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Churchside Apartments Investment Prospectus - White Labelled Flipbook PDF
Churchside Apartments Investment Prospectus - White Labelled
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Investment Prospectus
CHURCHSIDE APARTMENTS WOLVERHAMPTON
WOLVERHAMPTON Wolverhampton offers property investors an important combination of strengths. It is one of the ten fastest-growing economies in the UK, and it is Europe’s top city for job creation in manufacturing. This, together with a rising population, has all helped to drive up housing demand, rental yields and capital values. The city is also witnessing record levels of private and public investment. Well over £4 billion has been committed to new developments and infrastructure projects, and these are further accelerating growth in employment. However, despite these positive developments, average property prices are still comparatively low, so the city holds out a credible prospect of affordable, high-yielding investments.
Location:
West Midlands
Population:
260,000
Population growth:
+32,000 by 2033
Average price growth:
4.5%
Highest price growth:
23% in Blakenhall WV2
Average rental yield:
5.68%
CHURCHSIDE APARTMENTS | WOLVERHAMPTON
CHURCHSIDE APARTMENTS CHURCH STREET, WV2 4BA Churchside Apartments is a city centre office property conversion that will see the creation of 144 one- and two-bedroom apartments over six storeys. Its exceptionally convenient location and impressive specification will appeal directly to discerning modern tenants. It is being converted by Empire Property Concepts, which, since 2003, has specialised in creating top quality accommodation in popular city locations.
Planning consent:
April 2018
Completion date:
Q3 2021
Units:
126 single-bedroom; 18 two-bedroom
Floor space:
Between 355 and 893 square feet
On-site parking:
70 vehicles
Assured rental return:
From 8% gross for 10 years
CHURCHSIDE APARTMENTS | WOLVERHAMPTON
SOLOMON INVESTMENT PARTNERS The property is being sold off-market by Solomon Investment Partners. Solomon specialises in the sale and marketing of off-plan property investment opportunities. By working directly with developers, it enables investors to take advantage of exclusive deals that deliver a substantial saving on the standard market price.
Key Customer Benefits
Interest on Deposited Funds
On all projects, the company offers a hands free rental assurance option. (See Danum House Management, hereafter.)
For added peace of mind and to help customers maximise their returns, Solomon pays 3% annual interest on all deposited funds between exchange of contract and completion of the build, forecast to be Q3 2021.
Preferential Rates on Specialised Legal Services Solomon also affords ready access to a quality-vetted panel of solicitors who will provide dedicated support at significantly reduced rates. These are not simply solicitors with a conveyancing facility; they are practices with a proven record of providing specialist legal services for property investors.
Mortgage Brokerage Where required, customers can also enjoy free access to the company’s in-house mortgage broker. He has access to the whole of the lending market and offers an independent insight into the most cost-effective financial products for any given investment. This, combined with a detailed knowledge of each property, helps to keep the acquisition process smooth and comprehensible, with no false starts. If necessary, Solomon’s mortgage broker will also help investors to consider new purchases in the context of their existing portfolios and to identify whether their finances could be restructured to reduce their costs or achieve better returns with the same outlay.
The accrued amount will be deducted from the property price at completion.
Professional Advice The company’s advisors are on hand during working hours to provide information and expert guidance, and to help all customers to make important decisions with all the confidence of an experienced professional investor.
Continuing Sales Progression Support Investors should complete their acquisition in 28 days from reservation to exchange. To ensure that this happens as smoothly and predictably as possible, Solomon’s sales progression team provide active support at every stage. The team’s role is to make this part of the investment journey simple, stress-free and easy to navigate, without any surprises along the way. Where required, customers will be guided through a clearly defined, step-by-step process, with full knowledge of what to expect at every turn. They will understand exactly what payments are expected on what dates, confident that there will be no unexpected extra charges or hidden costs. Between exchanging contracts and completion our team will provide you with monthly progress reports on your investment.
CHURCHSIDE APARTMENTS | WOLVERHAMPTON
DANUM HOUSE MANAGEMENT Danum House Management is the company’s own dedicated rental management agency. Established specifically to support developments from Empire Property Concepts and Solomon Investment Partners, it focuses all its efforts on a relatively small number of developments. As a result, its staff know every project personally, they have unrivalled knowledge of local market conditions, and the company is ideally placed to maximise occupancy and rental income. Danum House Management provides customers with a single point of contact for all rental management queries and, as a local presence, it is able to provide a fast, proactive response to all maintenance and security issues. The company has an excellent track record of supporting investors and in 2020 it will have more than 350 properties under management.
Rental Assurances An important benefit of all investment opportunities marketed by Solomon Investment Partners is that they are backed by a rental assurance agreement. Here, the investor earns a percentage return regardless of occupancy, so yields are completely predictable and there is no risk of income being lost due to rental voids.
Returns are reviewed on a two-yearly basis so rental income reflects the change in market demand and values, with the expectation of providing an increasing return during the course of the rental assurance period.
For Churchside Apartments, the assured rental return is from 8% gross per annum for a period of 10 years.
CHURCHSIDE APARTMENTS | WOLVERHAMPTON
EXAMPLE FINANCIAL FORECAST Property Details
Purchasing details
Example apartment Investment price:
£124.000
Solicitors fee*:
£760
Mortgage broker fee*:
£495 £300
Deposit @ 30%
£37,200
Disbursements (estimated):
Cash required:
£45,820
Stamp Duty:
Mortgage required:
£86,800
Valuation fee (estimated):
£350
Furniture (excludes VAT):
£2,995
Total purchasing costs:
£8,620
Interest only mortgage Mortgage period (yrs):
25
Mortgage period (mths):
300
Mortgage rate (approx):
3.0%
Annual payment:
£3,720
*Solomon Investment Partners may cover the cost of your standard solicitor and mortgage broker fees if you choose a provider from our panel and exchange contracts within 28 days of your reservation.
£2,604
Amount borrowed:
£86,800
Assured annual gross rent @ 8.0%:
Monthly repayments:
£217.00
Monthly assured rent:
£9,920 £827
Year 1
Year 2
Year 3
Year 4
Year 5
Annual gross assured rental:
£9,920
£9,920
£9,920
£9,920
£9,920
Annual mortgage repayments:
£2,604
£2,604
£2,604
£2,604
£2,604
Anticipated service charge:
£847
£847
£847
£847
£847
Ground rent:
£150
£150
£150
£150
£150
£794
£794
£794
£794
£794
£5,525
£5,525
£5,525
£5,525
£5,525
£127,720
£130,913
£134,186
£138,211
£143,049
Annual capital growth (%):
3.00%
2.50%
2.50%
3.00%
3.50%
Annual capital growth (£):
£3,720
£3,193
£3,273
£4,026
£4,837
Annual return on investment:
£9,245
£8,718
£8,798
£9,551
£10.363
Rental income:
£5,525
£11,051
£16,576
£22,102
£27,627
Capital growth:
£3,720
£6,913
£10,186
£14,211
£19,049
Return on investment (£):
£9,245
£17,964
£26,762
£36,313
£46,676
Return on investment (%):
20.18%
39.21%
58.41%
79.25%
101.87%
Rental Income
Management fee
(8% of gross rental income)**:
Rental Income: Capital growth Projected property value:
Cumulative ROI:
One of our specialist investment consultants will be pleased to provide you with a specifically tailored example, to reflect your choice of apartment and payment choice. The details shown in this projection are provided solely as an example of possible growth and return for the property investment specified. Whilst every care has been taken to provide realistic figures with the information available at the time, it must be accepted that they do not necessarily reflect the actual growth and return as this will be in the future and can therefore not be guaranteed to be correct. The projections given are a combination of factual elements such as price and estimation such as potential return. No guarantee, warranty or assurance is given, and the reader must assess and appraise the content of this document in that light with the clear understanding that this is an example only. ** Other management costs may apply.
SUMMARY Churchside Apartments is an off-plan residential development in a city that is witnessing very substantial urban regeneration and now ranks as one of the UK’s top 10 economies. The local population and employment rates are rising, rental demand is strong and the development meets a need for high quality, centrally located accommodation. The local property market is healthy. Average house price growth and average yields in Wolverhampton are both significantly ahead of the UK norms and in view of major inward investment and population growth, the prospects for further growth are excellent. Churchside Apartments constitutes the city’s newest residential project and has been purpose-designed to appeal to its fastestgrowing market. Accordingly, the developer is offering investors a rental assurance agreement that will deliver a return starting at 8% for 10 years.
CHURCHSIDE APARTMENTS | WOLVERHAMPTON