The days of low-yield bonds are numbered. Over the past few months, UK developer HJ Collection paid out over £3.4 million GBP to initial investors, representing a rate of return topping 10% each year over two years. The secret to HJ’s success lies in their asset-backed property investment bond. First launched in 2019, their bonds are based in brick-and-mortar assets across the UK, providing diversity across several rapidly expanding asset classes. It seems as though the bond of the future is here.
Despite initial setbacks from COVID-19, HJ Collection successfully navigated the muddy waters of the early pandemic days by maximising on Government Schemes, such as Permitted Development Rights, to buoy its managed portfolio. HJ then leveraged its managed assets into a unique property bond, generating strong returns for investors by lending capital to property developers in exchange for a fixed-period, fixed interest rate.
The results of this innovative maneuver have been plain to see, as HJ Collection expands its reach across the country. After raising more than GBP15 million over the past 24 months, they moved to quickly develop several commercial and residential units around the UK, including properties in Barnsley, St Helen, and Braintree. By diversifying risk for its investors, HJ Collection has not only continued growing its portfolio, but has also rushed past initial investor expectations.
Speaking on their successful payback to investors, Founder and CEO Reece Mennie shares that “paying back our investors, complete with high levels of interest over the past two years, is a testament to the innovation and reliability of our property-backed loan note system.
We have always maintained that bricks and mortar provide investors with a great deal of security, especially when investments are diversified across a varied portfolio of contractors and developers. Given that Covid-19 has dominated much of HJ Collection’s lifetime since our foundation in 2019, our investors’ returns cement the dependability of our strategy and approach.
Having weathered the pandemic and provided our investors with above-average returns, we look forward to the challenges of the future, secure in the knowledge that we have not only repaid capital, but that we have successfully established HJ Collection as a leading and trusted brand within the alternative property investment sector.”
Inspired by their early success, HJ Collection launched their newest asset-backed property bond last month. If HJC’s first foray into the world of bonds is anything to go by, their highly diversified, multi-asset and multi-market approach seems poised to revolutionize the way traditional bond investors look at returns. We, for one, will be keeping an eager eye out on the next investment opportunity with HJ Collection.