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

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

Prosperity House a - 2x BTLs, Interim Equity

Gower St, Derby


£143,800

Funded

£143,800

Total Fund


Term (Months)
24

Projected Annualised Return
15.0%

Strategy
Standard BTL

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


  • Two bedroom apartments have been completed as part of the first phase
    These two high quality, two bedroom apartments have been completed as part of the first phase of development at Prosperity House. They have been provided by Prosperity at a significant discount and have been taken up by an experienced LandLord who is also a CrowdLords member.
  • Interim Equity for a period of 24 months
    The LandLord has a portfolio of 23 other properties in various locations around the country including one nearby in Nottingham. He has decided to offer Interim Equity for a period of 24 months after which time he will decide whether to sell or refinance the apartments.
  • Investors enjoy a share of income and a share of any capital gain at the end of the investment term
    In return for their investment Investors enjoy a share of income and a share of any capital gain at the end of the investment term. With this investment the Income yield is paid quarterly and is projected to be 1.1% p.a. paid by way of Dividend, and the capital gain will be via Redemption of shares at a rate of £1.279 to deliver a fixed capital gain of 13.9% p.a.

    Please Note: This is a leveraged investment using a Buy-to-let mortgage. The Lender will have a first charge over the properties.

Summary
  • Very experienced LandLord with more than 20 other properties
  • At a purchase price 22% below current values
  • Derby City Centre location
  • Projected Income Yield of 1.1% p.a.
  • Fixed capital gains of 13.9% 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: Prosperity House

Address: Derby

Property type: Flat - Conversion

Property age: 2000+

Market type: Young professionals

Description: Conveniently situated in Derby City Centre, Prosperity House comprises 147 one and two bedroom apartments across two phases. The first phase, which includes these two units, is now completed and ready for sale. Read more.

Local Property Market


Derby has seen property prices underperforming over the past twenty years when compared with the rest of England and Wales, however, they are improving and it is felt that the significant regeneration schemes along with other recognition of its potential, e.g. its identification as a 'Top 25 European City of the Future' by fDi, will help the local property market to out-perform other areas.

As England's most central city, Derby is served by extensive transport networks connecting it directly to London, Newcastle, Sheffield and Cardiff, to name a few. Derby is also the home of significant employers, in particular leading transport manufacturers including Rolls Royce and Toyota.

This development is conveniently located close to the central business district and it is ideal for commuters. It is also a short walk to the Intu Shopping Centre (formerly Westfields), other excellent leisure facilities and some good local schools (not forgetting the University).

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 £210,000
Stamp Duty £6,300
Legal & Professional Fees £3,500
Contingency Allowance £4,250
CrowdLords Fees £3,000
Total Fund Required £231,550
Less Mortgage Finance -£87,750
Total fund after Mortgage Finance £143,800
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* £270,000
Market Growth** £22,032
Gross Sales Price -£292,032
Contingency Fund £2,880
Sales Costs -£6,004
CL Growth Fees -£6,821
Gross Sales Proceeds £61,388
Share of Growth Paid 75%
Capital Return to Investors £33,383
Projected Capital Return to Investors 27.87%

*The stated Gross Development Value is based on local comparisons and the opinion of local agents.

**Market Growth projections are opinion only and in reality this figure could be less or even negative

 

Return Summary


Investment Period 12 Months
Avg. Annual Income Return 1.1%
Total Income Return* 2.2%
Total Capital Return 27.8%
Projected Total Return 30.0%
Projected Total Annualised Return 15.0%

*Income Return figures assume that the property will be void for a period of eight weeks during the investment term, and that the rent charged will be £625 / month per unit. In reality all of these variables might change.

CrowdLords Development Analysis


Risk Return Profile*

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

* 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


WD Real Estate specialises in sourcing, renting and developing property in the Midlands and London. The founder, Walter Davis started investing in residential property in 1996 and now owns a portfolio of 26 houses and flats with an annual rent roll of over £270,000 per annum.

WD Real Estate also sources and manages a growing portfolio of rental properties and development projects for investors and joint venture partners.

WD Real Estate are expanding their portfolio of rental properties and is looking to use the CrowdLords platform to assist in their growth by offering investors good, safe returns.

Walter takes a very hands on approach ensuring that his rental properties are maintained to a high standard to help attract and retain the best tenants. As a result his joint venture investors enjoy better returns and strong capital growth.

Property details


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