This launch is the 3rd phase of a 4 phase raise on the Loan Facility Agreement totaling £1,800,000 where we are raising £400,000 having previously raised £700,000 in phase 1 and £400,000 in phase 2. The total number of raises will be 4.
The agreed loan term is 18 months (max) from 8th January 2019 so the Phase 3 loan will be for approx. 11 months. Each raise will merge into the existing legal agreement and as with all our loans 1st charge security registered with the Land Registry is confirmed. Lenders to this phase will receive interest at 8% per annum over the remaining period of the loan or when the loan is repaid in full or part.
The day 1 release from the Phase 1 raise was £615,000 representing an Initial LTV of 67.4%, The LTV will fall to 59.8% (including rolled up interest) once works have been completed. Phase 3 monies will be utilised to progress the conversion works and be released on the verification of our Independent Monitoring Surveyors inspections.
The borrowers, KHP Group of Companies are continuing to make progress with conversion works on site and to date have completed the following:-
1) Demolition of outbuildings and strip out of internal areas progressing ahead of schedule
2) Construction of new extension substructure completed and ready for next phase
3) Service ducts and cables laid in trenches except for BT
4) Western Power Distribution electricity connection complete.
5) Partitioning stud work complete to units 5-17 and plasterboard progressing
6) Ceilings completed to units 1-4
7) Plaster skim progressing to units 1-4
8) M&E 1st fix commenced to units 5-17
9) M&E 2nd fix progressing to units 1-4 (following plastering)
Works planned in the forthcoming months include:
1) Remaining utility installations to the individual units (Gas, Water and BT)
2) Commencement of superstructure to extension
3) Completion of units 1-4 fit out including show flat
4) Completion of structural alterations to all areas
5) Continuation of external hard landscaping.
The practical completion of works as signed in the JCT contract is agreed as 7th February 2020 with parts of the building to be completed in phases from August 2019 following the next independent monitoring surveyor's report.
ABOUT THE PROJECT
The property is a part 2, part 3 storey former Care Home (St Lawrence Care Home) dating back to the 1970’s. The property is located approx. 4 mins (0.8 miles) north west of Crediton town centre. Crediton is located 9 miles west of Exeter in Devon with a population of 8,077 and a direct workforce of approx. 4,802. Planning (18/00091/FUL) was granted for the conversion of the property to provide 22 residential flats and 37 car spaces. The borrower spent £104,000 to secure planning and completed the purchase of the property in early January 2019. The Borrower, KHP Group of Companies is well known to CrowdProperty and currently has 3 projects in play, having previously repaid on another one in 2017.
LOCATION AND DESCRIPTION
Crediton is situated in Mid Devon about 9 miles North West of Exeter. Access to the M5, J30 + 31 at Exeter is via A377. The town is situated in the Vale of Creedy and is home to the Creedy Lakes. The town benefits from a railway station approx. 1 mile from the property with regular trains into Exeter where direct connections to Bristol and London can be boarded. With a population of 8,022, Crediton serves as a commuter suburb to Exeter.
The property is situated just North West of the town centre within a predominantly residential area and opposite Crediton Police Station. The property is a mix of single, 2 and 3 storey attached buildings constructed of cavity brick and blockwork elevations under pitched roofs overlain with interlocking concrete tiles.
Local amenities include:
Shobrooke Park 1.6 miles
Lords Meadow Leisure Centre 1.2 miles
Crediton hospital 0.4 miles
Queen Elizabeth School 0.2 miles
SITE AREA/FLOOR AREA
Total site area: 0.98 acres
Total GIA floor area: 17, 728 sq ft (1,647 sq m)
A total of 22 residential units providing 7 x 1 bedroom flats, 14 x 2 bedroom flats and 1 x 3 bedroom flat as follows:
Ground Floor 5,823 sq ft (541 sq m) apartments 1 - 9
First Floor 5,984 sq ft (556 sq m) apartments 10 - 18
Second Floor 476 sq ft (44.37 sq m) apartments 19 - 22
Sell part and let and refinance part
min. loan (6 months)
11 month loan
The practical completion of works as signed in the JCT contract is agreed as 7th February 2020 with parts of the building to be completed in phases from August 2019. KHP Investments are progressing with works on the conversion of this former care home. The borrowers are experienced and have a proven payback track record with CrowdProperty
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Our in-house experts perform strict and rigorous checks on all projects proposed. With almost 100 years’ experience in the industry, we work in partnership with our borrowers. We work in partnership with our borrowers until project completion. If a borrower were to default, CrowdProperty’s 1st legal charge allows us to take ownership of the project. Here we would utilise industry experience to ensure the most suitable exit strategy was followed.