Fully Funded

Beaman's Building, Eccleston Street, St Helens, WA10 2PG

Developer: Hiren Soni

loan amount

£400,000

interest paid*

8%

funds pledged

£398,000

number of investors

114

% of target pledged

Fully Funded

project type

Commercial to residential conversion

loan term

up to 15 months

security

1st charge

project phasing

1 of 3

floor area

12100 sq.ft.

purchase price/value

£360,000

cost of work

£675,000

loan to value

69.4%

est. sales value (gdv)**

£1,220,000

owed at exit to gdv***

70%

strategy & vision

The property is located on the south of Eccleston Street in a mixed residential and commercial area, approximately 0.5 miles south west of St Helens town centre. St Helens is a large town in Merseyside, situated in the south west of Lancashire and has a population of 102,629 (2011 Census). St Helens is 13 miles from Liverpool and 25 miles from Manchester. The area developed rapidly during the Industrial Revolution of the 18th and 19th centuries and became a significant centre for coal mining and glassmaking. Glass producer Pilkington is the town's largest industrial employer.

The property is a two storey rectangular shaped building comprising retail/workshop space on the ground floor and open plan office space on the first floor. The building has a mono pitched metal roof supported by cavity brick walls. There is also a single storey area to the rear of the property. The building has a Gross Internal Area (GIA) of 12,100 sq. ft. (1,124 sq. m.). Planning consent has been granted by St. Helens Council – ref. P/2017/0855/FUL for the conversion of a former plumbing supply store to 9 no. dwellings.

Due to it's central location, the development will have provisions in place for bike cycle stores.

Site area estimated at 8,611 sq. ft (800 sq. m).

The RICS valuation of the existing site with the benefit of planning is £360,000.

The RICS valuation of the completed development is estimated at £1,220,000:

The rental potential once fully occupied is £187,200 per annum (£100 a week x 36 rooms x 52 weeks). The borrowers will re-finance to exit the loan and will title split the 9 dwellings to form 9 HMO's (each with four rooms available to let).

The build costs for the development is £675,000. Total costs for this project are estimated at £1,000,000 (including sunken costs, build costs, selling fees, cost of finance and contingencies).

CrowdProperty has agreed to lend the borrower £775,000 across 3 phased raises for a maximum of 15 months. The first raise of £400,000 will contribute towards paying off the existing debt and will contribute towards the preliminaries and initial build costs of the development. A sum of £250,000 will be paid out day 1 based on RICS valuation of £360,000 - which equates to a 69.4% initial LTV. The remainder of phase 1 monies will be drawn on our Independent Monitoring Surveyors (IMS) verification. The phase 2 raise of £200,000 is likely to be launched in Q1 2019 and drawn down on IMS inspections. A third raise for a further £175,000 has been scheduled for Q3 2019. The term of the loan is 15 months and on completion the LTV will be 69.6% including rolled up interest.

The targeted start date for this loan 28th November 2018.

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

Each apartment will be split into separate titles and the borrower will then refinance the apartments onto long term commercial mortgages.

the borrower
& project team

The subject property is owned by Len Beaman (ST Helens) Holdings Ltd. Company number: 11144105. The directors of this company are Hiren Soni and Piotr Szydlik.

Hiren has almost 20 years of property investment experience. He currently owns 4 properties in London, Colchester and Leicester which is a mix of HMO’s and a 1,750 sq ft commercial property in Harrow, North West London.

Piotr has run a building company in the UK since 2007 specialising in extensions, extensive refurbishments and commercial to residential conversions. Piotr has recently completed the conversion of 2 former NHS buildings into 26 ensuite bedrooms and a HMO in St Helens. He has also recently converted a pub into a 20 ensuite bedroom property in Liverpool. Piotr owns 11 other properties in London and Manchester including a mix of HMOs and single lets.

Piotr will be the project manager and main contractor for this project.

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

CrowdProperty Comments


This will be the 3rd project Piotr has funded with us. The other 2 in Bury and Burton were funded mid 2018 and are progressing well. This project is similar to Bury in as much as it is a 2 storey conversion of a commercial building to flats. Like Bury they will convert this project into 9 apartments and then let each of them as individual rooms. Each apartment will be split into separate titles and the borrower will then refinance the apartments onto long term commercial mortgages.

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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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