STONEWISE

INNOVATIVE FINANCE FOR REAL ESTATE BUSINESSES

PROBLEM

Refinancing a property is difficult, tighter lending

rules mean portfolio landlord borrowers are facing
a remortgaging crunch.

Refinancing a property is slow, the process can take

up to 2 months or longer
SOLUTION

Rent roll forward financing where portfolio landlord

borrowers can factor their contractual rental
income

QUICK NO HIDDEN GUARANTEED

PAYOUT COSTS CASH FLOW
RAISE CAPITAL FROM SAFEGUARD AGAINST
FIXED FEE FROM 6%
YOUR TENANTS TENANT DEFAULT
MARKET SIZE

£14.2 billion
£4 billion

UK landlords net rental income UK bridging market

Total available market Serviceable available market
MARKET GROWTH
+11%
Increase in number of
portfolio landlords with
4 – 20 properties in Q1 2018
41%
of landlords aim to
expand the number of
properties in the next 12
months
BUSINESS MODEL

We factor the contractual rent roll for the remaining

period of the Assured Shorthold Tenancy (AST) agreement.

A typical case would be 8% for a 6 month tenancy period.

PROCESS

Detail rent roll Provide documentation Get funded!

PROCESS
MARKET ADOPTION

Landlords & Membership Associations Intermediaries

Database of 145,000 landlords 4,600 IFA & 58,000 accountancy firms
COMPETITION
Easy

STONEWISE

Slow Fast

Difficult
PROBLEM

VAT is payable on properties that are not a Transfer

Of Going Concern (TOGC), this tax is a significant
sum for cash flow poor developers.

VAT reclaims are slow, the process usually takes 90

days but an investigation by HMRC can cause
further delays.
SOLUTION

VAT bridging loans where property developer

borrowers can finance the VAT payment on
property transactions.

FAST COMPLETION NO HIDDEN COSTS

AUTOMATED PROCESS FIXED FEE FROM 0.6% PER MONTH
MARKET SIZE

£4 billion
£3.5 billion

UK bridging market Annual VAT receipts for real estate sector

Total available market Serviceable available market
BUSINESS MODEL

We provide bridging loans for the VAT payable on property

transactions.

A typical case would be 1% per month for a 3 month period.

PROCESS

Application & Due diligence & Funds advanced &

Offer documentation VAT recovery
COMPETITION

STONEWISE

Only 3 competitors in a £3.5bn market. Competitors’ funding terms can run as high as 2% per month.
COMPETITIVE ADVANTAGE

NICHE DEBT STRATEGIES EXTENSIVE KNOWLEDGE OF EACH

PROTECTED FROM PROPERTY
OPERATING IN VERY LARGE LEVEL OF THE PROPERTY
PRICE FLUCTUATIONS
MARKETS TRANSACTION CHAIN
TEAM
Josh Garside
Josh is an experienced Chartered Surveyor
and holds a degree in Real Estate Finance.
With transactions totalling £500m, Josh
has a breadth of financial, commercial
and real estate acumen.
He began his remarkable career as Head
of UK Real Estate for a Saudi family office
acquiring UK property. A successful stint at
leading niche property investment
agency, Franc Warwick, was a precursor to
working for CBRE under Franco Sidoli and
Charles Batten. In this role, Josh advised on
assets for F&C Reit, Mansford, many LPA
receivers and a host of high net worth
individuals.
Jack Sheehan
Jack is an independent advisor to early-stage
companies helping them to successfully raise
capital and deliver shareholder value. Jack
has 12 years experience in financial markets.
A graduate of the University of St Andrews,
Jack began his career as a proprietary equity
trader through Fortis bank’s prime brokerage
facility where he was responsible for
developing and implementing quantitative
investment strategies. As an equity analyst he
provided Pan-European investment ideas to
leading hedge funds and Tier 1 investment
banks.
FUNDING REQUIREMENT

• £1m equity investment

• This is for key staff hires, tech dev and working capital
• £20m credit facility charged on utilisation of funds
• Ability to scale credit line
IMPORTANT NOTICE / REGULATORY DISCLAIMER
• This document is being issued by Team Cloisters Ventures Ltd (Company) to a limited number of recipients in connection with a possible fundraising (Proposed
Transaction).
• The purpose of this document is to assist the recipient in deciding whether it wishes to proceed with a further investigation of the Company (Specified Purpose). This
document does not constitute an offer or invitation in respect of the Proposed Transaction, or any other sale or purchase of securities, or any of the businesses or assets,
described in the document
• The information in this document, which does not purport to be comprehensive, has been provided by the Company and has not been independently verified. While the
document has been prepared in good faith, no representation, warranty, assurance or undertaking (express or implied) is or will be made, and no responsibility or liability is
or will be accepted by the Company or by its officers, employees or agents in relation to the adequacy, accuracy, completeness or reasonableness of this document or
any other information (whether written or oral), notice or document supplied or otherwise made available to any interested party or its advisers in connection with the
Proposed Transaction. All and any such responsibility and liability is expressly disclaimed. In particular, but without prejudice to the generality of the foregoing, no
representation, warranty, assurance or undertaking is given as to the achievement or reasonableness of any future projections, management estimates, prospects or
returns contained in this document, or in such other information, notice or document. The recipient acknowledges and agrees that no person has, nor is held out as having,
any authority to give any statement, warranty, representation, assurance or undertaking on behalf of the Company in connection with the Proposed Transaction.
• No information set out, or referred to, in this document shall form the basis of any contract. Any prospective participant in the Proposed Transaction shall be required to
enter into an agreement acknowledging that it has not relied on or been induced to enter into such an agreement by any representation, warranty, assurance or
undertaking save as expressly set out in that agreement.
• This document has been delivered to interested parties for information only and on the express understanding that they shall use it only for the Specified Purpose. The
Company gives no undertaking to provide the recipient with access to any additional information or to update this document or any additional information, or to correct
any inaccuracies in it which may become apparent.
• The Company reserves the right, without giving reasons, at any time and in any respect, to amend or terminate the procedure for the Proposed Transaction or to terminate
negotiations with any recipient. The issue of this document shall not be deemed to be any form of commitment on the part of the Company (or any other person) to
proceed with the Proposed Transaction or any other transaction.
• This document is being distributed on the basis that each person in the United Kingdom to whom it is issued is reasonably believed to be such a person as is described in
Article 19 (Investment professionals) or Article 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 or is a person to whom this document may
otherwise lawfully be distributed. Persons who do not fall within such descriptions may not act upon the information contained in this document.
• This document is not being distributed to persons outside the UK. However, any recipient of this document in jurisdictions outside the UK should inform themselves about
and observe any applicable legal requirements. This document does not constitute an offer to sell or an invitation to purchase securities in the Company in any jurisdiction.
• This document shall not exclude any liability for, or remedy in respect of, fraudulent misrepresentation.
• By accepting this document, the recipient agrees to be bound by the foregoing limitations.
• All enquiries relating to this document, the Proposed Transaction or any other transaction involving the shares in, or business or assets of, the Company should be directed
to jack@cloisters.co.
• If you have not received this document directly from the Company, your receipt is unauthorised. Please return this document to the Company immediately
 THANK YOU!

For more information, please contact:

Jack Sheehan

Email: jack@cloisters.co Telephone: 020 3752 7211