Fully Funded

Phase 2 of 4 & 5 Station Cottages, London Road, Six Mile Bottom, Cambridge, CB8 0UJ

Developer: Fred Walemba

loan amount

£362,000

interest paid*

8%

funds pledged

£362,000

number of investors

124

% of target pledged

Fully Funded

project type

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

loan term

up to 14 months

security

1st charge

project phasing

2 of 2

floor area

5866 sq.ft.

purchase price/value

£685,000

cost of work

£488,000

loan to value

66.56%

est. sales value (gdv)**

£1,655,000

owed at exit to gdv***

66%

strategy & vision

Construction work has now commenced on site and a second phase raise is now being offered to provide funds for this stage of the project.

The project is located in Six Mile Bottom, which has a population of 84 (2006 stats) and is located midway between Cambridge and Newmarket.
To the northeast of the village is Newmarket racecourse and the 100-year-old Thoroughbred National Stud. Cambridge has a population of approximately 123,867. Famous for its historical University the city boasts a number of diverse industries including R & D, Engineering, Software and Pharmaceutical.

The development comprises a terrace and end of terrace former railway cottages together with large rear and side gardens. Planning was granted by South Cambridge District Council – ref. S/0640/18/FL for the renovation and re-organisation of numbers 4 & 5 Station Cottages together with the construction of a new attached house and a further separate house in the gardens. The properties will benefit from a mix of private and communal car parking to the rear of each property. The 2 existing properties are both 3 bed 2 storey properties of 97m2 (1044 sq.ft) and 115m2 (1238 sq.ft) each.

The new builds will comprise:

A new two storey, two bedroom house on the side of No. 5 so that No. 5 becomes a mid terraced property and the new property becomes end of terrace (No. 6) will total 87m2 (936 sq.ft).
A new five bedroom detached chalet bungalow to the rear gardens of no.4 & 5 Station Cottages. The chalet bungalow will be looking out onto open farm land. The property will have a floor area of 246m2 (2648 sq.ft).

On a RICS valuation of £918,000 CrowdProperty lent £611,000 secured by 1st charge security. This represented an initial loan to value of 66.56%. The loan commenced on 26th September 2018 for a maximum term of 15 months.

Since completion of the loan, the borrower has cleared the site and stripped out the internal of No. 5. He has issued the demolition notice to Building Control at the South Cambridgeshire Council for their approval and has subsequently ordered a 5 tonne digger for the demolition works and excavation of foundations and other groundworks.

The RICS valuation of the existing property with the benefit of planning is £918,000.

The RICS estimate of GDV is £1,655,000, broken down as follows:-

No. 4 - £300,000 - renovated 3 bed mid terrace property
No. 5 - £345,000 - renovated 3 bed mid terraced property
No. 6 - £295,000 - New build 2 bed end of terrace property
No. 7 - £715,000 - New build detached 5 bed property

The estimated cost of works for this project is £488,000. Together with the purchase price, professional fees, cost of works, cost of finance and contingencies, total costs are estimated at £1,323,000 giving an estimated out turn profit of £332,000 or 25% profit on cost.

CrowdProperty has agreed to lend the borrower a further £362,000 taking the total loan to £973,000. This 2nd phase will be used to undertake the construction and monies will only released when the borrower has reached certain milestones and our Independent Monitoring Surveyor has verified this.
The documented loan end date will be co terminus with the end date of the first raise- namely 25th December 2019, although this is the latest date and monies could be returned by the borrower earlier.

In terms of exit strategy the borrower intends to sell Nos. 4 & 5 as soon as he has completed the conversion works and will re finance Nos. 6 & 7 and hold for investment purposes. On completion the loan including rolled up interest will represent 66% LTV.

We are targeting this phase of the loan to commence on or around 26th October. The loan is secured by means of a Land Registry registered 1st charge on the property.

exit strategy

Upon completion of the project Fred will look to sell the renovated properties and refinance and hold the newly built residential units

the borrower
& project team

Fred holds a 1st class degree in Economics and a Master of Business Administration degree with a specialism in Finance from the University of Leicester. He also holds a MSC in Finance and investment Banking from Nottingham Trent University and a MSC in Real Estate from Aberdeen University.

Fred has over 15 years property development experience having completed a large variety of different schemes with a combined value of over £10m. Fred previously specialised in land purchase and securing planning permission for developments designated for change of use. More recently, Fred has focused on the student accommodation market and has successfully completed a number of high quality student accommodation schemes. He currently owns 6 properties mostly occupied by students with an extimated net worth of £2.9m.

In 2016 Fred, along with his business partner Zak set up a property development company, Mayfair Global Developments Limited (company number: 10373113). With Fred's expertise in finance and development he is complimented well by Zak his development partner who has over 10 years experience within the construction industry both in the UK and abroad. Zak’s wide experience focuses on successful project delivery guiding and working alongside their supply chain and ensuring delivery of all their projects, whilst fostering and maintaining the teams direction and growth.

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

CrowdProperty Comments


The borrower completed the purchase of the development in September 2018. He is now looking to obtain further monies to undertake the refurbishment and new build works. The phase 2 loan will top up the existing agreed facility and be released on our Independent Monitoring Surveyors intermittent inspections.
The unique design of a chalet bungalow set in large gardens looking over open fields is a USP to this project. Furthermore, Six Mile Bottom is seen to be an excellent location for investment with Cambridge, accompanied by London being the only two cities in the UK seeing capital growth of over 50% since 2007; namely 53% and 58% respectively. (Hometrack UK All City House Price Index 65 cities snapshot - June 2018)

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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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