Max Property Investment Group Plc | A
MAX PROPERTY
INVESTMENT GROUP PLC
1 0% FIXED RATE SECURED
BONDS 2022 This brochure should only be read in conjunction with the
Information Memorandum relating to the Max Property Investment
Group plc 10 % Fixed Rate Secured Bonds 2022
1 | Max Property Investment Group Plc
This investment is directed exclusively at and intended to be used only by those persons categorised as a Self-
Certified Sophisticated Investor or High Net Worth Investor for the purposes of FSMA 2000. The material in this
document is for general information only and should not be regarded as constituting an offer or a solicitation to
buy or sell any securities, or investment advice. It is not directed to any person where (by reason of nationality,
residence or otherwise) the availability of the bonds is prohibited. If you invest your capital is at risk, you may lose
all of what you invest, and the money may not be readily accessible until the project is completed. This investment
is not covered by the FSCS.
Risk Warning
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Why Max Property?
Max Property Investment Group plc (“Max Property”) is operated by established property, finance and legal
professionals with long-standing careers, as well as personal property investment experience in the UK.
The international team behind Max Property has identified three investment opportunities based on fiscal, legal,
political and economic factors. The launch of the UK operation follows the success of Max Property Fund in the
Netherlands and precedes the launch of an additional property investment structure in Germany.
Managing Director, Mark Lloyd, is a property investment specialist with over 30 years of business experience
behind him. He has successfully built a Property Sourcing Company, which locates undervalued property deals
throughout the UK. Through his training company, Property Mastery Academy, Mark passes on his knowledge to
budding property investors. He is uniquely positioned to apply his knowledge and contacts to source high yielding
UK properties for Max Property for the benefit of investing bond holders.
The UK property market remains an attractive and stable investment with prices 8% higher this year over last
year. By investing in the Max Property 10 % Corporate Bond, individuals can achieve the benefits of investing in the UK property market without the responsibilities, liabilities and potential problems associated with being a
private landlord.
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Intertrust clients include:
70% of the Top 10 of the Fortune Global 500
44% of the Top 50 of the Fortune Global 500
70% of the Top 50 of the Private Equity
International 300
Our Partner, Intertrust, are the global leaders in
corporate and trustee services. Their role is to act
as company secretary, perform all the necessary
administrative functions and control the bank account
holding the investment monies.
This means that the money collected cannot be spent
without the approval of Intertrust, ensuring that only
property that meets Max Property’s strict investment
criteria can be purchased.
A restriction of sale is registered in Intertrust’s name
on all the properties purchased by Max Property; this
means that the properties cannot be sold without
their permission. These two safeguards ensure that
your money will only be invested as set out in Max
Property’s Information Memorandum.
Intertrust roles include:
Company Secretary
Bookkeeping
Administrative functions
Supervision
Control of bank accounts
Restriction of sale on properties
Intertrust is a global leader in delivering fund and corporate services, capital market solutions, private wealth and employee benefit solutions to multinationals, fund managers, financial institutions and business entrepreneurs worldwide.
Your Money In Safe Hands
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Bonds are secured against UK property assets. Monies
are controlled by our UK trustee (Intertrust), the global
leaders in corporate services, operating since 1952.
10.0% fixed interest (+ 30% Profit Share) = * p.a. 13+% Projected
5 year investment term (option to exit on third anniversary)
Minimum investment £10,000
Target fund raise £4,250,000
Target portfolio value £10,000,000
Investment 100% secured by UK property
* Profit share paid out at end of term after portfolio has been sold and the audited accounts have been signed off.
All The Way Max Property Investment Group plc
is a UK registered company with UK
offices and UK directors. We use a
UK trustee and UK bank accounts,
and invest only in UK property.
ALL THE BENEFITS
OF BEING A LANDLORD
WITH NONE OF THE
HASSLE
Invest in UK property-backed corporate bonds
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The Perfect Storm?
Expert analysts and industry commentators believe
that there has never been a better time to invest in
UK property. The question is “HOW”? Max Property
believe that the 10 % property backed corporate bond
provides one way of enjoying an attractive yield without
having to deal with the potential pitfalls of being a
landlord or directly owning property.
The Reasons Why
Whilst the cost of living continues to rise (now at its
highest since September 2013), poor or mediocre
performance of pension funds and low interest rates
mean that many investors are frustrated whilst others
are feeling the pinch. Keeping your money in the bank
or investing it in a pension may no longer be the most
appropriate investment strategy.
If you already own UK property you will know that
although prices have fluctuated during our lifetimes,
overall they have risen steadily and sometimes
spectacularly. The accepted wisdom is that houses
are a safe and excellent investment for the long term.
Indeed the 1874 expression “as safe as houses” is still
in use today.
However, regulation of the mortgage market, has meant
that many would-be investors just can’t obtain the
mortgages they need to step on to and up the housing
ladder. Census data tells us that in 2011 private renters
accounted for 46% of all households under the age of
35 across England and Wales, a figure that rose to 54%
in London. Among 35-49 year olds the level of private
renting almost doubled between 2001 and 2011, to
account for one in five households nationally.
Young people, it seems, are priced out of buying their
own homes. Savills are forecasting that the number of
private rented households in England and Wales will
increase by 1.2m over the next five years and levels of
owner occupation will fall by 202,000 households. This
would mean that by the end of 2019, over 24% of all
households across the UK would be in the private rented
sector.
Among the under 35s, the proportion of households in
the private rented sector would increase to 66%, with
homeownership falling to just 16% of the total. Even
in the next age band (35-49), home ownership would
fall to just 55% of all households, with private renting
accounting for 28% of households – rising to 38% in
London.
Landlords incur expenses relating to the acquisition
of a property, (e.g. sourcing, legal, surveyor, stamp
duty, estate agency and financing fees), management
(e.g. maintenance and repairs, refurbishment, gas and
Now?
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electricity checks, periods of vacancy, council tax, insurance, replacement of broken appliances (if the property is
furnished), rent collection, eviction costs, accountancy expenses, cleaning, bank charges, depreciation, advertising
and travel) and sale of properties (e.g. capital gains, legal fees, estate agent fees).
When these costs are factored in, the net yield can be considerably lower. With Max Property’s fixed rate
corporate bonds you enjoy an attractive yield of 10 % p.a. for 5 years plus 30% profit share without the hassle
that goes along with being a landlord.
The minimum investment is £10,000, which means that you do not have to commit to the larger amounts typically
needed to invest directly in UK property or to take on a mortgage to finance the property.
Amount Invested Year1 Year2 Year3 Year4 Year5 Year6 Year7 Total yield
£100,000 Max Property Yield 10£ ,000 10£ ,000 10£ ,000 10£ ,000 10£ ,000 10£ ,000 10£ ,000 70£ ,000
Average BTL yield £4,500 £4,500 £4,500 £4,500 £4,500 £4,500 £4,500 £31,500
£50,000 5£ ,000 5£ ,000 5£ ,000 5£ ,000 5£ ,000 5£ ,000 5£ ,000 35£ ,000
Average BTL yield £2,250 £2,250 £2,250 £2,250 £2,250 £2,250 £2,250 £15,750
£25,000 2£ 5, 00 £2 5, 00 £2 5, 00 £2 5, 00 £2 5, 00 £2 5, 00 £2 5, 00 7£1 5, 00
Average BTL yield £1,125 £1,125 £1,125 £1,125 £1,125 £1,125 £1,125 £7,875
With our expertise, access to the market and proven investment strategy, we are able to acquire high yielding
buy-to-let properties to back the Max Property fixed rate corporate bonds.
Not only that, we take care of all property management issues allowing you to enjoy your 10 % fixed interest yield
free of the worry, hassle and complexities of being a landlord.
On exit the monies you have invested will be returned to you. If, at the end of the Term, the properties held by
the Company have increased in value and the final Company audited accounts show a profit in the Company,
30% of the profit will be shared with the Bondholder (“the Profit Share”). The potential Profit Share will be paid
30 days after the audited accounts have been finalised. We supply quarterly statements of our performance to
bond holders to that you can also monitor our performance. Investments are not free from risk and you should be
aware that your capital is at risk.
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Legislative Changes
Maintaining a buy-to-let property portfolio in the UK can be challenging due to the associated expenses and
requirements such as lease extensions, running repairs and dilapidations, major works and tenancy agreements.
Various schemes, regulations and changes have recently been introduced which make the responsibilities of the
private landlord in the UK even more onerous, costly and time consuming.
One example is the Home Office issued right-to-rent scheme, which places the responsibility of verifying a tenant’s
immigration status upon the landlord. A rigorous procedure must be followed and failure to comply can result in
hefty penalties and even criminal charges against the landlord.
Landlords renting to 3 or more sharers have to comply with Houses of Multiple Occupation regulations. The
process is not straightforward, as in order to be approved for a licence, the landlord must ensure that the property
is refurbished in accordance with specific regulations (e.g. which include the installation of fire doors, locks,
special lighting, smoke alarms and the up keep of a register of checks on the property).
Other regulations include the tenancy deposit protection scheme, which often requires the use of an inventory
clerk and requires the landlord to conform to a list of administrative regulations. There are also regulations
requiring landlords to pay all estate agent commissions and preparation of contract fees, and a host of procedural
limitations which apply when a tenant fails to pay rent and requires eviction, resulting in months (and sometimes
years) of potential loss of income.
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The fiscal landscape is already complex for buy-to-let landlords. Landlords need to understand, apply, and more
importantly, comply with many obligations across a wide range of taxes (e.g. stamp duty land tax, income tax,
capital gains tax and inheritance tax).
The buy-to-let tax changes introduced in 2017 have received a great deal of attention because they have
the potential to affect the profitability of a privately owned rental property portfolio, taking landlords with large
mortgages from an income to a loss by way of income tax deductions alone. Many unprepared landlords will be
forced to sell over the coming months as the properties they thought were assets will become liabilities.
In addition, landlords need to be aware of the abolition of the 10% wear and tear allowance, council tax discounts
for empty properties and capital gains tax allowances for non-residents; 3% stamp duty charge on second
properties and potential taxation on enveloped dwellings.
Tax Changes
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Since the Brexit referendum Sterling has hit historically low exchange rates against other major currencies, thus
making investments in the UK for Euro, USD or other foreign currencies excellent value. Experts predict further
volatility for sterling exchange rates following the triggering of Article 50 of the Lisbon treaty in March 2017.
If you are purchasing a foreign currency with sterling or are converting a foreign currency back into the pound it’s
important to note economists are split to whether the triggering of Article 50 will bring certainty to the pound
which would cause the pound to strengthen and buying foreign currency would become cheaper or whether the
triggering of Article 50 means there is no going back for the UK and therefore the pound could weaken. 80% are
predicting sterling weakness compared to 20% sterling strength.
Sterling Exchange Rate
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Investment Process
You complete the Subscription Form and
send it together with your Anti-Money
Laundering (“AML”) documents (see
Subscription Form for more details) to our
email address info@maxpropert groupy .com.
Intertrust will confirm receipt of monies
and will issue a Certificate to confirm your
investment.
You have read this Brochure and the
Information Memorandum (“IM”) and you
would like to invest in the 10 % Fixed Rate
Secured Bonds.
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Once Intertrust has processed your AML
and you have been approved, investment
monies will be requested and you will have
three working days to transfer the funds
into the Intertrust controlled Lloyds bank
account (see Subscription Form for details).
Your investment starts the day the monies
are received in the Lloyds bank account.
Buy-to-Let properties will be purchased
according to the Investment Criteria set out
in the IM to ensure the interest payments
are covered.
After the Term the portfolio will be sold and
the monies will be paid into the Intertrust
controlled bank account.
A bonus interest payment will be payable
depending on the increase in equity
achieved.
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A sale restriction will be registered in the
name of Intertrust to ensure the portfolio
cannot be sold without the approval of
Intertrust.
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At this stage your original investment
amount will be returned to you.
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Your money will be controlled by Intertrust
from start to end.
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Max Property was founded by a syndicate of property
investment professionals, with over 20 years of
experience in the industry. Through careful analysis
and due diligence research, a small selection of high-
yielding investment products were developed with the
intention of providing the main benefits of property
portfolio ownership without many of its disadvantages.
Max Property’s team is highly experienced in the
investment and property markets, having developed,
managed and marketed developments in various parts
of the world. Each of the Max Property companies is
established through a local special purpose vehicle
(SPV) and with local directors. Quarterly management
accounts and the annually audited accounts are
provided to all investors for full transparency and
control over their investment.
Mark Lloyd Mark is a professional property investor, with over 30 years of
entrepreneurship and property investment behind him. Along with his long-
term business partner, Jackie Reeves, Mark has grown 6 successful
businesses with 2 of these having been sold on the open market. He owns
a successful Property Sourcing Company, which looks for undervalued
property deals throughout the UK.
Property Mastery Academy is a private training company that, based on
Mark and Jackie’s considerable experience, educates property investors
across the UK through workshops, seminars and a comprehensive
mentorship program.
During his career, Mark has built up a large portfolio of properties in
various areas of the UK, incorporating residential, commercial and
development activities and has become an authority in the field of
property investing.
Paula Ruffell Paula is a lawyer specialising in Corporation Tax Dispute Resolution.
Having worked in the Solicitor’s Office of Her Majesty’s Revenue and
Customs (HMRC) for nearly 9 years before moving to the private
sector, she now
advises global companies on UK corporate tax issues such as diverted
profits tax, permanent establishment and transfer pricing and High Net
Worth individuals on issues such as domicile and residence.
Paula has been investing in property herself since 2006 and has
experience in refurbishing and managing London and Scottish property.
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Why do you think you can get better properties then a private property investor?
Most property portfolios never reach the open market but are offered and sold between
professionals. Mark Lloyd is a property investment professional and conducts property investment
seminars throughout the UK. Through our strong network of property investment professionals we believe
we can access better deals than the average property investor.
How do I know my money is safe?
All investment money is transferred into an account controlled by Intertrust, and this money can only be
used to purchase buy-to-let property according to the Investment Criteria as set out in the IM. The
properties are also protected by a restriction of sale to ensure we cannot sell the portfolio without Intertrust’s
approval.
What happens if you cannot pay out the promised interest payments?
If for some reason the interest payment cannot be paid, or there is not sufficient money in the company
account controlled by Intertrust, the missing interest will accumulate and be added to the next interest
payment.
Can I invest through my SIPP/SASS?
In principle yes, as secured bonds are allowed to be included in SIPPs and SASS’, however each SIPP
Trustee has different guidelines and you will need to write to your own SIPP provider for confirmation that
your investment in Max Property bonds would qualify as a SIPP/SASS eligible investment.
Will commercial property be included?
Although Max Property’s focus is primarily residential, we will consider commercial
opportunities that fit the Investment Criteria.
How do I know that you will conform to the fiscal and legal obligations that landlords are obliged
to adhere to?
Ignorance of the law is no defence. We are experienced professionals and ensure that our lettings and
management teams are fully trained and adhere to the highest standards of conduct.
FAQ
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Will I have access to company accounts so I can see how my investment is performing?
Yes. Quarterly management account and the annual accounts will be provided to investors.
Can I exit early if I have to?
Yes. There is the option to exit on the third anniversary of the fund. You will have to inform the
company a minimum of three months before this date if you would like to exit. The bonds are transferrable
and so there may be a possibility of transferring your investment to another investor.
Why are the interest rates so high?
The interest rates are high because they reflect the high yield basis of our model as demonstrated in the IM.
What happens if property prices fall during the investment lifetime?
UK property prices fluctuate, however over the long term they have steadily risen. Our investment
model and the yield we offer is based on rental demand rather than relying on an increase in the capital of
the properties. Further, we invest in a range of cities across the UK which means that the portfolio is
diversified.
Who will be in charge of the property management?
Each property portfolio will be managed by local property management agents. The rental income
will be paid to the bank account that is controlled by Intertrust.
What happens if you do not achieve the total fund raise?
A minimum of £425,000 needs to be raised for Max Property to start purchasing properties. As soon as
this milestone is achieved, properties will be bought and full details will be made available on the website.
Can I invest through my company?
Yes, you can invest through a corporate structure as long as your AML documents are accepted by
Intertrust.
What are the income tax and inheritance tax implications of investing through you?
Investors will need to seek their own legal/ accounting advice on the impact of their
investment. We do not provide financial, investment, tax or legal advice.
When is the start date of the investment calculated from?
Interest starts to accrue the day after your monies are received in the company bank account.
When are interest payments made?
Interest payments are made on fixed dates, being the 5th of January, 5th of April, 5th of July and
5th of October of each year.
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Contact Us
Max Property Investment Group Plc
+44 (0) 203 695 6110
www.maxpropertygroup.com
35 Great St. Helen’s London EC3A 6AP United Kingdom
UK Company registered number 10597801