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Unique Property Syndicate: Level of Interest Survey

This form is to help gauge interest in a Unique Property Syndicates plc share issue prospectus. Please note this is NOT an invitation to subscribe to shares, but a survey to enable us to consider whether there is sufficient interest in a plc share issue for us to instruct the solicitors and accountants to proceed to a formal public share issue. The Unique Property Bulletin Ltd., will require to commit to approximately £7,500 legal/accountancy underwriting for such a venture. It would be folly to spend this amount of money if we were not reasonably comfortable that such a unique property share issue would stand a fair chance of success. A FREQUENTLY ASKED QUESTIONS section is reproduced further down the page to assist with some of the basic details.

At the present time, all we ask is for those interested in a unique property syndicate to advise whether:-

1] They would like to read a unique property public share issue prospectus?

2] If friends, colleagues and Bulletin readers were minded to join and subscribe – then at what ballpark figure would this be at? This is NOT mandatory nor obligatory commitment – just a number for guidance at this end.

Answers please via the “Contact Form” below. Thank you – a BIG thank you as we are very close to pressing the “go” button for this project, and really just need to gauge the level of interest.

All you need do is give a brief survey response in the “Subject + Message” box below. For example:-

1] Yes – 2] £5,000 (any amount from £500 to £25,000)  

or

1] No – 2] Not applicable

On the Contact Form “Subject + Message” line, please insert the words: UPS Survey, and then the answers to [1] and [2] Thankyou.

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Also, please feel free to ask any Unique Property Syndicate questions via this form.

We do know from our ongoing unique property syndicate email “alert” list that there are approximately 100 friends, readers, colleagues and previous syndicate participants interested in joining. However, progressing that interest into solid, asset backed unique property projects is another matter. Our hope is that those Bulletin readers who are kind enough to take the time and respond to this initial survey will help guide us as to whether a unique property public limited company share issue is a prudent thing to do.

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Frequently Asked Questions

Proposed Unique Property Syndicate Public Share Issue Prospectus.

1. Prospectus: First and foremost a plc prospectus must be read from cover to cover as it will contain the full detail required by the Financial Services legislation. Not to mention the information needed to assess the risks, assets, entry and exit routes etc. Prior to starting the full share issue we are studying whether the plc route is the best way to recommence the unique property syndicates of earlier years.

2. Subscription: Where does the money go? Initially to the solicitors/plc registrar. Strict rules govern what the inbound funds can be used for. After banking, the funds will require to be used for purchase of the candidate unique property.

3. No Mortgage – 100% Equity Driven: These rules for this particular plc will include the caveat that NO bank borrowing NOR mortgage debt shall be used in the purchase of the candidate property. The endeavour and asset purchase will be 100% equity driven. We have utilised this principle in all past syndicates and it has served us all well. In essence whatever else happens, the asset backed property bought by the syndicate plc shall NOT be at risk of bank foreclosure.

4. Professional Fees: The ONLY deduction from the INBOUND funds shall be for solicitor; accountancy; audit; company registration; RICS Survey costs. We estimate these professional costs for the full year to be £7,500 (excluding auction resale fees which will be deducted from the end profit element).

5. Asset Purchase: ALL of the majority inbound funds will be used to purchase the candidate property. There will be a contingency therein to make any given property safe and secure, but for the avoidance of doubt the syndicate will NOT be embarking upon a restoration project. These can be costly and often present an unknown or unquantifiable risk. The asset will be bought in, and then marketed fully to seek an onward sale at a respectable profit level.

6. Syndicate Management: The Unique Property Bulletin Ltd., will underwrite all plc formation costs etc. Even in the event that the plc does not reach the minimum required subscription to get properly started, the Unique Property Bulletin Ltd., will pay the accrued fees incurred to that point. In that event ALL subscribers will receive 100% of their fund back without any costs deduction. However, if all goes according to plan, and the plc share issue reaches the minimum level of subscription required, the project will require to be managed. After 18 previous unique property syndicates the Unique Property Bulletin Ltd., have a reasonable experience of this. For example, solicitor’s statements: Click Here. In addition, Unique Property Bulletin drivers also have experience in maximising resale publicity through national media. For example: Click Here. Therefore, in recompense, and ONLY if a profit is made, then the Unique Property Bulletin Ltd., shall be paid 10% of the NET profit from the resale of the candidate property, plus reimbursement of disbursements such as insurance for the candidate property along with electricity, business rates/council tax, water rates and other costs incurred to the account of the unique property syndicate asset. At the end-point of the syndicate there may also be a possibility of auction resale fees which will be to the final account of the syndicate plc.

7. Minimum Overall Subscription: It is unlikely that we will progress with a unique property plc without there being £125,000 minimum in cumulative overall subscriptions. The £7,500 cost of running a plc would make it relatively uneconomic in the experience of the initial subscribers to this effort at a figure less than £125,000. There is no maximum set at present. From past experience we are likely to secure a ballpark figure of between £250,000 and £400,000.

8. Individual Subscription: The guide will be from £500 to a maximum of £25,000 per person subscribing (above £25,000 please contact the share issue registrar prior to so doing. Thank you).

9. Timeframe: Initial unique property syndicates in the 1990s started out at 4 to 6 month timeframe from start to finish. After a few of these projects we managed to bring this down to 3 months. Though the vagaries of the actual inbound and outbound conveyance render it difficult to shorten this timeframe to less than 3 months. Also some syndicates have taken longer than the norm. Therefore we believe the first plc syndicate will be between 6 and 12 months from start to finish.

10. Exit Route: Most likely via a “dividend” on resale of the candidate property will be paid directly to the members/plc shareholders. Though advice from the accountants will be taken as to the most tax efficient way to manage the disbursement of shareholder funds on sale of the unique property owned by the syndicate. The final distribution of sale funds will be on a pro rata basis directly in proportion to the percentage share of the unique property syndicate that each member originally subscribed to. 

11. Voting: Normal company voting procedures will apply. All shares will be “ordinary”. There will be NO “preference” shares. Therefore the voting will be on an equitable basis. Simple majority of 51% carries if/when a vote is required. The day to day running of the unique property syndicate plc will be at the discretion and control of the company directors and subject where required to the advice of the syndicate solicitors, accountants, auditors, surveyors and auctioneers.

12. Risk: There are no guarantees in life. Prospective subscribers will need to take a measured view upon reading the full unique property plc share issue prospectus. It is the view of the initial subscribers that an asset backed share issue with no mortgage/debt minimises risk in as much as this can be ameliorated. Our aim shall be to market the candidate property in a way that it has previously not been managed.

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Alternatively communications via old fashioned Royal Mail works as well:-

Unique Property Bulletin Ltd., Harbour Cottage, Shore Street, Helmsdale, Sutherland, KW8 6JZ.