The Fund will seek to accomplish its Investment Objective primarily through identifying and purchasing land sites which have the potential to be allocated for future development and submission for outline planning permission. Once allocation or outline planning permission is achieved the sites will be sold on the open market and in particular to identified property developers.
The Fund will source suitable sites throughout the UK and will after rigorous enquiries with all relevant authorities, local planning and consultants determine its risk rating and will decide if it has a place in the Fund. Valuers will then be instructed to complete an assessment which will assist in determining whether to proceed with an acquisition.
THE FUND
The Fund is a closed end fund with three Cells named -
- Silkpoint Strategic 3 Year Cell
- Silkpoint Strategic 5 Year Cell
- Silkpoint Strategic 7 Year Cell
The planned life of each Cell is 3, 5 and 7 years respectively.
Participating Shares may not be redeemed at the request of their holders but may be redeemed by the Company subject to the terms set out in this Private Placement Memorandum and the Articles of Association of the Company.
THE SHARE CAPITAL
- [50,000] Silkpoint Strategic 3 Year Cell Participating Shares
- [50,000] Silkpoint Strategic 5 Year Cell Participating Shares
- [50,000] Silkpoint Strategic 7 Year Cell Participating Shares
SUBSCRIPTIONS, MINIMUM INVESTMENT AND MINIMUM SUBSCRIPTION
The Fund is offering [150,000] Participating Shares for subscription during the Offer Period at the Subscription Price per share of £1,000 per share. The Fund is a closed end fund. After the Closing Date, Participating Shares shall not be available for subscription.
PERFORMANCE FEE
The Fund will pay a performance fee to Silkpoint Limited, the Investment Director. The performance fee shall be calculated on a Cell basis and shall only be payable on profits made by each Cell as at the Termination Date of that Cell after the apportionment of an initial hurdle rate for each Cell.
The hurdle rate is the minimum amount of distributable profit that each Cell requires before any performance fee is due. Distributable profits up to the value of the hurdle rate are payable to the Shareholders of each Cell on a pro rata basis in proportion to their shareholding within that Cell and are included in the Net Asset Value per Participating Share of each particular Cell (the “Investment Rate”).
In the event that any Cell should fail to return a profit on the Cell Termination Date Participating Shareholders shall be paid the Net Asset Value per Participating Share of that particular Cell.
The following hurdle rates shall apply:
- Silkpoint Strategic 3 Year Cell – up to 30% of the Initial Cell Investment
- Silkpoint Strategic 5 Year Cell – up to 50% of the Initial Cell Investment
- Silkpoint Strategic 7 Year Cell – up to 70% of the Initial Cell Investment
The Company shall pay to investors the maximum Investment Rate available out of distributable profits. The value of the Investment Rate of each Cell shall be distributed to all Participating Shareholders of that Cell on a pro rata basis in proportion to their shareholding within that Cell (the “Investment Rate Distribution”).
Any distributable profit arising over and above the applicable hurdle rate per Cell, “the Distribution Sum”, shall be available for distribution. The Distribution Sum shall be apportioned between the Participating Shareholders of that particular Cell and the Investment Director (in the form of a performance fee) in the following proportions:
Participating Shareholders:
Participating Shareholders shall be entitled to the following sums in addition to the Investment Rate Distribution:
- Silkpoint Strategic 3 Year Cell - 25% of the Distribution Sum
- Silkpoint Strategic 5 Year Cell - 35% of the Distribution Sum
- Silkpoint Strategic 7 Year Cell – 45% of the Distribution Sum
Investment Director:
The remaining sums shall be paid to the Investment Director as the Performance Fee (the “Performance Fee”) being:
- Silkpoint Strategic 3 Year Cell - 75% of the Distribution Sum
- Silkpoint Strategic 5 Year Cell - 65% of the Distribution Sum
- Silkpoint Strategic 7 Year Cell – 55% of the Distribution Sum
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