A property investment is always more appealing when elements of it have already been tried and tested.
That’s what makes Midwood House so attractive. It’s an investment opportunity to expand an already financially proven scheme, promoted by a long-established, profitable development company whose management have dealt with CapitalStackers’ principals for decades.
The Loan-to-Value ratio is a trim 38%, which has pegged the return at a very respectable 7.5% – since CapitalStackers will take the position of senior lender and therefore secure first charge on the property.
Osborne House Ltd, a conservatively geared property company with a net worth of around £6.5m, originally acquired this former office block with their own cash and converted half the building to 17 en-suite studios. Within a month of completion, it was fully let, reaping a net income of around £65K per annum. The lettings experience to date has produced a strong, reliable income stream and few voids, thanks to the initiative of including energy and Council Tax in the tenancy.
This unquestionable success has led to OHL seeking funding from CapitalStackers investors to develop the rest of the building along the same vein – a further 17 studios, taking the total to 34.
Following an estimated six months refurbishment, the new units will be available to let and are expected to increase net income to £130K per annum.
Of course, while construction carries a degree of risk, in this case that risk is mitigated by the appointment of the same contractor as successfully completed the phase 1 works, along with an independent monitoring surveyor who will be under a duty of care to CapitalStackers’ investors. And, of course, income will continue to flow from phase 1 pending the new units coming on stream.
Loan investments are invited from £5,000 upwards. We recommend viewing this opportunity as early as possible, since it bears all the hallmarks of being subscribed very quickly.
Note: This is a residential investment loan. Consequently, pension fund investment is prohibited by HMRC rules.