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

Trent House - Interim Equity

Appleton Gate, Newark


£89,415

Funded

£65,726

Total Fund


Term (Months)
12

Projected Annualised Return
13.4%

Strategy
Off-plan 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


  • Opportunity to invest in a discounted, fully let, one bed apartment in Newark Town Centre.
    This is an opportunity to invest in a discounted, fully let, one bed apartment in Newark Town Centre. The property is a conversion of an existing building into 11, one bedroom apartments due for completion in October 2016. This is the second of two tranches of shares. The first tranche was issued last year to cover the deposit. These remaining shares are to provide the funds needed for completion of the purchase.
  • The Developer, Prosperity, will play the role of the LandLord and is offering Interim Equity for a period of 12 months.
    At the end of the 12 month period your shares will be redeemed at a pre-agreed rate of £1.11 giving a capital growth of 11%.
  • 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 2.4% p.a. shortly after completion. Combined with the capital growth this delivers total returns of 13.4% p.a.
Summary
  • Heavily discounted purchase price at off-plan rates
  • Due for completion in October 2016 and fully managed by Let Me
  • 2.4% income return paid shortly after completion
  • A pre-agreed exit price delivering capital growth of 11%

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 proffesionals

Description: Conveniently situated in Newark town Centre, Trent House will comprise 11 one bedroom apartments. 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 very central 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 £79,996
Stamp Duty £2,400
Legal & Professional Fees £2,200
Contingency Allowance £1,200
CrowdLords Fees £4,290
Total Investment £90,085
Funds Already Raised £24,359
Remaining Fund Required £65,726
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* £104,995
Market Growth £5,250
Gross Sales Price £110,224
Contingency Fund £1,800
Sales Costs -£2,854
CL Growth Fees -£0
Gross Profit £18,506
Corporation Tax -£3,701
Projected Net Profit £14,805
Projected Total Capital Return 16.4%
Share of Equity held by Class C Shares 71%
Share of Growth Paid to Class C Shares 66.5%
Total Capital Return to Investors £7,019
Projected Capital Return to Class C Share Investors** 10.9%

*The stated Gross Development Value is based on local comparisons.

**Class B Shares and Class C Shares are entitled to 156% and 66.5% of their share of Capital Gain respectively

 

Return Summary


Investment Period 1 Year
Discounted Sale Price** 9.1%
Market Appreciation** 1.9%
Income Return** 2.4%
Projected Total Return 13.4%
Projected Total Annualised Return 13.4%

* Income Return figures assume that the property will at no time be void during the investment period and that the rent charged will be £450 / month for the full term. In reality all of these variables might change.

** Capital Return figures are based on the assumption that local property values increase in line with the LandLord’s subjective projection of 5.0% per annum. In reality, local values may not rise by this amount or may indeed fall from their current levels.

CrowdLords Development Analysis


Risk Return Profile*

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


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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