SPV1005

Maidstone, Kent, ME15
12 Units | Sell For Profit Strategy

32.58%

Forecasted ROI

£2,158,776

of £2,620,161

Investment Term

18 months

Funded

82.39%

Investment Opportunity

This investment opportunity involves the demolition of the current office block and development of residential units, comprising of 8x 3 bedroom houses, 1 x 2 bedroom house, 2x 2 bedroom flats and 1x1 bedroom flat. Collectively, the units will have an estimated GDV of £3,207,000, based on an average selling cost of £3,026 per m2 for the houses and £2,610 per m2 for the flats.

The proposed investment turnaround time is 18 months and the estimated return on investment is 32.57%. This means, for an investment of £10,000.00, JaeVee have forecast that the return will be in the region of £13,257.00, equating to a pre-tax profit of £3,257 in 18 months.

Read more

Property Summary

The development, which is a high quality contemporary scheme will be made up of 2 separate blocks. One of the blocks will comprise 8 x 3 bedroom houses (99m2) and the other will comprise 1 x 2 bedroom house (98m2), 2 x 2 bedroom flats (62m2) and 1 x 2 bedroom flat (61m2).

The houses are to be laid out over three levels. The main entrance is accessed on the middle storey of the property, which comprises bedroom with en-suite and stairs leading to the lower ground floor and first floor. The lower ground floor will comprise the kitchen, dining and living areas with access out to a private garden. The first floor will comprise a further 2 bedrooms and family bathroom.

The location, Tovil, is on the outskirts of the busy town of Maidstone, which is set in the home county of Kent. Nearby amenities and outstanding schools make this area popular with families. Transport links are strong in the area, as the train from Maidstone is around 1 hour into central London, which makes the location ideal for those who wish to commute into London. The site is located within a built up area, within the confines of the Maidstone urban boundary and as such can be considered to be within a sustainable location. The site is located close to transport links and shops and other local amenities.

Read more

Exit Strategy

The proposed exit strategy is to sell the units on the open market. The property will be marketed with local estate agents and we believe the target market for the houses are owner occupier young families and young professionals.

Based on sold comparables we expect to be able to sell the properties for the following prices:

  • 2 bed flats (62m2) £180,000 each
  • 2 bed flat (61m2) £177,000
  • 3 bed houses (99m2) £300,000 each
  • 2 bed house (98m2) £270,000
Read more

Operational Delivery

With all JaeVee development projects, the SPV (in its role as the client) enters into a JCT 2016 design & build construction contract whereby the responsibility in delivering the project rests with the Principal Contractor.

The Principal Contractor has agreed to a fixed total contract sum of £1,521,450 (includes 5% contingencies) in delivering the project within a set time frame. In the case of this project, the time frame is 15 months from commencement of works.

As the Principal Contractor is holding the design and build contract, it will select the sub-contractors to assist in delivering the project. The SPV has the right to request copies of the JCT subcontractor contracts which will be taken care of by JaeVee's inhouse project manager who oversees the project from inception through to completion (the pre, during and post construction phases) assisting the property developer throughout.

As per CML regulations, a professional consultants certificate (also known as an architects certificate) will be issued after the building regulations completion certificate of works. This will provide a 6 year structural warranty which is a mandatory CML requirement for mortgage lenders to be able to lend on each dwelling.

The property developer also will be uploading updates to the JaeVee system throughout the duration of the project thus allowing investors to see the progress in real time.

Read more

Development Team

Sign In

or

Sign Up

Financials

The following financials are calculated against our Sell For Profit model.
Gross Development Value £3,207,000.00
Total Cost £2,620,061.00
Purchase Price £600,000.00
Stamp Duty £19,500.00
CIL £0.00
Construction Cost £1,449,000.00
Furnishing Cost £0.00
Professional Fees £100,000.00
Contingencies £72,450.00
Legals £8,000.00
Surveys & Searches £10,000.00
Building Regs £5,000.00
Insurance £3,000.00
Council Tax £0.00
Business Rates £0.00
Utilities £7,500.00
Senior Debt Interest £264,576.00
Mezzanine Interest £45,000.00
Sourcing Fee (0.0%) £0.00
Equity Raise Fee (5%) £30,035.00
Boost Fund (1%) £6,000.00
S106 £53,530.00
Gross Profit £586,939.00
Selling Fees -£50,004.00
Exit Fee -£0.00
Corporation Tax (19%) -£91,846.95
Net Profit £391,558.05
Net Profit Margin 14.94%
Forecasted ROI (40% of Margin) 32.58%

Speak To Our Investor Relations

Register Your Interest Here

Documents

Sign In

or

Sign Up

Location

Proposed Plans

Lower-Ground-Floor-Plan.jpg Ground-Floor-Plan.jpg First-Floor-Plan.jpg Full-Roof-Plan.jpg Full-Elevations-3.jpg Full-Elevations-2.jpg Full-Elevations-1.jpg Full-Site-Location-Plan.jpg

Team Behind It

Sign In

or

Sign Up

What happens next after investing?

  1. Your funds will be held in trust by MangoPay until the total raise is achieved
  2. Once the total raise is achieved, the funds will be automatically transferred to the SPV bank account
  3. The shareholders agreement is issued for signature (electronically)
  4. Once signed by all parties, the development agreement is issued for signature by the developer (electronically)
  5. Once the development agreement is signed, shares are issued in the SPV
  6. Project commences
Get In Touch

Investing in JaeVee involves risk, including loss of capital and illiquidity and it should be done only as part of a diversified portfolio. Investments made through JaeVee are not covered by the Financial Services Compensation Scheme (FSCS). Please read our full risk warning before deciding to invest.

Capital at risk. Read more