SPV1012

Norwich, Norfolk, NR3
40 Units | Sell For Profit Strategy

121.49%

Forecasted ROI

£9,135,495

of £9,302,623

Investment Term

24 months

Funded

98.20%

Investment Opportunity

This investment offers equity investors the opportunity to invest into a residential development scheme comprising 40 residential dwellings located in Norwich City, UK.

The residential dwellings are a mixture of 1 - 3 bedroom apartments and 2 - 4 bedroom townhouses, all up to national space standards.

We're working towards a conservative targeted GDV of £11,655,000. When determining a GDV, one uses sold comparables for similar properties in and around the local area typically within 1/2 mile radius. Details of the sold comparables we have used can be seen when downloading the Investment Memorandum.

The construction costs have been priced at £1,400 per sq-m which when taking into account an additional 5% contingency for construction costs and 7.5% for professional fees, makes the costs above BCIS Online for the local area. These numbers are detailed within the feasibility study below.

The proposed investment turnaround time is 24 months which is based on 12-18 months to build with a 6 month sales period.

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Property Summary

The development, which is a high quality contemporary scheme will be made up of two separate blocks:

Block 1 comprises 23 units Block 2 comprises 17 units

The one bedroom apartments will comprise entrance hall, lounge/kitchen, bedroom with built in wardrobe and separate bathroom. The two bedroom apartments will comprise entrance hall, lounge/kitchen, 2 bedrooms, master bedroom with en-suite, built in wardrobes and separate bathroom.

Oak Street is located close to the busy city centre of Norwich. Norwich City Centre is home to two shopping centres where a variety of national retails can be found. The popular Riverside entertainment complex also offers a range of leisure activities including ten pin bowling, cinemas, bars and restaurants. The site is located within 3 miles of the University of East Anglia which accommodates circa 17,000+ students.

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Exit Strategy

The proposed exit strategy is to sell the units on the open market, with sales expected to begin 6 months before the completion of the construction works using an on-site furnished show apartment.

The apartments will be marketed with local estate agents, with the target market being a mixture of owner occupiers, first time buyers and single let landlords. As the developer is registered with Help to Buy, we're are able to target this market as well.

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

1 bed flats - £150,000-£190,000, 2 bed flats - £215,000 - £300,000 and 3 bed penthouse flat - £390,000
2 bed house - £300,000, 3 bed townhouses - £450,000 each and 4 bed townhouses - £510,000 each

*These sale estimates have been supported by a development sales appraisal report from two estate agents based in Norwich.

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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 £5,910,000 (with an additional 5% contingency fund and 10% professional fees fund) in delivering the project within the set time frame of 18 months.

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 management team. This forms part of JaeVee's role as Employers Agent, overseeing the project from inception through to completion (the pre, during and post construction phases) assisting the property developer throughout.

As per UK Finance regulations, a structural warranty will be issued after the building regulations completion certificate of works. This will provide a 10 year structural warranty which is a mandatory UK Finance requirement for mortgage lenders to be able to lend on each dwelling.

The Property Developer also will be uploading monthly construction updates to the JaeVee system throughout the duration of the project thus allowing investors to see the progress in real time.

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Development Team

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Financials

The following financials are calculated against our Sell For Profit model.
Gross Development Value £11,655,000.00
Total Cost £9,302,622.62
Purchase Price £1,200,000.00
Stamp Duty £0.00
CIL £319,245.00
Construction Cost £5,910,000.00
Furnishing Cost £5,000.00
Professional Fees £443,250.00
Contingencies £294,000.00
Legals £5,000.00
Surveys & Searches £8,312.00
Building Regs £10,000.00
Insurance £5,000.00
Council Tax £0.00
Business Rates £0.00
Utilities £9,000.00
Senior Debt Interest £850,000.00
Mezzanine Interest £171,000.00
Sourcing Fee (1.0%) £12,000.00
Equity Raise Fee (5%) £48,815.62
Boost Fund (1%) £12,000.00
S106 £0.00
Gross Profit £2,352,377.38
Selling Fees -£123,240.00
Exit Fee -£72,565.00
Corporation Tax (19%) -£409,748.75
Net Profit £1,746,823.63
Net Profit Margin 18.78%
Forecasted ROI (40% of Margin) 121.49%

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
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Further Information

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Investment

ROI

Share Price (1%)

£14,378.20

% Share

0.35%

All the above figures are forecasted and subject to taxation based on personal circumstances. Corporation tax has been taken into account, based on a rate of 19%. Capital at risk: before investing please read the risk warning.

Documents

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Location

Proposed Plans

OSN-CF-ZZ-04-DR-A-1010 Block B GA Fourth Floor Plan Part 1_P1.jpg OSN-CF-ZZ-03-DR-A-1009 Block B GA Third Floor Plan Part 2_P1.jpg OSN-CF-ZZ-03-DR-A-1008 Block B GA Third Floor Plan Part 1_P1.jpg OSN-CF-ZZ-02-DR-A-1007 Block B GA Second Floor Plan Part 2_P1.jpg OSN-CF-ZZ-02-DR-A-1006 Block B GA Second Floor Plan Part 1_P1.jpg OSN-CF-ZZ-01-DR-A-1005 Block B GA First Floor Plan Part 2_P1.jpg OSN-CF-ZZ-01-DR-A-1004 Block B GA First Floor Plan Part 1_P1.jpg OSN-CF-ZZ-00-DR-A-1003 Block B GA Ground Floor Plan Part 2_P1.jpg OSN-CF-ZZ-00-DR-A-1002 Block B GA Ground Floor Plan Part 1_P1.jpg

Team Behind It

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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