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

The Belvedere, Billericay

Oak Road, Crays Hill, Billericay


£280,000

Funded

£280,000

Total Fund

£200,000 minimum raise

Term (Months)
18

Projected Annualised Return
22% - 25%

Strategy
Leveraged Development

Minimum Investment
£2,000

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


  • New Build of 23 Houses & Flats


  • Target Returns of 22% p.a. & 25% p.a.

  • Invest from as little as £2,000

This is an opportunity to invest in the development of new family housing in a village called Cray's Hill near Billericay. The scheme will deliver 23 homes in an 3.58 acre site, comprising
  • 7x 4 Bed houses
  • 5x 3 Bed Houses
  • 6x 2 Bed Flats
  • 6x 1 Bed Flats
The developer has recently completed a scheme of similar scale in nearby Stoke Hammond and has a proven approach for a development of this size. Preparation of the groundworks has already started and the purchase will be completed during March 2019.

As this is an Interim Equity investment, CrowdLords will be issuing Redeemable Shares, with a fixed term and a fixed return.

The Investment is by way of £1 Redeemable Shares of different classes (depending on the level of investment) in an SPV that holds the JV agreement with the developer:
  • Total Crowd Equity of £280,000
  • At least 200,000 Preferred Redeemable Class A Shares
    • Expected 18 Month Term
    • Projected Total Returns = 37.5% (25% p.a.)*
    • Minimum Investment is £10,000
  • Up to 80,000 Preferred Redeemable Class B Shares
    • Expected 18 Month Term
    • Projected Total Returns = 33.0% (22% p.a.)*
    • Minimum Investment is £2,000
This project involves the demolition of the Belvedere public house and redevelopment of the site to create 23 new homes. The site is approximately 1.6 miles north of Basildon town centre and an 8 minute drive from Basildon station which provides services into Fenchurch Street in just 30 minutes.

The site comprises a large, disused entertainments centre known as The Belvedere set within a 3.58 acre site. Planning permission was granted in August 2018 for the development of 23 units in an estate setting including 33 car parking spaces and landscaping.

The developer has recently completed a scheme of similar scale in nearby Stoke Hammond.  The construction will be by New Heights Construction Ltd who was the main contractor on the Stoke Hammond development. Senior Debt is being provided by United Trust Bank at an annual rate of 8% and this, along with a Mezzanine Loan, will need to be settled before the distribution of any profits via the redemption of these Interim Equity shares. Completion of the purchase is due in March 2019.

We would like to highlight that an Investor and Board Advisor to CrowdLords is investing £470,000 of his own funds into this development. The Due Diligence and Investment Management is being handled by other CrowdLords personnel to avoid any conflict of interest.

Projected returns


Redeemable Class A Shares**
  • Fixed Target Return of 37.5% (25% p.a.*)
  • Fixed Term of 18 months*
  • Minimum Investment of £10,000
Redeemable Class B Shares**
  • Fixed Target Return of 33% (22% p.a.)
  • Fixed Term of 18 Months*
  • Minimum Investment of £2,000

* Projected return to be paid as a capital gain if circumstances make it possible to do so
** Redeemable Shares must be redeemed before the payment of any dividends or the return of any capital to other investors.

Property name: Belvedere

Address: The Belvedere, Crays Hill, Billericay

Property type: Houses and Flats

Property age: New Build

Market type: Young Families & Young Professionals

Local Property Market


Cray's Hill is a village located in the Basildon Borough of Essex and it lies between Billericay to the North West, Wickford to the East and Basildon to the South. It's a small village with a pub, convenience store, post office and primary school.

Billericay, Basildon and Wickford are all within a 5 to 10 minute drive from the village and provide a good range of retailing and other amenities such as bars and restaurants. Billericay itself is a well established retail location and benefits from a Waitrose and a strong boutique feel. Billericay and Wickford both benefit from quality schooling.

All three towns are well connected by rail with Wickford and Billericay forming part of the Shenfield to Southend Line, connecting o the Great Eastern Mainline. Together they offer a choice of services to Liverpool Street or Fenchurch Street.

The development is on the site of the former Belvedere Public House and neighbours the existing Belvedere Golf Range. It is surrounded by low density residential, open space and commercial uses. The site is near to the Dale Farm traveller site which hit the news in 2011 but local agents and the RICs valuation expect that, now that the site has stabled, it will not be an issue for the majority of the purchasers despite the negative connotations.
 

Capital Investment


Purchase Price £2,525,000
Stamp Duty £101,000
Legal & Professional Fees £455,640
Development Costs £3,396,000
Contingency Allowance £234,360
CrowdLords Fees £28,000
Total Investment £6,740,000
Less Finance & Deposits -£5,590,000
Remaining Funds Required * £1,150,000
Ordinary Shares - Developer Equity £870,000
Redeemable Shares - Crowd Equity £280,000


 

Capital Returns


Gross Development Value £8,650,000
Gross Development Profits £1,910,000
Finance Costs £869,850
Sales Cost £106,500
CL Growth Fees £32,000
Corporation Tax £171,314
Net Profits after Tax £730,337
Share of Net Profits Paid 13.89%
Total Distribution to Crowd Shares £101,400
Profit Retained by the Developer  £628,937

 

Return Summary


Investment Period 18 Months
Projected Total Return 33% - 37.5%
Target Annualised Return  22% - 25% p.a.


 

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.
 

About the CrowdLords Risk Analysis

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:
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


The New Heights Construction team has a great track record spanning more than 20 years, identifying and developing mainly brownfield sites in town centre and commuter belt locations. There is a small core team fully employed supported by a trusted group of architects, consultants and engineers.

Their approach is to conceive and create high quality homes that represent good value for money for their target buyers, whilst at the same time maximising volumes and profit. Their sites are exclusively in the Home Counties and tend to be either “Secure by Design” apartment blocks or “Gated executive communities”. Some of the apartments have involved extensive remediation and multiple levels of underground parking which can be technically challenging.

Michael Hancock – Land Acquisition and Funding 
A full-time property developer with 40 years’ experience, Michael has honed his skills in acquiring land, private financing and cutting edge construction methods. Michael is a specialist at finding high yielding development projects in the home counties and has completed over 1500 units during his career. 

Lee Hancock – Project Manager
Coming from an estate agent background, Lee’s ambition was to work in new build developments and he has over time gained vast knowledge of the “behind the scenes” running of a domestic property development company and is directly involved in all aspects of projects from the pre-construction phase to sales and aftercare.

Spencer Mitchell - Site Agent
Starting as a brick laying apprentice for Taylor Woodrow on numerous large-scale developments nationwide. Later he became a site agent before deciding to start his own construction company. He has since been involved in the development of over 100 units. With 30+ years of experience in the construction industry Spencer prides himself on delivering high quality units that meet both budgets and timescales.


Past Projects


Brookside Apartments
Tring

38 x two-bed apartments

  • Land purchase: £1.35m
  • Build costs: £6.7m
  • GDV: £10.8m
  • Development profit: £1.8m


No 7 Station Road
Cheshem



6x one and two-bed apartments

  • Land purchase: £0.5m
  • Build costs: £0.72m
  • GDV: £1.9m
  • Development profit: £0.39m

Property details


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