Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

Dyke Road Avenue, Hove - Phase C

A similar scheme by the borrower
funds raised

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Investment Summary

Overview – Investors in this opportunity will fund the development costs of a new contemporary house set over two stories and a basement (otherwise known as “the Property”). The Property comprises a rear plot of land with planning consent. The Property is located within an established and sought after high-value residential area in Hove. The subject plot is elevated and has far-reaching views across the southwest of Hove and Shoreham towards the sea.

Term – The estimated term for this investment is 11-13 months. Practical completion is envisaged for December 2023 which will leave a 3-month sales period which we expect to be sufficient. If the loan is not repaid by the end of the estimated term, returns will accrue on investments for up to 12 months from the end of the estimated term up until the hard stop date (February 2025).

Plan – The developer already owns the site (purchased in 2021) and the initial phase of funding (Phase A) was used to refinance the existing lender. This phase of funding (Phase B) will be used to fund the development costs and later phases of this opportunity will launch on the platform over the coming months throughout the development term. Full planning permission has been approved for the new detached dwelling over two stories and a basement amounting to approximately 5,179 sq ft. The borrower has been utilising the lead in period to tweak the planning (section 73 amendment) to change the use of the subterranean element (to use 400sq.ft of the existing 800sq.ft as habitable space). The outcome of this is expected within the next few months and in the meantime, the borrower will proceed with the build as it's only the fit-out that will change if granted. The borrower has also been preparing the site, completing outstanding appointments and finishing the road access to allow construction to start. 

Location –  In the valuation report, Savills stated that Dyke Road Avenue is considered to be one of the best roads in Hove characterised by large detached dwellings, it is generally an aspirational place to live. The Property is located in the Hove area of Brighton, generally a more expensive residential area and popular with a more village feel to it than the City Centre areas. Hove enjoys the Brighton coastline and sea views. The area is very popular with families as local schools are reportedly well thought of with good access to several well renowned private schools in the country, including Lancing Prep and Brighton College. The Property also benefits from good transport links.

Your Investment – CapitalRise investors will benefit from a First Legal Charge over the property, assignment of construction contract (If applicable) and collateral warranties as guided by our project monitor. Investments will always be first in line to be repaid when a payment is made against the loan. In the event of a forced sale of the Property, CapitalRise investors would recover their investment first and if the borrower is unable to repay the loan, CapitalRise will seek to force the sale of the Property on behalf of investors. If a sale is achieved the value would need to be less than 68% of the anticipated market value before your invested capital and accrued return are at risk 

Property – The proposed Property is located to the western side of Dyke Road Avenue Road and will be a 2 storey detached house with a basement, containing four en-suite bedrooms with a south-facing private garden and off-street parking. There is private access, shared with only one other. The Property is to be constructed to a very high and modern specification and will benefit from a host of amenities. The proposed design includes a swimming pool, gym, sauna and cinema room. 

The Borrower/Developer – The borrower is undertaking this project in their individual capacity. They have a wealth of experience to complete a scheme of this nature as they are a is a Director of an established development company that specialise, and have a strong track record in the development of residential properties along the South Coast and Sussex. The borrower will be partnering with contractors whom they have worked with before on similar high-quality schemes. CapitalRise has not funded another loan to this borrower.

Exit Plan – In terms of exit, the borrower plans to sell the Property on the open market upon completion. If a sale is not completed within the term the borrower may seek to refinance the CapitalRise debt with another lender.