Acquisition and sale of 1,900 properties in the last 10 years Sales volume of $228m in the last 10 years Member of the “Owner Excellence Program” Currently manage in excess of 250 properties Quicker Section 8 property inspections Income continues during vacant period Established Specialists in Business Law and Real Estate US Escrow provider Bond Custodian and point of contact in the event of default Established 1847 Over 1,000 offices and 7,000 staff Largest Title Insurer in the US Ensure no future disputes over title of each property Who’s Who

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 1 st 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