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Developments

Step 1

Commencing with sourcing the opportunity, the most timely process.

Relationships generated with local agents, landlords and auctioneers coupled with our marketing efforts allow us to filter through multiple properties each and every month. Only a few selective opportunities then undergo a full due diligence procedure.

Step 2

All projects are purchased through a Special Purpose Vehicle (SPV).

This clearly sets out the agreed rates of returns or profit share. We bring investors on board on a fixed return basis (between 6-15%pa depending on risk profile and security provided). We also Joint Venture with 3rd party developers, giving us the capability to take on larger projects.

Step 3

We prefer to start from scratch when refurbishing and remodelling a property.

This allows us to turn around a project quickly to our high specification which we are always evolving to sit in line with market demands.

HOW WE IMPROVE A PROPERTY

  • Strip the property back to the bare bricks & joists
  • Strengthen structure and lay new flooring
  • Install the latest specification insulation and sound-proofing
  • Fit new electrics, plumbing and gas services
  • Build new bathrooms, bedrooms and open-plan living spaces
  • Plaster, paint and furnish the entire property to a high specification
  • Furnish to specification

Step 4

We like to think our marketing skills are of a high level governed by our results to date in either renting or selling a project.

Using the latest marketing platforms along with our established network, we are able to market a property quickly and secure either a long term tenant or purchaser.

HOW WE ACHIEVE HIGH YIELDS

  • Finish properties to a very high standard
  • Employ flexible pricing structures
  • Review pricing to constantly achieve the optimum balance of occupancy and price
  • Promote properties in the right way to the right target market
  • Deliver high levels of customer service 7 days a week

Step 5

Each property is bought through a dedicated Special Purpose Vehicle (SPV).

The agreement in place stipulates the following order of payments:

  • Debts and costs
  • Investor equity with priority return
  • Share of capital gains paid upon sale

Different levels of risk offer different levels of return: we aim to achieve margins on cost in excess of 20% for refurbishment, 25% for construction and 35% for planning.

Investors fund the deposit, purchase costs such as legal fees and stamp duty, and initial build and debt servicing costs. In return they receive a priority return (typically c10% per annum pro-rata) plus a share of the remaining profits – weighted in our favour if we are paying a higher priority return or if we are required to guarantee the debt package.

In the fixed return model the investor receives a return of 6-15%pa with the benefit of a second charge on the asset(s) we acquire for them. The fixed return varies depending on the level of risk. Full planning/development risk attracts a higher return than simple investment risk in income producing assets.

Investors can expect to receive their initial investment plus final share of the profits within agreed time-frame of 6-36 months. We are often able to return a proportion of this much earlier, however, by completing and refinancing/selling in stages.

There are no hard and fast rules in terms of profit and no absolute guarantees. As with any investment, values can go down as well as up. But we can state with utmost confidence that we have consistently delivered exceptionally high returns to our investors and we do sometimes provide corporate/personal guarantees.

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