investment, but don't
have the funds to access this level of
investment, on their own. The nest
egg model will be an attractive option
for those investors.
What returns are expected over
ﬁve years and why?
The key to predicting this is having
an eﬀective buying strategy. All nest
egg properties are inside the M25,
in a regeneration or future Crossrail
area, in need of refurbishment, and
purchased as a re-possession or preauction... so below market value.
These strategies ensure that
the nest egg is well into proﬁt very
quickly. Obviously this is augmented
by the 'organic' year-on-year capital
growth of the property, and of
course, accumulated rental income
throughout the ﬁve-year 'term' in the
case of a 'Classic' nest egg.
What could go wrong and what
degree of security is in place for
the investor's funds?
As with all investments, there are
inherent risks. However, Thames
Property Nest Eggs has introduced
strategies and layers of independent
scrutiny to mitigate against these
risks as much as possible.
Each nest egg syndicate has
fully independent accountancy
and legal representation through
Moore Stephens Accountants and
Anthony Gold Solicitors, and the
overall investment and corporate/
contractual structures have been
drafted by LCN Legal, ensuring the
whole scheme is compliant with all
Each investment fund is held in
a ring-fenced SPV/Ltd Co, the sole
beneﬁciaries of which are the 10
investors. The nest egg property
purchasing criteria almost certainly
ensures that the investment is in a
sound position from the very start.
On top of this, because all nest egg
properties are cash purchases, none
can fall foul of the ﬂuctuations of
future interest rate movements. This
lack of 'gearing' is a real plus.
Finally, each nest egg fund holds
at least 5% of its total value as a
contingency safety-net, against
unforeseen future costs. This also
protects all investors against future
requirements to top-up the fund.