The existing property comprises a detached 3 storey former Lloyds bank building together with on-site car parking. Planning has been granted for the conversion and extension of the property to form 17 self-contained apartments together with private on-site car parking, granted by Tunbridge Wells Borough Council (TWBC) - ref. 17/03335. The proposal is to form a doughnut-shaped building with a central courtyard and atrium entrance.
This area of Southborough, Tunbridge Wells is earmarked for a new £30m town centre redevelopment to include new commercial and residential development and is being jointly brought forward by TWBC, Cala and JVIP Group of Companies. The area will be known as Southborough Hub and include a new library, theatre and residential accommodation.
JVIP Group of Companies (The Dabners) are one of our established borrowers and they have owned the property for about 2 years. The company's offices are directly opposite. This particular property is held in one of their SPV'S called Forte Bailey (Southborough) Ltd Co. Reg. No. 10450510
Last week CrowdProperty raised £350,000 on the adjacent property which is held in one of JVIPs other group companies.
The 17 apartments will be arranged over 3 floors and all have the following layouts:-
Unit 1 (new build) 86m2 / 935sf – 2 bed
Unit 2 (conversion) 80m2/861sf – 2 bed
Unit 3 (new build) 50m2/538sf – 1 bed
Unit 4 (new build) 50m2/538sf – 1 bed
Unit 5 (new build) 75m2/807sf – 2 bed
Unit 6 (new build) 46m2/495sf – 1 bed
Unit 7 (new build) 75m2/807sf – 2 bed
Unit 8 (new build) 54m2/580sf – 1 bed
Unit 9 (new build) 83m2/893sf – 2 bed
Unit 10 (conversion) 50m2/538sf - 1 bed
Unit 11 (conversion) 35m2/376sf – 1 bed
Unit 12 (conversion) 42m2/452sf – 1 bed
Unit 13 (new build) 73m2/785sf – 2 bed
Unit 14 (new build) 45m2/484sf – 1 bed
Unit 15 (new build) 70m2/735sf – 2 bed
Unit 16 (new build) 72m2/775sf – 2 bed
Unit 17 (new build) 70m2/753sf – 2 bed
Total floor area 1056m2/11,352sf
Externally each flat will have its own car parking space with a total of 17 car parking spaces being offered.
The property is located on A26 within Southborough neighbourhood centre. Southborough is an extension of Tunbridge Wells approx. 2 miles to the south. Access to UK road network via A21 is 2 miles to the north
The conversion works are estimated to take 38 weeks and the borrower intends to sell the completed development. Cost of works is estimated at £1,900,000. Total costs are estimated at £4,112,000 including purchase price, construction costs, contingencies, fees and interest.
The loan terms will be 18 months and as with all our opportunities, a 1st charge security will be registered at the Land Registry.
RICS valuation of existing property with the benefit of planning permission is £2,075,000.
The RICS estimate of GDV is £4,830,000 and once the construction works have been completed.
CrowdProperty has agreed to lend the borrower £1,450,000 as phase 1 of a 4 phase raise with phases 2 - 4 totalling a further £1,550,000 being set against the construction works. These further raises will be offered during 2019 and only drawn once our Independent Monitoring Surveyor has reported and verified amount to release.
The total amount CrowdProperty has agreed to lend over the 4 phases is £3m. The loan is due to commence on 21st September 2018.
As with all CrowdProperty's loans the property will be secured with a 1st charge security registered with the Land Registry. On completion of the works, the developer will sell the flats, repay the lenders and exit the scheme.
The developer will sell the apartments once they have been completed and exit the scheme
The developer is a family run business based In Tunbridge Wells, Kent. Founded in 2002 by father and son team Peter and Dick Dabner, the business employs a multi-faceted approach to property development including:
• Conversions, refurbishments and new build developments
• High-yielding rental properties
• Planning uplift
• Flipping at auction
They have a large in house team with more than 200 years' experience in property between them enabling them to draw on a wealth of experience to minimise risk.
They have completed in excess of 50 projects during the last 15+ years, consisting of extensions, conversions and new builds.
They have borrowed and returned in full from CrowdProperty on 2 separate occasions. The first project was the conversion of the former Flying Dutchman public house into 4 Flats and two commercial units which is now their offices immediately opposite this opportunity. They are also nearing completion on the construction of 2 town houses about 1 mile away.
They currently have 5 other projects funded by us in Tunbridge Wells x 3, Sandhurst and Hastings.
These comprise 3 x conversion projects and 2 x new builds
min. loan (6 months)
18 month loan
The JVIP Group of Companies is well known to CrowdProperty having built lent and received back on a number of loans over the last few years.
This project forms the southern end of the £30m Southborough Hub development. it has taken JVIP 2 years to bring this building forward and they are now ready to embark on its development to provide 17 apartments. Given most of their developments are in the same Borough they are keen to ensure this project is a success as they continue to build strong professional relationships with the Council and other Stakeholders.
Our in-house property experts thoroughly assess each project proposal. We scrutinise the developer and any of their partners’ track records. Only the most promising projects, by the most experienced developers, will receive an informal offer. CrowdProperty will only work up to certain loan-to-value and loan-to-cost percentages, and each project must meet our 25% profit-on-cost criteria. For more information please view our risk statement.
A ‘1st legal charge’ gives CrowdProperty the legal right to take ownership of a property in the unlikely event that a property professional defaults on their loan repayments. 1st legal change is the highest level of security and gives CrowdProperty all the rights that a mortgage company holds. We have 1st legal charge on every project listed on our platform. This is an essential, non-negotiable criterion to ensure your funds are safe.
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.