Gower St, Derby
Funded
Total Fund
Please Note: This is a leveraged investment using a Buy-to-let mortgage. The Lender will have a first charge over the properties.
*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: Prosperity House
Address: Derby
Property type: Flat - Conversion
Property age: 2000+
Market type: Young professionals
Description: Conveniently situated in Derby City Centre, Prosperity House comprises 147 one and two bedroom apartments across two phases. The first phase, which includes these two units, is now completed and ready for sale. Read more.
Derby has seen property prices underperforming over the past twenty years when compared with the rest of England and 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 out-perform other areas.
As England's most central city, Derby is served by extensive transport networks connecting it directly to London, Newcastle, Sheffield and Cardiff, to name a few. Derby is also the home of significant employers, in particular leading transport manufacturers including Rolls Royce and Toyota.
This development is conveniently located close to the central business district and it is ideal for commuters. It is also a short walk to the Intu Shopping Centre (formerly Westfields), other excellent leisure facilities and some good local schools (not forgetting the University).
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.
| Purchase Price | £210,000 |
| Stamp Duty | £6,300 |
| Legal & Professional Fees | £3,500 |
| Contingency Allowance | £4,250 |
| CrowdLords Fees | £3,000 |
| Total Fund Required | £231,550 |
| Less Mortgage Finance | -£87,750 |
| Total fund after Mortgage Finance | £143,800 |
| 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
| Gross Development Value* | £270,000 |
| Market Growth** | £22,032 |
| Gross Sales Price | -£292,032 |
| Contingency Fund | £2,880 |
| Sales Costs | -£6,004 |
| CL Growth Fees | -£6,821 |
| Gross Sales Proceeds | £61,388 |
| Share of Growth Paid | 75% |
| Capital Return to Investors | £33,383 |
| Projected Capital Return to Investors | 27.87% |
*The stated Gross Development Value is based on local comparisons and the opinion of local agents.
**Market Growth projections are opinion only and in reality this figure could be less or even negative
| Investment Period | 12 Months |
| Avg. Annual Income Return | 1.1% |
| Total Income Return* | 2.2% |
| Total Capital Return | 27.8% |
| Projected Total Return | 30.0% |
| Projected Total Annualised Return | 15.0% |
*Income Return figures assume that the property will be void for a period of eight weeks during the investment term, and that the rent charged will be £625 / month per unit. In reality all of these variables might change.
| CrowdLords Risk Rating | |
| Investment Period | D |
| Macro Location & Market | C |
| Micro Location | B |
| 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
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:
WD Real Estate specialises in sourcing, renting and developing property in the Midlands and London. The founder, Walter Davis started investing in residential property in 1996 and now owns a portfolio of 26 houses and flats with an annual rent roll of over £270,000 per annum.
WD Real Estate also sources and manages a growing portfolio of rental properties and development projects for investors and joint venture partners.
WD Real Estate are expanding their portfolio of rental properties and is looking to use the CrowdLords platform to assist in their growth by offering investors good, safe returns.
Walter takes a very hands on approach ensuring that his rental properties are maintained to a high standard to help attract and retain the best tenants. As a result his joint venture investors enjoy better returns and strong capital growth.
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