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New crowdfunding property investment opportunity launched in Nottingham

A new crowdfunding project has been launched by Shojin Property Partners allowing investors to make a minimum investment of £5,000.

The investment opportunity is for a newly built student property block in Nottingham consisting of 124 newly-constructed studios, managed by a national student block manager, which are 100% let for the academic year of 2018/2019.

A recent formal valuation of the block was conducted by a top tier surveyor in September 2018, which valued it at £12.06m. There is a £6.4m senior loan secured by a first charge against the property, which replaced the development loan. This will be a joint venture with the developer, with funding and profits to be split equally between the developer and Shojin and Investors.

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Shojin participated in the development phase of the project by providing funding to the developer. The total crowdfunding equity is £1.27m from investors, with a minimum investment of £5,000.

Shojin Property Partners says that investors can expect to earn an income return of 6.3% per annum on average, paid quarterly over the course of the three-year term.

Over the three-year term of the investment, investors are targeted to receive a return on invested capital (ROIC) of 48% (or 16% annualised) which includes capital growth in the value of the asset, according to Shojin.

Jatin Ondhia, CEO of Shojin Property Partners, said: “This student property development is a great crowdfunding opportunity and from as little as £5,000, people can invest in this scheme and hope to receive 16% per year, which in this market, is better than having your money in the bank earning 2% pa, at best.

“This property is in a great location, just a few minutes’ walk to Nottingham Trent University and close to the City Centre’s shops, bars and restaurants. Finished to a high quality, the studios provide students with comfortable and affordable accommodation, which is in short supply in the City.

“According to UCAS [The Universities and Colleges Admissions Service] in 2017, 84,000 applications were made to Nottingham’s higher education institutions.  Further findings show there were only 13,600 purpose-built student beds available from the University of Nottingham and Nottingham Trent University.

“There is huge demand for purpose-built student accommodation for both universities in Nottingham and this new investment opportunity offers 100% occupancy for the current academic year, with excellent rental yields.”

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    Sounds like a scam to me, not the way to be investing in property.

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    Getting involved with other people often means trouble?

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    This sounds like an innovative way of investing. Looks like you are sharing the risk and you can invest in student accommodation.

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