What you need to know to invest in this community share issue
Mustard Seed Property’s target capital raise is £600,000 of community shares to finance the purchase and development of at least one new property in Cornwall. The project is still viable should they raise the minimum amount of £300,000 from shares and the rest from a bank loan. However the directors have a preferred strategy, which is to raise 100% of the capital as equity and once the property is refurbished and tenanted, look to refinance with a mortgage to allow further expansion.
Mustard Seed Property’s Acquisition Strategy is to acquire properties which are then refurbished to a pre-agreed specification for its partners and to lease it to them on internally repairing and insuring leases.
The next property to be acquired is expected to be a small development of self-contained flats and studios for Karrek Community CIC, to support an estimated nine people with learning disabilities in St Austell. The target property will be a cluster of shared accommodation, studios and one-bed flats in a complex with some communal living space for training and leisure.
Exceeding the fundraising target would enable Mustard Seed Property to acquire another property and/or reduce its mortgage with the bank.
Share Price: £1
Minimum Investment:: £250
Maximum Investment: £100,000
Offer Open to: 31 July 2018
Amount Raised To Date: £600,000 (£300,000 to reach min. target)
Investment Proposition Key Facts:
Impact: Community, housing, disadvantage
Target Raise: £600,000 (min. £300K for offer to proceed)
Expected Returns: 4.5%
Assets: 5 bed house with 1 bed annexe in Helston
Open for Investment: Open