26-28 Brunswick Rd, Gloucester, GL1 1JJ

Alan & Dee Day

Finance Required
Development funding
Funds Pledged
£414,000
% of Target Pledged
100%
Interest paid*
8%
Est. Sales Value (GDV)†
£1,170,000
Loan Amount
£414,000
Loan to value (LTV)
75% of purchase price; reducing to 57.3% of estimated GDV
Loan term
Up to 10 months
Strategy & Vision for the Development

This is phase 2 of a 2 phase raise having lent the borrower £270,000 towards the purchase of this property in January 2016.

The purchasers Bastion House Ltd purchased the property for £360,000 and have now secured detailed planning consent to convert the properties into:
8 x 1 bed apartments
1 x 6 bed town house

http://planningdocs.gloucester.gov.uk/default.aspx?custref=16/00002/FUL

The properties comprise a pair of grade 2 listed buildings previously used as offices. They have been empty for approximately 8 years but have been adequately maintained.

Both properties are ideally located within close walking distance of Gloucester City Centre and City Docks. The recently opened Gloucester City Quays retail outlet includes a multi plex cinema and many well known bars and restaurants.

The properties offer on site car parking

The RICS valuation places an estimated value of £1,170,000 on the completed development with each apartment being valued at £115,000 and the town house being valued at £250,000.

The Borrowers are currently finalising the conversion costs ahead of targeted start on site of end of June 2016. CrowdProperty have agreed to lend them a further £420,000 towards the cost of the works. The length of the loan is a minimum of 6 months and a maximum 10 months. This money would be held in our Solicitors client account and only be released on the verification of our Independant Monitoring Surveyor.

This would take the total debt to £670,000 representing a LTV of 57.3% of the verified GDV. The loan would expire on 25th April 2017 to coincide with the end of the phase 1 loan. CrowdProperty already hold 1st charge security on the properties.

Indicated return for £1,000 pledge
  Minimum 6 month Loan Full 10 month loan period
Pledge £1,000.00 £1,000.00
Interest £40.00 £66.67
Total repaid £1040 £1066.67
Your capital is at risk if you lend to businesses that develop property. You may lose all of what you lend. See our full risk warning for more information.
Exit Strategy

The exit strategy for phase 2 of this project is a mix of sales and rentals

Projected Costs
Purchase Price
£360,000
Total Cost of Project
£928,750
Projected Returns
Projected Profit
£241,250
The Developer

The borrowers are Alan and Dee Day. They purchased this property in January 2016 in SPV called Bastion House Ltd.

They are seasoned property developers with 20 years experience.

Their property business, Historic Renovations Ltd, is based in the Cotswolds; Alan is the Finance Director and Dee is the Creative Director. They specialise in the restoration and conservation of period properties, having renovated Georgian, Victorian, Edwardian and 1930's buildings, using traditional skills and materials. They are active members of SAVE Britain's Heritage, The Victorian Society, The Landmark Trust and National Trust.

Alongside their development projects, they have a property portfolio of over 20 HMOs and multi-lets, with a market value in excess of £5m.

CrowdProperty Comments

We are delighted to be able to offer this loan opportunity to our Crowd of lenders because this is the perfect type of project for this platform.

These experienced developers, with a particular passion for renovating and converting period properties, have an opportunity to create some wonderful apartments in a great location close to the town centre.

They have a number of exit strategies and the project has been split into two phases to mimimise exposure. Phase 1 of this project was funded very quickly and we expect phase 2 to follow suit.

We have not only given this project the CrowdProperty stamp of approval by putting it on the platform but because we think it is a great project.

* Please see full risk statement here.

† Estimated Sales Value is more formally referred to as GDV - Gross Developed Value

‡ Interest Cover is a measure of the project's ability to cover the interest payments from profits and is calculated by dividing the Projected Return on Costs by the Total Interest incurred throughout the loan period

As featured in: