Urban Village CAP1 Limited: Help for Investors

What is Urban Village Group?

Urban Village Group is a specialist real estate developer based at The Moat House, Sutton Coldfield. It develops and manages property in four sectors: build-to-rent (private rented sector), student accommodation, healthcare and specialist care.

The group funds its developments partly through private investors. Its fundraising arm, Urban Village Investments, markets loan notes and bonds to high net worth and sophisticated investors. A promotional page for the group says it has repaid more than £241 million to investors.

What is Urban Village CAP1 Limited?

Urban Village CAP1 Limited is the group's loan note issuing vehicle. Former directors Nicholas James Sellman and James Paul Sellman stepped down in October 2023 and February 2023 respectively, after which the parent company became the sole corporate director.

Concerns with Urban Village CAP1 Limited

Urban Village loan notes are unregulated, illiquid investments, and the group's own risk warnings state that investors could lose all of the money they put in. If you hold Urban Village CAP1 loan notes, these points matter:

• Your security has limits. The notes are secured by charges held by Blue Water Capital as security trustee. The group's risk factors say the company assets have not been valued, so security does not guarantee repayment.
• There is no FSCS protection. Loan notes like these are not usually covered by the Financial Services Compensation Scheme if the issuer fails.
• You cannot easily sell early. The notes are not traded on any market, so you are normally locked in until maturity.
• Watch for warning signs. These include missed or delayed interest payments, requests to roll over or extend your notes, delays in repaying capital at maturity, further late filings, or a change in security trustee.

If payments stop, the security trustee would normally act for noteholders. Any recovery through an insolvency process can take years and is often only partial.

A separate route may exist through your bank, but only in limited circumstances. Bank reimbursement under the Authorised Push Payment (APP) rules applies where an investment turns out to be a scam, not where a genuine business simply fails. Whether that applies to any investment depends on facts that are not yet known here.

What you can do now - UK investors

1. Check your payments. Compare the interest you have received against your loan note schedule, and note any late or missed payments.
2. Keep your evidence, including loan note certificates, the information memorandum, bank statements and any messages with whoever sold you the investment.
3. Note your payment dates. If you paid from a UK bank account on or after 7 October 2024 and a claim later becomes possible under the Mandatory Reimbursement Model, strict time limits apply.
4. Contact the security trustee if payments stop, and keep all correspondence from the company or trustee.
5. Speak with our expert team to discuss your options. 

How Refundee can help

If you invested in Urban Village CAP1 loan notes and are worried about your money, Refundee can give you a clear, honest view of your options. If evidence emerges that you were misled into a scam, we may be able to help you claim through your bank under the Authorised Push Payment (APP) rules, and through the Financial Ombudsman Service if your bank refuses.

We specialise in complex loan note and investment cases, and have recovered over £150 million for our clients, with a large share coming from group action cases. Every case is different, and we cannot guarantee that a claim will succeed. Read more about your options for recovering lost money.

We work on a no win, no fee basis. We charge 15% + VAT, capped at £10,000 + VAT, and you only pay once you have your money back. You also have the right to claim yourself for free.

Start your free eligibility check or call us on 020 4525 4600.

Refundee Ltd is authorised and regulated by the Financial Conduct Authority in respect of regulated claims management activity (FRN: 937096).

More about Refundee

Refundee Ltd is a claims management company authorised and regulated by the Financial Conduct Authority in respect of regulated claims management activity, FRN: 937096. Registered with the Information Commissioner's Office, registration number A8986071. Registered office: Refundee, 3rd Floor, 86-90 Paul Street, London, EC2A 4NE. Registered in England & Wales, company number 12855931.