Academy Gardens, Kensington

Investment Summary

Overview –  CapitalRise is providing a loan that will fund the acquisition and refurbishment of an apartment in Academy Gardens (referred to as the “Property”), which is in the Prime Central London neighbourhood of Kensington.

Term – The estimated term for this investment is 21-27 months. If the loan is not repaid by the end of the estimated term, returns will accrue on investments for a further six months until the hard stop date (September 2025).

Location – Academy Gardens is located within the Royal Borough of Kensington & Chelsea (RBKC), a Prime Central London area.  The Property lies within close proximity to local amenities, which can be found to the north towards Notting Hill and to the south towards Kensington High Street. The Property also has several local transport links with High Street Kensington station (Circle and District Lines) to the south, and Notting Hill Gate station (Central and District Lines) and Holland Park station (Central Line) to the north.

Property – The apartment is arranged predominantly at the first-floor level, plus lower and upper mezzanine levels. It comprises an entrance hallway, reception room, kitchen, study, family/sitting room, guest WC, master bedroom with an en-suite, and two further bedrooms both with an en-suite. The Property benefits from substantial ceiling heights, particularly in the entrance hallway and primary reception room, which form part of the original ballroom, with ceiling heights of 5.7m and 4.4m respectively. The master bedroom also has a 4.7m ceiling height. The Gross Internal Area of the Property is 4,139 sq. ft. The apartment is in Academy Gardens, a prestigious Grade II listed residential building, converted in 2004 behind the period façade of the former Queen Elizabeth College for Ladies. The building, in which the apartment is situated, comprises a total of 68 self-contained residential units, as well as a 24hr concierge, in a gated development with secure underground car parking, lift, gym and leisure suite, all set within landscaped gardens.

The Developer – The developer specialises in the development of residential schemes in Prime Central London and has completed 14 projects over 20 years, which have successfully produced significant profits.

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 comprehensive security package which includes the following, a First Legal Charge over the Property and a First Ranking Debenture over the Borrower, a Charge over the shares of the Borrower, a Personal Guarantee limited to 25% of the Gross Loan, Assignment over fixed-price contracts with the contractors, and finally, Collateral Warranties guided by the Project Monitor. 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 70% of the GDV (Gross Development Value) of the Property.

Exit Plan – The Borrower intends to sell the Property on the open market upon completion.