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

Varity House - Interim Equity

Vicarage Farm Rd, Peterborough


£88,012

Funded

£64,361

Total Fund


Term (Months)
12

Projected Annualised Return
13.3%

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


  • High quality Buy-to-Let development in Peterborough
    An opportunity to invest in an 'off-plan' purchase of a high quality Buy-to-Let development in Peterborough. This one bedroom apartment is due for completion in October 2016 and shares have been issued in two tranches. The first tranche issued in October 2015 was to cover the deposit and this tranche is to provide the remaining funds to complete the purchase.
  • Specialist developer of investment properties
    This was the first property bought to CrowdLords by Prosperity, a specialist developer of investment properties. They will also be the LandLord and are offering an Interim Equity investment for a period of 12 months. At the end of the 12 month period these shares will be redeemed at a pre-agreed rate of £1.105 giving a capital growth of 10.5%.
  • Benefits from guaranteed rent paid annually in advance
    The property, once completed, will be under a management contract with Let Me (Part of the Richmond Group) and therefore benefits from guaranteed rent paid annually in advance, delivering an income of 2.8% p.a. shortly after completion. Combined with the capital growth this delivers total returns of 13.3% p.a.
Summary
  • Offplan investment eligible for 100% share of capital gains
  • Very experienced Investment Property Development company
  • Potential for strong capital growth/li>
  • Rental assurance on completion with income paid annually upfront
  • Popular commuter area

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: Varity House

Address: Peterborough

Property type: Flat - Purpose built

Property age: 2000+

Market type: Young professionals

Description:  Varity House will comprise 97, one and two bedroom, apartments with parking. Set within landscaped grounds, this stylish conversion is conveniently located just a mile from Peterborough City Centre.  Read more.

Local Property Market


Despite lower than national average growth in recent years, Peterborough is going through a renaissance with values expected to increase steadily over the coming years. Situated just 80 miles north of London it is building a reputation as a long term sustainable growth area.

Already a key player within the 'London-Stanstead-Cambridge-Peterborough corridor' - a priority growth area defined by CLG - Peterborough has attracted a number of high profile businesses that have begun relocating to the area. Eight years into a fifteen year £1 billion redevelopment, the City's transformation grows from strength to strength; and this has resulted in significant rental demand which currently outweighs supply by around 2:1.

*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 £82,995
Stamp Duty £2,490
Legal & Professional Fees £2,200
Contingency Allowance £1,200
CrowdLords Fees £4,000
Total Investment £92,885
Funds already raised £28,524
Remaining Fund Required £64,361
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* £105,000
Market Growth** £5,050
Gross Sales Price £110,250
Contingency Fund £1,200
Sales Costs -£2,854
CL Growth Fees -£0
Gross Profit £15,711
Corporation Tax -£3,142
Projected Net Profit £12,569
Projected Total Capital Return 19.5%
Share of Equity held as Class C Shares 69.0%
Share of Growth Paid to Class C Shares*** 77.5%
Capital Return to Investors £6,750
Projected Capital Return to Investors 10.5%

*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

*** B Class Share holders are eligible to 180% of their share of capital growth, and C Class Share holders 77.5%

 

Return Summary


Investment Period 1 Year
Discounted Sales Price** 8.5%
Market Appreciation 2.0%
Income Return* 2.8%
Projected Total Return 13.3%
Projected Total Annualised Return 13.3%

CrowdLords Development Analysis


CrowdLords Risk Rating*

Investment Period B
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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