ABOUT THE PROJECT This raise will be the 1st of 2 raises totaling £605,000 to provide funding towards the conversion costs of a part let part vacant property in Barwell Leicestershire. The property is a 2 storey detached building and comprises 2 let self-contained commercial units and a residential 2 bedroom flat together with a vacant former snooker hall. The property is located fronting onto High Street, Barwell a village in Leicestershire with a population of 9,022 (2011 census). Full planning permission has been granted by the Hinckley and Bosworth Borough Council (co.ref.no. 18/00354/FUL) for a change of use of first floor and part of the ground floor from snooker hall to form 8 residential apartments. A JCT contract has also been signed with Hallam Read Construction Ltd, the main contractors who have agreed an estimated works programme of 26 weeks. The RICS valuation of the property in its existing condition with the benefit of planning is £347,500. The RICS estimate of the completed development (GDV) is £967,500. CrowdProperty has agreed to lend the borrower £605,000 over a period of 12 months in 2 separate raises. The initial raise is £405,000. LOCATION AND DESCRIPTION Barwell is located within the district of Hinckley and Bosworth between Leicester and Coventry, 12 miles and 21 miles away respectively. The village is linked to Hinckley and Leicester via the A47 and Coventry via the M69. The village is served by the Hinckley railway station with services to Leicester and Birmingham. The property is situated close to the centre of Barwell within a predominantly residential area. The two storey detached building is constructed of traditional solid brickwork elevations beneath pitched slated roofs. The let areas comprise an Indian restaurant generating £12,000 per annum and a separate motorcycle premises generating £5,000 per annum. The first floor comprises of an existing 2 bedroom flat which is also let for £5,400 per annum. The remainder of the property comprises a former snooker hall which will be converted into 8 self contained 1 and 2 bedroom flats. Local amenities include: - Hinckley Train Station – 3.6 miles - Barwell Village Hall – 0.1 miles - J21 M1 19 miles - J2 M69 5 miles SITE AREA/FLOOR AREA Total site area: 0.144 Acres Total GIA floor area of building: 6,275sf Total GIA of proposed 8 residential apartments: 4612.3 sq. ft (428.5 sq. m) The 8 new residential apartments will be laid out as follows: Ground floor: Flats 1 and 2 ( 2 x 1 bed) First Floor: Flats 3 - 8 (3 x 2 bed and 3 x 1 bed) The existing flat 9 will not to be refurbished as it is separately let OVERVIEW OF FINANCIALS The Borrower currently owns the site with debt of £230,000. RICS valuation of the property with benefit of planning consent is £347,500. RICS estimate of completed development (GDV) is £967,500. RICS view of total market rent on completion of the works and occupation of all areas is £77,400 per annum. CrowdProperty has agreed a development loan facility of £605,000 over 2 raises. The 1st phase raise is for a total of £405,000 with £230,000 being provided day 1 to take out the existing debt and gain first charge. The remainder and 2nd raise will provide monies towards the conversion works being forwarded on verification of the Independent Monitoring Surveyors Inspections and only once stated works have been completed. The initial LTV is 66.2%. LTV at project completion including rolled up interest and assuming full term is 67.7%. The maximum loan period is for a term of 12 months with a minimum loan period 6 months. We are targeting a loan commencement date of 28th June 2019. CrowdProperty will take 1st charge security against the property as registered with the Land Registry.
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