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

Harmer Street - Full Equity

Harmer St, Gravesend


£219,000

Funded

£219,000

Total Fund


Term (Months)
18

Projected Annualised Return
27.2%

Strategy
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


  • Commercial to residential conversion
    This commercial to residential conversion involves two very distinct period buildings (one on Harmer Street and the other on Mercer Crescent), connected by a courtyard space. It delivers: 14x 1 bed apartments; 25x 2 bed apartments and a private courtyard
  • Full planning is in place
    Full planning is in place and so is much of the Building Regulations work. The Developer, ALP Property Services is carrying out the conversion in a Joint Venture with the Vendor. The Vendor will receive part payment up front, with the remainder on completion of the sale of the units, and this reduces the amount of equity required significantly.
  • Conversion is expected to take 10 months
    The conversion is expected to take 10 months and 6 months have been allowed for the sale of the units, though if an Investor Buyer can be found to acquire all the units then that would be preferred.
Summary
  • Unique conversion in an 'up and coming' commuter town
  • Situated close the town centre and the River Thames
  • 39 reasonably priced apartments of varying sizes
  • 18 month investment
  • Projected total returns of either 50% or 40.8%, with 18% or 16% p.a. preferred minimum return depending on the level of investment

PLEASE NOTE: This is a leveraged investment that uses debt secured via a first charge on the development. As such there is a risk that in the event that the debt is not repaid, that some of your capital is not repaid.

Projected returns


Ordinary Class B Shares
  • Ordinary Class B Shares for investments over £20,000 with a projected annualised return of 33.3% p.a. with a preferred minimum return of 18% p.a.
Ordinary Class C Shares
  • Ordinary Class C Shares for investments over £5,000 with a projected annualised return of 27.2% p.a with a preferred minimum return of 16% p.a.*

*Shares with a preferred minimum return are preferential to all other shares up to the minimum return level. This means that the minimum return (i.e. 16%/18% p.a.) will be paid out first from profits before any other distribution to other share holders. With this investment Class B and Class C shares are deemed as equal in terms of priority and are both preferential to Ordinary Class A Shares.

Property name: Harmer Street

Address:  Gravesend

Property type: Flat - Conversion

Property age: 1900 - 1949

Market type: Young professionals

Description: These two quite distinct commercial buildings, currently used as offices (Harmer Street building), a snooker hall and a car workshop (Mercer Crescent building) are to be converted into 39 residential apartments under existing planning permissions.  Read more.

Local Property Market


Situated on the banks of the River Thames, Gravesend is a town with a surprising history, including the fact that it is the resting place of Princess Pocahontas. The town is a mix of mainly Victorian and Edwardian buildings with many linked to it's former role on the River Thames - it still has two operational piers.

Harmer Street is said to have been designed by an architect from Bath and the adopted style is plain to see. At the end of the street is an historic clock tower which has recently been restored.

The town is well connected with good rail links to Stratford International in 12 minutes and Central London in 24 minutes. Eurostar trains from nearby Ebbsfleet International Station reach Paris in just over two hours and Brussels in one and a half.

The road network is also very good with the A2 and the M25 in easy reach.

The town also has good shopping and leisure facilities and it also benefits from the nearby Bluewater Shopping Centre.

*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 £1,700,000
Stamp Duty £115,612
Legal & Professional Fees £59,986
Development Costs £2,800,000
Contingency Allowance £127,402
CrowdLords Fees* £16,000
Total Investment £4,819,000
Less Stretch Senior Debt Finance -£4,600,000
Remaining Funds Required £219,000
Developer Equity £59,000
Crowd Investors Class B Shares Up to £120,000
Crowd Investors Class C Shares At least £40,000

* CrowdLords Success Fee is equal to 10% of the funds raised. This fee is paid by the SPV and has no negative effect on the projected returns quoted.

 

Capital Returns


Gross Development Value* £8,100,000
Market Growth** £0
Gross Development Profits £3,230,000
Vendor Final Payment -£800,000
Debt Finance Costs -£792,642
Sales Costs -£161,250
CL Growth Fees**** -£55,785
Gross Profit £1,471,323
Corporation Tax -£279,551
Projected Net Profit £1,191,772
Share of profits payable to Class B Shares*** 5.03%
Projected Dividend for Class B Shares £60,000
Projected Total Return for Class B Shares*** 50%
Share of profits payable to Class C Shares*** 1.37%
Projected Dividend for Class C Shares £16,333
Projected Total Return for Class C Shares*** 40.8%

*The stated Gross Development Value is based on the current sales values according to local agents

**Market Growth has not been considered as it normal practice

***B Class Shares are only available for investments over £20,000

****CrowdLords Growth Fee is 3.65% of Net Profits before tax. These have been taken into account when projecting returns for investors

 

Return Summary


Investment Period 18 Months
Projected Total Return 40.8%
Projected Total Annualised Return 27.2%

CrowdLords Development Analysis


Risk Return Profile*

CrowdLords Risk Rating
Market Sensitivity B
Time Sensitivity B
Cost Sensitivity B
Preferred Return C
Experience A
Overall B

*The Development Risk Return Profile is a subjective assessment made by CrowdLords based on the information provided by the Developer. It is different to the BTL Risk Reward Profile and they should not be compared directly. 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.

About the Sponsors


ALP Property Services is an established and experienced firm of house builders specialising in residential developments.

Based in Kent but operating throughout the South East, they have significant experience in working with both the private housing market and Housing Associations, to create high quality homes with great attention to detail within the build.

Driven by a strong leadership team, the company retains a professional and skilled workforce.

The ethos for quality building has seen the company grow from strength to strength and tackle increasingly challenging and exciting projects.

Property details


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