Unregulated Investments - Investment Options - Jan 2015 - DOLPHIN GERMAN BOND - 3 or 5 year term - Invest123
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Investment Options - Jan 2015
Unregulated Investments
DOLPHIN GERMAN BOND – 3 or 5 year term
PINERGY – 3 or 5 year term
COLONIAL CAPITAL – 3 year term
PARK FIRST – 6 year term
PACIFIC TYCOON - 3 Years plus
January 2015 www.ipsfa.ie
IPS FINANCIAL ADVICEUNREGULATED INVESTMENTS
INVESTMENT RETURNS
In the past few years bank deposit interest rates have hit an all time low. The
average annual interest rates now do not exceed 2% per annum. Alternative
investment options are available to Irish customers which may significantly increase
the return on their investments. However, the risk involved in investment products
varies and should be understood before making any investments. For these
purposes, IPS Financial Advice carries out a risk assessment evaluation of all our
prospective clients.
REGULATION
The Central Bank of Ireland regulates some investment products, but others are not
regulated. Unregulated investment products are investment vehicle set up for asset
classes that are unable to follow the Central Bank of Ireland specific rules on matters
such as liquidity, leverage or cash reserves. Since there is no central regulation for
these types of investments, there is no capital guarantee or minimum return
guarantee. Although unregulated investments themselves are not directly authorised
by the Central Bank of Ireland, persons carrying on activities related to these
investments are themselves subject to the Central Bank of Ireland regulations.
INCREASED RETURNS ON INVESTMENT
Unregulated investments are traditionally associated with higher return rates, but
also higher risk of investment. Even so, if carefully researched, unregulated
investment products may suit some investors and provide them with return rates in
the range of 8—15% per annum.
UNREGULATED INVESTMENT AND YOUR FINANCIAL ADVISOR
Your IPS Financial Advisor, in speaking to you about these investments is acting in
an unregulated capacity. The Central Bank of Ireland does not regulate these
investments. Clients do not have the protection afforded by such regulation, nor the
protection of the Investor Compensation Act or of Professional Indemnity Insurance.
All UNREGULATED investments are placed through a separate legal entity, Irish
Pension Solutions Ltd., 64 O’Connell Street, Limerick.
IPS FINANCIAL ADVICE 2DOLPHIN CAPITAL - German Listed Buildings
INVESTMENT BACKGROUND
This is an opportunity for Irish investors is
Option of 3 and 5 year term
to provide loan finance to a German
for all cash investment Company Dolphin Capital GmbH, to
Options of 3 and 5 year purchase listed properties in Germany. To
term for all pension and encourage redevelopment, the German
ARF investment authorities give marginal rate income tax
relief on 100% of the renovation costs of
Minimum investment €
these properties over a 12 year time frame.
10,000 Dolphin’s Professional Team of architects
Returns of 12% per annum and contracting/development experts
– secured on property identify projects with viable costing
perspectives and good resale potential.
The company secures building licences,
contractors with fixed price contracts, end
purchaser contracts with approved stage payment loan facilities and resale of these
listed properties in short periods of time with excellent profit margins.
RISKS
Tax Break is removed: Germany has 5 Year Federal Budgets, the tax relief was
rolled over in 2014 and is now fixed in place until 2019.
Collapse of the Euro: If the Euro currency were to collapse, it may be considered
an advantage to have your saving/pension funds in Germany and in German property.
Collapse of German Property Market: Most commentators consider this unlikely.
The German economy is quite robust, retail interest rates are low and trending lower.
Certified Owners Land Charge Certificate: While your money is being used you
have the security of Certified Owners Land Charge Certficate against the property it is
being used to purchase—no other charge can supercede it.
SECURITY
Legal Control: When the property has been sold on to the German Citizens, your
money is held by the firm of Solicitors, Bottermann Khorrami ( www.BK-Law.de ) in
their client account and will not be released for use again until another legal charge is
issued. The solicitors control the release of your money not Dolphin.
Purchase Price: Because the properties are bought well below market value even
a significant drop in the market may not affect the security of your investment and /or
return.
German Euro: Having your funds in German Euro will be worth far more to you in
the unlikely event the Euro does collapse.
Experience: With over 50 years combined experience of the German ‘Listed’
Building market, the three directors have specialised knowledge of the market.
IPS FINANCIAL ADVICE 3PINERGY LOAN NOTE
INVESTMENT BACKGROUND
Option of 3 and 5 year term
for all cash investment PINERGY is to be a leading player in
Minimum investment the domestic pay as you go (PAYG)
€10,000 electricity market segment. New Measured
Power Ltd had developed the PINERGY
Returns of 6.75% per
brand as one of only 5 licensed electricity
annum suppliers in the domestic electricity market.
The company has been participating fully in
the regulated electricity supply market since
January 2013. Pinergy presently has
19,000 customers in Ireland, generating
over €3m gross profit per annum. Every
€1000 invested adds 4 customers and
generates €768 annual profit thereafter.
RISKS
Competitors: In a strong growth market, no apparent risk of price competition
New Entrants: Little risk of the current electricity suppliers entering the market as
they see it as ‘lower end’ and they rather chase the higher value clients.
Smart Meters Roll Out: PINERGY are smart meters. National roll out of Smart Me-
ter program not likely before 2019 as incumbents have higher priorities.
Meter Supplies: Supplier UK based, ISO certified, 15million installed, $200m T/O.
Price of Power: All suppliers pay the same price regardless of volume.
Default: If PINERGY is unable to meet its loan note obligations, then the default
clause operates, converting loan notes to equity. The value of the Company would then
be determined by the sale value of future cash flows from its client base.
SECURITY
The Industry: Pinergy is a Utility Company—Electricity, utilities are durable in that
they perform well in improving or falling markets. People still use electricity.
The People: Pinergy is managed by Enda Gunnell, a Chartered Accountant who
previously was a partner in Mazars. Group Sales Director is Stephen Mackeral who was
CEO of Carphone Warehouse Ireland from 1999 to 2011.
The Investors: Apart from the management, significant investors in the Company
include Peter Coates (owner of Bet365 and Stoke City FC) and Eddie O’Connor (ex.
Airtricity) these millionaire investors completed their due diligence and invested.
Regulated Market: The electricity market is heavily regulated by the CER (Commission
for Energy Regulation) it is likely that CER would intervene to ensure that clients do not
lose their electricity supply and also to ensure that the business is sold. Pinergy lodges
a €40 bond with CER for every customer (€760k).
IPS FINANCIAL ADVICE 4COLONIAL CAPITAL
BACKGROUND
INVESTMENT
3 year term for all cash Colonial Capital Group PLC was formed in
investment February 2014 to take advantage of the
dislocation taking place in the US housing
Fully SIPP/SASS complient
market and the demand for social housing.
structure Since April 2012, companies controlled by
Minimum investment € Colonial Capital Group PLC have
10,000 successfully sold over 40 properties in the
Returns of 12% per annum Chicago area with an average profit margin
of 53%. All properties are acquired direct
from the US banks by an experienced team
of property negotiators. Each property is
refurbished and rented out under the social
housing voucher programme in the USA
and at year three is sold at 20% margin.
Interest on these Bonds can be compounded or taken as paid.
These Bonds are issued quarterly, the next starting date is February 1, 2015, which will
mature on January 31, 2017 and interest will be paid half yearly on 3 July and 1
February each year.
RISKS
Housing Voucher Program: The removal of the housing voucher program in the
USA will mean that the acquired property will have to be rented privately which will be
less stable. The Housing Programe is in place since the 1930’s, so the chance of it
being removed is slim.
Sale of Property: The properties have to be discharged at year three. If there is a
drastic change in the US property market, the properties may not sell at the projected
profit margins and or the repayment of loans may be delayed.
SECURITY
First Charge: All bond holders have a first charge over the shares of the US
based Colonial Capital Properties LLC company. This company holds all of the property
acquired with the funds raised in each funding tranche.
Security Trustee: Blackstar Wealth Management A Ltd, the security trustee
division of Blackstar Wealth Management Ltd act as security trustee on behalf of all
lenders.
85% Rule: The amount of Bonds in circulation cannot exceed 85% of the value of
the property portfolio.
IPS FINANCIAL ADVICE 5PARK FIRST - Parking Spaces at Glasgow Airport
INVESTMENT BACKGROUND
Real Property Investment
Park First is a division of Group First that
with Title Deed for each has introduced a new commercial property
parking space. investment opportunity that has a low entry
Stg.£20k per space all in, level, and they believe is low risk and
rising to £25k on 31 March highly profitable. An investor buys an
Leaseback arrangement individual long stay airport parking space,
that is leased back and managed on your
with Carpark Operator
behalf by a well established airport parking
Operator returns 8% pa in company with over 20 years experience.
Years 1 and 2, 10% Yrs 3 Purchase price of the Carpark space is
and 4, and 12% yrs 5 and 6 Stg.£20,000 until end March, then £25k.
Rents payable in Advance in years 1 and 2!
Each Car Park Space has a current RICS
valuation of Stg£30,000—capital growth!
Glasgow Airport had just 6190 spaces serving 7.2million customers , demand for Long
Term parking spaces is expected to be 17,900 by 2020. Occupancy at Park Firsts 1 and
2 carparks over 2014 was over 90% most weeks - effectively full occupancy!
EXIT
After 4 years, the Developer may buy back the parking space from the investor at
the price paid by the investor. At any time, the investor can sell the car park space on
the open market—just like the sale of any other real estate. Parking spaces in Mayfair
London recently sold at £281,000 each!
Sale of the Property on Exit: The exit sale of the property may be
delayeddepending on market demand.
RISKS
Rental: The rental is guaranteed only for years 1 and 2, in fact it is lodged in a
holding account at commencement of contract. Rental rates (10, 10, 12, 12) for years 3
to 6 are not guaranteed, but are forecast based on conservative estimates.
SECURITY
BuyBack: The Developer offers to buy back the parking space in the 5th year, but may
not be able to do so, open market value may be higher or lower than purchase price.
Title Deed: The investment is secured by a title deed on the property. Current
RICS valuation for the carpark space is Stg.£30,000. Future value not certain.
Other Information
Group First offer other investment options commencing from Stg.£3750 though their
Store First Company. All Group First investments are available through Irish Pension
Solutions Limited.
IPS FINANCIAL ADVICE 6PACIFIC TYCOON
INVESTMENT BACKGROUND
Pacific Tycoon Ltd. Is in the business of
Price for container $
renting Shipping containers to companies
4100—low entry point! requiring them to transport cargo. Pacific
Lease can be terminated Tycoon invites interested parties to
with a month’s notice purchase shipping containers and then
The investor owns the lease them to Pacific Tycoon to be rented out
to shipping companies. This benefits Pacific
container
Tycoon by having others provide the capital
Contractual Returns of 12% required to purchase the container fleet.
per annum The company is incorporated in Hong
Or 30% of actual rental Kong and is a wholly owned subsidiary of
income, ‘aggressive lease’ Moritzclear Research S.A., a container
management company.
RISKS
Insolvency: Pacific Tycoon may become insolvent and be unable to pay rental
monies due under the lease.
Demand: Demand for containers may drop and market fluctuations may affect the
rents and market prices of containers.
Ownership: The investor is ultimately the owner of the container. At the end of the
lease, the owner may incur transportation, demurrage and storage costs.
Two Lease Options: The investor can choose between two lease options in order to
best suit their requirements
12% Fixed Rate Lease, or
Maximised Rental Agreement—earn 30% of the actual rental received—returns in
2013 averaged 26% for the year.
If you own 5 or more containers, then payment is monthly on 23rd of month to
account. Less than 5 containers and payment is made quarterly.
Ownership: The investor remains the owner of the container which can be sold.
SECURITY
Registration: Every container has a number plate and will be registered to the
investor and is trackable.
Insurance: Every container is insured by Pacific Tycoon whilst on lease.
Buyback: After 3 years, Pacific Tycoon will buy back the container at purchase price.
IPS FINANCIAL ADVICE 7HOW TO INVEST?
It could not be easier!
If you would like to inquire further about the investment options, contact IPS
Financial Advice and meet one of our dedicated financial advisors.
IPS Financial Advice are independent financial advisors with specialist expertise
in investment and financial planning.
Our Team of 15, means you have access to this advice, wherever you are in the
country.
As these are unregulated investments, all introductions are through our unregulated
company Irish Pension Solutions Limited, 64 O’Connell Street, Limerick.
Your Financial Advisor is acting in an unregulated capacity when talking to you about
unregulated investment options and acts only as an introducer of business to Irish
Pension Solutions Limited.
All Investment Options shown are available for both
Pension and Non-Pension Investment.
Please review and contact us with any questions.
IPS Financial Advice
64 O’Connell Street, Limerick
T: 061 469884
E: eamon@ipsfa.ie
www.ipsfa.ie
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