This project involves the refurbishment and extension of two existing buildings, 21 and 23 Market St, to contain six flats with two commercial units at ground floor level. Investors are offered shares in the SPV undertaking the development.
21 and 23 Market St each contain a retail unit and there is also an existing derelict flat above 23. In April 2018, we received permission for extension of the building to create 7 new apartments (making a total of 8) along with refurbishment and alteration of the retail units and existing apartment.
The permission allows for 5,557 sq ft of residential floor space and 1,822 sq ft of commercial floor space, with a total of four new car parking spaces. The planning permission documents can be viewed on the Forest of Dean District Council website, application reference P1788/17/FUL.
We have owned 21 Market St within the group since 2006. We agreed to purchase 23 Market St from the adjoining owner some time ago and have spent the last 12 months getting planning permisison in place for redevelopment.
The site is located in Cinderford, a former mining town and industrial capital in the heart of the Royal Forest of Dean. The town is quietly undergoing a revival, attracting new businesses into the area. The Northern Quarter regeneration project, which is expected to bring investment of around £100m to Cinderford between now and 2026, is already underway with the construction of a new spine road and college campus.
The next phase of development includes a hotel, office and residential development of around 250 new homes. The regeneration project is expected to create around 1,000 new jobs in the district.
One of the few surviving ancient woodlands in England and the second largest crown forest in England, the Royal Forest of Dean is a nature lover's paradise. The area contains more than 110 square kilometres of mixed woodland.
In July of last year, the government announced that tolls on the Severn Bridge, which have been in place since the bridge opened in 1966, will be scrapped no later than the end of 2018. This has resulted in a significant surge in interest in property in the Forest of Dean with local agents describing the market as currently being “Red hot”.
With the forthcoming removal of the Severn Bridge tolls, lower house prices compared to areas like the Cotswolds or Bristol, where the average price of a detached house is around £435,000, make the Forest of Dean a very attractive alternative . The average detached house price in the Forest of Dean is £290,000 and in Cinderford it is £207,000.
The properties will be sold to another one of our group companies on completion, providing investors with a speedy exit that is not reliant on sales to third party purchasers.
MELT Homes is offering up to £130,000 in equity investment through Crowd with Us. If the full amount is not raised, MELT Homes will fund any shortfall from their existing resources.
Investors will be allocated ‘B’ or ‘C’ shares in the special purpose vehicle 'MELT Gloucestershire Limited' which owns the property.
The price per share is £1. B shares are only available for those investing over £5,000 and will receive a greater proportion of the profit.
The investor (B and C) shares have higher seniority than the developer’s (class A) shares and will receive priority in terms of payout.
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Once cash is generated by completion of the refinance of the completed residential units, MELT Homes will buy back the investors shares.
Each B share will be bought back for £1.30 - a 30% return on the original investment price.
Each C share will be bought back be for £1.26 - a 26% return on the original investment price.
Projected completion date of construction work is May 2019. MELT Homes expects to repay investors within 12 months from initial investment.
MELT Homes will project manage the process from development through to refinance and update investors as the project progresses.