Your capital is at risk and investments are not covered by the Financial Services Compensation Scheme (FSCS).

Read our full Risk Warning

Your capital is at risk and investments are not covered by the Financial Services Compensation Scheme (FSCS).

Investment Overview

The opportunity to add further housing to a housing development; Ashford Grove. The first phase was completed by Affinity Global Real Estate, encompassing 13 newly built houses on a 3.35 acre site in Thornley, a village located just outside of Durham. We plan to finance this purchase by offering crowdfunded equity shares in a company that will develop and sell the properties.

The value of property can fall as well as rise and projected returns are not guaranteed. Investments made through Land Club are not covered by the Financial Services Compensation Scheme (FSCS). Read our full risk warning before deciding if this investment is appropriate for you.

Property Detail

Background Information

The full site is owned on a freehold basis and is approximately 3.5 acres with a developed and tenanted bungalow sitting alongside 13 newly developed detached, semi-detached and terraced properties made up of brick construction, tiled roofs and double glazed windows. All 13 properties have been sold to private buyers.

The site also encompasses 0.66 acres of retained land. We see opportunity here to add further housing the scheme following the successful development of the original 13 dwellings.

The site is on the fringe of Thornley village and is accessed via a newly laid tarmacadam service road. The site is bordered to the west by a small garage and to the north east by open countryside. To the south of the site there are further residential properties lining Ashford Grove.

We started on this redevelopment project in April 2014 and concluded construction in April 2015. As of June 2017; all units have been sold and the estimated market value of the entire site, in its current state, is in excess of £1.3m.

Why Durham

Durham is a beautiful cathedral city in the north of England. Durham is compact and well-connected, making it easy to get around. There are good schools in and around the city. Durham is also bursting with history and culture. And Durham University, founded in 1832 and considered to be England's third university of choice, plays a key role in city life.

It is on the doorstep of some wild and rugged landscape too, including the Durham Dales, the coast and the North Pennines, an Area of Outstanding Natural Beauty. Durham has a population of approximately 42,939 persons (2001 Census) with 171,776 persons living within 10km of the town centre.         

Research by Savills revealed that the housing market in County Durham is on the rise and will be boosted further by the region’s positive employment growth, with prime property values across the north of England expected to rise by 18.2% to 2020.

The area also benefits from being home to the Hitachi Rail Europe factory, tasked with the assembly of 122 express trains as part of the Government-funded £5.7billion Intercity Express programme.

The Current Site

The site extends to approximately 3.5 acres and currently accommodates a fully developed and tenanted bungalow, 13 newly developed detached, semi-detached and terraced properties, and an existing kennels facility. All properties are wind and watertight with full elevations and roof coverings together with uPVC windows.

The new build development scheme reached completion in 2016. All units have now been sold or tenanted. A full schedule of the properties of Ashford Grove: Phase 2 is set out below:

 

House No.

No. of Bedrooms

Sales Value

1

3

£118,000

2

3

£118,000

3

3

£118,000

4

3

£115,000

5

3

£118,000

6

4 + garage

£145,000

7

4 + garage

£145,000

8

4 + garage

£145,000

9

3 + garage

£125,000

10

3 + garage

£125,000

11

4 + garage

£145,000

12

4 + garage

£145,000

14

3 + garage

£135,000

Bungalow

 

£235,000

The retained land to the north of the plots listed above is the area marked for redevelopment and whereby we can add further density to the site.

Strategy

Planning

The Assessing Development Proposals in County Durham: Revised - March 2016 document states that Durham County Council cannot currently meet it’s 5 year housing land supply. This shortage puts us in a good position with the council to help deliver housing the area desperately needs.

The County Durham Issues and Options Stage Strategic Housing Market Assessment (Part 1) document encourages the delivery of new housing to reflect household aspirations. The same report shows that 63.2% of people moving would want to move to a house and 48% of families expecting a 3 bedroom home.

Given our previous track record with the previous scheme, we are confident we can replicate that same model and secure a second scheme with the local council.

Potential Planning Application Timescales

Preparation

Q2 2018

Submission

Q4 2018

Decision

Q3 2019

Sale

Q1 2020

A full project programme can be found in the support documents.

Our Vision

To provide additional housing to an area that needs it. We are able to mimic the current scheme and construct simple, yet elegant 2 and 3 bedroom properties.

The scheme will encompass the following:

House No.

No. of Bedrooms

Market Value

1

3

£120,000

2

3

£120,000

3

2

£105,000

4

2

£105,000

5

2

£105,000

6

2

£105,000

7

2

£105,000

8

2

£105,000

9

2

£105,000

10

2

£105,000

11

2

£105,000

12

2

£105,000

13

2

£105,000

14

2

£105,000

 

This gives us a GDV of £1,500,000

The retained land to the north of the plots listed above is the area marked for redevelopment and whereby we can add further denisty to the site.

Floorplan


Financials

We are offering an 80% share of profit to investors. The target return on investment is 24.61%. We are seeking a total raise of £362,500 over a 6 month period. Should the full subscription amount not be met, investors profit share entitlement shall be pro-rated.

Investing in property puts your capital at risk. The value of property can fall as well as rise and projected returns are not guaranteed. You should be aware that no established market exists for the trading of shares offered on this platform. This means that there is not a way of easily selling your shares if you need to get your money back quickly.

Value With Planning £500,000
Costs (as detailed on Expenses tab) £362,500
Corporation Tax £26,000
Total Project Profit* £111,500
80% Profit Share to Land Club Investors £89,200
Target Return on Investment (ROI)** 24.61%
Time Frame Target 1.5 years

A £1,000 investment would return £1,246***

* Total Project Profit = Value With Planning - Costs - Corporation Tax

** ROI = Land Club Investors' Profit Share ÷ Costs

*** Return not guaranteed and depending on your personal circumstances you may have to pay tax on your share of any profit. Higher costs and/or lower Value With Planning will result in a reduced ROI

Purchase price £300,000
Purchase Costs £12,500
Consultancy Costs £40,000
Selling Costs £10,000
TOTAL COSTS £362,500

Location

Financials

Further Questions

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