<< Back
Wednesday 01 July 2009
Members receive first SES (UK) returns after just 6 weeks
The first IPIN Secure Exit Strategy (SES) investors have been exited from the UK application of the strategy having generated a 26% return on invested capital in just 6 weeks.
The Secure Exit Strategy is unique to IPIN and its partners and enables investors to leverage the current economic climate by un-locking vital construction finance for developers during the liquidity crisis.
The SES offers investors a 30%+ annualized return without capital risk, this is achieved with investors placing a 10% deposit into a UK (HSBC) Escrow account that cannot be accessed without an approved insurance policy in position. The investor cannot be asked to close under any circumstances and so the 10% deposit is the maximum required investment. The developer is then contractually required to re-sell the IPIN investors unit(s) to a substitute purchaser at a pre-agreed premium that increases with time to ensure a 30% annualized return to the investor.
IPIN also offers an application of this strategy allowing investment in USD -
read more >>
IPIN is now nearing the end of availability within this specific strategy application and already the first substitute purchase is now complete with others currently in process.
IPIN Member Case Study - SES (UK) June 2009
| Client: |
Member from Switzerland |
| Strategy: |
SES (Secure Exit Strategy) |
| Application: |
Flaxby UK |
| Invested Capital: |
19,434 GBP |
| Total Return: |
24,487 GBP |
| Investment Duration: |
6 Weeks |
| Investment Return: |
26% on invested capital |
05/05/09 - Deposit
After deciding to proceed with the investment and completing required paperwork client places 19,434 GBP (10% of 194,341 GBP room value) into designated escrow account. |
12/05/2009 - Exchange
Lawyers exchange on the unit on behalf of the client who is protected from any additional investment requirement by the signed addendum completed previously. |
15/06/2009 - Exit
Substitute purchaser repurchases investors unit at the purchase price +4% spread applicable (202,115 GBP) |
26% Return On Investment Explained
The IPIN investor purchased at 194,341 GBP and sold at 202,115 GBP this generates a total profit of 7,774 GBP. Due to the JV agreement the investor is entitled to 65% which equates to 5,053 GBP in addition to initial paid deposit of 19,434 GBP = 24,487 GBP representing a 26% return on invested capital. |
Investor Options
At this stage the investor has the option to be paid the invested capital back and wait for the project to complete to receive generated profit or receive both capital and profit for the purpose of re-investment. |
 |
Re-invest
Investor decides to re-invest in a new higher value SES UK unit at 22,476 GBP and in addition receives a cheque for 2,011 GBP. At this stage the investor continues to generate a 30% annualized return from an investment at a higher level than originally invested. |
*Please note. Investor will also receive an additional payment at the end of the project for 2,318 GBP. This will make the overall return on invested capital for the investors initial investment 38%.
Obviously not all investors will exit the investment in such a short timeframe. The SES is designed to deliver a 30%+ annualized return based on a unit premium that increases with time.
See the chart below for premiums, returns and associated timeframes:
