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Cogress offers high-net-worths easy route into property development

Target returns are between 12-20% depending on the type of investment instrument involved
builder
Cogress keeps a close eye on the progress of developments

Cogress is an investment platform that offers high net worth and sophisticated investors an entry into property development without having to get the trowel out.

''The only other real alternative is to find a developer yourself, carry out all the due diligence and then invest in a very large upfront payment,' says Rachel Stark, director of investor relations.

WATCH: Cogress: providing a more accessible way to invest in property development

FCA-regulated, the minimum investment is £20,000 but for that you get access to property investment opportunities not available before, she told Proactive.

Cogress does extensive due diligence on any potential developments and underwrites 90% any project it decides to back with the developer putting up the rest.

That ensures the property will be completed and Cogress monitors progress very closely, though the risk when the time for a sale comes around remains with investors.

“We are very much involved in the project and the progress to exit,” said Stark, with a joint venture established with the developer to protect the interests of investors.

“Property development is a high-risk investment and things can go wrong, so we have clauses in a joint-venture agreement to mitigate some of those risks.”

Target returns are between 12-20% depending on the type of investment instrument involved, which can be private equity, mezzanine finance and in future a senior debt option.

£900mln portfolio

Cogress focuses on residential/ mixed-used developments and has raised amounts up to and above £5mln.

Around 45 projects are on the books currently with the portfolio worth more than £900mln on a gross development value basis.

Seven exits have been agreed so far by the UK operation with the time from start to end of a project typically between 18-36 months.

The UK business was launched in 2014 by property veteran and chief executive Tal Orly, who launched a sister company in Israel in 2009.

Originally centred on London, the reach has expanded into the south east of England but Cogress is now looking further afield.

Stark said the model works for both halves of the property development equation.

“On the property development side we provide liquidity to the market, while for investors we provide choice.”

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June 28 2018
"This has been another successful year in which the group has achieved a 25% uplift in NAV, significant lettings successes across recently completed developments leading to a 21.49% increase in contracted rent and a strong performance across our key metrics," said the CEO, John Arnold.

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