This section of the website explains how Blackmore attempts to mitigate risk and describes what has been established with the aim of achieving protection for bondholder's capital.
An investment in Blackmore is ultimately an investment in UK property
Our Experienced Development Committee evaluate each potential development against stringent criteria, but please be aware that previous experience is not a reliable indicator of future results
Blackmore Security Package
Blackmore has put in place a security package with the intention of reducing the risks of investing.
Independent Security Trustee
An independent Security Trustee, International Administration Group, controls and monitors the security, acting solely in the interests of the bondholders.
Our committee evaluate each potential development against stringent criteria. We only develop property in the UK.
Experienced Management Team
Including regulated professionals with responsibility for multi billion assets under management and the previous head of Residential Capital Markets & Investments for the global bank BNP Paribas.
Investors have a legal charge over the assets of Blackmore. In the event of business insolvency then the sale of these assets, contribute towards paying back our investors’ capital.
1 The fact that the bond is asset backed would not guarantee that all capital would be repaid. This also means that there is a liquidity risk and there is likely to be a delay in repaying your capital should you request it.
Capital Protection Scheme
In the event of insolvency, the bondholder's capital is protected by the scheme which acts like an insurance policy. Arranged by UlysseRe and underwritten by Northernlights Surety. Please note that this does not guarantee a return and details of the key limitations of this scheme must be read on the faq page.
This is achieved by:
- Our experienced committee undertake strict due diligence on each project and make an assessment against stringent criteria. As outlined above, there is a minimum level of potential profit - 20% - required before accepting a new development. Past experience is not a reliable indicator of future performance.
- Investors have a legal charge over all land and property assets owned by Blackmore and its subsidiary companies. In some cases, this will be a first charge and where there is lending it may rank behind the security granted to the lender. Security may be insufficient to cover bondholder capital and interest.
- Should the sale of these assets not be enough to pay our investors back in full then our Capital Protection Scheme, which acts like an insurance policy comes into play. In the event of insolvency, the policy covers any shortfall. This covers investors for up to the full amount of their capital invested. This does not guarantee a return and full limitations must be read as detailed above.
- The security is monitored and enforced by an independent Security Trustee, IAG. Since IAG was founded in 2000 the team has administered over 400 funds and currently has over £12 billion in assets under administration. The Security Trustee acts in the interests of the investor and not for Blackmore.
The Capital Protection Scheme is arranged by UlysseRe, a Lloyd’s of London broker.
The policy itself is underwritten by Northernlights Surety (NLS). NLS is a specialist in bid bonds, performance bonds, advance payment bonds, maintenance bonds, advance payment bonds, commercial performance bonds, real estate and endorsement bonds.
NLS has been an approved underwriter for a number of prestigious clients including Air Berlin, US Corp of Engineers, South African Shipyards and the US government agency USAID.