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Foxley Lane - Interim Equity

44 Foxley Lane, Purley

£247,361

Funded

£280,000

Total Fund

£200,000 minimum raise
Term (Months)
18
Projected Annualised Return
22% - 25%
Strategy
Leveraged Development
Minimum Investment
£2,000
Login to invest
Interim Equity
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

  • Popular Commuter Location


  • Interim Equity, 18 Month Term
  • 22%-25% p.a. Fixed Target Returns

This is an opportunity to invest in the conversion of a semi-detached residence into 6 self-contained apartments in a popular area of Purley, near Croydon. 
This three storey building was originally constructed around 1910 on a sloping site with ample parking to the rear accessible off Plough Lane.
Requiring part conversion and part extension, the completed development will provide:
  • 3x 1 Bed Apartments
  • 2x 2 Bed Apartments
  • 1x 3 Bed Apartment
  • Shared private parking 
CrowdLords has raised £105,000 of Mezzanine debt to sit behind senior debt to enable the purchase and the planning process. Investors who take part in this equity raise will rank behind investors in the debt offer, meaning they will be repaid only after the debt investors have been repaid. 

We would like to highlight that a CrowdLords’ Director has an interest in the Development SPV but has not been involved in the Due Diligence or the investment decisions.

The Investment is by way of £1, Redeemable Shares of different classes, depending on the level of investment, in an SPV that holds the JV agreement with the developer:
  • Total Crowd Equity of £280,000
  • An estimated 220,000 Preferred Redeemable Class A Shares
    • Expected 18 Month Term
    • Target Total Returns = 37.5% (25% p.a.)*
    • Minimum Investment is £10,000
  • An estimated 60,000 Preferred Redeemable Class B Shares
    • Expected 18 Month Term
    • Target Total Returns = 33.0% (22% p.a.)*
    • Minimum Investment is £2,000
The property is an imposing, 1910's, five / six bedroom, semi-detached family residence, located in a sought after location, within walking distance of Purley town centre and the railway station. 

The property also benefits from a mature, secluded, rear garden and a gated parking area to the rear that is accessible from Plough Lane.

The developer is applying for planning permission to convert the property into 6 residential units with the aim of either developing out the site or selling it on with the enhanced planning value. Foxley Lane, and Purley generally has a wide range of similar recent conversions.

Projected returns

Redeemable Class A Shares**
  • Fixed Target Return of 37.5% (25% p.a.)*
  • Fixed Term of 18 months
  • Minimum Investment of £10,000
Redeemable Class B Shares**
  • Fixed Target Return of 33% (22% p.a.)*
  • Fixed Term of 18 Months
  • Minimum Investment of £2,000
* Projected return to be paid as a capital gain if circumstances make it possible to do so
** Redeemable Shares must be redeemed before the payment of any dividends or the return of any capital to other investors.
Property name: 

Address: 44 Foxley Lane, Purley

Property type: Flat - Purpose built

Property age: c1910

Market type: Young professionals

Description: The property is situated within easy access of Purley Town Centre, Purley Station and easy access to the A23.

Local Property Market

The property lies within a few minutes walk of Purley town centre, a prosperous and popular residential town with a host of high street brands including Tesco, Sainsbury's Local, Costa Coffee and Pizza Express, Laura Ashley, not to mention a varied selection of other restaurants, cafes and designer boutiques.  

Larger retailers such as John Lewis, DFS and IKEA are all within a short drive, located on the Purley Way. There is a good selection of state and private schools including, St Davids, Woodcote Schools, Cumner House, John Fisher, Whitgift School and Croydon High for Girls, all within a short distance.  

Purley also offers a choice of nearby sports facilities including Purley Leisure Centre, numerous golf clubs and the locally respected Purley Sports Club with its array of sports facilities including tennis, squash, bowls, hockey and cricket.
   

Capital Investment

Purchase Price£790,000
Stamp Duty£84,250
Legal & Professional Fees£98,904
Development Costs£546,204
Contingency Allowance£70,110
CrowdLords Fees£33,000
Total Investment£1,622,468
Less Finance & Deposits-£1,202,218
Mezzanine *£100,000
Ordinary Shares - Developer Equity£40,250
Redeemable Shares - Crowd Equity£280,000


 

Projected Capital Returns

Gross Development Value£2,215,000
Gross Development Profits£592,532
Finance Costs£164,774
Sales Cost£55,708
CL Growth Fees£18,603
Corporation Tax£67,155
Net Profits after Tax£286,292
Share of Profits Owed to JV SPV50%
Net Profits Payable to JV SPV£143,146
Share of Net Profits Paid71.48%
Total Distribution to Crowd Shares£102,300
Profit Retained by the Developer £40,846

 

Projected Return Summary

Investment Period18 Months
Projected Total Return33% - 37.5%
Target Annualised Return 22% - 25% p.a.


 

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. You should judge the Risk for yourself using the information provided and your own investigations.

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.
 

About the CrowdLords Risk Analysis

We include a CrowdLords Risk Rating to illustrate where the investment lies on our Risk Return Profile.  Where risks are higher it is usual to expect a higher 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

About Joseph Homes
For Joseph Homes, 2008, one of the worst recessions in recent history, served as the perfect platform to start something different. Only homes that were exceptional sold. Driven by a strong set of principles that hold true to this day,  Joseph set about quality homes in places people want to live. Joined by his business partner, Paul, in 2010, they honed their craft in prime central London for a number of years. They soon saw an opportunity to bring their quality of delivery to Greater London at scale, focusing on their fundamentals - design, location, amenity and transport. Ten years later, with a unique team from diverse backgrounds, Joseph Homes is a growing community of people who share the same values to deliver homes to be proud of.
Joseph Rajah - CEO 
Joseph founded Joseph Homes in 2008 after years of serial entrepreneurship spanning property, events and NGO work. Starting his first business aged 14, Joseph is yet to have a ‘proper job’. He considers himself completely unemployable by traditional standards, so has no choice but to be CEO. 

He has steered the ship through turbulent markets, growing the company dramatically in 10 years. With a focus on creativity, innovation and controlled profitable growth, Joseph is working to build on the company’s success over the next five years. 
In his spare time, Joseph works on his cunning plan to have more spare time.

Paul Dipino MRICS - COO 
Paul is a member of the Royal Institution of chartered surveyors and has 25 years’ experience in the property industry. He has experienced the market as an agent, developer and investor which helps him take a broad, strategic view of the industry.  
Paul joined forces with Joseph to form Joseph Homes in 2010. 

As COO, Paul makes sure growth is managed effectively by leading the team to innovate and think differently. He is passionate about doing things the right way, from design through to delivery. This principled approach has led the company to multiple industry awards. 

Paul is a dedicated outdoorsman, and is always dragging his two young children out climbing, scuba diving and camping with him. Weekends see him on the sidelines at Richmond Rugby club wondering why he wasn’t as good as his son.


Past Projects

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Property details

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