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Property Division - Current Opportunities
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Summary of New Deals
2010 was a busy time for the Beer & Partners Property Division. Our strong network of associates and introducers, have ensured we have seen good deal flow, strong investor interest and approaches from banks (that’s right...Banks!) looking to add new clients to their portfolio. We have seen a number of deals coming our way, commercial and residential development projects forecasting some healthy margins, commercial property deals forecasting excellent returns.
The opportunity for investors is now clear – if they are in a position to be competitive against other more sophisticated lenders, attractive returns could be on offer. It is rare to have access to some of the investment opportunities around in the market at the moment. In previous years we have had to compromise on deal quality due to so many active lenders in the market.
At Beer we are constantly striving to bring you new investment opportunities that are exciting in nature and by way of monetary returns. We are an experienced team focusing on Residential & Commercial Investment & Development funding.
We are looking forward to what looks to be a busy and opportunistic time in the UK Property Market. Please have a look at the deals below and feel free to contact our property associates.
Asset-backed Recovery Funding for Holiday Apartment Development Forecasting Significant ROI
Stage: Recovery
Funds Sought: £2,650,000
Location: South West
Reference Number: 50850
Seeking debt funding to assist re-financing of a luxury holiday rental property development in Cornwall with GDV of c£6.85m. Investor to be offered second charge over land and buildings, and equity stake. Forecast 18% annual IRR over 3 years even if no growth in property value. Minimum tranche £50,000.
Contact: Dave Flockhart - 07815 931 414 - flockhart@beerandpartners.com
Architect Developing High-end Property in Mallorca
Stage: Expansion
Funds Sought: £2,500,000
Location: Outside UK
Reference Number: 50625
This UK based, architect led company with an established infrastructure on Mallorca, designs and develops highly specified villas and apartments on the island. It has a reputation for quality and is partnered by international companies including, B&O, Bulgari, Casa Armani, and Boffi.
The Spanish mainland residential property market has suffered from overdevelopment and questionable legal practices. Mallorca has enforced planning controls which have protected the island from insensitive and illegal over development so market values remain buoyant.
As Europe recovers from the recession, the confidence of Euro and Scandinavian buyers is returning and Palma is connected to most European cities within two hours flight time. The Spanish economy and the construction sector in particular remain depressed, so coupled with low Euro interest rates it is possible to achieve very competitive investor returns that may not be available later in the economic cycle.
The investors’ model is flexible and can provide a high degree of involvement for those who require it. Currently achieved returns and those projected are attractive with clear assessments of risk and exit strategies. Investment options vary from single villas to apartments, all are in prime locations designed and built to high standards.
Minimum investment of £50,000.
Contact: Malcolm McGregor - 01823 667 972 - mcgregor@beerandpartners.com
First Charge Property Opportunity, Strong Exit Options and Annual Return of 15% plus
Stage: Other
Funds Sought: £1,500,000
Location: North East
Reference Number: 51007
Our client is a very experienced residential developer having built 488 properties in the local area in the past 8 years. They require funding to build phase 1 of the development for a 12 month period. The land is valued at £2m, has no debt and is owned outright by the developer. Detailed planning is in place for 77 units and investment is required to build phase 1 comprising ten 4-bed and four 3-bed houses.
Key points of this opportunity are:
- 1st charge for the investor over the whole site as well as the initial 14 houses equates to a low LTV of 40% of the GDV in phase 1.
- Desirable location with high demand for family homes with 4 units already reserved for £735,000 and all units are expected to sell prior to completion.
- The developer also owns a rental portfolio and a Property Management Company and would willingly take any unsold units into the portfolio.
This is an excellent opportunity for an investor looking for attractive returns secured against property assets and not wanting to tie up capital for long periods of time. The investment can be syndicated with a cornerstone investment of £750,000 and minimum contributions of £200,000.
Contact: Brian Rutter - 07789 907 075 - rutter@beerandpartners.com
High Yield Residential Property Venture
Stage: Expansion
Funds Sought: £150,000
Location: North East
Reference Number: 51134
Our Client is a very experienced developer of large residential properties in to multiple occupancy units to create a high yielding investment. He has more than six years’ experience in this market and has a current portfolio valued in excess of £5 million. He has continued to trade satisfactorily during the very difficult conditions experienced over the past two years.
The concept potentially produces a high yielding income of 15 to 30% and an increase in equity value of 40 to 100%, significantly exceeding current UK property yields.
The development model is a well proven model and can be achieved in a period of as little as 3 months, with the property available to let in month 4.the Client manages the whole project, from acquisition to developing to letting. Current properties in Leeds have been let to the local authority where there is a current registered waiting list of in excess of 6,000 names ensuring the availability of secure tenants.
The Client is proposing offering two variants of this opportunity.
- The significant increase in value based on a secure rental covenant enables the property to be refinanced and the investor repaid capital and interest.
- Alternatively the funds released through refinancing can be utilised to invest in the next property, with the opportunity to build a high income generating portfolio.
Security is available by way of a first charge on the development property. In addition the client may be able to offer a personal guarantee secured by a second charge on an existing property.
Contact: Andrew Wilson - 01964 551 740 - wilson@beerandpartners.com
First Charge Property Opportunity, Strong Exit Options and Annual Return of 15% plus
Stage: Other
Funds Sought: £1,500,000
Location: North East
Reference Number: 51007
Our client is a very experienced residential developer having built 488 properties in the local area in the past 8 years. They require funding to build phase 1 of the development for a 12 month period. The land is valued at £2m, has no debt and is owned outright by the developer. Detailed planning is in place for 77 units and investment is required to build phase 1 comprising ten 4-bed and four 3-bed houses.
Key points of this opportunity are:
- 1st charge for the investor over the whole site as well as the initial 14 houses equates to a low LTV of 40% of the GDV in phase 1.
- Desirable location with high demand for family homes with 4 units already reserved for £735,000 and all units are expected to sell prior to completion.
- The developer also owns a rental portfolio and a Property Management Company and would willingly take any unsold units into the portfolio.
This is an excellent opportunity for an investor looking for attractive returns secured against property assets and not wanting to tie up capital for long periods of time. The investment can be syndicated with a cornerstone investment of £750,000 and minimum contributions of £200,000.
Contact: Brian Rutter - 07789 907 075 - rutter@beerandpartners.com
Residential Housing Development - 25%+ Projected Profit Margin
Stage: Other
Funds Sought: £960,000
Location: East Anglia
Reference Number: 50833
This client is seeking full finance to cover the purchase and build out of an attractive residential development site in the seaside town of Cromer, Norfolk. Cromer is a busy town and appeals to the holiday home and family market. There are ten houses to be built ranging from two bedroom semi’s through to four bedroom detached units. The site is an elevated site with the potential for sea views and this is one of the few new build sites in the area. The site also benefits from having no affordable housing obligation.
- Private Funding Requirement: c£960,000
- Term: 18 months
- Total Project Cost: c£1.35M
- Total Sales Value: £1.98M
- Stage of Project: Pre Purchase
- Exit Strategy: Sale of each unit
- Security on Offer: First charge
Deal for Investor:
- 20%+ return pa on offer
- Possible JV deal can be negotiated
Contact: Steve Cazot - 07734 265 703 - cazot@beerandpartners.com
If any of the above deals are of interest to you then please contact the Property Division:
0207 329 4884