Downing Crowd Data Centre (Birmingham) 5% p.a. fixed rate two-year bond
A data centre is a building that houses technology systems used to store data. Almost all businesses today are producing increasing amounts of data fuelling demand for storage. 2016 saw the highest aggregate take-up of supply across the European data centre market – more than 2014 and 2015 combined.
This is an opportunity to lend money to an operational data centre in Birmingham with the bond secured against the company's assets, and earn up to 5% p.a.
Why consider investing?
- Direct loan to GTP3 LLP, the owner of a data centre in Birmingham with planned capacity of 3 Mega Volt Amp (MVA)
- Fixed rate of 5% p.a. gross paid every six months over a 23-month term
- Asset backed: the bond secured against the company's assets. The data centre is currently valued at £24.6 million
- Low loan to value of 17%
- The data centre has an anchor tenant and is currently operating at 25% capacity
- Co-invest with the Downing funds, property tycoon Peter Beckwith and successful property developer, Peter Stratton
- Bondholders' investment will rank ahead of any other creditors
- Invest from £100 to £250,000
What to watch out for?
The bond is not transferable and cannot be traded in on any secondary market. It is not immediately realisable and illiquid, so it involves a degree of risk. Moreover it is not covered by the Financial Services Compensation Scheme.
Neither the interest nor your capital are guaranteed, so you could get back less than you invest. Financial projections indicate there will be sufficient funds to service interest costs and repay debt at the end of the term, but you should form your own view.
How to invest
To invest, please register on the Downing Crowd website using the link below and follow the instructions. When you complete your application you will receive an email from Downing confirming payment details. The application deadline is Midday on Sunday 2 July, you'll then have up to 48 hours to make your payment.
The products we offer are not suitable for everyone. They are normally high risk and illiquid. If you're unsure an investment is right for you, please seek professional advice.
This review is not intended to be advice or a personal recommendation to buy the investment mentioned, nor is it a research recommendation. Wealth Club aims to highlight investments we believe have merit, but investors should form their own view on any proposed investment.
- Secured bond
- Target raise
- £2.8 million
- Interest rate
- 5% p.a.
- 23 months
- Loan to value
- Midday, 2 July