Fully Funded

The Former Lloyds Bank, London Road, Tunbridge Wells, TN4 0NA

Developer: JVIP (Kent) LTD

loan amount

£1,450,000

interest paid*

8%

funds pledged

£1,449,700

number of investors

238

% of target pledged

Fully Funded

project type

Commercial to residential conversion

loan term

up to 18 months

security

1st charge

project phasing

1 of 3

floor area

11352 sq.ft.

purchase price/value

£2,075,000

cost of work

£1,900,000

loan to value

69.88%

est. sales value (gdv)**

£4,830,000

owed at exit to gdv***

69%

strategy & vision

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:-

Ground Floor:

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

1st Floor:

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

2nd Floor:

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.

exit strategy

The developer will sell the apartments once they have been completed and exit the scheme

the borrower
& project team

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

indicated return for your pledge
interest
total
6 month loan
£200
£5,200
18 month loan
£600
£5,600

CrowdProperty Comments


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.

The

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*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 and you may lose all you lend. See our full risk warning for more information

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