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Investment Summary

  • Overview - This investment provides investors access to the first phase of development finance for an exciting development of two properties located in the prestigious Eaton Place in Belgravia and Cadogan Square in Knightsbridge.
  • Properties - Investors will be providing a loan to a highly experienced developer to fund the redevelopment.
  • Plan - The developer already has planning permission to reconfigure both apartments and plans to create high-spec modern homes within these attractive period properties.
  • Security – This investment provides investors a strong security package with the loan cross-collateralised against the two properties being refurbished as well as a third additional property. The combined value of all three completed apartments would have to fall by 39% before investors' capital and returns would be at risk. The borrower has provided a personal guarantee of up to 20% of the loan.
  • Valuation – Cluttons have provided an independent ‘red book’ valuation and confirmed the current value for all three properties is £12.73 million. Upon completion the expected combined value is £18.5 million. This is based upon the assumption that the two refurbishments are completed and the lease on the Eaton Place property is extended.
  • Developer - The developer has been redeveloping prime Central London homes for the past seven years. They have successfully completed 14 development projects in this period.
  • Exit plan – The property providing additional security has recently been refurbished and will be placed on the market shortly. The two properties being refurbished are scheduled to complete part way through the investment term, leaving a suitable sales period for each. If a buyer for each of these properties is not found by the end of the loan term, the developer plans to refinance the CapitalRise loan.