Investor FAO
- What is Strata?
- What is the decision making process?
- What type of developments are suitable for consideration by Strata?
- Does a proposed development need planning permission?
- What is the term of a typical Strata loan and how is interest charged?
- Does Strata provide loans for schemes outside the south of the UK?
- Do Investor’s receive a Distribution?
- What is the timescale for my investment in Strata?
- Can I request a redemption before April 2012?
- What communications are there to Investors?
- Can I invest in Strata now?
Strata is a stand alone business that has been created for the sole purpose of providing mezzanine funding to experienced developers with appropriate residential development schemes in the south of the UK Back to Top
What is the decision making process?
All new development opportunities are reviewed by Davon as Funding Advisor and detailed discussions are carried out between Davon and the developer to ensure the experience of the team and the key aspects of the project meet the criteria for Strata Once that is established Davon visit the site and analyse the financial viability of the scheme with the developer at which stage, indicative heads of terms can be issued. Davon then works closely with the developer to collate all detailed information required in order for the usual due diligence to be completed and a formal approval of a facility to be granted by the Strata management team. Lawyers are then instructed and Davon liaise closely with the developer, the senior debt lender and all professionals to ensure matters proceed expediently to completion of the transaction. Back to Top
What type of type of developments are suitable for consideration by Strata?
Strata has been set up to provide funding for residential developments located in the south of the UK. Typically, projects will have a total development cost of c. £2.5m and upwards and will demonstrate a healthy profit on cost. Back to Top
Does a proposed development need planning permission?
Strata’s strategic plan requires it to only lend on schemes with detailed planning permission already granted. However, Strata can provide an in principle offer of funding for deals that are conditional on planning being in place at the time of land purchase. Back to Top
What is the term of a typical Strata loan and how is interest charged?
All Strata loans are for a period of twelve months with interest charged on a fixed rate basis. Loans can be repaid at anytime, subject only to a minimum of six months interest being charged. If repayment is made at anytime after six months from drawdown, interest is charged for only the length of time that the loan has been outstanding. Back to Top
Does Strata provide loans for schemes outside the south of the UK?
The Strata strategic plan requires that all loans be in the South of the UK. Back to Top
Do Investor’s receive a Distribution?
Yes. Distributions are payable in around September of each year. The Distribution in September 2010 was 4.5% and the forecasted Distribution for September 2011 is 6-7%. (Sipp investors may not receive the same level of Distribution due to tax paid by the EPUT, tax that can be reclaimed later. PIL can provide any more information.) Back to Top
What is the timescale for my investment in Strata?
Strata was set up in April 2007 with a seven year life to April 2014. However, there is a commitment from the management team to continue Strata beyond this date if sufficient Investors so request. The process will be that in or around April 2012 all Investors will be asked if they definitely want to exit the business in April 2014. If any Investor makes this request then he/she may be able to receive some of his/her investment back early. A year later, anyone not responding in April 2012 will be required to confirm if they want to stay in beyond April 2014 or exit. In this way the management team hopes to be able to look after redemption requests and / or the extension of Strata in the optimum manner. Back to Top
Can I request a redemption before April 2012?
Yes, but there is no certainty of the ability to redeem. The management team can make other investors aware of the availability of Units to acquire and, should there be demand, then the parties can agree a transaction by private treaty. Back to Top
What communications are there to Investors?
Trading Statements are sent to Investors bi-annually. These statements and other Fund literature and available to existing Investors via the My Investment section of this website. Back to Top
This will depend on the circumstances of the business. Please refer to the My Investment section of this website. Back to Top