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

Read our full Risk Warning

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

Airspace development - 2nd Charge Loan

28 Keswick Road, Putney


£125,000

Funded

£125,000

Total Fund


Term (Months)
12

Interest Rate
17%

Strategy
Mezzanine Finance

Debt Deal
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


  • 2nd Charge at no more than 83% LTV

  • 12 month term, projected 17% p.a. fixed returns
  • London 'Zone 2' location
This is an opportunity to invest in a bond whose proceeds will be used as a loan to part fund the conversion of airspace, on top of an existing residential block, into 4 high quality penthouse apartments in Putney.

The funds raised for this bond offer will be used for a Mezzanine loan to support the acquisition and development of ‘airspace’ above a residential property in Putney.

This development in Putney will deliver 3x one bed apartments and a two bed apartment, each with their own roof terrace. Each will be completed to the high standard expected in this part of London.

The project has full planning permission for the conversion of the roof space and the full cooperation of the Freeholder.

The funds raised will be used as a 2nd Charge Loan to be repaid using the sales proceeds once the senior lender has been repaid. The Borrower has the option to redeem the loan anytime after month 6. The Gross Loan is at Loan to value of 83% of the Gross Development Value.
 
 
PLEASE NOTE: The assets of the Development SPV will be under a fixed and floating charge. If the units are not sold and the Developer is unable to redeem the loan then there is a risk that it is not possible to recover all of the funds and that some or all of your capital is not repaid. You may also consider that the Loan-to-value, at 83% of the projected GDV, is expected to be sufficient to protect against any loss of capital.

Projected returns


Fixed Return Debt Investment 
  • 12 Month Term
  • Bond Issue: £205,000****
  • GDV: £2,315,000***
  • Loan: £200,000*
  • Maximum LTV: 83%**
Issuer: CL Number Twenty Seven Limited
  • Number of Bonds available: 820
  • Value of Each Bond: £250
  • Security: 2nd Charge, Debenture and Personal Guarantees
  • Projected Fixed Return : 17% p.a., minus basic tax rate deducted at source
* Excluding Fees and Interest 
** Including Fees and Interest
*** GDV is an estimate based on comparable sales (see page 8 of the Investment Summary).
**** 
£5,000 of the £205,000 Bond issue is used to cover legal fees and expenses

Income is not guaranteed and there is a risk of capital loss. Please see pages 13 and 14 of the Investment Summary for further information about risks

Property name: 28 Keswick Road

Address: Keswick Road, Putney, SW15 2JR 

Property type: Flat - Purpose built

Property age: 2000+

Market type: Young professionals

Description:  Airspace development above a residential property situated within easy access of East Putney underground station, Putney railway station and major roads including the A3, South Circular and A219

Local Property Market


Just across the Thames from the popular South-West London area of Fulham, the leafy streets of Putney have been renowned as one of London’s loveliest spots for more than a century, with J.C.Gelkie describing the area as ‘one of the pleasantest of the London suburbs, as well as the most accessible’ in 1903.

One hundred and twelve years later and Putney remains much the same, although with many more amenities and better connections than it boasted at the turn of the century. Pretty and peaceful, Putney is characterised by relaxed pubs, good restaurants, and cosy coffee shops rather than the clubs and cutting-edge pop-ups of many East and South London areas.

This sense of safety has led it to be popular with affluent families, many of whom work in the City and send their children to nearby independent schools such as Putney High School for Girls. Young professionals are also increasingly drawn to the area by the chic new apartment buildings, relaxed pace and easy links to Central London.

There’s a wholesome, countryside atmosphere to Putney that’s rather rare in London, making it the ideal area for renters looking for somewhere with a combination of urban amenities and a rural lifestyle. It’s the sort of place where locals spend the weekend jogging by the riverside, rowing on the Thames, or exploring the Heath.

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Key Terms


Issuer: CL Number Twenty Seven Limited registered in England and Wales with company number 11465461 whose registered office is at Lance Levy Farmhouse, Wildmore Lane, Hook, Hampshire, RG27 0HB
Amount 820 Bonds of nominal value of £250 each
Interest Rate: Projected 17% per annum, simple interest (basic rate tax deducted at the source)
Interest Payment All accrued interest to be paid in one lump-sum on the Maturity Date
Default Interest Rate 3% above the Interest Rate, but subject to recovery of the same under underlying Loan
Maturity Date 12 months after allotment
Minimum Subscription1 Bond
Purpose
The proceeds of the Bond issuance shall be used by the Company to participate in a Loan as a tender to InnerSpace Homes Limited to enable it to purchase 'development airspace' at 28 Keswick Road, Putney, SW15 2JR
Documentation  Bond Instrument and this Term Sheet
Governing LawEnglish

Summary of Projected Returns


Investment Period 12 Months
Target Total Return 17%
Target Annualised Return  17%
Returns not guaranteed

CrowdLords Development Analysis


The blocks shown in the "Risk Analysis" chart illustrate the CrowdLords Risk Rating. It shows where the investment lies on our internal Risk Return Profile. 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. We rate Risk across 5 parameters and grade them as being A, B, C, D or E. A being lower Risk according to our criteria.

 

Projected Capital Returns

We include a CrowdLords Risk Rating to illustrate where the investment lies on our internal Risk Return Profile. Where risks are higher it is usual to expect a higher potential 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 of loss
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


Innerspace is an innovative development company helping freeholders monetise their unused rooftops (airspace) via the development of additional residential units.

Through the dynamic use of off-site and modular construction, InnerSpace offers freeholders a quick, sustainable way to unlock their rooftops’ full potential.
Freeholders gain from increasing freehold income, released capital, new residential assets and resolved costly maintenance issues. Residents benefit from reduced disturbance, reduced service charges and enhanced property values when fabric uplifts are undertaken.

InnerSpace has a robust framework offering a fully funded turn-key solution to unlocking under-utilised rooftops. We act as developer and consultant for a number of agencies and portfolio managers in appraising and optimising existing assets via airspace development.
Superior design, creative build solutions and rigorous attention to detail are at the core of our DNA as we strive to bring design and delivery of homes into the 21st century.

Property details


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