Fully Funded

Burton Enterprise Centre, Waterloo Street, Burton Upon Trent, DE14 2NB - Phase 1

Please note, for this project, pledges will be limited to a maximum of £0 until 10.05am. After 10.05am, you can create pledges larger than £0 or increase the size of your pre-existing pledge. This is subject to the project amount remaining which needs to be raised.

loan amount

£794,000

interest paid*

8%

funds pledged

£794,000

number of investors

140

% of target pledged

Fully Funded

project type

Residential (Standard Construction)

loan term

up to 18 months

security

1st charge

project phasing

1 of 2

total loan facility

-

floor area

-

rics valuation

£806,000

cost of work

£800,000

est. sales value (gdv)**

£2,060,000

initial loan to value

52.73%

loan to gdv

60.68%

owed at exit to gdv***

66.52%

strategy & vision

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.

exit strategy

Borrowers intend to sell the flats on completion but if necessary will refinance, let and hold.

indicated return for your pledge

interest

total

min. loan (6 months)

£200

£5,200

18 month loan

£600

£5,600

CrowdProperty Comments


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.

The

CrowdProperty

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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.

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Your capital is at risk. No FSCS protection. Past performance is not an indicator of future results. Tax treatment depends on individual circumstances and may change. full risk warning.

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