Small investors who poured millions into Kevin McCloud's eco-friendly housing ventures have been warned they could lose up to 97% of their money. The Grand Designs presenter's property empire, built on promises of returns up to 9% a year, is now in turmoil.
Between 2013 and 2017, McCloud raised millions through bonds and crowdfunding for his Happiness Architecture Beauty (HAB) companies. However, investors in a £2.4m bond from January 2017 have been told they face losing between 74% and 97% in a worst-case scenario. Another group, who invested £1.9m in 2013, say they have received no dividends and feel 'fobbed off'.
McCloud admitted to 'heartache and pain' as he struggled to keep HAB viable amid project delays, 'systemic faults' and large debts. He told the Guardian: 'I stand shoulder to shoulder with those who have lost money. I will of course do everything in my power to improve the current situation.'
In March, McCloud personally apologised for problems at his Kings Worthy scheme in Hampshire. Now, a restructuring company has taken control of part of his empire, demanding repayment. A letter to bondholders said HAB Land would be unable to continue trading without further funds, proposing investors not see cash until 2024 at the earliest.
One investor said: 'The ethos of HAB appealed to me... I'm disappointed that what I saw as an idealistic project seems to be collapsing on a sour note.' Another representative added: 'None of the 650 investors have received a penny in dividends... Many are left feeling angry and betrayed.'
