Industry background
● REIT (e.g. Schroders) - opaque and non customisable
● Owner purchase - admin and resource headache
● There are a lot of costs and processes to disintermediate in the existing property investment chain
● As a result, Alt Fi property companies are set to disrupt the property investment business over the next 5 years
Alt Fi is set to make a big impact on the property investment industry
Alt Fi REIT Owner Purch.
Returns
Familiarity
Customisable
Ease
Flexible
Liquid
Secure
Cheap
2
What is TPI?
● Investor chooses property ○ Site deliberately emulates estate agent sites
● Summary of property laid out in header● Order book lets users choose price to buy
or sell● Details of property laid out for user
○ Overview (particulars)○ Accounts○ Valuations○ Charts ○ News / comments
TPI is a transparent property crowdfunding platform
3
How does it work?
NOTE● Properties sourced by TPI
● Price negotiated between TPI and Vendor
● User offered property at a fixed price
● Users interest in property governed by Loan Agreement
● Lot holders returns determined by rental income and capital gain
5 stage process of the investment cycle
Property offered for sale on TPI
Property resides in SPV. User
buy “Lots” in SPV
Tenants pay rent to SPV. Lot
holders receive rental income
Lot holders trade their lots on
secondary market
Property sold after 5 year term.
Proceeds returned to Lot
holders
1
2
34
5
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Why there will be demand for TPI
● Property is a widely understood asset class
● The site is easy to use and familiar
● SIPP compliant (potentially New ISA compliant)
● Users can easily customise their portfolio
● TPI offers low cost and admin free exposure to Buy-to-Let property
● The P-2-P / Alternative Finance market is increasingly capturing retail investors imagination
TPI makes it easy to invest in Buy-to-Let property
Liberum AltFi Index (over £2bn invested)
5
Typical returns profile
● 6.95% IRR over 5 years
● Backed by property
● Hassle free
This investment ticks all the right boxes for investors
Inputs Returns
Investment (£) £1,000,000 IRR 6.95%Years to be held 5 Yr Income over Period £26,209House Price Rise p/a (%) 8% Increase in Value of Shares £425,248Weekly Rent (£) £575 Money In £1,000,000Vancancy Rate (%) 0% Money Out £1,451,457
CPI (%) 3.50%
● This compares to
○ Low interest ISAs
○ Volatile Stock Market Returns
○ Non Asset-backed AltFi Returns
6
How TPI fares against other Alt Fi Property plays
● We have lower operating costs due to our regulation
● Our order book secondary market is unique
There are a number of different business models - and ours is optimalCOMPETITOR PROFILES
● Our regulation will allow us to be more flexible in product innovation
● Our fees are significantly less than competitors.7
Operator Website Type* SIPP Comp. Transactions Regulation Gearing Secondary Market
No. Size Type App Rep Y/N Order Book
House Crowd www.housecrowd.com C X 90 Small AIFD Y X X X
Property Moose www.propertymoose.co.uk C X 2 Small AIFD Y X X X
Property Partner www.propertypartner.co C X 0 Small AIFD N X ✓ X
Property Crowd www.propertycrwod.com C X 0 Large AIFD Y X X X
Wellsley www.wellesley.co.uk P ✓ 100s Range Consumer Credit N - X X
Land Bay www.landbay.co.uk P X 1 Small Consumer Credit N - X X
Assetz Capital www.assetzcapital.co.uk P ✓ 100s Range Consumer Credit N - X X
TPI www.thepropertyindex.com Both ✓ 0 Large Consumer Credit N ✓ ✓ ✓
*NOTE: P = P2P / C = Crowdfunding
We provide a secondary market - critical for meeting SIPP investment criteria
The competitors do not have a orderbook driven secondary market
Database Queuing System
Matching Engine
User places trade
Order placed in queue
Order matched
History, functionality
● Our system is benchmarked at up to 100 trades / second
● Wide range of functionality
○ Market
○ Limit
○ Good-to-Close
○ Good-to-Cancel
○ Fill or kill
○ Pro Rata
● Track record - we are exchange and P2P platform building specialists
○ www.therealasset.co.uk
○ www.moneyswap.com
○ www.assetmatch.com 8
Building blocks in placeTPI is ready to go
● Consumer Credit Act
● Exposure governed by Loan AgreementRegulation
Partnerships
Technology
Marketing
● Networks of HNIs
● Institutional property investors
● Tried and tested
● Scalabile + new features
● Experience in digital marketing
● Existing network in place
FLEXIBLE & LOW COST
SUPPLY & DEMAND ADDRESSED
COMPETITIVE ADVANTAGE
RAPID ROLLOUT
9
Sourcing properties, investors and IB relationships
10
Next steps...
Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Apr 15
V1 built and tested
Beta LaunchUX and feature
review
Soft launchFirst property
transaction completedV2 designs and features
implementedFull launch
Conclude partnership with major P2P platform
Conclude partnership with leading SIPP product distributor
Conclude partnerships with 3 PE property funds
Conclude partnerships with 2 property
developers
Conclude partnership with leading PCB agent
To come...
● Split property investment into fixed returns and variable returns
○ Competitors do not provide gearing
● Establishing ISAs
● New features
○ Sentiment gauge
○ Returns calculator
● Refinement of UX & UI
TPI has a long list of features to introduce
IRR 12.9%
IRR 5.5%
Gearing makes the investment even more compelling
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Experienced 10 man team in placeKey management include blend of property gurus, geeks and marketing vava voom
● Responsible for sourcing properties
● Significant property portfolioRalph Hazel
Executive PROPERTY
● Architect of technology
● Overseen several high-profile IT systemsDom Madden
CTO TECHNOLOGY
Jan Skoyles
Executive MARKETING ● Digital marketing guru
● The face of the Real Asset Company
Mike Read
COO OPERATIONS ● Corporate Finance at Evolution
● Founder of TPI
● Cenkos Institutional equity research
● Founder of TPI Peter Read
CEO INVESTORS
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● Av New Issue price: £1m
● Yearly turnover in secondary market: 10%
● Comm on purchase: 1%
● Comm on Sale: 1%
● Management Fee: 12.5%
● Av. Gross Yield: 2.4%
● New issues per year
Financial profileThe business is very operationally geared
Year Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6Cumulative 0 10 110 310 610 1110New 10 100 200 300 500 1000
EBITDA
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KEY SALES ASSUMPTIONS
Compelling proposition
● Seeking £250K - £500k○ Funds used to cover first 24 months operating costs○ SEIS qualifying
● Significant opportunitya. Site built and deployed
b. Industry leaders corner-stoning project
c. Strong team in place
d. Optimal business model regarding regulation, product mix and operational efficiency
e. Scalable and highly profitable
f. P2P market undergoing exponential growthg. Limited competition in this sub-sectionh. Partnership agreements with major P2P lender
The opportunity to get your foot in the door in this burgeoning market
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