Acquisition and sale of 1,900 properties in the last 10 yearsSales volume of $228m in the last 10 years

Member of the “Owner Excellence Program”Currently manage in excess of 250 propertiesQuicker Section 8 property inspectionsIncome continues during vacant period

Established 1886 - Specialists in Business Law and Real EstateUS Escrow providerBond Custodian and point of contact in the event of default

Established 1847Over 1,000 offices and 7,000 staffLargest Title Insurer in the USEnsure no future disputes over title of each property

Who’s Who

US Housing Market

US Housing Market

This in turn, has increased the demand for good rental properties

Banks are keeping a tighter rein on mortgage finance. The restriction of credit is forcing not just those that have lost their homes into the rented sector but also first time buyers.

The “Perfect Storm” has created a once in a lifetime opportunity for investors in the US housing market

US Housing Market

The Housing Choice Voucher Program

The department of Housing and Urban Development (HUD) have an agreed Fair Market Rent (FMR) payable by

property size.

Rents payable in Chicago

Tenant Benefits•100% rent subsidy•Free to choose their property

Landlord Benefits• Income directly from Government

•One Strike policy for unruly tenants

•High rental yields due to Fair Market Rent (FMR)

Investment Strategy

Acquire 3 unit property

for circa $50,000 with

three 2 bedroom

apartments

Refurbishment costing

circa $30,000

Let under the Housing Choice

Voucher Program at fair market

rent = $34,776

Sell property for circa

$173,000 with a 20% Gross Yield

and reinvest proceed

Property Example…..Before

Property Example…..After

Property Example

2158 South Millard

Purchased September 2012

Price $49,000

Refurb costs $19,000

Total Cost $68,000

Annual Rental Yield $32,400 (49%)

Sold October 2012 $103,000

The Investment Process• Local real estate agents identify distressed residential

properties for sale from banks or foreclosure agencies

• Properties are assessed by independent experts and recommended to Colonial for purchase and refurbishment

• Properties purchased with investors funds are then registered with the County Recorder office to ensure clean title and reflected at Companies House under the 1st lien legal charge

• Refurbishment undertaken by professional contractors overseen by Colonial Capital US

• Refurbished properties are let under the Housing Choice Voucher program, a Federal Housing and Urban Development (HUD) scheme

The US Social Housing Bond

• Yield of 12% per annum• Minimum entry level £10,000• Redemption Price of 100%• Rents Underwritten by the US

Government• Fully Asset Backed Bond

The US Social Housing Bond

• 1st ranking charge over the property portfolio• Investment funds held in lawyer’s escrow until

bond issuance• 85% rule. The amount of bonds in circulation

cannot exceed 85% of the value of the property portfolio

• Marketing material approved by FCA authorised firm

• Approved by Independent UK SIPP Trustees• FCA Security Trustee in case of default