A hugely viable building scheme that failed to launch through a pooled lending platform has raised all the funding it needed in 15 minutes through CapitalStackers.

Converting Charles House – a five storey former HMRC office in Preston – into 70 apartments, all priced at an affordable £90K to £130K (with 27 covered car spaces) certainly has its attractions for investors.

Particularly when you factor in that it’s sited in Winckley Square – traditionally a prime office address for solicitors, accountants and banks, a mile and a half south of University of Central Lancashire and a few minutes’ walk from the mainline rail station and retail centre. The square enjoyed a recent £1m upgrade and Charles House is just the latest of several buildings around the square to be converted to residential use.

The scheme targets the many first time buyers, young professionals and investors flocking to Preston’s revitalised city centre, but is also close to the M6, M65 and M61 interchange and just 40 minutes from Manchester and Liverpool via rail or road. The city’s railway on the West Coast Mainline can whisk residents to London Euston in as little as two hours fifteen minutes.

However, the initial failure to launch highlights the importance of matching the right sort of funding to the investment opportunity.

Contracts had already been exchanged on the site purchase when the P2P lender pulled out – although clearly not because of any problem with the deal.

The broker, Real Property Finance offered the deal to United Trust Bank, who quickly put up £3,966,000 to cover all the construction costs and brought in CapitalStackers – with whom they had successfully collaborated on other deals – to raise the mezzanine finance.

CapitalStackers Director Sylvia Bowden said, “We found absolutely nothing wrong with the deal itself – it’s one of the best we’ve come across. It’s just that longer term building projects aren’t really suitable for the pooled lending model. You need to ensure all your construction capital is in place before anybody lifts a trowel, rather than assume you can attract new investors once building is under way. Otherwise you run the risk of it falling out of bed like this one did”.

Managing Director Steve Robson added, “When RPF approached us, we did our usual deep and granular risk assessment and despite the COVID-19 situation we were bullish about raising the £750,000 needed in time.”

“Once again, our investors didn’t let us down and we’d like to thank them for continuing to support projects. Their appetite for deals remains as sharp as it’s ever been, but it’s important to point out that this isn’t just due to luck. Our due diligence has delivered for them time after time, and they have once again proved they have a nose for a good deal.”

The particulars of the deal certainly shine through. Aside from the £4.7m raised, the developer has put in £1m of his own cash and once completed, the scheme will generate net sales of £7.2m.

CapitalStackers investors had the choice of three layers ranging between a Loan-to-Value ratio of 60% (paying annualised interest of 9.66%) and 69% (paying 15.80%).

The conversion will be carried out by Empire Property Concepts, who have an impressive track record in completing similar developments, the original 10-person lift is to be retained along with most of the windows. A contingency sum of 11% is included in the budget costs and no structural works are required.

Naturally, the risk assessors have cast an eye at the dark clouds of COVID-19 hanging above the industry and built in a pessimistic assumption that perhaps 40 of the apartments will be sold in the 9 months following completion, with the rest taking even longer.

However, should any units remained unsold, CapitalStackers’ modelling shows that the project could be refinanced with more than enough interest cover from rental income. Rent receipts, after an allowance for voids and management costs would cover interest on a refinance mortgage of the senior debt by 173% even if no apartments were sold. The equivalent ratio based on aggregate debt is 139%. Furthermore, these ratios should increase as sales proceeds reduce debt.

On the other hand, the borrower is confident of exchanging contracts on most of the units before the building is even finished – primarily through targeting Buy-To-Let investors. The market rent has been independently assessed at £550 pcm for the one-bed apartments and £650 pcm for the two-beds. This gives a total gross market rent of £546K.

This deal is becoming typical of the kind of attractive pickings to be found in the COVID-19 climate. As more deals fail to launch, the CapitalStackers model is capable of ploughing on, thanks to its unwavering policy of nailing down all construction finance before work commences. It’s even become a source of comfort to the banks, knowing that when mezzanine finance from other sources fails, they know where to come for a fast (and steadfast) solution.

Please follow and like us:

Blog Borrower News Deals Investor News

CapitalStackers is authorised and regulated by the FCA. Investment through CapitalStackers involves lending to property developers and investors. Your capital is at risk. Investments through this and other peer to peer lending platforms are not covered by the Financial Services Compensation Scheme. Unless otherwise stated, returns quoted are annualised and gross of tax.
Call us on: Office: 0161 979 0812 | Steve: 07774 718947 | Sylvia: 07464 806477

Investors hungry for more double- digit returns pounced on the latest opportunity from CapitalStackers – a block of 23 flats near Leeds City Centre.

CapitalStackers investors typically enjoy returns of between 10% and 15%, usually over periods of 12-24 months. The conservative Loan-to-Value (LTV) ratios, high level of due diligence and zero losses have attracted a wide range of investors, some putting in as little as £5000, many considerably more.

The Leeds development – called Abode – is a four-storey block of 15 two-bedroom flats and eight one-bedroom flats, bringing a return of 13.76% on an LTV of 68.4%. Prices range from £80K to £130K and interest has been sparkling, with six of the flats already under offer well before completion. In addition to first-time-buying single professionals and urban downsizers, the flats are also proving enticing to Buy to Let landlords with good demand and individual flat rentals ranging from £550 to £700 per month.

This is the second deal launched for the experienced developers, Demech Properties, by CapitalStackers. They’re also on site with 22 houses at Thorne due for completion in Autumn 2019 with 17 houses either exchanged, in legals or reserved.

Abode was already under construction when they approached the investment platform, looking for additional funding to meet additional costs and improve cash flow to enable more cost-effective employment of bricklayers.

Marc Black, a director of Demech said, “This kind of deal can be tough for developers to find funding for, as few investment establishments will deal with part-built schemes. However, since we already have a strong relationship with the team at CapitalStackers, they used their considerable property experience to assess the risks and we were happy to meet their ancillary demands.”

CapitalStackers considered the construction risk to be greatly reduced since the building is already up to the 3rd floor and all externals are complete.

The developer expects the project to be fully sold out by March 2020.

Please follow and like us:

Blog Deals Investor News News Press Releases

CapitalStackers is authorised and regulated by the FCA. Investment through CapitalStackers involves lending to property developers and investors. Your capital is at risk. Investments through this and other peer to peer lending platforms are not covered by the Financial Services Compensation Scheme. Unless otherwise stated, returns quoted are annualised and gross of tax.
Call us on: Office: 0161 979 0812 | Steve: 07774 718947 | Sylvia: 07464 806477

Remember the high quality Chessett’s Wood development in Lapworth, which paid annualised returns of up to 13.8% after just 7 months? Or the luxury St. Bernard’s Road development in Solihull paying 14.06% on a very reassuring Loan to Value (LTV) of just 55%?

Well, for those who happily capitalised on those – or even those who missed out – CapitalStackers is pleased to offer a third opportunity to invest in the same highly respected developer – Avalanche Capital and their joint venture construction partner, HCD Developments.

It’s our strong belief that HCD’s distinctive quality of workmanship is a key factor in the early property sales on their previous schemes.

The current opportunity is to invest a total of £620,000 in the development of two large luxury houses, in an established and popular residential road in Solihull – just ten minutes walk from the prosperous town centre and its rail station with links to London and only six miles from Birmingham Airport. Target annualised returns will range between 10.44% and 14.33% for LTV ratios of 52% to 63%.

To be clear, this means that if Layer 2 investors were to suffer a loss, the property would need to

fall in value by 37%. For Layer 1 investors to suffer loss, the value would have to fall by 48% – making for highly attractive risk adjusted returns.

The bulk of the finance – £1.345 million for construction works – is being put up by NatWest and the Borrower has substantial “skin in the game” with its cash equity of £540,000. In addition, the boost in site value from the granting of planning permission amounts to at least £200,000.

The funding base case on which the deal and its risk ratios are structured, assumes both properties are built out and remain unsold for the term of the loan. This follows the usual cautious approach adopted by CapitalStackers. Our sensitivity analysis assumes that at least one buyer will be secured during construction, leading to one house being sold the month after completion – and the second house selling two months later, with the conservative as

sumption of both being sold at a discount of 15% to value. Even taking this into account, risk ratios remain conservative at 60% LTV for Layer 1 investors and 73% for Layer 2.

The site currently accommodates an unoccupied single property in need of substantial renovation, so the proposal is to demolish this and build two very high specification detached houses, on three floors with single integral garages and off-road parking.

Investors are invited to offer loans of £5,000 upwards when the bidding opens at noon on Monday 18th March 2019. This is expected to be an extremely popular auction owning to the quality and track record of the developers and the deal itself, so early participation is recommended.

Please follow and like us:

Blog Deals Investor News News Press Releases

CapitalStackers is authorised and regulated by the FCA. Investment through CapitalStackers involves lending to property developers and investors. Your capital is at risk. Investments through this and other peer to peer lending platforms are not covered by the Financial Services Compensation Scheme. Unless otherwise stated, returns quoted are annualised and gross of tax.
Call us on: Office: 0161 979 0812 | Steve: 07774 718947 | Sylvia: 07464 806477

Midwood House in Widnes town centre was bought by Osborne House Ltd for cash around three years ago and half the office space converted into 17 apartments to test the local market for short-stay, single tenants (think workers away from home on medium to long-term contracts, looking for a cost-effective alternative to hotels). 

The results were impressive. It was fully let within 2 months and, after costs and allowances, is yielding a solid annual income of £65,000. 

The gated apartments, available at an attractive all-inclusive rent of £567 per month, come with secure parking and are within an easy commute of Runcorn, Liverpool and Warrington. As such, they have proven appeal to businesses looking to save on staff accommodation or private individuals working away from home.  

Having proven the market, OHL are now converting the remaining space into another 17 apartments. This will double the net income to £130,000. 

Since the property is already generating income with good interest cover and Loan-to-Value levels, this presents a lucrative opportunity for all those who have invested. Investor returns have been pegged in the range 6.9% – 7.5% p.a. over 36 months. Net income from the first phase is sufficient to provide interest cover of 135% – meaning there would have to be a substantial fall-off in demand before interest payments are at risk.  

Once the refurb of the remainder is complete, the ratios will improve dramatically, with interest cover increasing to 250% and LTV falling from 65% to 35%. 

Of course, while the ongoing construction still carries a small degree of risk, in this case that risk is mitigated by the appointment of the same contractor as successfully completed the first phase works, along with an independent monitoring surveyor who is under a duty of care to CapitalStackers’ investors. And, of course, income will continue to flow from phase one pending the new units coming on stream. 

 

About the developer  

OHL is a highly profitable, conservatively-geared company with gross assets valued at £7.4 million in April 2018. Net worth is around £6.5m. The shareholder directors have been known to the principals of CapitalStackers for over 25 years. 

For HMRC compliance reasons, this deal is not eligible for pension fund investment. 

Please follow and like us:

Blog Deals Investor News News

CapitalStackers is authorised and regulated by the FCA. Investment through CapitalStackers involves lending to property developers and investors. Your capital is at risk. Investments through this and other peer to peer lending platforms are not covered by the Financial Services Compensation Scheme. Unless otherwise stated, returns quoted are annualised and gross of tax.
Call us on: Office: 0161 979 0812 | Steve: 07774 718947 | Sylvia: 07464 806477

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.

Please follow and like us:

Deals News

CapitalStackers is authorised and regulated by the FCA. Investment through CapitalStackers involves lending to property developers and investors. Your capital is at risk. Investments through this and other peer to peer lending platforms are not covered by the Financial Services Compensation Scheme. Unless otherwise stated, returns quoted are annualised and gross of tax.
Call us on: Office: 0161 979 0812 | Steve: 07774 718947 | Sylvia: 07464 806477

£400,000 was raised in just one hour to help fund a bucolic waterside development of 22 houses in the pretty Yorkshire market town of Thorne, within a 45 minute commute of Leeds, Hull and Sheffield.

CapitalStackers investors stand to make annualised returns of between 10.28% and 12.92% against Loan to Value ratios of 51.1% and 54.4% respectively.

The development has attracted senior funding of £3,386,050 from United Trust Bank. The developer, SPG Property Services Ltd, has introduced the entire site as security, which has outline planning consent for a further 57 houses, in addition to the 22 being built in phase one.

The scheme has been well-planned and priced by this experienced developer of 15 years standing. The picturesque setting of Thorne, known locally as “Little Holland” has two railway stations, excellent motorway connections, good schools, sports clubs, shops and a decent range of pubs – factors which will account for the fact that 13 of the 22 houses have already been reserved and the agents have received over 100 enquiries before the marketing has been fully launched.

Phase one is a mix of 3, 4 and 5 bedroom houses, plus two bungalows, each with a parking space and all priced between £135,000 and £250,000.

CapitalStackers’ due diligence presented the investors with a comprehensive analysis of risks, mitigants and sensitivities.

Investors can expect to be paid out by November 2019.

Please follow and like us:

Blog Deals Investor News Press Releases

CapitalStackers is authorised and regulated by the FCA. Investment through CapitalStackers involves lending to property developers and investors. Your capital is at risk. Investments through this and other peer to peer lending platforms are not covered by the Financial Services Compensation Scheme. Unless otherwise stated, returns quoted are annualised and gross of tax.
Call us on: Office: 0161 979 0812 | Steve: 07774 718947 | Sylvia: 07464 806477

CapitalStackers investors can look forward to a return of up to 14% from a development of nine luxury flats in an established and popular residential road in Solihull.Front Elevation

The project is the latest scheme by Avalanche Capital – the successful team that some will remember repaid investors early when their spacious Chessets Wood dwellings were built and sold ahead of schedule in December last year, paying annualised returns of between 9.8% and 13.8% after just 7 months.

This latest scheme is to be built on the site of a large, unoccupied dwelling which will be demolished to make way for spacious, well appointed 2 & 3 bedroom apartments ranged over three floors.

The construction finance of £2,025, 000 is being provided by NatWest and the developers are contributing £900,000 of their own funds, leaving a crowdfunding opportunity for CapitalStackers investors to raise £930,000. Investment bids are invited from as little as £5,000.

“Excellent” levels of profit are expected – the site has already seen a substantial rise in value following planning permission, and confidence is further enhanced by the appointment of John Shepherd Estate Agents (who have previously sold Avalanche developments at better than appraised values) as the selling agents.

Deal Infogram - St. Bernards Road by Avalanche CapitaWe have adopted a conservative figure of £5.8m pending formal valuation, which results in a respectable Loan-to-Value ratio of 55%. It’s worth noting the agent anticipates selling for around £6.3m.

Given the above factors, investor demand will be extremely high when bidding opens at noon on Tuesday 10th April – so if this sounds like the right sort of investment for you, please don’t miss out.

So that you’re ready to invest when the auction goes live, if you’re an existing member, you can familiarise yourself with the details of the deal now by clicking here. If you don’t yet have an account, you can sign up here.

Please follow and like us:

Blog Deals Investor News News

CapitalStackers is authorised and regulated by the FCA. Investment through CapitalStackers involves lending to property developers and investors. Your capital is at risk. Investments through this and other peer to peer lending platforms are not covered by the Financial Services Compensation Scheme. Unless otherwise stated, returns quoted are annualised and gross of tax.
Call us on: Office: 0161 979 0812 | Steve: 07774 718947 | Sylvia: 07464 806477

Building begins this month on a sympathetic development of 2, 3 & 4 bedroom stone houses in the Nidderdale Area of Outstanding Natural Beauty.

Gregory Property Group – who have an excellent track record of successful developments over the last 30 years – have completed the drawdown of £504,000 funding for the first 11 houses, which is the first phase of 22 dwellings in the sought-after, picture-postcard village of Dacre Banks.

The development augments the area by adopting former vacant commercial land – and when completed will have a value of £5.8m. This will furnish annualised returns for CapitalStackers investors of 12.6% to 17.1% over 18 months – at Loan to Value ratios of 65% and 74% respectively – depending on which risk layer they have chosen.

As well as arranging the crowdfunded segment of the loan, CapitalStackers also negotiated the construction facility of £2m with Hampshire Trust Bank, one of its senior debt relationship lenders.

Sylvia Bowden of CapitalStackers said “it’s encouraging to find that we’re attracting new investors with each new deal published. The list of registered members continues to grow, with an average investment size of around £67,000 – although it is possible to invest as little as £5,000 with CapitalStackers. To meet the growing demand for investment, we are trialling a new policy where CapitalStackers invests in developments itself and then releases loans onto our secondary market, to make opportunities available for recently joined members”.

Not only does this exceptional development further adorn one of Yorkshire’s foremost areas of outstanding beauty – it will enrich and diversify the local population. It will attract a mix of young professionals, families and downsizers lured by rural village life, and commuters to Leeds and Harrogate, it also offers further proof of the escalating popularity of loan-based property crowdfunding as a consistent route to double-digit returns.

Please follow and like us:

Blog Deals Investor News News Press Releases

CapitalStackers is authorised and regulated by the FCA. Investment through CapitalStackers involves lending to property developers and investors. Your capital is at risk. Investments through this and other peer to peer lending platforms are not covered by the Financial Services Compensation Scheme. Unless otherwise stated, returns quoted are annualised and gross of tax.
Call us on: Office: 0161 979 0812 | Steve: 07774 718947 | Sylvia: 07464 806477


A new development in Yorkshire could net you up to 17% return from a minimum investment of £5,000.Aerial View

CapitalStackers is inviting crowdfunding loans to help launch a development of 11 homes along with the purchase of additional land with detailed planning permission for a further 11 houses in a popular location.

Dacre Banks is an English village in the Yorkshire Dales, with the archetypal features of a cricket green, a popular pub, traditional shop and church, plus the added boon of a medical centre.

Homes tend to be highly sought after in this Area of Outstanding Natural Beauty set amid stunning moorland scenery and a tapestry of lush green meadows – just 11 miles from Harrogate and easily commutable from Leeds. Furthermore, historic planning restrictions and a shortage of new build properties have created a healthy build-up of demand.

InfogramGregory Property Group, very experienced developers operating since 1985, have created a scheme with broad appeal – a selection of 2, 3 & 4 bedroom houses (including 5 ìaffordableî homes – two available in the first phase), designed to attract a diverse mix of young professionals, families and older downsizers lured by rural village life, and commuters to Leeds and Harrogate. The houses will sell for between £249,950 and £375,000 (although sales agents have advised that prices may be 5% higher) with a total value for the 11 homes in Phase 1 assessed at £2,794,000 and the whole development at £3,858,584.

Senior funding of £2,340,000 has been secured from Hampshire Bank Trust, so CapitalStackers investors are invited to fill the balance of £504,000, in loans of £5,000 upwards, for returns of between 12.65% and 17.18% for a Loan to Value range of 65% to 73%.

Please follow and like us:

Blog Deals Investor News

CapitalStackers is authorised and regulated by the FCA. Investment through CapitalStackers involves lending to property developers and investors. Your capital is at risk. Investments through this and other peer to peer lending platforms are not covered by the Financial Services Compensation Scheme. Unless otherwise stated, returns quoted are annualised and gross of tax.
Call us on: Office: 0161 979 0812 | Steve: 07774 718947 | Sylvia: 07464 806477

Chessetts Wood

Two large, luxury houses in Solihull stand to make a tidy sum for CapitalStackers investors. The crowdfunded development – already 58% subscribed – has attracted a lot of attention from existing CapitalStackers investors, many of whom have already made up to 22.5% last year on the platform’s  Foss Place development in York, which paid out early after only 8 months with a Loan-To-Value ratio of 76%.

The Solihull deal comes in with an even more attractive risk ratio of just 67% LTV for a return of 12.59%, and 51.9% LTV returning 10.02%, with the senior funding being provided by Natwest (who have, of course, already carried out their usual due diligence checks).

The development of these two highly-appointed 5-bedroom homes in the sought-after residential area of Lapworth comes courtesy of the experienced Avalanche Capital team, and has already received unsolicited offers from two keen buyers. The groundworks are already complete and building is due to be finished in October this year, at which point investors will be paid back capital and interest.

Investments are invited in the form of a loan, fully secured on the properties, and investors are free to choose the level of risk and return. The minimum investment is £5000 and the CapitalStackers platform is fully authorised and regulated by the FCA.

How do I Participate?

Just take a few minutes to set up your account and we’ll expedite you through the regulatory Know Your Customer process. You can then view full deal details online. If you need any further explanation or help with bidding, just call Steve Robson on 0161 979 0812.

Click here to find out more and get started. We look forward to welcoming you on board.

Please follow and like us:

Blog Deals Investor News

CapitalStackers is authorised and regulated by the FCA. Investment through CapitalStackers involves lending to property developers and investors. Your capital is at risk. Investments through this and other peer to peer lending platforms are not covered by the Financial Services Compensation Scheme. Unless otherwise stated, returns quoted are annualised and gross of tax.
Call us on: Office: 0161 979 0812 | Steve: 07774 718947 | Sylvia: 07464 806477