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West Hampstead - Mezzanine Finance

22 Hillside Road

£115,000

Funded

£115,000

Total Fund

Term (Months)
12
Target Interest Rate (p.a.)
13%
Strategy
Mezzanine Finance
Minimum Investment
£250
Login to invest
Debt Deal
IF ISA
Projected returns are an estimate. Returns may go down or up based on the future market value of the property and rental values achieved.

Key Points

  • Zone 2 London Location

  • 2nd Charge Loan, Min. 6 Month Term
  • 13% p.a. Target Interest Rate
This is an opportunity to invest in a Bond whose proceeds will be used in the purchase of a small plot of land in West Hampstead and its development into a single, detached, two storey, two bed house.

The developer, Sky Meridian Real Estate Limited, is a small independent developer who has completed three profitable developments.

The funds raised will be deployed as a 2nd Charge Loan to be repaid using the sales proceeds once the senior lender has been repaid. The Borrower has the option to redeem the loan anytime after month 9.

The Gross Loan is at a Loan-to-Value of less than 75% day one and 63% of the Gross Development Value.

The plot to be developed is a vacant parcel of land at the end of the garden of 22 Hillfield Road, West Hampstead. 

The site has planning permission for the erection of a single, detached, 2 bed house leaving a small external area. There is no parking and access to the property is via Mill Lane to the south.

The site is within a prestigious and sought after area and is surrounded by many modern dwellings of a similar nature and is opposite a secondary retail area.

The property is a two storey, flat roofed unit with a kitchen, living area and storage space on the ground floor, with 2 bedrooms and a bathroom on the first floor.

Once complete, the house will be sold on the open market. It will be targeted at young professionals and first-time buyers looking for a prime London location at a reasonable price.

Very few developments happen in this area and demand is reported by local agents to remain strong at this price point.

Projected returns

Fixed Return Debt Investment 
  • 12 Month Term
  • Bond Issue: £115,000****
  • GDV: £650,000***
  • Loan: £110,000*
  • Maximum LTV: 75%**
Issuer: CL Number Twenty Eight Limited
  • Number of Bonds available: 460
  • Value of Each Bond: £250
  • Security: 2nd Charge, Debenture and Personal Guarantees
  • Projected Fixed Return : 13% p.a., minus basic tax rate deducted at source
* Excluding Fees and Interest 
** Including Fees and Interest
*** GDV is an estimate based on comparable sales (see page 8 of the Investment Summary).
**** £5,000 of the £115,000 Bond issue is used to cover legal fees and expenses

Income is not guaranteed and there is a risk of capital loss. Please see pages 12 and 13 of the Investment Summary for further information about risks.

Property name: West Hampstead, 2nd Charge

Address: 22 Hillfield Road

Property type: Flat - Purpose built

Property age: 2000+

Market type: Young professionals

Description: The property is situated within easy access of Finchley Road and within walking distance of Kilburn Tube Station and West Hampstead Railway Station

Local Property Market

Located in North West London in the London Borough of Camden, West Hampstead, sandwiched between Finchley Road and Kilburn, possesses a well-to-do reputation, with a village feel, dominated by one main high-street, West End Lane.

Popular with a wide range of families and professionals, there are a number of patisseries, cafes and restaurants in the area, along with a fine selection of bars and gastro-pubs offering a lively nightlife.

West Hampstead, previously known as the village of West End until the 18th century, experienced a sharp rise in population in the middle of the 19th century, following the introduction of the railways, as West Hampstead became a strategic route to London.

The railways also made West Hampstead a target during World War II. Much of the district was rebuilt following the war, including many attractive residential developments, which, coupled with West Hampstead’s excellent transport links and community atmosphere, make it one of the best places to rent or buy a property.

Although not quite as expensive as neighbouring Hampstead, West Hampstead is a highly sought-after residential area, reflected in above average property prices and rental values for London.

West Hampstead offers a wide choice of homes, including stunning Victorian houses, many of which have been converted into apartments, and handsome red brick mansion blocks, including Chomley Gardens, which features two communal tennis courts exclusively for residents
   

Key Terms

Issuer:CL Number Twenty Eight Limited registered in England and Wales with company number 11465461 whose registered office is at Lance Levy Farmhouse, Wildmore Lane, Hook, Hampshire, RG27 0HB
Amount460 Bonds of nominal value of £250 each
Interest Rate:Projected 13% per annum, simple interest (basic rate tax deducted at the source)
Interest PaymentAll accrued interest to be paid in one lump-sum on the Maturity Date
Default Interest Rate3% above the Interest Rate, but subject to recovery of the same under underlying Loan
Maturity Date12 months after allotment
Minimum Accrual Period6 months after allotment
Minimum Subscription1 Bond
Purpose
The proceeds of the Bond issuance shall be used by the Company to participate in a Loan as a lender to Sky Meridien Limited to enable it to complete the conversion of 22 Hillside Road, West hampstead, NW3 5HG
Documentation Bond Instrument and this Term Sheet
Governing LawEnglish

Summary of Projected Returns

Investment Period12 Months
Target Total Return13%
Target Annualised Return 13%
Returns not guaranteed

CrowdLords Development Analysis

The blocks shown in the "Risk Analysis" chart illustrate the CrowdLords Risk Rating. It shows where the investment lies on our internal Risk Return Profile. It is our opinion only and should not be taken as a recommendation. 
We rate Risk across 5 parameters and grade them as being A, B, C, D or E. A being lower Risk according to our criteria.

 We have given this project a score of A, which we believe reflects lower returns balanced against generally lower risk. You should judge the risk for yourself using the information provided and your own investigations.
 

About the CrowdLords Risk Analysis

We include a CrowdLords Risk Rating to illustrate where the investment lies on our internal Risk Return Profile. Where risks are higher it is usual to expect a higher potential return and this is designed to aid quick comparisons only. It is our opinion only and should not be taken as a recommendation. You should judge the Risk for yourself using the information provided and your own investigations to form your own opinion.

We rate Risk across 5 parameters and grade them as being A, B, C, D or E. A being lower Risk. The five areas we grade are:
Market Sensitivity – the less the return is impacted by changes in Market prices, the lower the risk
Cost Sensitivity – the less the return is impacted by any increases in cost, the lower the risk
Time Sensitivity – the less the return is impacted by any extensions to the time line, the lower the risk
Minimum Preferred Return – the higher the minimum preferred return as a proportion of the projected return, the lower the risk
Track Record – the greater the experience of the Developer, the lower the risk.
We combine these into a weighted rating between A and E and show how the Risk / Return compares with what we would expect. 

About the Sponsors

Sky Meridian Real Estate Limited is led by Shyan Chudasama. An experienced developer who focuses on small developments with potentially quick turn around times, delivery excellent return on investment in the process.

Recent Projects include:

26-32 High Street, Studley, B80 7HJ The conversion of first floor offices into 3x 2 Bedroom apartments, including structural work, the installation of a new staircase and work on the pitched roof. Total area - 2,600 sq ft

Purchase    £160,000
Costs          £75,000
GDV           £355,000
Profit          £120,000

37-38 Fore Street, Trowbridge, BA14 8EJ Conversion of the first and second floors of a Grade II listed building to deliver 4x 2 Bedroom apartments, including one large split level apartment. Total area - 3,000 sq ft 

Purchase    £185,000
Costs         £110,000
GDV           £500,000
Profit          £205,000

27 Listley Street, Bridgnorth, WV16 4AW The conversion of a large club into 6 spaced apartments including heavy works ranging from full structural flat roofs and the installation of balconies. Total area - 8,000 sq ft   

Purchase    £525,000
Costs          £280,000
GDV            £1,200,000
Profit           £395,000

NB Past projects have been included to demonstrate experience only. Past performance should not be seen as a reliable indicator of future results.

Property details

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