HIGH WYCOMBE INVESTMENT OPPORTUNITY - 8.5% RETURN P.A.

Investment Summary

• PROPERTY - A new 3-storey purpose-built residential building, consisting of seven two-bed apartments, and a one-bed, each benefitting from an allocated parking space. The property is located within a well-established residential development to the west of High Wycombe town centre. The apartments will benefit from open kitchens and living rooms that provide access to individual private balconies. The properties are being finished to a high specification to attract young London commuting professionals upon completion. 
• YOUR INVESTMENT – Your investment will be used to provide the first of a number of phases of development finance that will be raised by CapitalRise investors over the next 12 months. This phase will be used to repay existing debt as well as funding current construction activities. 
• STRUCTURE – Investors will benefit from a first legal charge on the property. In the event of a forced sale of the property, CapitalRise investors would recover their investment first. The value of the property would have to be 31% less than the anticipated sale value before investor capital and interest becomes at risk. The security package includes a Personal Guarantee on the loan up to the value of 25% of the total loan value. Investors will be issued with Deep Discounted Bonds with the accrued return paid at the end of the term. Invest using the CapitalRise ISA for tax-free returns. Tax rules apply and may change. 
• SALES PRICE - Strutt & Parker have provided an independent Red Book Valuation of £2.135 million upon completion of the development. 

• EXIT PLAN - Construction activities are scheduled to complete part way through the term of the investment providing a suitable sales period towards the end of the term. Six of the eight apartments must be sold to allow the full amount of the loan and accrued return to be repaid. Given the ability to buy these properties on the Help-to-Buy scheme CapitalRise feel there is sufficient time to sell the properties. Should this not be the case the borrower may refinance onto a further Sales Period Loan.
• LOCATION – The property is located in the High Wycombe town centre and is within walking distance to the railway station providing direct trains to central London in just 30 minutes and Oxford in 40 minutes. The property is located a few hundred metres from “The Rye”, a large attractive recreational area which includes woodland, with a lido; gym; sport pitches; cricket club; boating lake; and playgrounds. The property is also in walking distance from the local Eden shopping centre.
• DEVELOPER – The borrower is an experienced developer with a successful track record of similar new build multi-unit projects in the area. They have recently completed a similar 14 unit development on time and within budget. This development has proved popular for local home owners with most units now sold after a short period of time on the market. Past performance of previous projects is not indicative of future results for this project.