Oakley Gardens, Chelsea

Investment Summary

• OVERVIEW – Investors in this opportunity will provide funding to assist with the acquisition of an end-of-terrace, Victorian-period house, located in the affluent area Oakley Gardens, Chelsea (referred to as the Property going forward). 
• TERM – The estimated term for this investment is 8 – 12 months. If the loan is not repaid by the end of the estimated term, returns will accrue on investments for a further 12 months from the end of the estimated term up until the hard stop date (May 2025). 
• PLAN – The Borrower will use this phase of funding to assist with the Property acquisition and gain planning permission for a basement extension underneath the current Property. The proposed works will extend the Property from 2,228 sq.ft to 3,702 sq.ft. 
• LOCATION – The Property is located on the residential Oakley Gardens within the affluent area of Chelsea approximately two miles to the south-west of central London.Chelsea is a prime central London location, typified by period terraced houses. It’s also noted as a high-quality shopping district. It is popular with both domestic and international high net worth individuals.

• PROPERTY – The current Property is an end-of-terrace house on a corner plot containing three bedrooms. It’s arranged over lower ground, raised ground and two upper floors with a wraparound front and side garden along with a lower ground floor courtyard patio. 
• THE BORROWER – This Property is being purchased by an individual who specialises in the development of high-end residential properties in Prime Central London with over 20 years of experience. They have also completed schemes in the Caribbean and New York.
• YOUR INVESTMENT – CapitalRise investors are lending alongside a CapitalRise Institutional Funding Partner who will be repaid first in exchange for a lower rate of return to reflect their lower risk position. The loan CapitalRise is providing to the Borrower benefits from a shared First Legal Charge over the Property. CapitalRise is the security trustee for both CapitalRise Investors and the Institutional Funding Partner. CapitalRise will always act in the best interests of both CapitalRise investors and the Institutional Funding Partner and will always seek to recover both invested capital and accrued interest in full. If the Borrower was unable to repay the loan, CapitalRise could force the sale of the Property, and in this situation, CapitalRise investors will be paid after the Institutional Funding Partner but before the Borrower. To return all invested capital and accrued returns back to CapitalRise investors, CapitalRise would have to recover 75% of the CMV (Current Market Value) of the Property. N.B. There are no phases to this loan.
• EXIT PLAN – The Borrower intends to gain planning permission for the Property allowing them to add an extension and create a basement. Once planning has been achieved the Borrower can refinance the facility with a development loan allowing them to build out the scheme. Alternatively, the Borrower could sell the Property with the benefit of planning and the uplift that comes with it.