Regulated Business

SPV1009

Stroud Green, London, N4
6 Units | Sell For Profit Strategy

52.32%

Targeted ROI

£3,114,918

of £3,434,918

Investment Term

15 months

Funded

90.68%

Investment Opportunity

JaeVee has recently agreed a joint venture with Ikon Real Estate Group for the development of a 6 unit residential scheme on Dagmar Road in Stroud Green, North London. The planning consent reference number is HGY/2019/0989.

The properties will be sold on the open market in order to achieve the exit and subsequent development profits.

The residential dwellings comprise of 6 x 2 bedrooms apartments, all up to national space standards and ideal for their local market.

The forecasted GDV is £4,225,000 with a senior debt facility of £3,013,830 (including interest). The construction costs have been priced at £1,793 per sq-m with an additional 5% contingency for construction costs and 10% for professional fees being accounted for.

The proposed investment turnaround time is 12-15 months which is based on 9-12 months to build with a further 3-6 month sales period. The sales and marketing strategy is to put the properties on the market 6 months before completion of the construction. As the construction is expected to begin in September 2019 the units will be put on the market between March-June 2020.

The current GDV is determined by using sold comparables for similar properties in and around the local area (typically within 1/2 mile radius) which have sold in the last 12 months. Details of the sold comparables we have used can be seen when downloading the Investment Memorandum. Both Foxtons and JLL have supported the proposed GDV, with their appraisals available for download via the Documents section.

Read more

Property Summary

This development scheme is located in the popular area of Stroud Green, the site is conveniently situated for transport links with 5 overground and underground stations located within approximately 1 mile, all offering regular services into Central London making it an ideal commuter location.

Read more

Exit Strategy

The proposed exit strategy is to sell the units on the open market, with sales expected to begin 3-6 months before the completion of the construction works.

The properties will be sold on the open market in order to achieve the exit and subsequent development profits.

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.

Based on sold comparables we expect to be able to sell the properties between a range of £650,000 - £800,000.

These sales estimates have been supported by appraisals from both Foxtons and JLL.

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 £1,109,080 (with an additional 5% contingency fund and 10% professional fees fund) in delivering the project within the set time frame of 12 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 work. 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 will also 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.

Read more

Development Team

Sign In

or

Sign Up

Financials

The following financials are calculated against our Sell For Profit model.
Gross Development Value £4,225,000.00
Total Cost £3,434,917.52
Purchase Price £1,425,000.00
Stamp Duty £129,000.00
CIL £201,405.00
Construction Cost £1,109,080.00
Furnishing Cost £0.00
Professional Fees £110,908.00
Contingencies £55,454.00
Legals £10,000.00
Surveys & Searches £8,000.00
Building Regs £5,000.00
Insurance £5,000.00
Council Tax £0.00
Business Rates £0.00
Utilities £7,500.00
Senior Debt Interest £234,483.00
Mezzanine Interest £71,250.00
Sourcing Fee (1.0%) £14,250.00
Equity Raise Fee (5%) £34,337.52
Boost Fund (1%) £14,250.00
S106 £0.00
Gross Profit £790,082.48
Selling Fees -£46,750.00
Exit Fee -£63,375.00
Corporation Tax (19%) -£129,191.92
Net Profit £550,765.56
Net Profit Margin 16.03%
Targeted ROI (40% of Margin) 52.32%

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

Further Information

Learn a bit more about how our system works. If you have a question, take a look at our Frequently Asked Questions (FAQs) to see if you can get the answer you're looking for.

Speak To Our Investor Relations

Register Your Interest Here

Investment Calculator

Investment

Targeted ROI

Share Price (1%)

£10,527.20

% Share

1.90%

All the above figures are targeted 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.

How do we mitigate risk?

Documents

Sign In

or

Sign Up

Location

Proposed Plans

Proposed Ground Floor Plan.jpg Proposed First Floor Plan.jpg Proposed Second Floor Plan.jpg Proposed Basement Floor Plan.jpg

Team Behind It

Sign In

or

Sign Up

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.