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

Bradford Street, Interim Equity - 24 months

Bradford St, Birmingham B12 0RG


£745,271

Funded

£745,271

Total Fund


Term (Months)
24

Projected Annualised Return
15.0%

Strategy
Leveraged Development

Interim 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 residential development
    An opportunity to invest in a 7 storey, new build development on a site identified as being within the "Southern Gateway" on the city entre growth area in the Birmingham Development Plan. It will deliver: 27x one bed apartments; 34x two bed apartments and 1 commercial unit on the ground floor. This prime development, by Prosperity Investments and Developments Limited, will contribute to addressing the shortage of City Centre apartments needed to accommodate the growing professional population in the City.
  • Redeemable Class B shares with a total fixed return of 30%, or 15% p.a.
    The investment is by way of Redeemable Class B shares with a total fixed return of 30%, or 15% p.a. All units have been pre-sold and reservation fees have been taken from all buyers. Deposits will be collected once the site has been purchased. It will be built under a bonded, fixed price JCT contract.
  • If planning is not granted then an alternative development will be used
    This investment is not Subject to Planning and if planning is not granted then an alternative development will be used to ensure delivery of the fixed return at the pre-agreed redemption date. 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.
Summary
  • New Build development in the centre of Birmingham
  • 61x high quality city centre apartments
  • All units have been pre-sold
  • Fixed total returns of 30% or 15% p.a.

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: Bradford 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 new build development of 61 apartments and 1 commercial unit in the centre of Birmingham. 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.

Bradford 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 £1,750,000
Stamp Duty £70,000
Legal & Professional Fees £784,424
Development Costs £8,122,231
Contingency Allowance £323,730
CrowdLords Fees £67,752
Total Investment £11,118,137
Less Finance & Deposits -£10,372,866
Remaining Funds Required * £745,271
Less Developer Shares and other shareholders -£591,600
Total Fund from Redeemable Class B Shares £153,671

* Shares may be issued in Tranches to avoid delays

 

Capital Returns


Gross Development Value* £13,357,772
Market Growth** £0
Gross Sales Price £13,357,772
Finance Costs -£872,146
Sales Costs -£92,574
CL Growth Fees -£54,781
Gross Profit £1,220,134
Corporation Tax -£231,825
Projected Net Profit -£988,309
Projected Total Capital Return 132.6%
Share of Equity held as Redeemable Class B Shares 20.6%
Capital Return to Investors £46,096
Projected Capital Return to Investors 30.0%

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

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

 

Return Summary


Investment Period 24 Months
Fixed Total Return 30.0%
Projected Total Annualised Return 15.0%

CrowdLords Development Analysis


Development Risk Return Profile*

Market Sensitivity A
Time Sensitivity B
Cost Sensitivity B
Level of Preferred Return B
Developer's Track Record A
Overall B

* The Risk Return Profile is a subjective assessment made by CrowdLords based on the information provided by the Developer. Investors should make their own assessment of Risk & Reward before investing/p>

 

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


TBC 

Property details


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