ABC Alpha Business Centres UK Limited
ABC Alpha Business Centres UK Limited (ABC) is yet another failed Self-Invested Personal Pension (SIPP) investment, having gone into administration in January 2017. Prior to this, investment in ABC was sold extensively to pension holders by a number of FCA authorised firms across the UK, including Black Star Wealth Management.
Incorporated in August 2012, ABC was formed as a subsidiary of The Property Store (TPS), a UAE based enterprise thought to have business in several countries as well as controlling and managing a significant portfolio of residential and commercial property interests internationally.
ABC’s director, Bradley Lincoln, used another of his companies – Best Asset Management – to work with unregulated sales people to market his products, with staff reportedly earning up to 17% in commission. Unsurprisingly, Lincoln has now been connected to a number of failed projects involving bond funding which have resulted in unsuspecting investors losing millions from their pensions and savings.
Global business development centres
ABC bonds were advertised to pension holders as an exceptional investment opportunity. Funds were to be split into various tranches to purchase and develop business centres all over the world with the ultimate aim for ABC to grow to the extent that it would be an attractive takeover target for one of the global industry players.
ABC also dismissed the need for traditional bank borrowing. They believed bond funding provided them with greater flexibility and agility, allowing them to take advantage of commercial opportunities presented in the market.
ABC’s last bond offered a return of 8.28% quarterly in arrears, issued for a period of four years and with redemption possible after three. The scheme had a relatively low barrier to entry with a minimum investment of £10k, and the Property Store purportedly provided security of 200% of the value of the invested funds. All in all, the four year exit option with interest roll up promised an astonishing 41.79% return.
On paper, the ABC bonds look like an excellent chance for pension holders to increase their funds quickly and safely. Unfortunately, however, this was not the case. In February 2019, the Administrators progress report disclosed that investors were due over £38 million, including interest.
A high-risk investment unsuitable for ordinary investors
ABC bonds were a high-risk investment and should never have been recommended to ordinary pension holders and inexperienced investors. If you were persuaded to invest in ABC bonds or a similar scheme via a SIPP without the risks being made clear to you, the team at Beat the Banks would like to hear from you.
Our claims experts are highly experienced in dealing with cases concerning high-risk investment schemes and will do everything they can to help you seek justice. Call us on 0800 193 1234 for a free, no-obligation chat with one of our advisors.