high yield workspace investment by adavo

high yield property investment
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Flexible Workspace is Booming.
Now is the time to move into commercial business centre Investment.

Adavo Workspace specialise in delivering commercial property investments for both corporate and private investors. Our joint ventures allow us to partner with like minded property investors and take advantage of the prevalent buying opportunities in the UK commercial property market. We have developed a production line business model for buying, renovating, letting and managing high yield property that delivers high occupancy rates and long term sustainable profits. The joint venture partner receives an annual 7.5%pa return on each project.

The structure of the joint venture is simple. You provide the capital needed to fund the purchase and renovation of each new office building and we provide all associated services, undertake the works and secure the exit at the end of each project. We identify suitable properties, negotiate a good price, provide the renovations teams and both let and refinance the finished buildings. Our JV's offer security to both parties. They give a secured return over a set period to the investor and each joint venture secures further business centres for us in pursuit of our regional expansion plans.

All invested capital is backed by the underlying building being purchased and is requested in stages set out by the joint venture agreement. All invoices are paid only after the work has been completed (including all renovation work) and each investor is kept up to date by Adavo Workspace at all times. The terms of the agreement are simple, clear and prescriptive. Capital is requested only in accordance with these terms and when the bulk of the capital is requested to complete the legal purchase it is then also supported by Adavo's existing buildings as well as the project itself. Each project is reported separately for accounting purposes giving the investment full transparency and is presented in a clear, easy to read layout. Our property investments come with a robust business model that has enjoyed considerable success over the last few years and is set to benefit in the years to come from significant growth in the serviced office sector. It is a very safe, well covered strategy.

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Our Regional Expansion is Gaining Momentum
We are creating a chain of 30 business centres across the North East.

Adavo Workspace is expanding and we are well placed to capitalise on the huge growth already being seen within the serviced office sector. The market is expected to expand from £16bn at present to around £62bn within the next 10 years. Existing providers with experience in the delivery of these size of projects will likely do well in the coming years and we aim to be part of that growth.

Our joint ventures help to facilitate that growth. Each agreement lasts for either 2, 3 or 5 years at your discretion which puts you in full control. Your capital is asset backed at all times and fully secured by the wider portfolio. Each project is scheduled to last between 24-36 months before refinance although we aim for as fast as possible. Having delivered these projects before we know from experience that a two to three year timescale is a comfortable pace, realistic and deliverable. When factored with the capital secured element our joint ventures offer remarkable risk vs return. A product featuring 100% asset backed, secured capital with a 7.5%pa income is a stand out product in any market.

The collateral for the capital protection is the property that the JV is used to purchase, which will be an asset of equal or greater value than your capital sum. A charge can be immediately arranged on the day of completion, in accordance with the land registry, that allows a clear and executable claim to a separated asset so that your capital is asset backed.

Your income is paid monthly for the duration of the invested term and then your capital is returned in full at the end of each project upon refinance. The joint ventures are a simple method of funding our buildings and are guaranteed in full by Adavo's existing balance sheet. It is then at either parties discretion to re-invest or move on. The headline expected return is 7.5%pa per annum with 7% and 8% options available for shorter or longer timescales.

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Secured & Agreed Exit Before Commencement
Always start with the end in mind.

Every project we undertake has an exit agreed in principle with our existing lenders prior to the start date. We have successfully refinanced several projects to date and are skilled in building up each business centre's rent roll to the point where it can be readily refinanced on to traditional mortgaged debt. Several long standing relationships with partner firms and investors allow us to maintain an steady flow of front end debt and exit refinancing. This gives a clearly defined secured exit and greatly reduces the risk in each project.

Adavo's secured exit strategy is one of the best way to invest in property in 2018. It offers clear parameters for each project and allows each investor to be comfortable in both figures and time scale. This security when added to the asset backed nature of the investment and renovations works paid upon completion makes this a low risk venture with good risk vs return ratios.

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The Background to Adavo's Joint Ventures...
How our joint ventures originated.

Our joint ventures were our response to the huge changes that have been seen in the UK mortgage market over the last ten years. The credit crunch had a lasting impact on available finance, particularly development finance, and the rise of peer to peer investments have taken the place of the more traditional lenders. This has proven to be a permanent change in the market and has seen peer to peer investments go from strength to strength.

Our joint ventures have been a huge success to date and are a key part of Adavo's plans for the deliver of 30 business centres over the coming years. Our experienced management team have delivered dozens of development projects through this specific framework and it has worked well to date. This structure capitalises on opportunities available in the property market at present to those with funds. Importantly the joint ventures allow us to facilitate our growth plans without the need for expensive and inflexible mortgages.

The credit crunch and subsequent issues over the last ten years have severely tested the security of paper guarantees offered by banks and institutions. The recognition is that the old way of conducting investment with only paper guarantees has forever been tarred with the stigma attached to mass collapses like the Icelandic Banks, Lehmans, and Northern Rock. However, the financial system had thrown up similar experiences prior to the credit crunch with previously prestigious institutions like Barings Bank collapsing overnight.

We believe that asset backed investments offer a better solution with greater security and transparency than the products relying on paper guarantees; certainly when considering larger investments that exceed the limits of the FSCS. Through the benefit of experience we have designed open book systems, processes, checks and balances to produce a remarkably safe investment structure that has tangible, real assets built into the security as its foundation. We are very experienced in formulating bespoke strategies to meet our client's individual needs. In this market we find that meeting those needs means increased security, good income, investor control of the decision making process and short investment timescales with effective recourse built in.

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As a starting point our partners felt it should be a core principle that all investment with Adavo Workspace should be secured by collateral of equal or greater value. As a property business Adavo Workspace is not regulated by the FCA and the FSCS does not apply. Your main protection is the fact you have call to a series of underlying, income producing assets. This gives a level of security that is unusual in today's market and goes beyond the £85,000 offered by the Financial Services Compensation Scheme. Against our average JV of £200,000 the FSCS's standard £85,000 guarantee only represents 43% of your invested capital.

Fortunately we are not a financial services company nor do we trade derivatives or otherwise – we are a property company and that offers a number of advantages. It allows us to offer recourse to the property we have used the JV to purchase, giving full security over the capital invested. It also means we have an existing portfolio of income producing assets that can both support the monthly return outright if needed as well as provide additional cover on all invested capital.

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high yield property investment brochure high yield property investment by adavo