Safe Or Scam is looking into the activities of PDC Prosperity Management (Cyprus) Ltd on behalf of a number of concerned investors. Safe Or Scam was approached by investors in Bentley Court and Parkwood Court tower blocks in Keighley, West Yorkshire.
Prosperity is a property developer which sells unattractive properties due for refurbishment using funds raised from individual investors. They offered an innovative funding mechanism whereby 50% of the purchase price could be paid over 5 years by a “guaranteed rental” scheme at 10% per year, alongside a claim that the properties are being sold at significant discounts to market values. It is certainly a unique purchase model. There are several aspects of the Prosperity portfolio offerings which have attracted our attention. The portfolio being offered to investors includes large tower block properties in Yorkshire and Birmingham.
At this stage it is not possible for us to say whether we have any concerns at all over the sale of properties at Bentley Court and Parkwood Court. We would always urge caution over any new and innovative funding mechanisms which contain the promise of guaranteed rental payments. Our experience is that guaranteed rental payments rarely run their full term and those that do often contain an element of the investor having been overcharged for the property in the first place. In that case all that is happening is that the investor is being paid back some of their own money dressed up to look like a rental payment.