Fully Funded

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

£600,000

interest paid*

8%

funds pledged

£600,000

number of investors

167

% of target pledged

Fully Funded

project type

New development

loan term

up to 15 months

security

1st charge

project phasing

1 of 3

total loan facility

-

floor area

14779 sq.ft.

rics valuation

£675,000

cost of work

£1,450,000

est. sales value (gdv)**

£2,980,000

initial loan to value

66.67%

loan to gdv

53.68%

owed at exit to gdv***

60.00%

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.

indicated return for your pledge

interest

total

min. loan (6 months)

£200

£5,200

15 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

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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