You could lose all your money invested in this product.
This is a high-risk investment and is much riskier than a savings account.
ISA eligibility does not guarantee returns or protect you from losses.

SOUTH EATON PLACE, BELGRAVIA PHASE A - 9.5% RETURN P.A.

Exterior of the property and a previous project by the developer

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Investment Summary

  • OVERVIEW – This investment opportunity gives CapitalRise members access to fund the first phase of a development loan being used to redevelop a large family home in central Belgravia. The estimated investment term is 12-14 months and future investment phases will be launched to members throughout 2019.
  • PROPERTY – This six-storey, 5,200 sq ft stucco-fronted family home has six en-suite bedrooms and is currently going through an extensive, high specification refurbishment.
  • DEVELOPER – The borrower is working with Leconfield Property Group who are the developer on the project. Leconfield are specialists in Prime Central London developments having completed over 50 projects in the area.
  • PLAN – The borrower purchased the property in 2017 and was subsequently granted planning permission to change the internal layout of the property. The borrower plans to make this their primary London residence once redevelopment is complete.
  • YOUR INVESTMENT – Investors will benefit from a second legal charge on the property. This means CapitalRise investors will be repaid their investment and accrued returns after the senior lender. The sale or refinance value of the property would have to be 46% less than the anticipated market value upon completion of the refurbishment before investor capital and returns are put at risk.
  • SALES PRICE – Savills have provided an independent Red Book Valuation of £17 million upon completion of the refurbishment.
  • EXIT PLAN – To provide an exit for CapitalRise investors, the borrower intends to refinance their debt with a mortgage upon completion of the refurbishment. We have already seen indicative mortgage terms from a selection of UK banks and the investment term includes suitable time for the borrower to refinance.