Fully Funded

2 The Avenue, Leigh, Lancashire - Phase 1, WN7 1ES

Developer: Fabio Frisenda

Please note, for this project, pledges will be limited to a maximum of £0 until 10.05am. After 10.05am, you can create pledges larger than £0 or increase the size of your pre-existing pledge. This is subject to the project amount remaining which needs to be raised.

loan amount

£350,000

interest paid*

8%

funds pledged

£350,000

number of investors

99

% of target pledged

Fully Funded

project type

Commercial to residential conversion

loan term

up to 15 months

security

1st charge

project phasing

1 of 3

floor area

9092 sq.ft.

purchase price/value

£500,000

cost of work

£770,000

loan to value

70%

est. sales value (gdv)**

£1,567,500

owed at exit to gdv***

69.1%

strategy & vision

With three projects launching last week, there will be no pledge limits in place for this proposed raise.

The subject property namely 2 The Avenue, Leigh, Lancashire, WN7 1ES - (a former bank) - is located in Leigh, which is 7.7 miles southeast of Wigan and 9.5 miles west of Manchester. The town has a population of approx. 43,000 and has good network links being 6.1 miles from the M61. Train links from Daisy Hill train station (3 miles north of the site) provides direct travel to Manchester in 30 minutes and Liverpool in 1 hour.

The town also benefits from several amenities including, public houses, Sacred Heart Catholic School, ASDA superstore (among other superstores), Town Hall, Central Primary School, Town Centre and Central Bus Station etc. Further details can be found on the interactive map at the top of page.

Leigh has undergone some regeneration including it’s Sports Village – with an 11,000 capacity stadium, athletics arena and a Morrisons store. In 2011 “The Loom” a £50 million retail development opened (near Bridgewater Canal) which comprises a cinema, Tesco Extra, Nando’s and many other retail/leisure facilities.

The property benefits from planning, which has been granted by Wigan Council – ref: A/18/86333/PDO for a change of use from vacant offices to 18 apartments

The breakdown of each apartment and estimated values are as follows:-

Apartment 1 – 2 bedroom £125,000 (758 sq ft)
Apartment 2 – 1 bedroom £85,00 (522 sq ft)
Apartment 3 – 2 bedrooms £100,000 (607 sq ft)
Apartment 4 – 2 bedrooms £115,000 (701 sq ft)
Apartment 5 - 1 bedroom £100,000 (598 sq ft)
Apartment 6 – 1 bedroom £90,000 (535 sq ft)
Apartment 7 - studio flat £57,500 (348 sq ft)
Apartment 8 – 1 bedroom £70,000 (434 sq ft)
Apartment 9 – studio flat £87, 500 (530 sq ft)
Apartment 10 – Studio flat £55,000 (329 sq ft)
Apartment 11 – studio flat £52,000 (320 sq ft)
Apartment 12 – 1 bedroom £90,000 (534 sq ft)
Apartment 13 – 1 bedroom £107,500 (651 sq ft)
Apartment 14 – 1 bedroom £110,000 (666 sq ft)
Apartment 15 – 1 bedroom £95,000 (570 sq ft)
Apartment 16 – Studio flat £55,000 (326 sq ft)
Apartment 17 – 2 bedrooms £117, 500 (713 sq ft)
Apartment 18 – Studio flat £55,000 (335 sq ft)

Total GDV: £1,567,500

The borrowers have exchanged contracts on the purchase of the property having agreed to buy it for £500,000.

The contracted build contract sum in accordance with DBR Builders NW is £770,000. With the inclusion of the purchase price, cost of finance, professional fees and contingencies, the total costs are estimated at £1,450,000 giving an estimated out turn profit of £142,500. However, the borrowers have no intention of selling the completed development, preferring to let the flats, hold and refinance onto a long term commercial mortgage.

CrowdProperty has agreed to lend the borrower £1,000,000 across a 3 phase raise for a maximum of 15 months. The first phase raise will be for £350,000 and will contribute towards the purchase of the property. The borrower will receive the remaining monies upon IMS verification. The initial loan to value will be 70% dropping to 69.1% (including rolled up interest) at exit.

CrowdProperty will have a first charge of the loan on behalf of The Crowd as registered in the normal way with the Land Registry.

The loan will commence on 28th March 2019 when the borrowers will complete the purchase of the property.

exit strategy

The borrowers strategy is to hold the property for it's rental potential. With this in mind the borrowers intend to re-finance on completion of the works.

the borrower
& project team

The property will be bought through an SPV namely The Avenue Leigh Limited (company number: 11852216). The SPV will comprise of four members: Fabio Frisenda, Piotr Szydlik, Simon Coates and Esterlita Saliba.

Fabio has been in the property industry for 20 years starting in Agency and working for Century 21 Real Estate group (near Paris). In 2005 he was Co-Owner of a Property investment company (near Paris) sourcing and investing in renovation projects + flips on plots of land 2011 to 2016. He returned to the UK in 2010 and set up Investimmo Limited (incorporated 2017) - sourcing and investing in Commercial buildings to create HMOs and serviced apartments.

In the last 2 years Fabio and Piotr have been involved in 24 commercial to residential projects – 7 are still nearing completion.

Piotr has run a building company in the UK since 2007 specialising in extensions, extensive refurbishments and commercial to residential conversions. In 2017 Piotr set up DBR Builders (NW) Limited and now has a workforce of 48 personnel, in which he rotates around the sites accordingly. Using the same workforce ensures an efficient and high quality end product.

Simon has over 12 years of experience in buy-to-let property, forming a property investment company, Waldeggnest Ltd (company number: 10459087), just over two years ago with Ester Saliba. Simon is a UK Chartered Accountant and works in Switzerland as a finance director with a top-tier Swiss bank.

Ester has over 25 years of experience of project management in large corporations in Belgium and Switzerland, and is now fully dedicated to maintaining the steady growth and success of Waldeggnest Ltd.

Over the past two years Simon and Ester have built a small portfolio of five properties in Hull, buying run-down terraced houses for full renovation and conversion to high quality HMOs. Total Gross Development Value £670,000.

indicated return for your pledge
interest
total
min. loan (6 months)
£200
£5,200
15 month loan
£600
£5,600

CrowdProperty Comments


Fabio Frisenda and Piotr Szydlik are well known to CrowdProperty having lent on other projects in Burton and St Helens. They have demonstrated an ability to address and understand every aspect of the development process. Their in house construction team know how to work to budget, programme and comply with Statutory regulations.

The

CrowdProperty

Shield

Rigorous due diligence
1st Charge Security
Unparalleled expertise
more
*Please see full risk warning
**Estimated Sales Value is more formally referred to as GDV - Gross Development Value
***Owed at exit to GDV is calculated as the total capital + any planned loan interest against the RICS GDV for the project. These figures do include subsequences on projects funding development costs during the course of the project.

Your capital is at risk. No FSCS protection. Past performance is not an indicator of future results. Tax treatment will depend on individual circumstances and may be subject to change. See our full risk warning.

ask a question
As featured in...
Peer2Peer Financing Association
UK crowdfunding
UK Proptech Association
Brismo