Fully Funded

Cottage Mews, Wood Green Road, Wednesbury, WS10 9QL

Developer: Inderdeep Singh

loan amount

£600,000

interest paid*

8%

funds pledged

£600,000

number of investors

167

% of target pledged

Fully Funded

project type

New development (eg new build, self-build, air rights etc)

loan term

up to 15 months

security

1st charge

project phasing

1 of 3

floor area

14779 sq.ft.

purchase price/value

£675,000

cost of work

£1,450,000

loan to value

66.7%

est. sales value (gdv)**

£2,980,000

owed at exit to gdv***

60%

strategy & vision

Cottage Inn is a former public house situated on the corner of Wood Green Road and Hobs Road, Wednesbury, WS10 9QL. The site is located less than 10 miles north west of Birmingham and less than 2 miles south west of Walsall. The site comprises a detached two storey building together with car park and beer garden, previously being used as a public house. The building has been derelict for about 13 years.

Access to the national motorway network is via junction 9 of the M6 motorway approx 1/2 mile to the north east. The site is located within close proximity to the Gallagher Retail Park with stores including IKEA, PC World Currys, Decathlon and B + Q. RAC have a regional HQ near by whilst Amazon and Lidl operate major Distribution Centres in the area. Wednesbury forms one of a number of towns within England's Black Country and has a population of 37,817 (2011 census).

Planning consent has been granted by Sandwell Metropolitan Borough Council – ref. DC/17/60728 for the demolition of the former public house and the development of nine town houses and four apartments. The development will benefit from being part of a modern gated community in the heart of Wednesbury. The 9 town houses will comprise a mix of 3 and 4 bedrooms with gross internal areas of between 120m2 and 132m2. The 4 apartments will provide 1 and 2 bedrooms of between 59m2 and 66m2.
The houses will have two designated on site car parking spaces whilst the apartments will include 1 space each.
Site area estimated at .54 acres.

The RICS valuation of the existing site with the benefit of planning is £675,000.

The RICS valuation of the completed development is estimated at £2,980,000 broken down as follows:

4 Bed End Terrace - £300,000
4 Bed Mid Terrace - £290,000
4 Bed Mid Terrace - £300,000
3 Bed End Terrace - £270,000
3 Bed Mid Terrace - £260,000
3 Bed End Terrace - £270,000
Flat 2 Bed Ground Floor - £130,000
Flat 2 Bed First Floor - £130,000
Flat 2 Bed Second Floor - £130,000
3 Bed End Terrace - £270,000
3 Bed Mid Terrace - £260,000
3 Bed End Terrace - £270,000
Flat 1 Bed - £100,000

The contracted build costs for the development is £1,450,000. With the inclusion of the current debt on the site, cost of finance, professional fees and contingencies, total costs are estimated at £2,350,000 giving an estimated out turn profit of £625,000 or 27% profit on cost.

CrowdProperty has agreed to lend the borrower £1,600,000 across a 3 phase raise for a maximum of 15 months. The first phase raise of £600,000 will contribute towards the repayment of existing debt, site preparation including demolition of the existing pub and initial ground works. The borrower will receive a day 1 advance of £450,000 representing a loan to value of site at 66.7%. The expected Loan to Value at exit will be 60.4% including rolled up interest.
The build contract has been awarded to Bal Construction and works will commence week commencing 5th November.
The loan is expected to start the following week, once our Solicitors are satisfied that the paperwork is in place.
Construction is estimated to be 45 weeks and with the loan term of 15 months a reasonable time is available to sell the units and return funds to The Crowd.

CrowdProperty will take a 1st charge security of the loan on behalf of The Crowd as registered in the normal way with the Land Registry.

exit strategy

The borrowers are intending to sell the units upon completion of the development. Connells are the appointed marketing agents for this project and they ran a pre launch marketing campaign which attracted around 500 enquiries for the 13 units. Due to this market analysis Connells are confident that all the units will be sold off plan, with the marketing materials already in place to commence as soon as the contractors commence on site.

the borrower
& project team

Cottage Inn has been purchased through KOK Developments (company number: 10689037). The directors of the company are Inderdeep Singh and Kulvinder Mahal.

Prior to working full time in property Indy gained a BA (Hons) in Business Management at the University of Hertfordshire and was an events organiser at IB Events where he would oversee the procurement of catering, security and rental needs. Indy has carried out various works from extensions and remodelling and now holds a successful portfolio of properties.

Kulvinder has a background in Health and Safety with ACT Training Services. He also runs his own property company namely 108 Ventures Limited where he focuses on land procurement and project development. Kulvinder has extensive knowledge in the construction industry, including work on many insurance reinstatement works for high net worth individuals. Working around the UK he spent 12 months in Hull covering flood reinstatement works in 2007-2008 for a top insurer. Kulvinder has worked previously on 2 new build projects , and completed one recently for 10 units in Derbyshire. Between both the directors they have a portfolio of 15 properties and this will be a 2nd JV between them.

KOK Developments has recently been accredited by NHBC and is a part of the government backed Help to Buy Scheme. The Cottage Inn project is further advertised on the companies website which can be found using the following link: https://www.kokdevelopments.co.uk

Having previously joint ventured with Bal Construction Limited the borrowers have nominated them as the Contractors for this project. The agreed start date to begin works for this project is week commencing 29th October.

The joint venture between Bal Construction and Kulvinder involved a site which was previously a public house. This public house was demolished to allow the building of 10 mix unit development 2/4 & 4 bedroom houses. The project was delivered on time within the 12 month time scale with a GDV of £1,650,000.

Architect – Design Studio Architects have been used on this project because they are a RIBA Chartered architectural practice, and one of Leicester’s most forward thinking and commercially aware architects.

Project Manager- Bob Turley is a co-founder of ETP setting up business in 1995, with 40 years experience in the construction industry as a Surveyor and Project Co-ordinator.

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

CrowdProperty Comments


The redevelopment of this former pub has been welcomed by Councillors and the neighbourhood. The developers have worked well with the locals and Statutory Consultees to build up a scheme that will enhance the area. The developers have had experience of redeveloping sites of this nature and have appointed a solid team of Consultants to manage the development. They have also worked with the Contractor on a similar development. The exit strategy is clear and the Zoopla statistics show a 30% increase in average prices over the last 5 years

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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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