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DEAL SUMMARY
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PROPERTY DETAIL

Malvern is a town of about 30,000 people located in Worcestershire on the A449 road approximately 8 miles south west of the city of Worcester. There is access to the M5 at Worcester, and at junction 2 of the M50 motorway about 8 miles to the south, providing routes into South Wales. The Malvern Hills are in close proximity, and there are numerous sites of tourist and historical interest nearby.

The area around Malvern has been occupied since the Bronze Age and the town itself was established in the 11th Century when Benedictine Monks built a priory at the foot of the Malvern Hills. Malvern was well known as a spa during the 19th century and subsequently became the location of several well regarded schools including Malvern College and Malvern St James. Local employers include QinetiQ (the successor company to the Telecommunications Research Establishment) which moved to Malvern during the 2nd World War, and the Morgan Motor Company are also based in the town.

College Road is located in the south western part of Malvern with the neighbours comprising mainly residential houses and flats. The development is also in very close proximity to Malvern College.

Bellmere Gardens is located on a sloping site. The site is in two phases which share an entrance drive turning to the left for Phase I comprising Magnolia House apartments (numbered 1-7), the Coach Houses (numbered 3 and 3A) and The Beeches (houses numbered 4-6), and to the right for Phase II, comprising Town Houses (numbered 8-14). Phase I is well screened from the subject properties by mature trees. Phase II is also well screened to the front but has an open aspect to the rear, and is somewhat overlooked by neighbouring properties.

INVESTMENT STRATEGY

Stevenswood Construction Ltd is offering £597,826 debt investment via the Bond promoted by Crowd with Us for the refinance of Bellmere Gardens, College Rd, Malvern, Worcestershire, WR14 3HE.

Interest on the Bonds is 20% per annum simple interest and will be calculated on a daily basis on the basis of a year of 365 days and shall be payable on redemption of the Bonds. For example, if £10,000 worth of bonds is subscribed for, the daily rate of interest is £5.48. If in this example the Property Company redeems the Bonds at the end of the term (12 months) this would equate to a redemption amount to the Bondholder of £2,000 interest plus the initial £10,000.

This project, consists of two sites located on a slope with excellent views in Malvern - a small town situated just outside Worcester.

Both sites were purchased by the developer in 2016 for £1.6m. They have a shared entrance and were split into Phase I and Phase II.

The build of both phases is complete. Phase I comprising of 12 units in total (7 apartments and 5 houses) was completed in September 2017, while Phase II, a terrace row of 7 houses, with larger stone exteriors, was completed in 2019.

The valuation report validates that all are built to a good standard and have NHBC/CRL certificates in place.

The valuation report also states that, initially, the properties were marketed with an agent who applied prices, which in retrospect, appeared to be significantly ahead of realistic market values. Consequently, the initial marketing impetus was wasted and no sales were achieved.

Estate Agent, Andrew Grant, was then appointed in late 2018, in connection with Phase II and ultimately also took over the marketing of Phase I. Since the appointment of Andrew Grant a number of sales have been achieved, and relatively high levels of interest continue to be shown.

The borrowers have now sold and completed on 6 units totalling £2.545m of property (2 houses from phase II, and 2 apartments and 2 houses from phase I). They have offers which are proceeding for a further £2.817m. All except £275k of which are in proceeding legals. This covers a total of 7 units: 3 further houses and 2 further apartments from Phase I and 2 further houses from phase II - total of 7 units.

Exit
The planned exit and return of funds is via sales and/or refinance of the units. There are currently a number of units under offer and/or in legals as summarised in the IM.

The borrower is pursuing a refinance for four of the flats (1, 2, 5 and 6) as an alternative exit route and has terms from several lenders.

Securities
The Bond is asset-backed and secured via a 2nd charge against the property owned by the Property Company and shall be registered at HM Land Registry. Additionally a Debenture against the property owning company will be registered at Companies House and Personal Guarantees from the directors will be in place.

Bondholders have higher seniority than the property developer in the company’s finance stack and will receive priority in terms of redemption of the Bond and payment of the interest. The developer has voting shares and shall manage the Property Company. He shall provide periodic updates on the project to Crowd with Us.

The Development phase of the project is complete and the properties are currently being marketed for sale and/or refinance onto a Buy to Let facility. If and when funds are released from the sale and/or refinancing of the units, the Property Company is obliged to redeem the Bond and other loan facilities.

Early redemption
The Minimum Bond term is six months. Insofar as all or any part of the Bond is repaid prior to the expiry of the Minimum Term; the Borrower shall be required to pay interest amounting to 10% on the full amount set out in the Bond Instrument. At any time after the Minimum Term, the Borrower is entitled to redeem the Bond in full, or in part, up to the expiry of the Bond Term.

Bellmere Gardens
Malvern, WR14 3HE
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PHOTOS
Bellmere Gardens
FLOORPLAN
MAP
IMPORTANT RISK NOTE

The value of your investment can go down as well as up. Gross Rent and Dividends may be lower than estimated. You may have to wait until the next five year anniversary of the property’s listing on the Crowd with Us platform for an exit event. See Key Risks for further information.
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PLEASE NOTE

Capital at risk. The value of your investment can go down as well as up and historic performance is not a guide to future performance. Please read Risk Statement before investing.

Crowd with Us (FRN707804) is an appointed representative of Share In Ltd (FRN603332). Share In Ltd is authorised and regulated by the Financial Conduct Authority. Crowd with Us is the trading name of Crowd with Us Limited, a company registered in England No: 9243491. The registered office of the company is Clerkenwell Workshops 27/31 Clerkenwell Close, Farringdon, London, EC1R 0AT.
Neither Crowd with Us Limited, Share In Ltd nor any of their affiliates or group companies provides any advice or recommendations in relation to this website. If you have any doubt about the suitability of any investment marketed by Crowd with Us Limited, or you require financial advice, you should seek a personal recommendation from an appropriately qualified financial advisor that does give advice.
Investments are only available to certain specified persons who are sufficiently sophisticated to understand the risks. Investments in property and unlisted shares carry risk and you may not receive the anticipated returns and your capital may be at risk. Click here to read our Risk Statement.

Capital at risk. The value of your investment can go down as well as up and historic performance is not a guide to future performance.
Investments are not covered by the Financial Services Compensation Scheme (FSCS). Please read Risk Statement before investing.