Award-winning property investment company Cogress kicked off 2019 as it means to go on, delivering investors an impressive 12% per annum return on the first tranche of its Battersea project.
When completed, the mixed-use project by developer West Eleven will include 39 residential apartments with a shared 12th floor rooftop garden overlooking Battersea Park, three floors of commercial space and 16 underground parking spaces. Cogress investors committed £2.5m as a land purchase loan.
Investor Relations Director, Rachel Stark said, “One of the major advantages of the Cogress model is the choice of projects we offer our investors.
“This project is particularly interesting because it had two parts; the initial land purchase loan which then, if the developer met certain criteria, would be extended into a development loan.
“At Cogress, protecting our investors’ best interests is at the heart of who we are. This particular deal is no exception and was structured in two tranches (land purchase and development) to reduce investors’ exposure to risk as much as possible.”
The second major advantage of the Cogress model is the company’s in-house Portfolio Management team; a lineup of construction, architecture and property experts who oversee and monitor all live projects. “The Portfolio Management team were in regular contact with the developer, as they are on all our projects.
“Which meant that investors were kept up-to-date on the progress of the project.”
When the opportunity came for the land purchase loan to be extended into a mezzanine development loan, all the investors in Tranche 1 of the project achieved the 12% p.a. return exactly as targeted. They then had the choice to exit the project or stay in for an additional projected 24 months with a total target return of 26.25%.
Stark added, “The fact that tranche one of this project successfully exited with the returns targeted is a testament to the strength of our due diligence process, and Market Analysis and Portfolio Management teams.” It is this, the sheer volume of the work that goes into each investment project, that truly sets Cogress apart from other alternative finance platforms. With projects required to pass two investment committees and 80 hours of analysis, it’s little wonder that only one-in-30 developments the company assess make it through the due diligence process to be launched to its community of investors who qualify.
Stark concluded, “The market isn’t easy and hasn’t been for some time; Brexit continues to cast a long shadow over a residential market still struggling under the pressure of taxation changes. Some projects are certainly more challenging than others, but there is as much opportunity in a downturn market as an upturn and our job is to find it, and that’s where are our Origination and Market Analysis teams come in.”
“Our projects are rigorously assessed before launch and closely monitored throughout their lifetime to protect our investors’ capital as much as possible.
“This latest exit is the first of three successful exits we expect to celebrate this quarter.”