A firm of estate agents focused on South West London has launched a five-year, property-backed bond to target opportunities in its local market.

London Property Bonds, a UK company as launched a five-year property-backed investment bond paying 8 per cent interest.

The London Property Bond targets investments in Wimbledon, in South West London, and surrounding areas.

The bond proceeds will be used to fund property improvements for homes ahead of a sale. London Property Bonds may also fund the regeneration of buildings in and around Wimbledon, secured against those properties – and will in addition enable Robert Holmes & Co to expand its network of offices in South West London.

Robert Holmes & Co, the estate agency, will manage the improvement programme for each client, and manage the subsequent sales process. Where this firm advises on such opportunities, London Property Bonds will seek to fund the improvements in return for the repayment of the loan, and a pre-agreed percentage of the expected increase in value of the property. All funding will be secured against the property and London Property Bonds may on occasion purchase an interest in the property, fund the improvements and share the increase in value with the vendor. 

Any downturn in the sale value will be borne by the clients, not bondholders, the firm said.

The minimum investment is £1,000 and subsequent investments can be made in multiples of £1,000 with no maximum. The bond is eligible to be held in a Self Invested Personal Pension, subject to trustee approval. The bond is not covered under the UK’s Financial Services Compensation Scheme. Closing date for the offer is Friday, 29 July.