In short (and for those that have not read my previous articles), here is a quick summary of the current Los Pandos investment scheme and the benefits of investing:
Minimum Investment 5,000
Invest in Euro, GBP, US Dollar or Swiss Franc
Returns Fixed at 30% to 39%
Investment Period Fixed for only 3 years
Privileged Access to Future Investments
Asset Backed Security SIPP and SSAS approved Proven Track Record FAQs
Q. What Guarantees do I have for my investment?
A. The security offered is by way of a formal charge against the land. We have a mortgage charge (this is the same as what banks take when loaning money to individuals or corporations) which covers the invested sum for all clients. Once you have signed your contracts they are taken to a Notary who will then create a formal charge on the land in your name. This means that after the 3 year term of your investment the funds plus interest must be returned to you. If not, you inform the Notary and the entire asset is frozen.
This (mortgage charge against the asset) is one of the highest forms of security available.
Q. The Vineyard will not be producing wine until after my investment has matured, how will you pay me back? A. We can demonstrate our ability to pay back in various way including:
Governmental grants for the building of the Bodega and re-planting of vines
Current farm and vineyard revenues
Other contracted revenues
Q. Is the value in the asset if I were to call on the guarantee?
A.Yes, it is worth noting that we are only geared at no more than 30% of the current value today. The asset is increasing as we reach definitive planning (3 fold) and our gearing currently decreasing as we are paying back investors in other areas of the project.
Q. What if you don’t get definitive planning?
A. The asset more than covers our liability at this planning stage and the planning process has reached a position where it is irrevocable. On top of this the vineyard and other areas of the project do not require planning as they fall under agriculture use and Projects of Singular Interests (PSI).
Q. What is the process required to execute the guarantee?
A. In case of breaching the contract, one of the mechanisms that can be performed is the Out-of-court procedure, which is ruled in the Ley Hipotecaria Act (section 129), Reglamento Hipotecario Act (sections 234,235 and 236), and Civil Code (section 1858). This procedure is quick and simple and can be carried out by a Notary Public.
Q. How many charges are registered on the land that secures this investment?
A. There are no other encumbrances on this land. According to Spanish Mortgage Law, mortgages must have a priority order. Any future borrowings would take second place to this charge.
Q. What if we cannot sell the wine?
A. This investment is not affected by the sale of the wine, as the first year of production will be after your loan has been repaid. This investment is a stand-alone structure using company, farm and vineyard revenues, grants and re-financing and equity partner options.
Q. What if the harvest fails?
A. The vineyard and farm currently produces a profit in excess of ?420,000 per year. Since the vineyard’s inception two decades ago, there has been no crop failure. In addition, part of the initial funds raised has been invested in the improvement of quality and yield of the grapes. It’s important to note that returns are not based on the vineyard profit.
Q. Why don’t you go to a bank for the finance?
A. We have decided to build the bodega on private and public investment as the general banking situation is extremely difficult on a worldwide scale. One of the funds primary objectives is to build a loyal investor base to whom we can present further exclusive investment opportunities to within the Los Pandos Eco project over the course of the next six to eight years. Investors have the option at the end of their initial three year investment to take advantage of an exclusive investment opportunity within the development or to simply take the profits earned and cash in their investment.
Q. Why don’t you wait and re-finance in the future and why are these returns so high?
A. Quite simply these grants may not be available in the future and one of these, the replanting grant for the new vineyard, covers 100% of the cost. Additionally when planting new vines it is an average of 4 to 6 years before the grape is stable enough to produce a good quality wine. By starting sooner we can bring the profit in sooner.These two elements alone make it more than financially viable to offer these levels of returns.
Q. Can I get my money out before the end of the investment term?
A. No, the funds are tied in for the three year period with Capital and Interest being paid at the end of this term.
Q. When does my investment begin?
A. The three year investment begins when your funds are received by us.
Q. Is this investment affected by the worldwide credit crunch?
A. No. As the investment is being raised by private finance, we are not dependant on any kind of loans from banking institutions.
Q. Are there any other costs or charges?
A. No, the fund does not have any set up, ongoing or closing fees. At the end of the term we return your invested amount plus the pre-agreed return.
Click here to view the Los Pandos Investments website and see our latest news Click here to learn more about Los Pandos
Click here to view the Los Pandos Investments website and see our latest news
Click here to learn more about Los Pandos