The property comprises a former Victorian school last used as serviced offices and located in a mixed residential and commercial district of Burton 0.5 miles south of town centre. Burton upon Trent has a population of 72,299 with its industrial heritage centered on the brewing industry. Burton's largest employers including Molson Coors and Punch Taverns. Marmite and Pirelli are also major employers.
The property comprises a 2 storey “U” shaped brick building with pitched roofs. The site coverage is about 30% with the undeveloped areas providing car parking (circa 25 spaces), driveways/footpaths and gardens.
Planning has been granted for the existing office space to be converted into 25 dwellings ref. no. P/2017/01105 - East Staffordshire Council.
The conversion of the building into 25 apartments will include:- 1 x studio flat, 9 x 1 bed flats , 15 x 2 bed flats.
The borrowers have exchanged on a purchase price of £625,000 and are due to complete on June 26th 2018.
The Build programme is 40 weeks and we have agreed a loan term of 18 months so the borrower has time to sell the flats. Alternatively and if necessary the borrowers have agreed to retain some flexibility in his exit strategy by refinancing and holding part if necessary.
They are purchasing the property for £625,000. The RICS valuer has valued the property at £800,000 given it now has the benefit of planning.
RICS estimate of GDV of completed development is £2,060,000. Conversion costs are estimated at £800,000.
CrowdProperty has agreed to lend £1,250,000 in 2 tranches. Phase 1 raise @ £800,000 now; Phase 2 raise @ £425,000 in Q4 2018.
Each tranche will be released in phases. Phase 1 release on completion of the purchase will be £423,000 representing 70% LTV. The remainder will be held on account and released on IMS verification as works progress. The phase 2 raise will be launched when the phase 1 monies are spent to allow the borrower to complete the works. These funds will also be released on the IMS verification.
The total loan will represent 60.67% LTV at the completion of the works or 69.78% LTV to include rolled-up interest.
CrowdProperty will secure the loan with our standard 1st charge.
|Minimum 6 month Loan||Full 18 month loan period|
Borrowers intend to sell the flats on completion but if necessary will refinance, let and hold.
The property has been purchased in SPV - Burton Waterloo Ltd Co. reg. no. 11358127. The owners and directors of the company are Fabio Frisenda, Piotr Szydlik and Trevor Walker.
Fabio Frisenda has been in the property industry for 20 years starting in Agency and working for Century 21 Real Estate group (near Paris). In 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 2016. He returned to the UK in 2016 and set up Investimmo Limited (incorporated 2017) - 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.
He recently converted a pub into a 20 ensuite bed hostel in Liverpool.
He has just completed the conversion of 2 former NHS buildings into 26 ensuite bedrooms and an HMO in St Helens. He owns 11 other properties in London and Manchester including a mix of HMOs and single lets.
Trevor is a Fellow of the Chartered Insurance Institute and a Fellow of the Chartered Institute of Loss Adjusters.
He is now a full time Investor and Property Developer. His prior projects include the conversion of a former mill at Airedale House, Sunbridge Road, Bradford into 37 flats. On new builds he has completed a 7 unit scheme at Linnet Lane, Liverpool.
This will be Fabio and Piotr 2nd raise having completed the loan on Bury during May. Being a former Victorian school the site coverage is low offering great shared parking and garden amenities to the proposed development. Its close proximity to Burton town centre further enhances its appeal. The developers have the experience to deliver this project having completed similar opportunities in the last few years.
* 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