Warlingham, Surrey, Tier 1 (Phase A)

Investment Summary

Overview – Investors will fund the acquisition of the site and then the development of three new two-storey detached houses within the area of Warlingham, a town in Surrey.

Term - The estimated term for this investment is 20 - 26 months. If the loan is not repaid by the end of the estimated term, returns will accrue on investments for a further 6 months from the end of the estimated term up until the hard stop date (August 2025).

Plan – The developer will use this phase of funding to assist with the land acquisition. Full planning permission has been approved for the development of three two-storey, detached houses set over 2,831 sq.ft. each. The site is currently occupied by an unused barn, which is to be demolished as part of the proposed plans. Later phases of this opportunity, which will launch on the platform over the coming months, will provide funding for the development phase of the project.

Location – The Properties are situated in a semi-rural area of Surrey on its border with Kent, between the areas of Chelsham and Biggin Hill. Amenities are limited within the immediate vicinity with the nearest commercial centre being located in Warlingham to the west. Both the M25 and A22 are easily accessible and provide good access to the south east road network. The nearest rail services are provided at Woldingham with services to London Victoria in 30 minutes.

Your Investment – CapitalRise Tier 1 and Tier 2 investors will benefit from a First Legal Charge over the Properties, a Personal Guarantee limited to 25% of the total advance plus cost overruns guarantee, and First Ranking Debenture over the borrower. Investments will always be first in line to be repaid when a payment is made against the loan. Tier 1 investors will always be paid ahead of Tier 2 investors. In the event of a forced sale of the Properties, CapitalRise would aim to recover all invested capital and accrued interest for both Tier 1 and 2 investors. CapitalRise would need to recover 50% of the expected market value (GDV) of the development to repay Tier 1 investors their invested capital and accrued interest.

Properties – The site is currently occupied by an unused barn and the proposed scheme will consist of three detached houses with brick and flint finish. Each house will contain four bedrooms each with en-suites. There is an access road which leads to the site on which each of the houses will be built.

The Developer – These Properties are being developed by Homes by Harlequin, who specialise in the development of residential properties in the Home Counties. Homes by Harlequin have their own contracting, brickwork and design team. Between them, the founders have over 70 years’ combined experience in property development. This is our second loan to this borrower, we are funding their development in Haslemere.

Exit Plan – The borrower plans to sell the Properties 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.