Faq

Our company is committed to full openness, honesty and transparency, providing all of the information our funding stakeholders need to know.

About Texmoore

Texmoore is a property development company, not a financial institution.  We have grown over the years and established a track record of success and are respected throughout the industry and with all of our joint venture partners.  We have a number of professional accreditations with globally and nationally recognised bodies such as the National Landlord’s Association, Residential Landlord’s Association, UK Governments Deposit Guarantee Scheme, UK Social Housing Ombudsman.  These accreditations require members to uphold a strong set of ethics and demand the highest level of integrity.

We work alongside a Security Trustee.  This trustee is regulated by the Financial Conduct Authority, has experience in this area and is appointed to act in the interests of our funding partners.  They monitor our finances, operations and borrowing to ensure that they are comfortable in our progress and business model. The trustee takes first legal charge over all assets of the company. This means that, if they were ever concerned about the security of client funds, they would be able to step in and take full control of assets to ensure that clients are repaid.

When stakeholders choose to invest money into a project their funds are transferred to an escrow account that is provided by an FCA regulated payments company which is the largest of its kind in the UK.  They do have strict due diligence so please bear with them, but they are there to protect client funds and ensure a smooth investment process.

FCA regulation is designed to protect consumers, enhance market integrity, and promote competition. Texmoore and our partners are bound by law and regulation to meet the FCA’s required standards at all times, and readily comply with its rules and principles.

Texmoore provides its clients with the more secure route to property investing possible.  The company is established and has great experience and a long record of success.  It has particular competitive advantage within the niches that it focuses on and works with only leading experts in the field.  The company invests most of the required funds for projects from its own cash resources, so it has completely aligned interests with investors.

Investors transfer their funds to a third party FCA regulated payments provider which places the monies into individual escrow accounts in the clients name.  The escrow provider that we use is one of the largest operating firms of its type and has an international presence.  We only use large, well established banking partners that are based in the UK.

All investments with is secured against all of the underlying assets of the company, including property, rental incomes and cash.  The FCA regulated security trustee regularly supervises the internal audit and compliance team at Texmoore.  It continuously analyses and monitors asset values and company borrowings to ensure that the total company debt remains manageable and within guidelines.  It uses industry benchmarks to constantly verify the financial health of the business.  Further, the security trustee uses its powers to ensure that invested funds are used solely for the purpose outlined in the investment memorandum.

In all, Texmoore takes every available step to ensure that client investments are secure and that the business plan is robust through any downturn.

Every Texmoore investor is introduced to an Investor Relations Manager (IRM) who will act as their main point of contact. They will explain the business, our history and plans for the future to you and provide information about live investment opportunities.  If you do not know who your investment manager is then please get in touch via the website and we will get back to you as a priority.

Texmoore takes an innovative and exciting approach to real estate development.  It combines a highly analytical team with experts in construction to deliver high quality and affordable housing and commercial developments across the UK.  We offer institutions and individuals the chance to be part of our journey and offer a number of pioneering financial opportunities for people to get involved and benefit from strong and stable returns whilst maintaining a keen focus on security of funds. 

Texmoore offers a number of securities; typically convertible loan notes and mezzanine loan structures which are fully secured on the assets of the company.  In some circumstances it also offers the opportunity to get involved as private equity, pooling funds with other investors and benefiting from a generous profit share on completion. Clients are able to take income flexibly to suit their personal circumstances and there are a number of options available to receive interest payments or allow them to accumulate and benefit from further compounding. 

We regularly meet developers and always carry out a thorough due diligence process on them and the projects we give the green light to. Only if a project passes our rigorous feasibility analysis do we present it to our community of investors, who can pick and choose the projects that most appeal to them.

Investors can invest from £10K-£20k upwards to £2 million currently. Once invested, they are always welcome to get in touch with the investor relations team.  Many clients develop friendly professional relationships with our IR team over the years they are with us.

About being a Funding Stakeholder

The tax treatment of returns differs per project and is detailed in each investor presentation.

However, this information is provided for information purposes only. Investors remain fully responsible for their tax affairs. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future.

Please note that Texmoore specialises in property development and we are not regulated to offer professional tax advice. If required, we recommend that you seek advice from a qualified accountant or tax advisor on this matter. 

However, Texmoore is in a position to negotiate terms with funding partners and might often be able to pay you net of tax, contributing the tax burden to HMRC on your behalf, issuing clients with an R185 form from HMRC.

Any money invested with Texmoore is held in a client account in accordance with the FCA Client Money rules.  Clients make payments to FCA regulated escrow providers and we work alongside only the largest UK financial institutions.  There is an extensive process for onboarding clients due to the regulatory obligations.  This involves an identity check, and anti money laundering and counter terrorism checks.  Clients are also screened against global sanctions lists.

The short answer is ‘No’. Texmoore invests its own assets into developments and then raises debt finance for the rest.  The majority of this would come from a large lending institution such as a bank and then we regularly offer convertible loan notes or mezzanine loan notes which are secured on our assets to make up the rest.  It is not a hedge fund or complicated legal set up. We are a straight forward British developer.

Funding stakeholders are allocated to an experienced Investor Relations Manager who is always on hand as a point of contact.  They are regularly updated on the company progress and can feed back to you everything that we have been working on and our most recent accomplishments.  We encourage clients to build a relationship with their Investment Manager as they are in a great position to offer information about upcoming projects and all the economic information that we gather together.

Texmoore opportunities are open to institutions and individuals who qualify as either a high net worth investor or a sophisticated investor.  For further information please contact the Investor Relations Team who will be able to assist you but these brackets widely cover a large portion of people.  Texmoore products are open to UK & EEA member state residents. If you live elsewhere in the world and wish to invest, please enquire with us as restrictions vary from country to country.

Unfortunately, US citizens cannot currently invest with us.

When you become a funding stakeholder, we will agree a time period for your time with us.  For longer convertible loan note options we might be able to offer some flexibility and optional withdrawal points at fixed points throughout the duration.  However,  it is a non-liquid investment because we use the funds to develop projects that take 18 months to 3 years to complete.  We have to budget and manage cash flow across that time frame so cannot generally allow early withdrawals.  However we are able to pay funders their interest at very regular periods thoughout the year. And, we are often able to offer a number of interest payment options which can be selected depending on a client’s personal circumstances.

For institutional investment, we typically offer securities ranging between £500,000 to £10 million each.  The minimum investment for individuals is £10,000-£20,000. There is no defined maximum investment for individuals although few currently exceed the £2 million level.  These are rough ball park figures and the company is generally happy to consider funding depending on your circumstances and investment limits.

We are presented with dozens of proposals on a weekly basis.  However, Texmoore is extremely selective when choosing our investment opportunities, typically rejecting more than 90% of potential projects and only pursuing developments that offer the highest forecasted returns with the lowest, most manageable risk.

Our compliance team and analysts conduct rigorous due diligence on each property development, including scrutiny of everything from market conditions to the developer’s expertise and track record.  The analysis is then handed to our senior management team and each project passes through a number of different boards to assess its attractiveness.  Finally the green light is given to the proposals that offer the highest reward : lowest risk.

Texmoore benefits from positive word of mouth from almost all of our customers.  One of our strengths and what sets us apart from traditional investment companies and our competition is that our investor relations team develops strong relationships with our stakeholders over the years they are with us.  This means that man of our new clients come from the personal recommendations of existing clients. We really appreciate these referrals and have a referral programme that rewards people every time someone they have recommended invests with us. Please get in touch to discuss this further.

We only select a project when it fits our stringent quality criteria and we are confident that it will yield positive value.  This can mean that we go months without embarking on a new development and focus on the existing projects that are part completed. However, typically, we commence 1 or 2 new projects per month.

Texmoore focuses development on projects that maximise return and maintain a low risk level.  We focus on our speciality niches of student, social and residential housing, along with standard commercial developments.  This is where our expertise is focussed.  We generally produce developments consisting of houses of multiple occupancy, that are classed as ‘affordable’ or ‘social’ housing.  We now operate across the United Kingdom in pockets of low supply and excess demand.

Our developments vary greatly in the number of units constructed, the build complexity and many other circumstances.  Consequently each project has its own target timescale, but 90% have duration between 18 months and two years.

Texmoore is very consistent in the level of return is expects to generate from a typical development.  The rates of return that we offer are very generous to funding stakeholders because we generally do not market our investment securities via third parties.  We save on those hefty fees and pass on the extra return to our clients.  This means that our rates of return are usually in excess of our competition.   They do vary depending on the structure of investment that you choose and how you decide to receive your interest so please get in touch to work out an attractive offering to suit your needs.

When you invest with Texmoore the structure of the product can differ depend on what security you choose.  The payoffs differ and the time at which you receive profit can vary also.  In an equity opportunity, investors are taking an equity stake in a project and share any profits upon completion and eventual sale. We offer generous terms and it is typically a typically in a 50/50 split.  The investment is secured against the title deeds of the property and a director’s guarantee from ourselves backed up with the FCA regulated security trustee which supervises us.

When investing in a convertible loan note or a mezzanine loan opportunity, investors are lending money to the development vehicle and earn returns on the project in the form of interest, payable throughout the project or on exit. The investment is secured with a first charge against a property alongside a personal guarantee from the company backed up by our security trustee.

Each project has different projected costs, time frames and characteristics which means that the funding maybe slightly different.  However we usually adjust our borrowing levels so that in a typical project, over half the investment is funded by ourselves from our own accumulated profits, a quarter is funded by senior debt lender such as a bank.  And, the remaining funding is from our funding stakeholders.  Everyone ranks equally in this scenario and our individual investors are just as much of a priority as the banks and our own interests.

Risk and securities

As with any investment there are potential risks. We are fortunate to operate in a relatively stable industry that is firmly placed in the British mindset as a safe investment.  We have experience in what we do, work only with established partners which have a strong track record of high performance and we plan meticulously for every eventuality.  During this extensive scenario planning and forecasting we typically consider risk factors such as cost overruns, time overrun, market risk and partner risk.  The company’s model incorporates various mechanisms to mitigate these risks including building in a large buffer to forecast budgets, hedging any exchange rate risk, and constantly evaluating market conditions and re-budgeting and reforecasting.  This has enabled us to succeed throughout turbulent economic times with a business model that leads to increased demand for student and social housing during economic downturns.

Texmoore incorporates significant buffers to budgets and constantly re-evaluates our forecasts to ensure that we have up to date and viable business plans.  This scrutiny and analysis is at the heart of everything we do.  It is why we have established a strong foothold in the industry and are highly profitable. 

Texmoore only engages in projects that it has full control over and maintains a strict level of monitoring over all operations.   It is therefore in a position to act quickly if a joint venture partner is showing signs of concern.  There are extensive financial penalties built into contracts, and the company has ultimate power to remove and substitute in alternative partners at short notice.  However, we have never had to do this as our firm only deals with reputable and capable partners.  We have often developed a track record of success on previous projects with many contractors and maintain very healthy relations.

This is a very interesting question and frequently posed by potential funding partners.  Firstly, we always state that every investment and business has a level of risk and this applied to the largest companies in the world and the most powerful governments.  As a successful business, we mitigate our business risk and build in alternative offerings that a robust during an economic downturn. 

Interestingly and beneficially, our expertise lies in student and social housing.  It is well known that during recessions or periods of stagnation in the economy, more young people defer entering the job market and turn to further and higher education.  They are usually able to claim maintenance student loans from the government and hope to gain qualifications to improve employability when the economy improves.  Overall, demand for student accommodation and our products go up in a recession.

Further, during times of economic crisis, many people in the country lose their jobs or suffer a drop in income.  They are frequently then unable to pay their mortgages or meet their rent demands and become in need of social housing from the Government or Housing Associations.  Hence, during this type of scenario, there is increase demand for the Texmoore social housing developments which specialise in social housing home of multiple occupancy. 

All of our investments benefit from the involvement of our security trustee who acts in the interests of our stakeholders to ensure the health of the company.  This involves extensive audits and reporting processes.  Our security trustee is FCA regulated by the Financial Conduct Authority.  They possess a first charge on our assets, not only on each development but on all the accumulated profits and cash reserves of the company and they can step in at any time they are not satisfied with our business model and position.  They have ultimate power to take possession of our assets and use them to repay clients and owners of our debt. 

 

All payments from clients to the company are made through an FCA regulated third party escrow provider which is the market leader in the services it offers.  Combined with our experience and track record, we consider these security factors to be the most powerful that we can offer.

Interestingly and beneficially, our expertise lies in student and social housing.  It is well known that during recessions or periods of stagnation in the economy, more young people defer entering the job market and turn to further and higher education.  They are usually able to claim maintenance student loans from the government and hope to gain qualifications to improve employability when the economy improves.  Overall, demand for student accommodation and our products go up in a recession.

Further, during times of economic crisis, many people in the country lose their jobs or suffer a drop in income.  They are frequently then unable to pay their mortgages or meet their rent demands and become in need of social housing from the Government or Housing Associations.  Hence, during this type of scenario, there is increase demand for the Texmoore social housing developments which specialise in social housing home of multiple occupancy. 

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This website is directed at and intended to be used only by those persons categorised as Self-Certified sophisticated investors and High Net Worth Individuals. The material on the website is for general information and should not be regarded as an offer or invitation to invest. Capital at risk. Only investors who qualify are eligible to invest. If you are unsure of your categorisation, please consult an independent financial adviser