Moseley St, Birmingham
Funded
Total Fund
*Target start date is 31st May 2018. Shares may be issued in two tranches to avoid delays.
** Projected return to be paid as a capital gain if circumstances make it possible to do so
*** The Minimum Preferred Return is the return payable to Crowd Investors before the Developer takes any profit themselves.
Property name: Moseley Gardens
Address: Birmingham
Property type: Flat - Purpose built
Property age: 2000+
Market type: Young proffesionals
Description: Moseley Gardens is a luxury, 6 storey new build development in the Digbeth area of Birmingham - an area that has been earmarked by city planners to support 33,000 sqm of retail space; 150,000 sqm of office space; and 75,000 sqm of residential development. Read more.
Birmingham is often over-shadowed by London and Manchester but it remains the UK’s second city. It is the home of Cadbury’s, Jaguar Landrover and an increasing array of blue chip professional services firms including Grant Thornton, pwc, Deloittes and HSBC.
The residential property market in Birmingham remained static for a while following the slowdown in 2008, but in 2013 things changed and demand has continued to outstrip the supply of investment property.
The city has much to be proud of and is one of the most thriving cities in the UK. It attracts millions of people each year as a place to study, work, live or visit.
Digbeth is a lively, creative hub on the east side of the city centre and it has come a long way from its original roots. It is now a natural home to the city's burgeoning young, creative and digital community.
The area hosts a range of retailers as well as a great collection of bars and restaurants and is a short walk from the Bull Ring centre - the iconic shopping and leisure complex that is home to the flagship Selfridges store.
Birmingham has three universities and is considered a prime location to study with the UK’s second largest student population outside of London. More and more overseas students and young working professional are choosing to settle here and after their studies attracted by a vibrant lifestyle, affordability and exceptional transport links.
*Local Property Market analysis uses House Price Index data from The Land Registry. The commentary is opinion only and should not be taken as fact.
| Purchase Price | £2,100,000 |
| Stamp Duty | £94,080 |
| Legal & Professional Fees | £616,427 |
| Development Costs | £7,490,613 |
| Contingency Allowance | £344,964 |
| CrowdLords Fees | £56,000 |
| Total Investment | £10,702,084 |
| Less Finance & Deposits | -£9,610,046 |
| Remaining Funds Required * | £1,092,038 |
| Ordinary A Shares - Developer Equity | £532,038 |
| Ordinary B Shares - Crowd Equity | £370,60 |
| Orindary C Shares - Crowd Equity | £189,400 |
* Shares may be issued in Tranches to avoid delays
| Gross Development Value* | £12,593,282 |
| Market Growth** | £0 |
| Gross Development Profit | £1,891,198 |
| Unused Contingency Fund | £0 |
| Sales & Finance Costs* | -£1,124,573 |
| CL Growth Fees***** | -£23,914 |
| Gross Profit | £742,711 |
| Corporation Tax | -£141,115 |
| Projected Net Profit | £601,596 |
| Share of Profit Paid to Ordinary B Shares | 27.1% |
| Capital Return to Ordinary Class B Shares*** | £163,064 |
| Share of Profit Paid to Ordinary C Shares | 11.0% |
| Capital Return to Ordinary Class C Shares**** | £66,290 |
| Projected Total Return to all Crowd Investors | 40.96% |
*The stated Gross Development Value is based on the current sales values according to analysis of comparable properties and for allowing for Prosperity's Sales and Marketing Costs and Commissions.
**Market Growth has not been considered as is normal practice.
***Holders of Ordinary B Shares are eligible to a Preferred Minimum of 16% p.a.
****Holders of Ordinary C Shares are eligible to a Preferred Minimum of 12% p.a.
*****The CrowdLords Growth Fee will be equal to 2.77% of Net Profits Before Tax
| Investment Period | 24 Months |
| Average Projected Total Return | 40.96% |
| Projected Annualised Return* | 20.48% |
* This Average Return is across both Class B and Class C shares
| CrowdLords Development Risk Rating* | |
| Market Sensitivity | A |
| Time Sensitivity | C |
| Cost Sensitivity | E |
| Level of Preferred Return | B |
| Experience | A |
| Overall | B |
Please note that the Development Risk Rating uses different criteria to the BTL Risk Rating and as such, cross comparisons are unadvisable
*The Development Risk Return Profile is a subjective assessment made by CrowdLords based on the information provided by the LandLord. Investors should make their own assessment of Risk & Reward before investing
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:
TBC
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