MBI and Northern Powerhouse Developments

Hi All,

Thanks for the info on this thread. I am posting here to ask for advice - is Northern Powerhouse Developments a good investment?

I have never invested in anything and from the small research I have done, hotel investments appear easy to understand & “assure” a good ROI. The word “assure” makes me nervous...

I have been in contact with agents and discussed opportunities with Northern Powerhouse for the past month. They have appeared professional and accessible – I have had many questions, and he has answered all within 24 hours.

From reading this forum, I am EXTREMELY hesitant to pay the booking deposit & contuinue. Obviously the numbers promised are attractive (too good to be true) and I do want this to be a real thing, but Im not going to take a silly risk.

When I raised concerns to agents about NPD and their reputation online, agents responded by claiming NPD has an asset value of circa £40m and are recruiting the likes of Peter Moore OBE (Former CEO of Center Parcs) & Richard Lewis (former CEO of Best Western Hotels) – adding legitimacy to NPD. The Richard Lewis hire does appear in articles online, which is good I guess?

Can anyone verify if these claims are true? Mainly the impressive board members, and rapid growth of NPD?

Thanks very much
NewbieInvestor86

NewbieInvestor86 wrote: »

I have been in contact with agents and discussed opportunities with Northern Powerhouse for the past month. They have appeared professional and accessible !!!8211; I have had many questions, and he has answered all within 24 hours.

Of course he has, he's hoping that you'll hand him a very large sum of money. Were you expecting him to treat you like a Jobcentre officer with a hangover?

From reading this forum, I am EXTREMELY hesitant to pay the booking deposit & contuinue. Obviously the numbers promised are attractive (too good to be true) and I do want this to be a real thing, but Im not going to take a silly risk.

The numbers are not especially attractive. The returns on offer are comparable with returns available from mainstream diversified stockmarket investments (albeit over a bull market). However these hotel room investments are considerably more risky than a diversified stockmarket investment, as your returns are dependent on either a) startup companies with virtually no useful information available on their financial strength and debt cover ratio or b) your ability to rent out an individual unit in a much larger property that you may not control access to.

When I raised concerns to agents about NPD and their reputation online, agents responded by claiming NPD has an asset value of circa £40m and are recruiting the likes of Peter Moore OBE (Former CEO of Center Parcs) & Richard Lewis (former CEO of Best Western Hotels) !!!8211; adding legitimacy to NPD. The Richard Lewis hire does appear in articles online, which is good I guess?

Unless they're backing the investment with personal guarantees it's completely irrelevant. Reminds me of when Quentin Wilson of Top Gear was shilling for Store First. Or MJS Capital which used to have a member of the House of Lords on its board. Legitimacy by association is no legitimacy at all.

Can anyone verify if these claims are true? Mainly the impressive board members

You could try asking them on LinkedIn, but unless they're providing personal guarantees it's of no relevance to you.

and rapid growth of NPD?

According to its last accounts, Northern Powerhouse Developments is £171,000 in the red. Because NPD is a tiny insignificant startup company, it is exempt from audit so those accounts contain little useful information. But it means the answer to that question is no.

OK, thanks guys.

Before I found NPD, I came across Signature Living who seem to operate in a similar way. What do you think about Signature?

They offer 3 year minimum hotel room investments, and also 12 month SPI loans.

Are they lower risk? They have a stronger social media presence and longer track record (which includes bankruptcy?!)

Any thoughts on Signature?

Haha OK Zanderman I get it, high risk!

I'm new to this so I want low risk, good returns. What should I invest in?