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

Beckett House, Re-Finance, Interim Equity

Bramble Street, Derby


£101,372

Funded

£108,400

Total Fund


Term (Months)
6

Projected Annualised Return
11.3%

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


  • Interim Equity investment in one of a block of 13 flats
    This is an Interim Equity investment in one of a block of 13 flats in the heart of Derby town centre. As part of a substantial residential development, Beckett House adjoins the Grade II listed Becket Street Buildings built in the late 19th Century. Becket Street is surrounded by an array of amenities including offices, local retailer and a whole host of leisure facilities.
  • Beckett House is finished with a modern exterior
    Beckett House is finished with a modern exterior to contrast the part brick, part stone buildings next door. This 2 bedroom apartment was purchased by the SPV from the Developer when the conversion was completed in 2016. Since then it has been let to the same tenants who will see their tenancy out, at which point the property will be sold on the open market targeted at 'First-Time Buyers'.
  • Re-Financing for a further 6 months
    This investment is being offered for Re-Financing for a further 6 months. Around 70% of the original Investors have decided to remain in for the extended term and so we are issuing Redeemable B Shares for new Investors. The Investment is by way of Redeemable Class B Shares, offering a fixed capital gain of 5.6% (11.3% p.a.) when the shares are redeemed in 6 months time. If the property is sold earlier than planned then Investors will be offered the chance to Redeem early at a rate delivering an annualised 11.3% p.a. return.
Summary
  • Situated at the heart of Derby City Centre
  • High quality, two bed, ground floor apartment
  • Currently tenanted
  • To be sold on the open market to owner-occupiers
  • 5.6% capital gain over 6 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: Beckett House

Address: Derby

Property type: Flat - Purpose built

Property age: 2000+

Market type: Young proffesionals

Description: Beckett House (now known as Bramble Court) consists of 13 high quality one and two bedroom flats right at the heart of a vibrant regional city. This unit is a two bed apartment located on the ground floor that was purchased by the SPV direct from the Developer at a heavily discounted price. Read more.

Local Property Market


Derby has seen property prices underperforming over the past twenty years when compared with the rest of England & 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 catch-up with the national average.

Beckett House is situated in Derby, in the county of Derbyshire. As England's most central city, Derby boasts a series of high grade transport systems. Its rail network offers direct services to a number of destinations including London, Nottingham, Birmingham, Sheffield, Newcastle and Cardiff, with several bus operators servicing the whole of the city and out to neighbouring areas.

The development is located close to the Derby ring road allowing onward access by car to the A38, A52 and A50 trunk roads and in turn the motorway networks. It's also just 10 miles from East Midlands Airport which provides over 95 direct flights worldwide.

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 £107,000
Stamp Duty N/A
Legal & Professional Fees N/A
Refurbishment Budget N/A
Contingency Allowance £400
CrowdLords Fees £1,000
Total Fund Required £108,400
Less Finance & Deposits -N/A
Remaining Funds Required * N/A
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** £2,645
Gross Sales Price £117,645
Contingency Fund £550
Sales Costs -£2,271
CL Growth Fees £0
Gross Profit £7,524
Corporation Tax -£1,420
Net Profit £6,104
Projected Total Capital Return 5.6%
Share of Growth Paid to Investors 100%
Capital Return to Investors £5,998
Projected Capital Return to Investors 5.6%

*The stated Gross Development Value is based on the current sales values achieved within the area for similar new build, 2 bed flats.

**Market Growth has been taken into consideration with an estimation of 4.6% as per Savils forecasts

 

Return Summary


Investment Period 6 Months
Market Appreciation 1.4%
Discounted Price 4.2%
Income 0%
Total Return 5.6%

CrowdLords Development Analysis


Risk Return Profile*

CrowdLords Risk Rating
Investment Period A
Macro Location & Market C
Micro Location C
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


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