Charles Hill Park, Farnham - Development Loan - 1st Tier - Phase C

Investment Summary

Overview – In December 2021 CapitalRise provided a bridging loan to assist in the acquisition of the site. The developer utilised the time to prepare themselves for the development of the 5 new-build detached houses as per the approved planning permission along with discharging the necessary planning conditions. They have now refinanced onto a development loan with CapitalRise which investors in Phase A funded. Investors in this opportunity will fund the development costs to construct 5 new build luxury detached houses on a 27-acre plot of land with planning consent.

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 12 months from the end of the estimated term up until the hard stop date (November 2025).

Plan – The developer will use this loan to refinance their existing debt and fund the development of the site. Full planning permission has been approved to develop a scheme comprising of five new-build luxury detached houses (over 32,583 sq.ft.), set within 27 acres of private gated parkland.

Location – The property is located in a semi-rural location, benefitting from the privacy and greenspace associated with the countryside, with good connections to transport and local amenities. Knight Frank have considered the location a premium address for the local area.

Your Investment – CapitalRise Tier 1 and Tier 2 investors will benefit from a First Legal Charge over the property, a Personal Guarantee limited to 25% of the Gross Loan, a First Ranking Debenture over the borrower as well as two Corporate Guarantees limited to 25% of the Gross Loan, one from the group parent company and one from the contractor who is also the developer. Tier 1 investors will be repaid in priority to Tier 2 investors in exchange for a reduced return to reflect the reduced risk. If the borrower is unable to repay the loan, CapitalRise will seek to force the sale of the properties on behalf of investors. If sufficient sales are achieved, the value would need to be less than 50% of the anticipated market value before Tier 1 investors invested capital and accrued returns are at risk. 

Property – The Property is a 27-acre plot which was previously a garden nursery. The property has planning for five new-build luxury detached houses. approached via a long private driveway surrounded by mature woodland, lakes and open common land. Each house will have its own private entrance, driveway, and benefits from a minimum of 3 acres of private gardens.

The Borrower/Developer –  ME Developments will be completing this project. They are an award winning entrepreneurial property group specializing in desirable mid-market to luxury houses, as well as high-turnover urban London apartments. Typical development sites include Home Counties projects of around 15+ houses, as well as urban London buildings of 50+ apartments close to rail networks and public transport.

Exit Plan – In terms of exit, the borrower plans to sell the Property on the open market upon completion. 3 of the 5 properties need to be sold in order to repay Tier 1 investors. If sufficient sales are not completed within the term of your investment the borrower may seek to refinance the CapitalRise debt with another lender.