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- OVERVIEW – Investors in this facility will fund the ongoing conversion of this freehold property from a mixed-use multi-unit dwelling into a single residential family dwelling, in the highly sought-after residential area of Belgravia. CapitalRise previously provided a bridging loan to fund the acquisition of the property, to enhance the existing planning consent and make the necessary preparations to commence construction. They then refinanced onto a development loan with CapitalRise.
- TERM – The estimated term for this investment is 9-15 months. If the loan is not repaid by the end of the estimated term, returns will accrue on investments for a further 12 months from the end of the estimated term up until the hard stop date (June 2025).
- PLAN – The first phase of funding (Phase A) was used to repay the acquisition bridging loan previously provided by CapitalRise and provided some equity release. This and future Phases of this opportunity will fund all the construction costs. Planning permission has already been granted to convert the property to a residential dwelling along with a minor basement extension which is subject to Grosvenor Estates consent for its construction. The developer is converting the property into a modern, residential, 6 storey, semi-detached house which will be refurbished to a high standard.
- LOCATION – The property is located on Wilton Place, which is a well-regarded residential address with good connections to transport and local amenities. Belgravia is a highly sought-after Prime London location. The area appeals to affluent domestic and international purchasers. The Property is also extremely well located for world renowned shops and restaurants that Knightsbridge and Sloane Street have to offer, with Chelsea and Mayfair within easy reach.
- PROPERTY – The property forms an end of terrace Grade II Listed house, sitting across six floors comprising 5 bedrooms, 2 reception rooms, 2 studies, dining room, kitchen, cinema room and staff accommodation. The property benefits from planning permission to convert to a modern residential dwelling and basement extension which is subject to Grosvenor estates consent.
- THE DEVELOPER – The property is being developed by Old House Group, whose main principal and ultimate beneficial owner has development experience of more than 10 years. They have expertise in the refurbishment of residential properties and hotels in Prime Central London. Since 2008, they have handled projects in excess of £500 million, with notable multi-unit new build and refurbishment projects around High Street Kensington, Marble Arch and other prime locations in London.
- YOUR INVESTMENT – CapitalRise investors will benefit from a First Legal Charge over the property, Personal Guarantee amounting to 25% of the loan, cost overruns guarantee, First Ranking Debenture over the borrower, assignment over the build contract and collateral warranties from key professionals. CapitalRise investors will always be first in line to be repaid when a payment is made against the loan. In the event of a forced sale of the Property, CapitalRise investors would recover their investment first and if the borrower is unable to repay the loan, CapitalRise will seek to force the sale of the Property on behalf of investors. If a sale is achieved the value would need to be less than 66% of the anticipated market value before investors’ invested capital and accrued return are at risk.
- EXIT PLAN – The borrower plans to sell the Property on the open market upon completion. If a sale is not completed within the term the borrower may seek to refinance the CapitalRise debt with another lender.