Investment Structure

SuchHomes intends to purchase residential homes selected by prospective tenants/homebuyers and screened by us via a Special Purpose Vehicle (SPV) set up to own each property.
The property-owning SPV will be fully owned by a closed-end Limited Partnership (LP) investment fund entity set up by us as Sponsor via a Limited Liability entity acting as General Partner. Capital commitments made by our investors, as Limited Partners, will be invested via the LP fund to acquire the residential homes.

SuchHomes, it's capacity as Sponsor, will set up a Limited Liability entity as Fund Manager (or Investment Manager) to manage the day-to-day operations of the fund and implement investment strategy including (but not limited to) origination, acquisition & asset management of all investments until the exit of each investment and liquidation of the fund. This arrangement will be governed by an Investment Management Agreement between the LP fund and the Fund Manager. To execute this mandate, the Fund Manager will have the discretion to appoint several administrative and third parties (fund administrator, legal counsel, accountants & auditors, trustees, property manager etc.) to execute certain aspects of the fund management function.

The tenant/homebuyer will contribute at least an Initial Principal Savings (or initial deposit) equal to 3% of the Purchase Price of the Preferred Home into a protected Tenant Deposit Scheme, which will secure a beneficial share interest for the tenant/homebuyer in the property-owning SPV, and ensure the alignment of interests between the tenant and investors. The remaining share percentage of the property-owning SPV will be owned by the Limited Partners of the fund.

To align the interest of the General Partner and the Limited Partners of the fund, the General Partner will be paid a performance fee (carried interest) based on a percentage of the profits realised from investments. Management fees will also be paid by the Fund to the Fund Manager for its daily management of the fund.

The structure below details the relationship between SuchHomes entities, the LPs and tenants/homebuyers in the deployment of investment capital to purchase homes and the return of
capital and payment of dividends to investors.