Under Construction in Ipswich, Suffolk, IP3

Property Summary

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

Block 1 comprises 16 units Block 2 comprises 22 units; and Block 3 will comprise 6 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.

Duke Street is located close to the centre of the busy town of Ipswich. Ipswich is home to Ipswich Town Football Club, the town centre where a variety leading national retailers can be found. There is also a range of leisure activities including ten pin bowling and cinemas. The site is also located close to the popular Marina complex and is ideally located for University of Suffolk which opened as recently as 2007 and already accommodates circa 5000 students.

With nearby amenities including convenience stores, cafe's, bars, restaurants and the University of Suffolk make this area popular with students and young professionals. Transport links are strong in the area as the train from Ipswich is just over 1 hour into London, which makes the location a good option for those commuting into London. Regarding the Ipswich property market itself, over the last 5 years (as recorded by the House Price Index) prices have increased by 44.1% which represent an annualised increase of 8.82%. To break it down further, over the last 3 years 23.5% growth and the last one year 3.5%.

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:

2 bed flats - £230,000 each and 1 bed flats - £170,000 each.

These sale estimates have been supported by a development sales appraisal report from two estate agents based in Ipswich, Connell's and Haart. They have been further supported by a desktop survey conducted by Aitchison Raffety on the 20th January 2019 advising the 2 bed flats to be worth £250,000 and the 1 bed flats £175,000.

Unit	Type	Area	Proposed Price	Sale Price	Uplift	Status
353 Duke Street	1 Bed Apartment with garden terrace	53.00m²	£170,000	£175,000	2.9%	Available
Flat 1	1 Bed Apartment with garden terrace	54.00m²	£170,000	£175,000	2.9%	Reserved
351 Duke Street	2 Bed Apartment with garden	77.00m²	£170,000	£250,000	47.1%	Available
Flat 2	2 Bed Apartment with balconies	70.00m²	£215,000	£220,000	2.3%	Available
Flat 3	1 Bed Apartment with balcony	50.00m²	£170,000	£175,000	2.9%	Reserved
Flat 4	1 Bed Apartment with balcony	50.00m²	£170,000	£175,000	2.9%	Reserved
Flat 5	2 Bed Apartment with balconies	71.00m²	£215,000	£220,000	2.3%	Reserved
Flat 6	2 Bed Apartment with balconies	70.00m²	£215,000	£220,000	2.3%	Available
Flat 7	1 Bed Apartment with balcony	53.00m²	£170,000	£175,000	2.9%	Reserved
Flat 8	1 Bed Apartment with balcony	51.00m²	£170,000	£175,000	2.9%	Reserved
Flat 9	2 Bed Apartment with balconies	72.00m²	£215,000	£220,000	2.3%	Reserved
Flat 10	2 Bed Apartment with balconies	72.00m²	£230,000	£250,000	8.7%	Reserved
Flat 11	1 Bed Apartment with balcony	50.00m²	£170,000	£175,000	2.9%	Reserved
Flat 12	2 Bed Apartment with private balcony and seperate large roof garden	71.00m²	£230,000	£300,000	30.4%	Available
Flat 13	2 Bed Apartment with roof terrace	71.00m²	£230,000	£300,000	30.4%	Reserved
Flat 14	2 Bed Apartment with roof terrace	71.00m²	£230,000	£300,000	30.4%	Available
		Total:	£3,140,000	£3,505,000	11.6%

The above table shows the original proposed price, forecasted as part of our investment memorandum, and the actual sales price. The uplift column identifies whether we sold the dwelling for more than originally forecasted. On average, for this particular development, we have achieved an uplift in sales values of 11.6%

Further Information

This page has been prepared and published by Tollesbury House, Ipswich

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