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HOLLAND PARK INVESTMENT OPPORTUNITY - 10% RETURN P.A.

Designer's Impression of the Property

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Investment Highlights

Forecast annual return 10% paid at the end of the term
Expected total return 10%
Total amount being raised £6.4 million
Amount being raised in this tranche £4.9 million
LTV at exit 59%
Estimated term 12 months
ISA Eligible 
Product Debt - Deep Discounted Bonds
Legal charge Second Legal Charge

The expected total return is a forecast based on the estimated term and is not guaranteed.

Information contained within this document is indicative only and is subject to change pending the completion of due diligence on the project. Investors will be provided with final deal information prior to investing which will highlight any changes.  
 

Investment Summary

  • Property - The house is a grand mid-19th century detached villa, set back from the road with its own gated private drive, in a renowned Holland Park street. The house benefits from a large west facing garden and wide glass floorplates which give it remarkable accommodation. The area is home to a wide range of celebrities and successful entrepreneurs who doubtlessly value the large gardens and private nature of the houses. This 13,500 sqft home features a grand reception room, wonderful family kitchen area and 5 ensuite bedrooms. The property is nearing the completion of an extensive re-development with the addition of a beautiful lower floor underneath the garden that will include a swimming pool, sauna, steam room, gym and lounge.
  • Your Investment - Your investment will be used to provide the first of a number of tranches of development finance that will be raised by CapitalRise investors over the next 6 months. This tranche is used to repay existing debt as well as funding current construction activities.
  • Structure - Investors will benefit from a second legal charge on the property. This sits behind the senior lender. In the event of a forced sale of the property the holder of the first legal charge would recover its investment first. The value of the property would have to be 41% less than the anticipated sale value before investor capital and accrued return becomes at risk. Investors will be issued with Deep Discounted Bonds with 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- Savills have provided an independent Red Book Valuation of £50 million upon completion of the re-development. The final valuation will be available prior to making your investment.
  • Exit Plan - Construction activities are scheduled to complete part way through the term of the loan. This provides a modest sales period towards the end of the term. There are a two possible exit plans for the repayment of your investment: 1) The developer sells the property after construction; 2) The developer refinances CapitalRise with a another loan once the property is complete.
  • Location - The property is located on one of the finest streets within prime central London. The area boasts a number of attractive, substantial and prestigious family houses. The property is one mile from the centre of Kensington which has first class shopping facilities, restaurants as well as excellent transport links.
  • Developer - The developer provides bespoke and high quality construction, joinery and maintenance services to private clients with prime residences primarily in London and the surrounding counties but occasionally further afield. They have a proven large track record of successful redevelopment projects.

Capital at risk. No FSCS protection. See Key Risks.