The Happiness, Architecture, Beauty (HAB) bond has been created to facilitate the acquisition of land and the development and construction of housing projects in the south-west and south-east of England.
HAB Housing was set up by McCloud and two partners in 2007 to change the UK’s approach to house building.
Finance is being raised by HAB Capital, a subsidiary of HAB Housing, in the form of fixed interest 4.8% secured five-year bonds that will be issued in denominations of £10,000 ($12,957, €10,906).
The IFA bond follows a “successful” crowdfunded mini-bond, the company said.
Favourable tax treatment
According to the brochure, for eligible taxpayers, the new HAB IFA bond can be included within an Isa, offering favourable tax treatment for the bondholder.
The HAB bond is only available to qualified investors via IFAs. It is not a retail offer as such, but comes with security to protect the bondholders in case of default, it added.
The funds raised will be invested in HAB Housing development projects across Bristol, Bath, Somerset. Wiltshire and Oxfordshire in the next 12 months. These projects aim to build 675 homes with a gross development value of around £170m.
Fund raising
McCloud said: “Since [2007] we’ve been developing award-winning schemes of up to 200 homes across the country.
“Now, 10 years later, and fuelled by the same mission we began with, we’re looking to the future as the company grows. The next step towards this growth is the launch of HAB Capital. […] which will enable us to raise funds for our future projects, through our new IFA bond.”
