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

Kennington Rd - 7x Eco Apartments

Kennington Rd, Kennington, Oxford


£546,500

Funded

£546,500

Total Fund


Term (Months)
18

Projected Annualised Return
21.6%

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


  • Development of 7 Sustainable Eco Apartments
    This is a very exciting development of 7 Sustainable Eco Apartments.The site currently has a dilapidated, 1950s bungalow on it and planning permission for 7 x 2 bed Apartments is expected to be approved next month.
  • Striking and elegant contemporary building
    The development has been designed to be a striking and elegant contemporary building and from the road it will have the appearance and scale of a single dwelling rather than a block of flats. The plot has a gentle slope away from the road and three of the flats are on the lower ground level with their own small garden space. The ground and first floor flats each have their own balcony.The development will be highly energy efficient and it is expected to have solar panels and an electric car charging point.
  • Sold off-plan by Chancellors Estate Agents
    The flats are to be sold off-plan by Chancellors Estate Agents who have an enviable reputation for selling New Homes and has recently launched a new development of 4 x 2 bed apartments on an adjacent road. These were all reserved off-plan within 72 hours of being available to the market (with a bidding war for the last unit resulting in a sale above asking price).
Summary
  • Highly experienced developer with over 15 years experience
  • Sustainable Eco Design development
  • 7 x 2 beds each with balcony or private outdoor space
  • Flats to be pre-sold off plan before completion
  • Consistently high demand residential area
  • Projected Total Return of 32.4% in 18 months

Please note that this is a leveraged investment and that the providers of the debt finance will have a first charge over the property

This investment is subject to planning meaning that it will only go ahead following full planning approval and that the development costs might change as a result of planning decisions

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: Kennington Rd

Address: Kennington

Property type: Flat - Purpose built

Property age: 2000+

Market type: Young professionals

Description: This is an opportunity to invest in an exciting new build development of 7 x 2 bed Eco Apartments in a prime residential area. It is expected to be a 18 month project and the developer is offering a projected annualised return of 21.6% over 18 months - with a minimum return of 15%. Read more.

Local Property Market


Kennington is a prime residential location with a shortage of smaller homes and is situated on the outskirts of Oxford in a sustainable transport zone. It has fantastic road links to local areas as well as being adjacent to the A34 leading to the M4 corridor and the M40.

The development is in the heart of Kennington, on the main Kennington Road. There is good public transport links with buses (five minutes’ walk) running every 15 mins to the city centre where there are fast coach and train links to London. Kennington boasts a school, community centre, medical centre, pharmacy, post office, 2 mini markets, veterinary surgery and library and local public house all within 5 -10 minutes walk of the development.

Oxford has an economic microclimate with two universities and several science and technology parks. It is also the home of the BMW Mini and the factory is only 15 minutes drive away. There is a strong and steady rental market in Kennington which, being on the outskirts of Oxford, is an ideal location for first time buyers particularly since central Oxford house prices are now on a par with London.

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 £630,000
Stamp Duty £21,500
Legal & Professional Fees £10,000
Development Budget £600,000
Contingency Allowance £20,000
CrowdLords Fees £15,000
Total Investment £1,296,500
Less Finance & Deposits -£750,000
Total Funds Required * £546,500
Ordinary A Shares - Developer Equity £N/A
Ordinary B Shares - Crowd Equity £N/A
Orindary C Shares - Crowd Equity £N/A

* Please note that this is a leveraged investment and that the providers of the debt finance will have a first charge over the property

 

Capital Returns


Gross Development Value* £1,960,000
Market Growth** £0
Gross Sales Price £1,960,000
Contingency Fund £20,000
Sales Costs -£40,000
Finance Costs -£136,500
CL Growth Fees -£14,670
Gross Profit £492,230
Corporation Tax -£98,466
Net Profit £393,864
Projected Total Capital Return 72.1%
Share of Profit Paid to Investors 12%
Capital Return to Investors £47,512
Projected Capital Return to Investors 32.4%

*The stated Gross Development Value is based on the current sales values achieved within the area for similar new build, 2 bed flats.

**Market Growth has been taken into consideration.

 

Return Summary


Investment Period 18 Months
Development Value 32.4%
Projected Total Return 32.4%
Projected Total Annualised Return 21.6%

CrowdLords Development Analysis


Risk Return Profile*

CrowdLords Risk Rating
Investment Period D
Macro Location & Market A
Micro Location B
Level of Development D
Landlord Track Record B
Overall C

* The 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.

About the Sponsors


Following the refurbishment of her first three properties which she sold within 3 days of marketing Kate discovered that she had a passion and natural flair for creating beautiful homes. In 2003 she studied for an MSc in Energy Efficient and Sustainable Buildings (Sustainable Architecture) and since then has designed and/or built numerous project in and around the Oxford area. These include a development of 7 x one bed apartments as well as 4 (1 & 2 bed) flats in the ever-popular Cowley area of Oxford which she rents out with high demand. She has also designed and built a beautiful 5 bedroom, 4 bathroom Eco house designed to maximise solar gains and with ground source heat pumps.

Kate’s successful track record is due to both experience and education having run her own business since receiving an MBA from Imperial College, London University.

Kate trades as Hartmore Homes, designing and delivering beautiful and comfortable, high quality homes satisfying modern day lifestyle requirements within sustainable residential properties.

Kate will be funding a large portion of her first CrowdLords's project with her own funds. Rather than seeking to raise the balance of funding required entirely through traditional banking routes she has decided to offer her project for crowdfunding as she believes that the opportunity to be involved in the creation of healthy and environmentally sound homes should be available to everyone looking for responsible investment opportunities.

Property details


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