Paid Back in Full

The Smithfield, Stoke, ST1 3DE

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

£250,000

interest paid*

8%

funds pledged

£250,000

number of investors

45

% of target pledged

Fully Funded

project type

Commercial to Residential Conversion

loan term

up to 17 months

security

1st charge

project phasing

1 of 1

total loan facility

-

floor area

-

rics valuation

£195,000

cost of work

£328,800

est. sales value (gdv)**

£718,500

initial loan to value

68.21%

loan to gdv

34.79%

owed at exit to gdv***

39.79%

strategy & vision

The Smithfield, Lower Bethesda Street, Hanley, Stoke ST1 3DE was a well known public house that traded for many years with varying degrees of success. It is situated on the corner of Lower Bethesda Street and Jasper Street and comprises a detached 2 storey traditionally constructed building with rendered elevations and pitched roof.

It is believed the property dates back to the early 1900s. Internally the property currently comprises 2 bars, a function room kitchen and amenity space, whilst the 1st floor is made up of a self contained 2 bed flat. The floor area totals 3,790sf (net internal).

Now closed the purchasers propose to convert the property into 10 self contained 1 bed flats together with 6 car parking spaces. The accommodation will be arroanged as follows:-

Unit 1 = 371sf
Unit 2 = 388sf
Unit 3 = 398sf
unit 4 = 388sf
Unit 5 = 355sf
Unit 6 = 452sf
Unit 7 = 366sf
Unit 8 = 334sf
Unit 9 = 387sf
Unit 10 = 527sf TOTAL = 3,966sf (gross internal)

Steve Barker-Hall and Matthew Raymond -Hubbard have formed a JV company to purchase this property known as:-

Smithfield Partnership Ltd
28 Copeland Drive,
Stone
ST15 8YP.

Company Number 9984124

Having exchanged contracts on the purchase of the property they are due to complete the purchase on or around 17th May 2016.

He is purchasing the property for £195,000 and this has been verified by a recent RICS valuation. Steve will convert the property into the 10 units once he has obtained the necessary planning consent. Upon completion the RICS valuation has stated the 10 units will have an aggregate value of £718,500 or an annual rental of £45,000 - assuming each unit is let on a traditional AST.

With total costs (including purchase price, conversion costs, consultants, sale fees, contingencies and interest charge) amounting to £573,798, this scheme is expected to create a profit of £144,702 - 25.2% profit on costs.

CrowdProperty has agreed to lend Steve Barker-Hall £250,000 in 2 phases; £133,000 towards completion and £117,000 once planning has been determined.The length of the loan is a minimum of 6 months and a maximum 18 months.

The 2nd phase loan will be released at certain milestones during the works and as verified by our Independant Monitoring Surveyor. Initially the loan will amount to 68% LTV but once the conversion works have been completed the LTV will fall to 34.8%.

Steve's exit strategy is to sell and/or let the flats. Those he chooses to hold will be re-financed with a Commercial lender so that The Crowd can be paid back.

exit strategy

indicated return for your pledge

interest

total

min. loan (6 months)

£200

£5,200

17 month loan

£600

£5,600

CrowdProperty Comments


There are a number of reasons why we particularly like this development project.

First of all, the borrowers know the area very well and are fully aware of the regeneration happening, which means there should be a high demand for good accommodation driven by the creation of more city centre jobs.

For this reason, the borrowers are keen to keep the finished apartments as they believe there will be strong rental demand and good capital growth. The borrowers have experience of dealing with this kind of public house to apartment conversion project, so it is well within their comfort zone and they have an alternative exit in case they do not get the full planning permission they require.

The borrowers are putting a good amount of their own money into this project which means that by the end of the project the Loan to Value will have fallen to just 35%. This should be very reassuring for the lenders as it will be the lowest loan to value project on CrowdProperty so far which means that the borrowers only have to refinance 5 of the apartments (or sell 4 of them) to pay back the capital and interest to the crowd.

We are delighted to give this project the CrowdProperty stamp of approval.

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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