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223a Hatfield Road, St Albans

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  • Total GDV: £5,360,065
  • Total amount needed: £763, 545
  • Estimated fixed annual return: 20%
  • Project length: 21 months
You should note that investing in property carries potential risks as well as rewards. This means that you could lose all or some of the money that you put in. If you cannot afford to lose all or some of your investment, this project is not for you. LandDevelop cannot provide you with investment advice and you should seek advice from an appropriately qualified advisor.

Private Accommodation – 14 units
  • Gross Development Value (GDV): £5,220,065
  • Expected Size: 7,630 sq. foot
  • Price Per Square Foot: £684
  • Average Unit Size: 545 sq. foot
  • Average Unit Price: £372,862

Commercial – 6 units

Gross Development Value (GDV): £140,000

This ground floor commercial space will be at a 999-year sale and leaseback agreement at peppercorn rate. The residual land price agreed was reduced since they will be building these units out but not retaining them. Risk is therefore reduced as the sale and leaseback are agreed at a viable residual land value for the residential development. In return, the vendor has requested a charge on the land behind any senior debt/equity charges if Tillingbourne Estates or the proposed SPV undertaking the scheme were to go into liquidation during construction. The developer has made it clear that any such charge will only be a token one and have no real value and the seller understands this.

Project Appraisal

 

 

 

06-Jun-17

 

 

 

 

 

Project Name

 

 

 

Hatfield Road, St Albans

Applicant

 

 

 

Tillingbourne Estates Ltd

 

 

 

 

 

Project length

 

21

months

 

 

Build

15

months

 

 

Sales

6

months

 

 

 

 

 

 

Gross Development Value

 

 

 

£5,360,065

 

 

 

 

 

Total Costs (including finance & sales)

 

 

 

£4,459,889

 

 

 

 

 

Gross Development Cost

 

 

 

£3,974,895

 

Purchase (including associated costs)

 

 

£1,549,575

 

Build & refurbishment Costs

 

 

£2,192,331

 

Prelims

 

 

£0

 

Contingency

 

 

£43,847

 

Professional fees

 

 

£82,212

 

S106/278

 

 

£15,717

 

Office fit-out

 

 

£45,000

 

Development management fee

 

 

£34,573

 

VAT unrecovered

 

 

£11,640

 

 

 

 

 

Total Finance Costs

 

 

 

£344,893

 

Senior Loan Arrangement Fee

1.50%

 

£53,065

 

Senior Loan Interest

7.00%

 

£233,228

 

Senior Legal Fees

£5,000

 

£5,000

 

Senior Loan Exit Fee

1.00%

 

£53,601

 

Bridge Interest

 

 

£0

 

Bridge Legals

 

 

£0

 

 

 

 

 

Total Costs of Sale

 

 

 

£140,101

 

Marketing Costs

 

 

£35,000

 

Sales Agents Costs

 

 

£78,301

 

Sales Legal Fees

 

 

£26,800

 

 

 

 

 

Expected Profit - before finance costs

 

 

 

£1,245,069

 

 

 

 

 

Expected Profit - after finance costs

 

 

 

£900,176

 

 

 

 

 

Total Fundable Costs

 

 

 

£4,301,187

Senior Debt Loan

 

66%

 

£3,537,643

Total Equity Requirement

 

 

 

£805,000

 

of which Investor equity

100.0%

of equity

£763,545

 

of which Developer equity

0.0%

of equity

£0

 

 

 

 

 

Equity Return For Investor

 

25%

IRR

£334,051

Developer's Net Profit

 

 

 

£566,125

n
The closest station to 223a Hatfield Road is St. Albans City Station from which Central London is just 18 minutes away. There are numerous schools and colleges situated in the area with the University of Hertfordshire a mere 10-minute drive away. The closest airport is Luton airport, where both domestic and international flights take-off.

St. Albans has a population of 1.16m people, the majority being families, who flock here for the schools and young professionals who work in Central London but cannot afford London’s steep property prices.

The area is well known for its Cathedral & Abbey Church of Saint Alban and the Verulamium Park

Tillingbourne Estates’ focus is on residential development in areas of high demand and growth within London and the Home Counties, attracting both purchasers for owner occupation and investors from the UK and overseas. The four cornerstones of their business approach are strategy, quality, value and location. Their aim is to optimise development potential by identifying a realistic and achievable exit strategy from inception to delivery on each project.


Paul Richard Mazzetta

Paul is an entrepreneur having co-founded many successful companies, including “We Love Movies” and “Cluny House.” He also has significant experience working within the corporate sector at International level. He has been a successful property developer since 2005, developing both residential and commercial properties within Glasgow and Edinburgh.



Gordon N Laurie

Gordon has over 30 years’ experience in the institutional commercial property investment and development sectors, both in private practice with major London chartered surveyor consultancies Hillier Parker.


Previous projects:

Arun Court, Station Close, Horsham RH13 5UB
• New build of 11 private residential apartments
• Purchase/Start: June 2015
• 12 Month build
•Sales Completed: October 2016
• Total Project Life: 17 Months
• Land cost : £ 755,000 + VAT (reclaimed)
• Build cost: £ 1.348m Fixed price D&B Contract
• Total Development Cost: £ 2.512m
• Total Project Receipts: £ 3.105m
• Profit: £ 593,011 or 24.15% Profit on Cost.

Wootton Court, 42 New Dover Road, Canterbury CT1 3DT
• New Build of 11 private residential apartments.
• Purchase: February 2016
• Build Start: April 2016. Delayed completion due to clearing pre-commencement planning obligations (bat licences etc)
• 14 Month build
• PC Date: End July 2017
• Estimated Sales Completion: September 2017. Phase 1 to launch mid-June 2017.
• Estimated Total Project Life: 21 Months
• Land cost : £ 950,000
• Build cost: £ 1.46m Fixed price D&B Contract
• Total Development Cost: £2.912m
• Estimated GDV: £ 3.552m (sales £ 3.430m + £ 122,000 FH reversion agreed)
• Estimated Profit: £ 639,000 or 22.41% Profit on Cost.

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