Fully Funded

Phase 2 - Burton Enterprise Centre, Waterloo Street, Burton Upon Trent, DE14 2NB - Phase 2

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

£456,000

interest paid*

8%

funds pledged

£456,000

number of investors

72

% of target pledged

Fully Funded

project type

Residential (Standard Construction)

loan term

up to 10 months

security

1st charge

project phasing

2 of 2

total loan facility

-

floor area

10500 sq.ft.

rics valuation

£806,000

cost of work

£800,000

est. sales value (gdv)**

£2,060,000

initial loan to value

52.73%

loan to gdv

61%

owed at exit to gdv***

68.28%

strategy & vision

This is the Phase 2 raise of a loan agreement that completed middle of 2018. The opportunity will launch on 19th February 2019 at 10 a.m. when CrowdProperty is seeking to raise £456,000 from the previously completed Loan facility Agreement of £1,250,000.

CrowdProperty agreed to lend £1,250,000 in 2 raises. The loan commenced on 6th July 2018 for an agreed 18 months (max) loan period. The Phase 1 raise in June 2018 raised £794,000.

Our Independent Monitoring Surveyor has carried out 2 inspections and has reported that to date the borrower has undertaken the following works:

Demolition and strip out works.
50% of the new foul drainage has been completed and all new channels in the concrete floors cut out.
All new structural beams and columns have been installed.
Metal framed partitioning has been erected. Plasterboard has been installed to the first floor of the Waterloo St wing.
Metal framed ceilings have been installed. Plasterboard ceilings have been installed to the first floor of the Waterloo St wing.
The electrical first fix has commenced and is circa 25% completed.

Works planned prior to the next inspection include:

Partitions boarding and skimming.
Electrical and Mechanical installation.
Substructure – to include the installation of the below ground drainage already 50% complete.
Another IMS has been scheduled for the final week in February.

The property comprises a former Victorian school last used as serviced offices and located in a mixed residential and commercial district of Burton 0.5 miles south of town centre. Burton upon Trent has a population of 72,299 with its industrial heritage centered on the brewing industry. Burton's largest employers including Molson Coors and Punch Taverns. Marmite and Pirelli are also major employers.

The property is a 2 storey “U” shaped brick building with pitched roofs. The site coverage is about 30% with the undeveloped areas providing car parking (circa 25 spaces), driveways/footpaths and gardens.

Planning was granted for the existing office space to be converted into 25 dwellings ref. no. P/2017/01105 - East Staffordshire Council.

The conversion of the building into 25 apartments will produce the following estimated sale prices according to the RICS valuer:
Studio Flat - £50,000
9 X 1 Bed Flats - £65,000 each
15 X 2 Bed Flats - £95,000 each
Total GDV - £2,060,000

The borrowers purchased the property for £625,000.

The borrowers are currently on track with their build programme and expect to complete the conversion works in July 2019. They will then sell the flats. Alternatively and if necessary the borrowers have agreed to retain some flexibility in their exit strategy by letting, refinancing and holding part if necessary.

The RICS valuation of the property was £806,000 prior to commencement of the works and with the benefit of planning.

The agreed cost of works is £804,907.

CrowdProperty agreed to lend the borrower £1,250,000 across 2 phases for a maximum of 18 months. The first raise was £794,000 and contributed towards the purchase of the building and initial build costs of the development. A sum of £425,000 was paid out day 1 based on RICS valuation of £806,000 - equating to a 52.73% initial LTV. The remainder of the phase 1 monies have been drawn following our Independent Monitoring Surveyors (IMS) verifications. The phase 2 raise of £456,000 will be drawn down on future IMS inspections. The term of the loan is 18 months from 6th July 2018 and on completion the LTV will be 68.28% including rolled up interest.

The targeted start date for this phase of the loan is 1st March 2019.

CrowdProperty already has a 1st charge security of the loan on behalf of The Crowd as registered in the normal way with the Land Registry and the phase 2 raise will be merged into the existing legal agreement.

exit strategy

Borrowers intend to sell the flats on completion but if necessary will refinance, let and hold.

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

CrowdProperty Comments


The borrowers currently have 3 loans with CrowdProperty and works on this project have continued at a good rate and to a high standard. Our IMS Surveyor is due to inspect the project again in the next 2 weeks. He has reported that the remaining construction budget is sufficient to complete the development.

As Burton Enterprise Centre is a former Victorian school, the site coverage is low offering great shared parking and garden amenities to the proposed development. Its close proximity to Burton town centre further enhances its appeal. The developers have the experience to deliver this project having completed similar opportunities in the last few 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. 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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