high yield property investment by adavo

picture

100% Capital Secured
Asset backed investment with intrinsic value.

Adavo Workspace offers a full capital guarantee over all money used to purchase and renovate any of our deals. We have gone to great lengths to ensure that the joint venture process is as well designed as possible in terms of securing your invested sums. Every joint venture partner is protected by several levels of security which offer a 100% level of security on your invested sum.

The heart of the guarantee is the business model itself. We only use the capital to purchase and renovate a designated project at a level below their stated RICS valuation. This means that on the asset will be of equal and, in turn, greater value than the cost of purchase and cost of works. Additionally, when buying for cash quickly it is usually the case that the true value of the asset is greater than the capital used for the discounted purchase. It is a designed process that ensures every Adavo property investment has a margin of safety to protect against movements in the general commercial property market over the 3-5 year period of each project. To satisfy even the most cautious investment appetite we go one stage further in that Adavo offers our existing buildings as collateral for each new project which further guarantees any shortfall in the capital amount invested should any one investment not perform as expected.

picture

Guaranteed by Adavo Profits
Going the extra mile.

Adavo Workspace guarantees all shortfalls on any of our joint venture's capital. We have several areas of business covering property developments, joint ventures, lettings and management for both the partnership and for investors. The profits from each of these areas can be used in the event of default to make up the difference between the value of the secured asset and the original invested sum of the joint venture partner.

The likelihood of the guarantee becoming necessary is inherently low as our model has worked well to date, the market is expanding and the business is well footed with several different revenue streams in place. The assets bought with each JV are purchased for good prices and then renovated to increase their value. We use the buildings for an existing and growing demand as well as being well diversified by natural of having 100's of different occupants and industries.

picture

Guaranteed by the Partner's Assets
Every asset is offered in support.

For investors and financial advisers looking for total security, the partners of Adavo Workspace offer a personal guarantee of all monies invested. We believe in effective corporate governance and a key part of that is having risk management structures in place to ensure senior management do not take excessive risks. Moral hazard is a key part of this.

The best way to ensure effective risk management in our view is for us to be personally liable for all capital invested in the joint venture deals of Adavo in the same way as we are for the mortgaged debt. Quite simply, we treat each and every advance as if we were using our own money because we personally underwrite the cost of any mistakes we make. The design of Adavo Workspace’s model is that assets should always be greater than liabilities, giving a level of security that is unusual in today’s market.

picture

Treating Customers Fairly
Important Information.

We subscribe in full to the FCA's principle of treating customers fairly. No guarantee, whether from banks or governments, is ever 100% safe. The validity of the guarantee depends on the assets and financial soundness of the person or party giving the guarantee. In this circumstance the designated project is the asset that provides the bulk of the security, with the partnership guaranteeing any shortfall beyond that. Should the market drop faster than at any point in history, then the value of the asset could fall below the value of the note. At that point the partnership’s other business centres and assets are used to guarantee the original investment. If those assets are not enough to cover the amount owed, the partner’s personal assets are then used to cover any shortfall. If the amount owed still cannot be met by all these mechanisms, the investor stands to lose any outstanding amount. In the unlikely event you should ever lose money we would too.

picture

The Intrinsic Value of the Underlying Assets
Real tangible property outweighs paper guarantees.

Due to the fact that the assets we create are well presented properties with good yields, often over 10%pa, the income from the asset is a good fall back position should the property not refinance for any reason. We would then collect the rental income month on month which would cover the interest payments for each joint venture which gives an additional comfort. The rental income can also serve to prop up the capital value of the asset and if ever needed can always underpin a sale of the designated project rather than a refinance.

The yield is high (due to the room-by-room multi-let strategy) which will also help to support and maintain the property's overall value. Should the capital value of the property drop, the effect would be to increase the yield proportionately. The chances of the value continuing a decline over a protracted period is unlikely.

high yield property investment by adavo