Barnbrook Building, Barnbrook Street, Bury, BL9 7DT

Fabio Frisenda

Finance Required
Development funding
Funds Pledged
£500,000
% of Target Pledged
100%
Interest paid*
8%
Est. Sales Value (GDV)†
£800,000
Loan Amount
£500,000
Loan to value (LTV)
70>68.75%
Loan term
Up to 12 months
Strategy & Vision for the Development

Barnbrook Buildings, Barnbrook Street, Bury BL9 7DT comprises a detached former 2 storey Victorian Mill situated on the edge of Bury town centre. Bury is a satellite town approximately 5 miles north of Manchester and has a population of about 78000. It formed part of the centre of the textile revolution during the 19th Century. Major employers today include the NHS, Education and Local Authority with a further 8,000 employed in the retail sector.
The building has a floor area of 498m2 and planning permission has been granted to convert the property into 5 x 3 bed flats. planning ref. no. 62336. From this the developers intend to create 5 separate HMOs with a total of 24 bedrooms to include ensuites via Permitted Development Rights.

The RICS valuer has valued the existing property at £230,000 and the out turn value at £800,000. The cost of the works is expected to be £395,000.
CrowdProperty have agreed to lend a total of £500,000; £169,000 towards the purchase and £331,000 towards the conversion costs. The £331,000 will be released in phases subject to the IMS verification.

The borrower will be Barnbrook Bury Ltd - company reg. no. 11321513 - a SPV set up to own this property. The directors and owners are Fabio Frisenda, Piotr Szydlik and Mark Knight.
Barnbrook Bury Ltd will either sell the converted property or refinance and hold.


Indicated return for £1,000 pledge
  Minimum 6 month Loan Full 12 month loan period
Pledge £1,000.00 £1,000.00
Interest £40.00 £80.00
Total repaid £1040 £1080
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

Sell or Refinance

Projected Costs
Purchase Price
£230,000
Total Cost of Project
£0
The Developer

Barnbrook Bury Ltd has been set up to purchase the building and background on the 3 directors is as follows;
Mark Knight owns 4 HMO’s which he converted and is currently buying his 5th
His experience includes completion of 2 x office to residential developments and 1 x new build
He runs an IFA business in Bristol and has 20 staff
Fabio Frisenda has been in the property industry for 20 years starting in Agency and working for Century 21 Real Estate group (near Paris) 
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 2017  Property investor (in the UK) and set up Investimmo Limited - Sourcing and investing in Commercial buildings to create HMOs. 
Piotr has run a building company in the UK since 2007 specialising in extensions, extensive refurbishments and commercial to residential conversions
Recently converted a pub into 20 ensuite bed hostel in Liverpool
Finishing the conversion of 2 former NHS buildings into 26 ensuite bedrooms HMO in St Helens
He owns 11 other properties in London and Manchester including a mix of HMOs and single lets

CrowdProperty Comments

The borrowers are well experienced in the Manchester HMO market having completed a number of similar projects. They tend to sell their projects on at completion but are keeping an open mind on this one as they believe its close proximity to Bury town centre makes this an ideal HMO for the professional market

* 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

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