Your capital is at risk and investments are not covered by the Financial Services Compensation Scheme (FSCS).

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Your capital is at risk and investments are not covered by the Financial Services Compensation Scheme (FSCS).

Moseley Gardens - Full Equity

Moseley St, Birmingham


£1,092,038

Funded

£1,092,038

Total Fund


Term (Months)
24

Projected Annualised Return
17.5%

Strategy
Leveraged Development

Full 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


  • New build residential devlopment
    Luxury, 6 storey new build development in the Digbeth area of Birmingham. Delievering 67 residential apartments .
  • All units have been pre-sold
    As with all Prosperity developments, the development contract will be a fixed price, bonded JCT contract.
  • Minimum Investment of £5,000
    Investors will receive £1, Ordinary Class B shares or £1, Ordinary C shares depending on their level of investment
Additional text goes here only if necessary

Projected returns


Ordinary Class B Shares
  • For investors investing £20,000 or more
  • Projected Total Return of 44% or 22% p.a.**
  • Over 24 months
  • Minimum Preferred Return of 16% p.a.***
Ordinary Class C Shares
  • For investors investing £20,000 or less
  • Projected Total Return of 35% or 17.5% p.a.**
  • Over 24 months
  • Minimum Preferred Return of 12% p.a.***

*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.

Local Property Market


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.

 

Capital Investment


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

 

Capital Returns


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

 

Return Summary


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 Analysis


Risk Return Profile

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

 

Capital Returns

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:

The Investment Period – the longer the period, the less the risk
Macro location and market – has the area performed well historically
Micro location – is the property in a good location for rental / sale
Level of Development – the degree of development and the cost / time risks
Track Record – the track record of the LandLord / Developer

We combine these into a weighted rating between A and E and show how the Risk / Return compares with what we would expect.

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