INVESTOR
CLASSIFICATIONS
The content of this promotion has not been approved by an authorized person
within the meaning of the Financial Services and Markets Act 2000. Reliance
on this promotion for the purpose of engaging in any investment activity may
expose an individual to a significant risk. Individuals will not have access to the
FSCS and must fall into one of the investor categories below to view and
ultimately invest in the bond.
High Net Worth Individual Exemption
Annual income of £170,000 or net assets of £430,000, excluding primary residence and certain other matters.You have invested in more than one unlisted company, been a director of a company with an annual turnover of at least £1 million, or worked in private equity in the last two years, or you have been a member of a business angels network for at least the last six months.
Self Certified Sophisticated Investor
of business angels and have been so for at least the last six months prior; is working, or have worked in the two years prior, in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises; is currently, or have been in the two years prior, a director of a company with an annual turnover of at least £1.6 million.
I ConfirmINVESTOR
CLASSIFICATIONS
The content of this promotion has not been approved by an authorised person
within the meaning of the Financial Services and Markets Act 2000. Reliance
on this promotion for the purpose of engaging in any investment activity may
expose an individual to a significant risk. Individuals will not have access to the
FSCS and must fall into one of the investor categories below to view and
ultimately invest in the bond.
High Net Worth Individual Exemption
Annual income of £170,000 or net assets of £430,000, excluding primary residence and certain other matters.You have invested in more than one unlisted company, been a director of a company with an annual turnover of at least £1 million, or worked in private equity in the last two years, or you have been a member of a business angels network for at least the last six months.
Self Certified Sophisticated Investor
of business angels and have been so for at least the last six months prior; is working, or have worked in the two years prior, in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises; is currently, or have been in the two years prior, a director of a company with an annual turnover of at least £1.6 million.
I Confirm
Specialist Property Lending
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KHK Capital provides short-term, property-backed loans to property professionals for business purposes.
Our borrower’s typically use the funds to refurbish or develop the properties, then sell or refinance.
KHK started life in 2016 as a small “family office”, offering loans with our own funds. We gradually brought in cash from other HNW private investors, and in 2020 established a formal revolving credit facility from a major bank, which funded continued growth.
We have kept our own funds alongside our investors throughout and continue to do so.
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We stand well positioned for further growth with
Lending Philosophy and Aims
Responsible and conservative lending to property professionals for sensible property projects.
Project Essentials
Be managed by lead professional(s) with suitable skills and experience for the project;
Have a sensible business purpose with appropriate return
Have a viable exit strategy.
Due Diligence procedures include:
Suitable solicitors carrying out
- KYC
- AML
- Investigation and registration of Title
Careful investigation of property value, usually involving a formal report from a suitable RICS valuer.
A Sketch of the Lending Profile
Predominantly residential; 15-25% commercial and semi-commercial
70-75% South-East England. Remainder in other English regions, and a few in Wales (no Scotland)
50-60% Bridging; 20-30% Light Development; 15-25% Development
90%+ of loans are secured against a First Charge on the property security (the remainders take a Second or Equitable Charge). We usually also take a Debenture and a Personal Guarantee.
Max: 24 months
Average: Around 15 months
Typically 12m initially, often extended up to 24m.
Max: £4,000,000
Min: £250,000
Average: Around £900,000
Max 75%; average below 65%
Targeting 12-13% average IRR
Case Studies
- Client procured land with planning, applying his own funds
- KHK Lent £210k in staged payments to fund build.
- House Valued at £330k. LTV 60% (rising to 65% after structural phase)
- Loan repaid by sale of property after 14.5 months
New Build Nr Doncater, DN10
- Client procured office block with planning to convert to 12 residential flats
- KHK Provided £2.1M: £1.3M for the purchase and £800k for works
- Flats valued at £3.75M. LTV 65% (rising to 70% after works complete)
- Loan repaid through Exit Finance after 12 months
Office to Flats conversion in Reigate, RH2
- Client required bridge funding to complete quick purchase
- KHK Provided £1.08M
- Property valued at £1.45M. LTV 75%
- Loan Repaid after 6 months with mortgage finance
Large Single Dwelling in North-West London, NW4
Monitoring and Reporting
Our senior creditors require high standards of reporting, transparency and operational rigour. We are happy to share our reporting.
Operational Oversight
A third-party auditor audits our operations quarterly and produces written reports.
Financial Reporting
Monthly financial reports are produced usually within 3 weeks of every month end.
Annual Accounting
We produce audited accounts within 90 days of each year end.
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“A bridge loan company that has the customer in mind.”
Morris
Developer and KHK Borrower
Contact us
For any inquiries, please call or email us.