closed on 11th January 2008 having raised approximately £2,400,000.
So far the following
projects have been purchase -
near Sevenoaks, Kent - This seven acre site adjoins
existing development, has 3.5 acres which is developable now
and is very close to a Barratt development completed in the
last five years. Atkins, one of our planning consultants,
are now progressing the application for inclusion in the Local
Development Framework and, in addition, we are also moving
ahead with a full planning application for submission in the
normal planning process in June 08. We and Atkins believe
that this is a good opportunity to get in before a Berkeley
Homes 400 unit development achieves planning at appeal.
Doddington, Cambridgeshire - This project is nearing
completion with a completion date of early March 2008. We
have rejected a couple of early offers which is £20k
per unit over our initially expected asking price as shown
in our financial model. This gives us plenty of room for negotiation
and means we will increase our expected profits on this project.
These units will be completed virtually to budget, apart from
a £6k overspend due to unforeseen additional work required
by Anglian Water and some fencing we have decided to renew.
There is a slight delay due to bad weather experienced at
various times throughout the build.
Due to the high gearing,
the Return on Capital Employed (RoCE) of this project is expected
to be 102%.
– Having completed the purchase of this site in December
2007 we have now carried out all the necessary Phase I and
Phase ll reports on this land which is heavily contaminated.
Due to the expected cost of the remedial work we had negotiated
a reduction in the selling price to £360,000 (from £460,000).
With net remedial costs of some £250,000 this still
only represents a price of 22% of the Gross Development Value
(GDV) of the site. This is extremely good as normally this
would be between 30% and 40%.
We will also receive
150% of all remediation costs as tax relief, which will increase
profits and give us an RoCE to 135%, annualised to 60% over
Waterloo Road, Southampton
– We completed on this project on 24th January 2008.
This involves demolition of an existing dwelling and the construction
of 12 apartments in Freemantle, close to Southampton city
centre. Full planning permission is in place and the demolition
will commence sometime in March 2008, with the project expected
to last 16 months. Southampton still has a strong market for
apartments with other local developments selling out in days.
The RoCE of this project
is forecast to be 67%, annualised at 51%.
The gearing achieved
through our bankers is exceptional and includes all project
costs such as professional fees, bank fees, legal fees etc.
with interest rolled up to the end of the project. This means
the Return on Capital Employed is much higher than initially
anticipated and allows us to use the funds invested to the
Examples of the returns we expect
on the individual projects are outlined here –
|Dunton Green, Kent
||Waterloo Road, Soton
|Required Capital from the
|Projected Return Less costs
|Projected Return on Capital
us if you have any enquiries concerning this fund.