First Olmsted Corporate Bond Redemptions Complete
On 13th January 2014, the first of five Olmsted Corporate Bonds raising capital for investment into U.S. residential property was launched in the UK. This series of five year bonds would go on to raise over £15million at an average of £3million each, with capital secured against the respective portfolio of properties acquired.
We are pleased to announce that the first of these five corporate bonds has now redeemed, having fulfilled its obligations to 53 individual bondholders whilst successfully delivering an average return on investment of 53.17% for the 5 year bond.
Crucially, this has been achieved by Olmsted with the support of its bondholders who have allowed it additional time to liquidate certain US real estate assets to fund remaining redemptions.
The Olmsted team successfully deployed capital raised from these bondholders into its property management business located in the South Eastern United States over a period of 5 years. In that time, some 30 property assets were acquired by Olmsted U.S. LLC as the owner of the Bond Issuer.
The Bond Issuer was able to fulfil its bondholder commitments over the 5 year period through rental income generated on those property assets and sale proceeds as some were sold. Some properties have also been re-assigned to other Olmsted Bonds as part of a wider cash flow model, once payment and security obligations have been fulfilled on the first bond.
The second bond in the Olmsted stable, Olmsted Corporate Bonds II, has now also begun redeeming its earliest bondholders as their respective five year terms conclude. As was the case with the first Olmsted bond, Olmsted U.S. II, LLC is running behind on its funding timetable in many cases and they are thankful for the continuing support and patience of bondholders in allowing additional time to conclude property sales and closings in the US to fund these redemptions.