Fully Funded

St Lawrence Care Home, Churchill Drive, Crediton, EX17 2EF - 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

£700,000

interest paid*

8%

funds pledged

£700,000

number of investors

160

% of target pledged

Fully Funded

project type

Commercial to residential conversion

loan term

up to 18 months

security

1st charge

project phasing

1 of 4

total loan facility

-

floor area

16974 sq.ft.

rics valuation

£912,500

cost of work

£1,207,027

est. sales value (gdv)**

£3,277,500

initial loan to value

67.4%

loan to gdv

55%

owed at exit to gdv***

63%

strategy & vision

ABOUT THE PROJECT

The property is a part 2 part 3 storey former Care Home (St Lawrence Care Home) dating back to the 1970’s. The property is located approx. 4 mins (0.8 miles) north west of Crediton town centre. Crediton is located 9 miles west of Exeter in Devon with a population of 8,077 and a direct workforce of approx. 4,802. Planning (18/00091/FUL) has been granted for the conversion of the property to provide 22 residential flats and 37 car spaces. The Borrower has exchanged contracts and spent £104,000 to secure planning. He now has committed to complete the purchase of the property in early January 2019. The Borrower, KHP Group of Companies is well known to CrowdProperty having previously borrowed on 2 projects, one of which was repaid in 2017.

The RICS valuation of the property in its existing condition with the benefit of planning is £912,500. The RICS estimate of the completed development (GDV) is £3,277,500. CrowdProperty has agreed to lend the borrower £1,800,000 over a period of 18 moths in 4 separate raises. The initial raise is £700,000.

LOCATION AND DESCRIPTION

Crediton is situated in Mid Devon about 9 miles North West of Exeter. Access to the M5, J30 + 31 at Exeter is via A377. The town is situated in the Vale of Creedy and is home to the Creedy Lakes. The town benefits from a railway station approx. 1 mile from the property with regular trains into Exeter where direct connections to Bristol and London can be boarded. With a population of 8,022 Crediton serves as a commuter suburb to Exeter.

The property is situated just North West of the town centre within a predominantly residential area and opposite Crediton Police Station. The property is a mix of single, 2 and 3 storey attached buildings constructed of cavity brick and blockwork elevations under pitched roofs overlain with interlocking concrete tiles.

Local amenities include:
Shobrooke Park 1.6 miles
Lords Meadow Leisure Centre 1.2 miles
Crediton hospital 0.4 miles
Queen Elizabeth School 0.2 miles

SITE AREA/FLOOR AREA

Total site area: 0.98 acres
Total GIA floor area: 17, 728 sq ft (1,647 sq m)

A total of 22 residential units providing 7 x 1 bedroom flats, 14 x 2 bedroom flats and 1 x 3 bedroom flat as follows:

Ground Floor 5,823 sq ft (541 sq m) apartments 1 - 9
First Floor 5,984 sq ft (556 sq m) apartments 10 - 18
Second Floor 476 sq ft (44.37 sq m) apartments 19 - 22

OVERVIEW OF FINANCIALS

CrowdProperty has agreed to lend the borrower a maximum of £1,800,000 over a 4 phased raise as follows:-

First phase raise of £700,000, from which an initial £615,000 will be released towards the purchase of the property. The RICS valuation with the benefit of planning is £912,500 representing an initial LTV of 67.4% The remainder of the phase 1 raise will be released on the Independent Monitoring Surveyors (IMS) verification that initial works have been executed.

The phase 2 and 3 raises of £400,000 to fund the remainder of the construction phase will be launched in Q2 and Q3 of 2019. These funds will be released in phases subject to our IMS reports.

The phase 4 raise of £300,000 will be launched in Q4 2019.

The estimated cost of works is £1,207,027 as verified by the QS estimate and currently being Contractor tested.

The gross development value once works have been completed is £3,227,500 (RICS verified) and including rolled up interest and assuming full term will give a LTV of 62.5%.

The loan is offered for a max term of 18 months. Given the nature of this opportunity it is expected partial repayment of the loan will occur when units have been refurbished and sold/re financed. The borrowers exit strategy is to part sell and part let, refinance and hold to pay back CrowdProperty.

The loan will commence on or around 7th January 2018 and as with all our loans CrowdProperty will have first legal charge as documented at the Land Registry.

exit strategy

Sell part and let and refinance part

indicated return for your pledge
interest
total
min. loan (6 months)
£200
£5,200
18 month loan
£600
£5,600

CrowdProperty Comments


In 2016 KHP Investments borrowed £614,000 (79 lenders) towards the conversion of a former nursing home in Saltash into 10 self contained apartments. These were successfully sold and CrowdProperty's lenders were repaid in full and on time. The Directors are experienced in every aspect of the development process including architect, engineers and construction management.

The

CrowdProperty

Shield

Rigorous due diligence
1st Charge Security
Unparalleled expertise
more
*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. No FSCS protection. Past performance is not an indicator of future results. Tax treatment depends on individual circumstances and may change. full risk warning.

ask a question
As featured in...
Peer2Peer Financing Association
UK crowdfunding
UK Proptech Association
Brismo