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

Kent Street - Full Equity

Kent St, Birmingham


£1,108,221

Funded

£1,108,221

Total Fund


Term (Months)
24

Projected Annualised Return
20.0%

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


  • New build development being delivered as a Joint Venture with Davenports, the Birmingham based brewer
    Kent Street is a significant, 11 storey, new build development being delivered as a Joint Venture with Davenports, the Birmingham based brewer. It delivers 88,847 sq ft of prime City Centre space comprising: 116x one and two bed luxury apartments over 10 floors; 3 Commercial Units on the ground floor and shared amenities space
  • Development has a positive planning history
    The development has a positive planning history and the full submission is in final preparations. This investment is not subject to planning and should planning not be granted, an alternative development site will be allocated enabling realisation of, at least, the preferred minimum returns./span>
  • Vast majority of the apartments have already been pre-sold
    The vast majority of the apartments have already been pre-sold and the remaining units will be sold before the investment begins and, as with all Prosperity developments, the development contract will be a fixed price, bonded JCT contract.
Summary
  • Joint Venture with the land owners, Davenport Breweries
  • Prime central Birmingham Location
  • All units will be pre-sold
  • Projected returns of 20% p.a. with a 10% p.a. preferred minimum return

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: Kent 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 along with commercial space on the ground floor, in a prime location in Birmingham City Centre. Read more.

Local Property Market


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.

Kent 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.

 

Capital Investment


Purchase Price £2,100,000
Stamp Duty £84,000
Legal & Professional Fees £871,188
Development Costs £16,143,427
Contingency Allowance £678,138
CrowdLords Fees £125,822
Total Investment £20,002,575
Less Finance & Deposits -£18,744,354
Remaining Funds Required * £1,258,221
Ordinary A Shares - Developer Equity £150,000
Ordinary B Shares - Crowd Equity £250,000
Redeemable A Shares - Crowd Equity £406,462
Redeemable B Shares - Crowd Equity £451,759

 

Capital Returns


Gross Development Value* £24,364,943
Market Growth** £0
Gross Development Profit £4,488,188
Contingency Fund £0
Sales & Finance Costs* -£1,770,124
CL Growth Fees -£116,757
Gross Profit £2,601,307
Corporation Tax -£520,261
Projected Net Profit £2,081,046
Projected Total Capital Return 187.8%
Share of Equity held as Ordinary B Shares 22.56%
Share of Growth Paid to Crowd Investors*** 4.8%
Fixed Capital Return to Investors £100,000
Projected Capital Return to Investors 40%

*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 4.8% of final net profits after tax with a Preferred Minimum of 10% p.a.

 

Return Summary


Investment Period 24 Months
Total Fixed Return 40.0%
Total Annualised Return* 20.0%

CrowdLords Development Analysis


Risk Return Profile*

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

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.

About the Sponsors


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.

Property details


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