High returns promised by new Maven property bonds

(Top left to right): Norman Peterson, director of GCV and Maven Bonds; Bill Kennedy, non-executive director of GCV and director of Maven Bonds; Craig Peterson, director of GCV and Maven Bonds (Bottom left to right): Suzanne Lupton, non-executive director of GCV and director of Maven Bonds; Simon Lenney, independent chairman of Maven Bonds. Picture: Contributed

A Glasgow-based private equity firm has teamed up with a fintech business to launch an investment vehicle to help boost the UK property market.

Maven Bonds aim to provide investors with the chance to diversify their investment portfolio while earning annual tax-free returns of up to 7.75 per cent. It works by providing secured loans to property development companies. Returns are generated by charging interest and fees on these loans.

Maven Capital Partners, whose UK office network also spans Aberdeen and Edinburgh, has teamed up with County Durham-based fintech company Growth Capital Ventures (GCV) to raise up to £7m from the initial bond offer. Minimum investments start at £1,000.

Innovative

Simon Lenney, independent chairman of Maven Bonds, said: “The innovative finance ISA market is growing rapidly, with more than £1 billion invested since April 2016. In the current climate, traditional cash ISAs are struggling to offer returns that even match the rate of inflation. Together with the property teams at Maven and GCV, we’ve already generated a strong pipeline of transactions for Maven Bonds that will help to deliver much needed high-quality housing developments and commercial property schemes, whilst delivering better risk-adjusted returns for investors.”

Craig Peterson, chief operating officer at GCV, added: “Our intention is to deliver a diversified portfolio of high-quality loans across the residential and commercial property spectrum, and we’ll look for opportunities to co-lend with banks and other institutional investors where appropriate.”