£823,500 raised of £1,000,000 target
192 investors so far
Pocket is a pioneering private property developer delivering affordable homes in London. The demand for affordable homes in London far outstrips supply which is why the Greater London Authority has provided a £21.7m loan facility for 10 years which demonstrates their belief in the product. This has been further supplemented by a £30m secured debt facility from Lloyds Bank allowing Pocket to move forwards in great strides.
In view of Pocket’s rapid growth as a result of funding from the GLA and Lloyds Bank, the Directors believe that it is important for the company to have adequate capital to meet operational costs as well as retain a cash contingency to meet unforeseen expenditure. This is what the proceeds of the Pocket Living Bond issue will fund. If the money raised through the Pocket Living Bond issue exceeds the estimated funding requirement, any surplus issue will be re-invested into future schemes.
“For an increasing number of Londoners on a range of modest incomes, the Capital’s current housing market is just not working. Increasingly priced out of owner occupation and not a priority for scarce affordable rented housing, they are virtually overlooked. It is clear that we must improve the mid-market offer and deliver more flexible products for those who contribute the most to London’s economic growth. If we don’t address the needs and aspirations of these Londoners we risk a damaging drain of the skilled workforce that drives London’s economy.”
(Mayor of London’s Housing Covenant 2012)
Pocket homes are compact and designed to maximise space, comfort and sustainability. They are sold at a discount of at least 20% to the open market, residents own them outright and they stay affordable in perpetuity. Pocket can offer this level of discount because it delivers high density developments through great design. The Greater London Authority has demonstrated their belief in this product with a £21.7m loan facility for 10 years.
Pocket is 10 years old and is now working across 11 London boroughs with the aim of delivering against a target of 4,000 homes by 2023.
Marc Vlessing, Co-founder & CEO. Marc has a background in City corporate finance, company management and venture capital. Marc brings management, marketing and strategic direction to Pocket. Marc is also chairman of ProVen Growth & Income VCT PLC.
Paul Harbard, Co-founder & Finance Director. Paul is a Chartered Accountant and was Finance Director of Peabody Trust for 12 years. Paul has a wealth of experience in public sector housing and brings a strong operational and practical construction perspective to Pocket.
The Pocket Living Bond has been designed to be a simple investment. For an initial investment of £500 or more, where each Pocket Living Bond has a face value of £500, Pocket Living (Q1 2015) PLC will provide registered holders of Pocket Living Bonds (“Bondholders”) with a fixed rate of return of 7.5% gross interest per annum over the course of an initial 4 year term payable in cash. At the end of the initial 4 year term and on every anniversary thereafter, you have a choice:
1. either continue to hold your Pocket Living Bond(s) for another year on exactly the same terms
2. or give us six months’ notice and we’ll redeem your Pocket Living Bond(s).
On maturity of your Pocket Living Bond(s), the full amount of your initial investment will be repaid without any deductions or charges.
Pocket was founded 10 years ago by Marc Vlessing and Paul Harbard out of a belief that the London housing market was becoming distorted.