Severn St, Birmingham
Funded
Total Fund
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. You may also consider that all units are pre-sold and that the construction costs are fixed on a bonded JCT contract.
*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: Severn Street
Address: Birmingham
Property type: Flat - Purpose built
Property age: 2000+
Market type: Young professionals
Description: Prosperity are delighted to offer CrowdLords Investors the opportunity to support a prime development of 1 and 2 bed luxury apartments, right in the centre of Birmingham. The developer has secured the site and is working alongside the local planning department to ensure that the resultant scheme sits comfortably amongst the historic and characterful buildings that surround it. Read more.
Birmingham is often under the shadow of London and Manchester but it remains the UK’s second city. It is the home of Cadbury’s, Jaguar Landrover and a clutch of blue chip accountancy firms including Grant Thornton and pwc.
The residential property market in Birmingham remained static for a while following the slowdown in 2008, but in 2013 things changed and demand outstripped supply for 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.
Severn Street is minutes away from Birmingham New Street, the busiest rail interchange outside of London and now connected to the broader city area via the tram. The international airport, served by major airlines, provides direct flights to New York, Amsterdam, Paris among other popular destinations.
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 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 | £410,000 |
| Stamp Duty | £16,200 |
| Legal & Professional Fees | £304,000 |
| Development Costs | £3,681,315 |
| Contingency Allowance | £146,023 |
| CrowdLords Fees | £35,000 |
| Total Investment | £4,592,538 |
| Less Development Finance & Deposits | -£4,103,838 |
| Remaining Funds Required * | £488,700 |
| Other Shareholders | -£287,000 |
| Total Redeemable B Shares | £201,700 |
* Shares may be issued in Tranches to avoid delays
| Gross Development Value* | £5,477,387 |
| Market Growth** | £0 |
| Gross Sales Price | £5,477,387 |
| Total Investment | -£4,592,538 |
| Sales & Finance Costs | -£241,382 |
| CL Growth Fees | -£18,260 |
| Gross Profit | £625,207 |
| Corporation Tax | -£118,789 |
| Projected Net Profit | £506,418 |
| Projected Total Capital Return | 103.6% |
| Share of Equity held as Redeemable B Shares | 41.27% |
| Share of Growth Paid to Crowd Investors*** | 26.1% |
| Capital Return to Investors | £54,448 |
| Projected Capital Return to Investors | 27.0% |
*The stated Gross Development Value is based on the current sales values according to local agents
**Market Growth has not been considered as is normal practice
*** Redeemable B Class Shareholders are eligible to 13.5% of capital growth p.a.
| Investment Period | 24 Months |
| Projected Total Return | 27.0% |
| Projected Total Annualised Return | 13.5% |
| CrowdLords Developments Risk Rating | |
| Market Sensitivity | A |
| Time Sensitivity | A |
| Cost Sensitivity | A |
| Preferred Return | A |
| Developer's Track Record | A |
| Overall | A |
* The Risk Return Profile for Developments 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:
Prosperity Group is a Birmingham based property development company that specialises in delivering UK investment properties for property investors around the world.
Whilst they have a Midlands focus their developments are located throughout the UK in areas where they see rental demand is high combined with sustained high employment.
The Group includes other related businesses including Clear Mortgage Co which provides a fully regulated mortgage solution for their clients and Lamont Estates estates agency, letting and management company facilitates the whole aftercare experience for their investors and home owners.
Most of the team work from their Birmingham office but they also have offices in Dubai, Hong Kong and Malaysia.
Their total portfolio includes 19 New Build and Conversion projects with a total value of £154m.
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