This project consists of the redevelopment of a 0.6ha site which currently has permission for the construction of 10 new houses and the conversion of a former Victorian school building into two large semi-detached units.
The contractor has already made a soft start on site and redundant buildings have been demolished . Construction works will be phased. The anticipated completion date of Plot 1, the showhome, is April 2019. Phase 2 (plots 2, 3, 4, 5 and 6) is expected to be completed by July 2019 and phase 3 (Plots 9, 10, 11 and 12) by September 2019.
In order to minimise risk, the contractor has been appointed on a Design and Build basis. Investors will be repaid from the sale or refinance of the completed properties. Finance to cover the full cost of the works is already agreed.
The market is currently very strong in in the Gloucester area and we expect to pre-sell all the units before completion. The sale of eight units is required, along with the refinance of the remaining units at 70% loan to value, in order to generate sufficient funds to fully repay investors. The planning permission documents can be viewed on the Gloucester City Council website, application reference 17/00582/REM.
The Investor Offer:
• We are offering 1,130,000 in equity investment through Crowd with Us. • Investors will be allocated ‘A’ or ‘B’ shares in the special purpose vehicle Lime Grove Tuffley Limited which owns the property.
• The price per share is £1. ‘A’ shares are only available for those investing over £50,000 and receive a greater proportion of the profit.
• The investor (‘A’ and ‘B’) shares have higher seniority than the developer’s (class ‘C’) shares and will receive priority in terms of payout.
For illustrative purposes only :
• Once cash is generated by completion of the sale or refinance of the completed residential units, we will buy back the investors shares. Investors will be paid back before any returns are withdrawn by the developer.
• Each ‘A’ share will be redeemed or bought back for £1.30 - a 30% return on the original investment price.
• Each ‘B’ share will be redeemed or bought back for £1.26 - a 26% return on the original investment price.
• Projected completion date of construction is September 2019, so we expect to repay investors in less than 12 months from the date that funds are released to us from Crowd with Us.
• If the units are not all pre-sold the remaining units can be refinanced on completion of the project in order to repay investors. The sale of only 8 units with the refinance of the remaining units at 70% LTV will be sufficient to fully repay investors.
• We will project manage the process from development through to disposal and update investors as the project progresses.