Shojin, a leader in real estate investment opportunities, is thrilled to announce our latest successful loan repayment. In a testament to our expertise in selecting and managing high-potential projects, 77 investors have received full repayment of their capital plus interest, following the funding of a residential development in Chadwell Heath, East London.
Launched in January 2023, this project raised £1.252 million through the Shojin platform. We have delivered returns of 14% per annum over the loan's 20-month term, resulting in a total repayment of over £1.529million in capital and interest to our investors.
Jacky Chan, Head of Investments at Shojin, commented: “This successful exit not only demonstrates our ability to identify lucrative opportunities but also underscores our commitment to delivering exceptional returns to our investors. It's a prime example of how we're revolutionising property investment.”
Project highlights
Investors were given the opportunity to participate in a mezzanine loan for the development of 45-residential units and the refurbishment of four apartments in a listed building. A mezzanine loan is a type of junior debt that sits between the senior debt and the equity in the capital stack, offering investors higher returns in exchange for slightly higher risk.
Located in Chadwell Heath in the London Borough of Barking and Dagenham, the site benefits from the ongoing urban regeneration of this area of East London, fuelled by improved accessibility from the new Elizabeth Line. The journey time from the site to Liverpool Street is under 40-minutes via Chadwell Heath station.
The experienced developer
The developer of this scheme has completed multiple projects across different use classes in both the UK and Singapore, including commercial office development, land leasing, large scale residential development and hospitality.
Balanced deal structure
Shojin and investors provided a mezzanine loan with a 20-month term to fund the development of the property. The facility of £1.252million equated to a Loan to Gross Development Value (LTGDV) of 65% excluding interest; this LTGDV ratio represents a balanced approach, offering attractive returns while maintaining a prudent risk profile.
The senior lender is Shawbrook Bank, who provided debt totalling £9.394million.
Exit achieved
Although this scheme has not yet achieved practical completion, the borrower has redeemed the Shojin mezzanine loan. Four months after drawdown of the loan, the senior lender (Shawbrook Bank) introduced a revised construction programme that the developer is adhering to.
In this regard, construction is on track and the senior lender was happy for our facility to be repaid before them, despite our loan being subordinate to the senior loan.
This outcome benefits our investors but also demonstrates Shojin's ability to structure deals that protect investor interests while supporting developers.
Delivering strong returns
This successful exit in Chadwell Heath exemplifies Shojin's commitment to identifying high-potential projects and delivering strong returns to our investors.
As we continue to source and structure attractive investment opportunities, we invite both new and experienced investors to explore upcoming projects on our platform. Join us in shaping the future of property investment and benefit from our expertise in navigating the real estate market.
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