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

Read our full Risk Warning

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

Trent House Refinance - Interim Equity

Appleton Gate, Newark


£100,484

Funded

£100,484

Total Fund


Term (Months)
10

Projected Annualised Return
11.0%

Strategy
Standard BTL

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


  • Purchased off-plan and was completed in 2017
    This one bedroom apartment was initially purchased off-plan and was completed in 2017. Existing shares have been issued in two tranches: The first tranche (Redeemable A Shares were issued in 2015 to cover the deposit during the construction, and the second (Redeemable B Shares) were used to complete the purchase.
  • Current tenant has only recently taken up residence on a 12 month AST contract.
    The construction took 9 months longer than anticipated and so the current tenant has only recently taken up residence on a 12 month AST contract. So the intention is to sell the property, targeting an owner occupier, in 10 months time. During this period all income after costs will be retained by the SPV.
  • Investment is to refinance an existing property for a further 10 months.
    This investment is to refinance an existing property for a further 10 months. Many of the current Investors have elected to stay in for the extended period and these funds will be used to Redeem the shares belonging to those who wish to exit now. We will be issuing Redeemable C Shares to new Investors providing a fixed term, fixed return investment. These Redeemable C Shares offer a fixed capital gain of 11.0% p.a. If the property is sold earlier than planned then investors will be offered the opportunity to redeem early at a rate that maintains the 11.0% p.a. return.
Summary
  • High quality one bed apartment
  • 10 month Interim Equity investment
  • Town Centre location
  • Currently tenanted
  • Pre-agreed exit price delivering a fixed capital gain of 9.1% after 10 months.

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: Trent House

Address: Newark

Property type: Flat - Purpose built

Property age: 2000+

Market type: Young professionals

Description: Trent House is a small town centre development comprising, 11 one bedroom apartments in Newark, Nottinghamshire. This first floor, one bedroom apartment has been finished to a good specification complete with hard wood veneer floors, stainless steel sockets, a custom built kitchen and stylish bathroom. Located over commercial premises, this redeveloped brick built building suits the 'old meets new' style of Newark. Read more.

Local Property Market


Nottinghamshire as a whole has seen property prices slightly underperforming the national average over the past twenty years, however, the county has improved comparatively, year-on-year and it is anticipated that this will continue.

Situated on the banks of the River Trent, Newark is a beautiful town centrally located only 1 hour 40 minutes from London by train, and serving as a perfect historic commuter town for nearby Nottingham City.

This development is only a 5 minute walk to the market square, across the road from Sherwood Avenue Park, and benefits from a central Newark location.

*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 N/A
Stamp Duty N/A
Legal & Professional Fees N/A
Development Costs N/A
Redemption Value £69,580
CrowdLords Fees £3,479
Total Investment £73,059
Other Shares £30,425
Total Fund Required £100,484
Ordinary A Shares - Developer Equity £N/A
Ordinary B Shares - Crowd Equity £N/A
Orindary C Shares - Crowd Equity £N/A

* Shares may be issued in Tranches to avoid delays

 

Capital Returns


Gross Development Value* £115,000
Market Growth** £4,600
Gross Sales Price £119,600
Retained Income £1,790
Sales Costs -£2,295
Cl Growth Fees £0
Gross Sales Proceeds £18,611
Corporation Tax -£3,536
Projected Net Profit £15,075
Share of Equity held as Redeemable C Shares*** 69.7%
Share of Profit paid to Class C Shareholders 42%
Total Capital Return to Class C Shares £6,401
Average Projected Capital Return to Investors 9.14%

*The stated Gross Development Value is based on the current sales values achieved within the area

**Market Growth has been estimated based on reference to market forecasts for the region

*** C Class Share holders are eligible to a fixed return of 9.1% which equates to 42.3% of Projected Net Profits after Tax

 

Return Summary


Investment Period 10 Months
Income Return 0%
Total Capital Return 9.1%
Projected Total Return* 9.1%
Projected Total Annualised Return* 11.0%

*Capital Return figures are based the pre-agreed redemption price of £1.091 per Redeemable C Share and the Redemption date set at 10 Months after the investment start date.

CrowdLords Development Analysis


Risk Return Profile*

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

* 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


With this Investment, CrowdLords has the role of Managing Investor and is responsible for managing the property as the LandLord.

In these instances, CrowdLords has a small equity stake in order to accommodate the legal structure, and we retain income in the SPV to provide a buffer when it comes to the exit.

We use Complete RPI, a specialist letting service, to manage and let the property on our behalf. When it comes to the end of term, we arrange the sale through a local agent. Post sale, when Investor shares have been redeemed, then we are also responsible for closing down the SPV.

Property details


If you have a question about this property, please click below and submit a question to us directly.


Log In to ask a question