HYDE PARK GARDEN MEWS

funds raised

Investment Highlights

Forecast Annual Return 10.5%
LTV at Entry  68% 
LTV at Exit  74% 
Total amount being raised £4,000,000
Estimated Term 8-12 months
ISA Eligible 
Product Debt 
Legal Charge Shared First Ranking Legal Charge ranking behind CaptialRise Funding Partner

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

Investment Summary

  • Property –29 Hyde Park Gardens Mews is a luxurious 4 bedroom home (c. 2,800 sqft) that has been expertly renovated by specialist developer Asquith Spencer. 
  • Location – Hyde Park Gardens Mews offers immediate access to London's most famous Royal Park, Hyde Park. It is one of London’s most sought-after cobbled streets, offering the very best in green landscapes and vibrant city life. 
  • Developer – Asquith Spencer are specialists in completing Prime London developments, known for creating design-led, high-quality homes on the best streets in Central London. 
  • Structure The investment will be in partnership with a CapitalRise Funding Partner who will be funding the first £2.8 million. The CapitalRise Funding Partner will be repaid in priority to your investment, in exchange for a reduced return.
  • Sales Price Savills has been engaged and provided a Red Book Valuation of £5.95 million.
  • Your Investment – Your investment will be used to provide a sales period loan and will be repaid once the home sells before the developer receives any funds but after the CapitalRise funding partner has been repaid.

The Plan

  • The Property has been completely rebuilt behind the façade to include all the comforts and touches of contemporary living. The interior design is of international luxury standards, complete with bespoke furniture. 
  • The directors of Asquith Spencer have over 20 years’ experience and are specialists in creating the highest standards in the super prime London market, focused on regenerating historic London real estate.   
  • Knight Frank has been engaged as the sales agent and is actively marketing the property for £6.5 million, equivalent to £2,300 per square foot.
  • Your investment will partially refinance the existing debt on the Property, with the remainder of the debt being refinanced by a CapitalRise Funding Partner.
  • The Property is situated on a quiet cobbled mews and is considered one of the best addresses in the area with the stylish luxury retail quarter Connaught Village on its doorstep.
  • Local transport links can be found nearby at Lancaster Gate (Central line) underground station or Paddington mainline (Heathrow Express, Network Rail) and underground (Hammersmith & City, Bakerloo, District and Circle lines) station.
  • Your investment will be secured by a shared first ranking leal charge with the CapitalRise Funding Partner, who will be repaid first in exchange for a reduced rate.

Returns Calculator

Return - Forecast annual return of 10.5%

Investment amount

Return accrues

You Invest

Jun 2018
Jan 2019
Jun 2019

Total Return

On original Investment of

Note: These returns are an indication only and are not guaranteed. Your capital is at risk and you may not get back the money you invest.

Financials

FUNDING STRUCTURE- AT INVESTMENT

Developer Equity £ 5.95m 100%
Value Current Value
% of Value
CapitalRise Investor £ 4m 68%
Funding Partner £ 2.8m 47%
You will be repaid 2nd. After the Funding Partner but before the developer.

FUNDING STRUCTURE-AT EXIT

Developer Equity £ 5.95m 100%
Value Current Value
% of Value
CapitalRise Investor £ 4.4m 74%
Funding Partner £ 3m 50%
The property's sales value would have to be more than 26% less than the market value for your invested capital or accrued returns to be at risk.

Investment Structure

  • A new subsidiary company of CapitalRise, CR Hyde Park PLC, has been incorporated to issue bonds to investors. CR Hyde Park PLC has already sourced some finance from pre-funding investors in order to facilitate the property transaction. We, CapitalRise Finance Limited, are one of the pre-funders and one of the other pre-funders is associated with us. The CR investors’ funds will be used to refinance the pre-funders.
  • CR Hyde Park PLC in conjunction with the CapitalRise Funding Partner is the beneficiary of a first legal charge. The first £2.8 million of the existing debt will be refinanced by a CapitalRise Funding Partner, who in exchange for a reduced rate will be repaid in priority to  CapitalRise investors £1.2 million. In any forced sale of the property, CR Hyde Park PLC will work in conjunction with the CapitalRise Funding Partner to recover the total capital and accrued returns
  • Your investment is ring-fenced because CR Hyde Park PLC will not carry on any other commercial activity. The directors of this company will (through CapitalRise) administer and enforce the terms of the bonds issued by CR Hyde Park PLC.
  • The investment is structured as deep discounted bonds . The bonds will be issued at a discount to the nominal amount and (if sufficient proceeds are generated from the sale of the property) at the point of redemption of the bonds, investors will receive proceeds equal to the issue price of the bonds and a return equivalent to 10.50% per annum, compounded annually.
  • CR Hyde Park PLC is not required to withhold UK income tax on this investment and so returns will be paid gross. Income tax may be payable by investors on any return on the investments unless you invest via your CapitalRise ISA. Investors should take their own tax advice from an appropriately qualified professional.

Risks

As with all investments you should carefully consider the key risks involved which include:

Risks How this applies to you
Capital and Income Risk – Your capital is at risk and the income is not guaranteed.

CR Hyde Park PLC shares the benefit of a first legal charge against the property. This means in the event that the developer cannot repay your capital and accrued return CapitalRise, on behalf of investors, together with the CapitalRise Funding Partner, will be able to force the sale of the property and will recover any amounts due. However, the outcome is uncertain and there is a risk that the full amount due may not be recovered.

Investment Liquidity Risk – You need to be prepared to hold this investment for the full term. We help you try to sell your investment if you want to exit early but this may be difficult and a sale is not guaranteed.
Sales Rates Risk – Sales rates may be slower than forecast and/or the properties may sell for less.

Your investment has an underlying redemption date of 18 months, providing a 6 month buffer in the event the sales period takes longer than anticipated.

The value would need to drop by at least 26% (c. £1.5 million) in order for your capital and accrued return to be at risk.

Compensation Scheme – The Financial Services Compensation Scheme does not cover poor investment performance.

You cannot claim compensation if your investment does not perform as expected, unless it results from us or Gallium not discharging our obligations to you. The FSCS would cover amounts owed to our customers in the event of our insolvency, up to a maximum of £50,000 per customer.

Deal Room

Documents

Valuation

Sales Brochure

Deal Summary

Bond T&C's & Security

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Capital at risk. Interest not guaranteed. See key risks.