Property-Backed Bond Offered For UK Investors That Targets Brazil, Germany, US

Tom Burroughes

28 September 2016

An asset-backed investment bond that holds Brazilian real estate – as well as assets in Europe and North America - is being offered to UK-based investors.

The Shenton International Asset-Backed Mini Bond, issued by Shenton International Bonds plc, a wholly-owned subsidiary of Shenton International, offers a fixed rate of 10 per cent gross interest per annum, paid quarterly, for four years, and requires investors to put in at least £1,000 ($1,301).

The bond invests in property investments in the US, Germany and Brazil.

The offer period for the bond closes at the end of October, having started in July.

With emerging market indices recovering this year – the MSCI Emerging Markets Index is up almost 32 per cent (as of 23 September, in sterling), the bond taps into a resurgent interest in such markets, its proponents say. Already, some 130 investors have put money into the bond.

Among the projects Shenton's second international property bond will finance are: Majestic Village, Parnamirim, Brazil. This is a prime beachfront residential project situated in Parnamirim, and, Airtropolis Village, Natal, Brazil. This is a housing project, located just 30km from Rio Grande do Norte's new airport.

Shenton Group, which is headquartered in Singapore, has £390 million of client assets.