Willow Mews - Interim Equity

Willow Vale, Shepherd's Bush, London


£522,500

Funded

£522,500

Total Fund


Term (Months)
15

Projected Annualised Return
25.5%

Strategy
Development

Minimum Investment
£1

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


  • Gated development is in a popular Zone 2 district of London
    This architect designed, gated development is in a popular Zone 2 district of London and will deliver: 2x 3 Bed Mews Houses with private gardens to the rear and first floor terraces; 2x 2 Bed Single Storey Houses each with private courtyard areas; Gated, off street parking
  • Site has full planning permissions
    Contracts have been exchanged, the site has full planning permissions and is ready to go. The Developer, Anthony Lewis, is very experienced and has completed more than 20 successful schemes in London all in separate SPVs. This development will be carried out by a new SPV, (Willow Vale Dragon Ltd).
  • Projected Total Return of 31.9%
    The Investment is by way of Redeemable A Shares with a Projected Total Return of 31.9% with a minimum preferred return 18% p.a. Paid as a combination of a capital gain and a Dividend. Redeemable Shares are preferential to all Ordinary Shares. The Redeemable Shares will be purchased by the SPV, at a price that delivers the preferred minimum return of 18% p.a. (i.e. at £1.225 per share) and the remainder of the return will be paid as a Dividend. The Dividend will be calculated to deliver a total return that is equal to 10.8% of Net Profits after Tax.
Summary
  • Contemporary designs by an award winning architect
  • Zone 2 location within walking distance of 3 Underground Stations
  • Experienced London Developer
  • Pre-agreed Redemption to deliver 18.0% p.a. of capital gains after 15 months with a projected Dividend of 7.5% p.a.
  • Minimum Investment of £10,000

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.***

*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: Willow Mews

Address: London

Property type:  House - Terrace

Property age: 2000+

Market type: Young professionals

Description: This Mews style, gated development has been designed by award winning architects to make the most of the location and to complement the surrounding buildings. It is located on a quiet residential street close to Westfield, the new BBC development as well as the new Soho House. Each of the two 3 Bed Mews Houses have private gardens to the rear along with first floor terraces. Whilst the 2 Bed Units are single storey, with secluded private courtyards. They all have gated off-street parking and communal covered bicycle storage. Read more.

Shepherd's Bush and nearby White City are at the centre of an £8Bn regeneration that will see the already popular Westfield London shopping centre expand with a new John Lewis flagship department store plus 70 new shops and restaurants.

Nearby, the iconic former BBC Television Centre is part of a large scale regeneration project by the developer Stanhope. It will bring 950 flats, offices, restaurants and bars, a Soho House run hotel and a private members club with a roof top bar.

Imperial College is establishing a new 25-acre research and innovation and more recently the Royal College of Arts has announced that it will be opening a new campus at White City Place.

This part of Hammersmith is a primary commuter area popular with young professionals and families. It is very well served by many London Underground stations (including Shepherd's Bush and White City on the Central Line, Goldhawk Road and Sheperd's Bush Market are on the Hammersmith & City Line as is Wood Lane) and regular bus services. Shepherds Bush is on the Overground too with trains to Clapham Junction and Willesden Junction along with London Midland Trains to Watford Junction.

Whilst prices in this area, as with most of Greater London, have stalled over the last three years, this has been on the back of significant increases over the last 5 years.

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.

Local Property Market


 
Purchase Price£1,600,000
Stamp Duty & Completion Fees£76,000
Professional Fees£177,525
Development Costs£831,000
Contingency Allowance£20,000
CrowdLords Fees£22,500
Total Investment£2,727,025
Less Senior Debt & Mezzaine Finance-£9,610,046
Total Equity£522,500
Ordinary A shares£100,000
Ordinary B shares£250,000
Redeemable Class A shares£172,500

Capital Investment


 
Gross Development Value*£3,625,000
Market Growth**£0
Gross Development Profit£897,975
CIL-£15,6715
Sales & Finance Costs*-£233,099
CL Growth Fees-£20,035
Gross Profit£629,170
Corporation Tax-£119,542
Projected Net Profit£509,627
Total Equity held as Redeemable Class A£172,500
Share of Profit Paid to Redeemable Class A10.80%
Capital Return to Redeemable Class A Shareholders£55,018
Projected Total Return to Investors***31.9%

*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

*** Holders of Redeemable Shares are eligible to a minimum preferred return of 18% p.a.and the remainder will be paid as a Dividend

Capital Returns


 
Investment Period*15 Months
Projected Total Return31.9%
Projected Total Annualised Return*25.5%
Minimum Preferred Return18% p.a.

* The Capital Gain is fixed at 18% p.a. and the remainder will be paid as a Dividend.

Return Summary


Risk Return Profile*

CrowdLords Risk Rating
Market SensitivityB
Time SensitivityA
Cost SensitivityB
Preferred ReturnB
ExperienceA
OverallB

Please note that the Development Risk Rating uses different criteria to the BTL Risk Rating and as such, cross comparisons are unadvisable

* 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

CrowdLords Development Analysis


 

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.

Capital Returns

Anthony Lewis

City & Thames Ltd

Anthony moved to property development 20 years ago after retiring from the position of Senior Partner at Taylor Johnson Garrett. Since then he has completed a number of successful schemes in London as well as in the midlands

Roger Crundwell

Tuke Manto Architects

Roger has over 20 years experience in design planning and architecture. He has worked with Anthony on a number of his earlier projects and will lead a team including Peter Miles (QS) from Robert Martell & Partners, Roger Tant (Engineer) Caroline Wilberforce and Tania Tindale (planning consultants)

About the Sponsors


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Property details


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