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

Braintree, 2nd Charge Loan

76-78 High Street, Braintree


£100,000

Funded

£100,000

Total Fund

£80,000 minimum raise

Term (Months)
12

Target Interest Rate (p.a.)
16%

Strategy
2nd Charge

Minimum Investment
£1,000

Debt Deal
IF ISA
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 Loan, 16% p.a. Target Returns

  • 12 Month term. Min Investment £1000
  • Mixed Use Development, High Street location
This is an opportunity to invest in this mixed use conversion of two high street retail units with offices to the rear, into 7 self-contained apartments and a two A1/A2 unit on the ground floor.

The main part of the property was built in the 17th Century of timber framed construction under a pitched tiled roof. There is a 15th Century wing to the rear and the shop fronts were added c19th Century. Consisting of part conversion and part new build, the completed development will provide:
  • 7x 1 Bed Apartments
  • 1,160 sq ft of retail space
  • 440 sq ft of ancillary basement
  • Shared external amenity space
CrowdLords is raising £100,000 of Mezzanine Debt alongside £149,000 of Equity to support a Senior Loan from Avamore Capital.

This project involves the refurbishment of the retail space, the removal of modern extensions to the rear and replacement with new build buildings.

Planning permission was granted on appeal on 2nd February 2018 under reference 18/00205/LBC to create 7x residential apartments with associated cycle storage and landscaping.

The approved design delivers 7x one bed apartments, but the developer is looking to change one of them into a two bed flat to enhance the value.

The developer has good experience and has been successfully delivering developments for many years.

Braintree is in a local authority district that includes Witham and Halstead, and the district population is growing above the national average. It also enjoys unemployment rates of 
2.9% compared with 4.2% nationally.

The High Street sits just south of the George Yard Shopping Centre which is populated mostly by the national multiples. The High Street retailers include Specsavers, Timpsons, Costa Coffee and others.

The site has pedestrian access to the front from The High Street and vehicle access to the rear via St Michael’s Lane. The buildings currently occupy most of the site to the rear, but some of these will be demolished to create 175 sq. m of external amenity space.

The Developer has Head of Terms from two retailers for the Retail Space and is in discussions with local agents about the sale of the residential units.

Projected returns


Fixed Return Debt Investment 
  • 12 Month Term
  • Bond Issue: £100,000
  • GDV: £1,505,000***
  • Loan: £100,000*
  • Maximum LTV: 73.54%**
Issuer: CL Number Twenty Nine Limited
  • Number of Bonds available: 100
  • Value of Each Bond: £1,000
  • Security: 2nd Charge
  • Target Interest Rate : 16% p.a., minus basic tax rate deducted at source
* Excluding Fees and Interest 
** Including Fees and Interest
*** GDV is based on 
a RICs valuation. 


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.

The minimum raise is £80,000 and if funding stops at that point, additional funds will be provided by the Developer but will not impact the returns.

Property name: 76-78 High Street

Address: Braintree

Property type: Flats and Houses

Property age: c17th Century with later additions

Market type: Young professionals

Description:  The main part of the property was built in the 17th Century of timber framed construction under a pitched tiled roof. There is a 15th Century wing to the rear and the shop fronts were added c19th Century.

Local Property Market


Braintree is a market town in the county of Essex, on the A120, mid-way between the regional centres of Colchester and Bishop's Stortford. Braintree is approximately 13 miles to the north of Chelmsford, which is accessible via the A131 and A130.

London Stansted International Airport is 15 miles to the west Braintree, close to the junction of the A120 and M11. Braintree has two railway stations, Braintree Town and Braintree Freeport, which provide services via Witham, into London Liverpool Street in approximately one hour. This fast rail accessibility to London drives occupier demand within Braintree. 

Braintree has a resident town population of approximately 42,000 and a local authority district population, including the neighbouring towns of Witham and Halstead, of 147,100 (2011 Census). This latter figure represents an increase of approximately 11.3% in the district population between 2001 and 2011, a level of growth higher than the 6.3% average for Essex. The district's unemployment rate as of June 2018 was below the national average of 4.2% at 2.9%.

Circa 70% of households in Braintree are owner occupiers, which is approximately 5% higher than the national average. Furthermore, the level of social housing in town is 4% lower than the national average (Source: Office of National Statistics).
   

Key Terms


Issuer: CL Number Twenty Nine Limited registered in England and Wales with company number 11577019 whose registered office is at Lance Levy Farmhouse, Wildmore Lane, Hook, Hampshire, RG27 0HB
Amount 100 Bonds of nominal value of £1,000 each
Target Interest Rate: Projected 16% 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 (being the latest date at which the Bonds should be redeemed)
Minimum Accrual Period 1 months after allotment (being the minimum period for which the Issuer must pay interest prior to redeeming)
Minimum Subscription1 Bond
Purpose
The proceeds of the Bond issuance shall be used by the Company to participate in a Loan as a lender to Braintree Development Ltd to enable it to purchase and develop the property at 76-78 High Street, Braintree, CML 1JP
Security  The Company shall secure its Loan to Braintree Development Ltd by way of a 2nd Charge on the property and a debenture over all the assets and undertakings of Braintree Development Ltd.
Documentation  Bond Instrument and this Term Sheet
Governing LawEnglish


Summary of Projected Returns


Investment Period 12 Months
Target Total Return 16%
Target Annualised Return  16%
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. 

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.

We have given this project a score of A, which we believe reflects lower returns balanced against generally lower risk. You should judge the risk for yourself using the information provided and your own investigations.

 

CrowdLords Risk Rating

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:
Market Sensitivity – the less the return is impacted by changes in Market prices, the lower the risk
Cost Sensitivity – the less the return is impacted by any increases in cost, the lower the risk
Time Sensitivity – the less the return is impacted by any extensions to the time line, the lower the risk
Minimum Preferred Return – the higher the minimum preferred return as a proportion of the projected return, the lower the risk
Track Record – the greater the experience of the Developer, the lower the risk.


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


Grace Charles Property is a private property investment and development company specialising in the development of commercial and residential properties. We focus on maximising the potential of land and buildings and delivering inspirational living spaces that future generations will be proud to call home.

Grace Charles Property values are simple. To be straight talking, professional and focused on delivering results, excellence and integrity every step of the way when working with professionals such as architects, building contractors, banks and private investors. 

Ben Butkus 

Ben has a wealth of experience in the construction industry having worked on residential, commercial and mixed-use schemes as a project manager. Business experience ranges from acquisitions, structuring deals and working with private investors.

Ben’s passion and drive comes from the ability to make a difference in the industry by working with vendors, investors, private companies and organisations to turn broken assets around and provide homes for people to live in. Ben’s flair for business, finance and property development is matched only by his passion and drive.

Raouf Belmouloud  

Raouf has a diverse experience within the corporate world with over 12 years in corporate banking & asset management. Since 2014 his main focus has been the residential and commercial property development sector.

His main focus is working with motivated vendors to bring under utilised properties back into use in local communities such as Greenwich and surrounding areas. His extensive and long-term relationships with agents and landlords has managed to fast-track his progress.  

 As a full time property investor himself he understands the importance of what truly makes an investment work as either a short or long term strategy. Whether it is a fast paced flip or a long term high yielding asset to hold onto it needs to match the investors requirements and risk appetite.

Property details


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