Vicarage Farm Rd, Peterborough
*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: Varity House
Property type: Flat - Purpose built
Property age: 2000+
Market type: Young professionals
Description: Varity House will comprise 97 one and two bedroom apartments with parking. Set within landscaped grounds, this stylish conversion development is conveniently located just a mile from Peterborough City Centre. The development will be released in 3 phases with the first due in July 2016. Read more.
Despite slower than national average growth in recent years, Peterborough is going through a renaissance with values expected to grow steadily over the coming years. Situated just 80 miles north of London it is building a reputation as a long term sustainable growth area.
Already a key player within the 'London-Stanstead-Cambridge-Peterborough corridor' - a priority growth area defined by CLG, a number of high profile businesses have begun relocating to the area. Eight years into a fifteen year £1 billion redevelopment, the City's transformation grows from strength to strength; and this has resulted in significant rental demand which currently outweighs supply by around 2:1.
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.
|Legal & Professional Fees||£1,844|
|Total Funds Required||£116,000|
|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
|Gross Development Value*||£12,455|
|Gross Sales Price||£132,000|
|CL Growth Fees||-£1,724|
|Projected Net Profit||£12,337|
|Projected Total Capital Return||10.6%|
|Share of Growth Paid||100%|
|Capital Return to Investors||£11,784|
|Projected Capital Return to Investors||10.6%|
*The stated Gross Development Value is based on the current sales values achieved within the area
**Market Growth has been estimated but it does not impact the return because of the pre-agreed Share Purchase Price.
|Investment Period||1 Year|
|Discounted Sales Price**||8.3%|
|Projected Total Return||10.6%|
|Projected Total Annualised Return||14.1%|
*Income Return figures assume that the property is on a rental assurance contract at a rate of £600 / month.
**Capital Return figures are based on the pre-agreed purchase of shares by the LandLord at the end of the term at a rate of £1.106 per share. A Share Purchase Agreement will be put in place at the beginning of the term.
|CrowdLords Risk Rating|
|Macro Location & Market||C|
|Level of Development||A|
|Landlord Track Record||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
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:
Prosperity Property Investor
This listing is promoted by Prosperity in preparation for completion of one of their developments. As a result of many of their sales being to Expat workers who are living and working abroad they are aware that one day they may want to return to the UK and are often anxious that when they do they will be able to buy a suitable place to live with their savings. It might be that they have a number of properties already being managed by a UK based managing agent, and that this apartment is the latest edition.
However, it is usual that a proportion of these investors find that when they come to arrange a mortgage to complete the purchase the complexity of their backgrounds can mean they are unable to secure a suitable mortgage at a reasonable rate in time. Currently their only option is to lose their deposit and walk away - and this doesn't seem fair.
They committed to this investment 24 months ago, convinced by the location and the assured rental, and have paid the 30% deposit required. This SPV is being established to be taken over by one such Investor under an Interim Equity arrangement which enables them to buy out CrowdLords investors at a pre-agreed rate at the end of the term.
It's therefore serving a good purpose whilst generating a healthy return.