What happens at the end of an investment term?

Before an exit is due, Property Moose will instruct a third party valuation and circulate an exit pack detailing the current value, condition, any works that are required and provide the rental performance and accounts. This will then be used to establish the net asset value of the SPV and, therefore, the estimated potential returns per share sold for the different options.

Our valuation will give a market asking price and we will then use the average achieved percentage for that area to establish a sale price (or the 4-week achievable value if provided). Typically, this is 95% of the asking price but can be anywhere between 90% – 100% depending on the property. Our unique nominee structure and technology gives you the opportunity to vote on the exit strategy of your investments. Your three options include:

Option 1 – Retaining your shares

If you choose this option, and others wish to sell, provided less than 75% vote for option 3, then the property will be resold to the crowd, though you will continue to own your individual shares in the new property SPV.

Option 2 – Sale to the crowd

Rather than putting the property on the open market and waiting for offers, if you vote for option 2, and less than 75% vote for option 3, we will re-list your shares on the Property Moose platform as a new opportunity. Although you will be paid out of your shareholding, the property will still be an asset on the Property Moose platform.

Option 3 – Open market sale

The final option is to list the property for sale on the open market. This may achieve a higher sale price but will, almost certainly, take a significantly longer time to finalise and will result in additional costs.