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

Beckett House - 2 Bed BTL Interim Equity

Bramble Street, Derby


£96,001

Funded

£102,001

Total Fund


Term (Months)
12

Projected Annualised Return
14.3%

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


  • 13 flats being developed in the heart of Derby town centre
    This is an Interim Equity investment in one of 13 flats being developed 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.
  • Finished with a modern exterior
    Beckett House will be finished with a modern exterior to contrast the part brick, part stone buildings next door. This unit was secured offplan by an overseas investor who is now unable to complete the purchase. So the Developer, Prosperity, will play the role of LandLord for a period of 12 months.
  • Due for completion in July
    The development is due for completion in July and on completion it will be covered by a contract with Let Me and therefore includes guaranteed rent paid annually in advance. This delivers an income of 4% p.a paid up front. It also includes a pre-agreed share purchase at the end of the term that delivers capital growth of 10.3% giving total returns of 14.3% p.a.
Summary
  • Situated at the heart of Derby City Centre
  • Heavily discounted purchase price at Off-plan rates
  • Fully managed by Let Me on completion
  • 4.0% rental income return paid annually in advance
  • A pre-agreed exit price delivering capital growth of 10.3%

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 professionals

Description: Beckett House will deliver 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 secured offplan by an oversees investor who can no longer proceed with the purchase and so the developer, Prosperity, will act as the LandLord for a period of 12 months at which point they will sell on the open market. 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 neighboroughing 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 £89,995
Stamp Duty £2,700
Legal & Professional Fees £3,000
Development Budget -
Contingency Allowance £1,405
CrowdLords Fees £5,400
Total Fund Required £102,500
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* £107,994
Market Growth** £7,006
Gross Sales Price £115,000
Contingency Fund £1,405
Sales Costs -£2,000
CL Growth Fees -£1,391
Gross Profit £10,515
Corporation Tax -
Net Profit £10,515
Projected Total Capital Return 10.3%
Share of Growth Paid to Investors 100%
Capital Return to Investors £7,745
Projected Capital Return to Investors 10.3%

*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 5% as per Savils forecasts

 

Return Summary


Investment Period 12 Months
Market Apprecaition 2.9%
Discounted Price 7.4%
Income 4.0%
Total Return 14.3%

CrowdLords Development Analysis


CrowdLords Risk Rating*

Investment Period A
Macro Location & Market C
Micro Location C
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


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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