Great James Street, Bloomsbury - 2nd Tier - Phase D

Investment Summary

• OVERVIEW – CapitalRise is providing funding to assist with the refinance, refurbishment and extension of two impressive Grade II* Listed Georgian townhouses in Bloomsbury (otherwise referred to as "the Property"). Investors in the 1st Tier have funded the refinance of existing debt, while 2nd Tier investors will be funding the development over the coming months. Investors in the 2nd Tier will be subordinated to investors in the 1st Tier.
• TERM – The estimated term for the 2nd Tier investment is 5-6 months. If the loan is not repaid by the end of the estimated term, returns will accrue on investments for a further 8 months from the end of the estimated term up until the hard stop date (March 2024).
• PLAN – The Borrower is refinancing (took place in July 2021, Tier 1 investors) and redeveloping the Property (Tier 2 investors) and planning was granted in February 2022 for a change of use from office to residential for both townhouses and works commenced following this. The developer will use this phase of funding to assist with funding the development costs. 2nd Tier investors will rank behind and be subordinated to investors in the 1st Tier, as well as offering different investment terms. 

• YOUR INVESTMENT – CapitalRise investors (Tier 1 and Tier 2) will benefit from a First Legal Charge over the Property, a Personal Guarantee and Corporate Guarantee limited to 25% of the total advance, Cost Overrun Guarantee, Collateral Warranties plus a First Ranking Debenture. Tier 1 investors will be repaid in priority to your investment, in exchange for a reduced return. Should the sale of the Property be forced in the event the borrower is unable to repay the loan, Tier 1 investors would be repaid before Tier 2 investors. Tier 2 investors are subordinated to Tier 1 investors. For Tier 2 investors the actual sales price of the Property would have to be less than 66% of the anticipated market value for CapitalRise Tier 2 investors' capital and accrued return to be at risk.
• LOCATION – The Property is located on Great James Street within Bloomsbury, north of the River Thames. Immediately to the south of Bloomsbury lies Holborn, with Fitzrovia to the west, Kings Cross to the north, and Farringdon to the east.
• PROPERTY – The Property consists of two adjoining Grade II* Listed buildings located in Bloomsbury, set over four storeys, as well as a basement.
• EXIT PLAN – The developer plans to sell the Property on the open market upon completion. If a sale is not completed within the term, the developer may seek to refinance the loan. Tier 1 investors would be repaid first and then Tier 2 following a sale of either of the properties. The sale of the second townhouse at the red book valuation would be sufficient to repay Tier 2 investors.