Student Co-op Homes will pay interest each year on the investment, which is planned to be 4% starting 6 months after the close of the offer. The interest will be reinvested in your share account, increasing your capital, until such time as it is withdrawn. Student Co-op Homes will send you an annual statement of your share account.
Investors can choose at their discretion to receive interest at the full rate of interest, half rate, or to receive no interest.
Each year, the Board will review the rate of interest paid on shares in relation to financial performance. They will always aim to pay interest at the rate agreed initially (4% in this case). Interest rate is capped in their rules to a maximum of 5% per year, or 2% above the Bank of England base rate, whichever is higher.
Investors can choose not to receive the full rate of interest should they wish to in order to further support Student Co-operative Homes. Investors can therefore apply to receive interest either at the full rate, at half the full rate or none.