TheHouseCrowd gone into Administration!

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If any THC investors who have not had a recent invitation from Amr, wish to join a dedicated investors-only  forum invitation, please reach out to me and I'll share a link to connect to a closed investors forum: [Edited]@[gmail.com

 

I talked to the administrators as unfortunately, I am a considered a significant investor

It doesn't sounds like its a complete disaster, taken them a few week while to getting independent valuations of each investment - values on selling as is, finishing developments etc.


HCPs (SVP rentals) will likely all be sold at market. and likely all get all their equity back +/- whatever the market has done. No real drama there. Again, just takes time. There are ~60 rental SVPs.

HCDs (Developments), estimates should get 80-90% back, and likely more - but its development dependant, some will get interest still. Much more financially sensible to finish the builds then to sell as is. Few are under funded (due to no more fund raising rounds) so will have to go to external funding to finish the developments, others have cash sitting in account to finish. It will just take time.

I don't have exposure to the personal loans, I never liked the concept. So cant really comment.

Of note, the administrators are going to have a detailed investment by investment plan laid out for investors to see. It will  have time frames, values, short falls, expected returns, general accurate status etc. So we will know what each portfolio will look like.


other interesting points...about 3,700 investors, ~60 GBP million from those investors

So, end of the day - not horrid - and this is why it was quite a decent investment concept upfront - losses should be limited due to the nature of it being asset backed. Sounds like it was a bit mismanaged and there was some bleeding of funds between entities etc, also didnt get the cash flow it was expecting from the SVP rentals on capital gains, etc so House Crowd just ran out of cash really. There doesnt seem to be some massive black hole of funds or anything, House crowd doesnt have big creditors etc

Hi lostsheep, 

Thank you for this. I too invested quite a significant amount, in 2014 as a C share holder.

Did Administration mention anything about C share holders who invested early on in THC (not via Sdeers)? 

Usually, they are the last ones to be considered, so concerned I won't get anything back. Most of the discussions are on investors in projects, but not much out there in regards common shareholders. 

It says in the original investment proposal, "All investors in The House Crowd crowdfunding platform will have their shareholding mirrored in HCPM thus obtaining a stake in a large property portfolio" - Does this mean anything? 

Many thanks.