UPDATE 16th February 2018: Please note, if you invest in this property you will soon receive the opportunity to vote on an updated end of term strategy for this investment. This may result in the investment term being reduced and the property being sold before the end of the initial term.
Your capital is at risk if you invest.
Read more about why you will receive these votes by clicking here, or learn about the property review process by clicking here.
**NOTE: The number of units in this deal has been reduced from 7 to 4. This is in order to complete the acquisition as soon as possible.**
Unit valuations:
Unit 216: £80,000
Unit 312: £80,000
Unit 314: £80,000
Unit 315: £80,000
PM SPV 81 will aim to acquire 4 of the units, leaving the 3 units to go back on the platform in a separate SPV in the future. The reduction in units does not change the projected returns or the guaranteed rent. The updated projections are at the bottom of this page, and in the header.
Below is the old description
Seven recently developed two bedroom apartments in Liverpool, Merseyside
Projected net yield of 5% p.a. which is guaranteed by the developer for a period of 30-months (we have paid a reservation fee for the property, and when the exchange monies have been raised from the crowd, the vendor has agreed to sign the contract as outlined)
Deal has been agreed at an 8% discount to the open market value
Any returns will be distributed quarterly in arrears
We are pleased to announce the release of our latest investment - seven two-bedroom apartments in a recently completed development, just 1.5 miles from Liverpool City Centre.
The source is Signature Living Group, a successful developer in the North West who specialises in producing high quality assets and are known for some of Liverpool’s recent impressive developments, including the Shankly Hotel. They have been in operation for almost a decade and currently manage over 1,200 beds in the city alone.
This development in particular, named Daniel House, comprises of almost 95,000 sq.ft of accommodation over 14 storeys and 168 apartments ranging from one to four bedrooms. The building includes a rooftop restaurant, a bar and a garden with an on-site gym for residents. The block also benefits from 24-hour concierge service providing comfort and security to both tenants and landlords and possibly making it a competitive and attractive choice of accommodation for local young professionals.
The site has received praise in the local press and also comes at a time when Bootle is set for a £100 million investment. The plans include the building of offices, hotels and leisure activities, including bars and restaurants, and displays the level of commitment the local Council have in improving the local area.
The units which Property Moose has secured are all two-bedroom en-suite apartments. The apartments offer a modern and open plan kitchen and lounge area with views of the Liverpool waterfront. Each apartment will be secured at £73,150 against a valuation of an average of £79,900, equating to an 8% discount to the open market value. Each property will be furnished as part of the investment costs. Each furniture pack comes at a cost of £2,000 (+VAT) and a 30% discount has been secured, reducing the cost to £1,400 (+VAT) per unit. The investment will initially be on a 3-year term, however, for the first 30 months of the deal, the developer is guaranteeing the return at a 5% net yield (we have paid a reservation fee for the property, and when the exchange monies have been raised from the crowd, the vendor has agreed to sign the contract as outlined). For any period after the 30 months, the property will then be managed by Property Moose and we are confident that at this point, each apartment should achieve at least £550 rental income, meaning the investment should continue to produce a projected net yield of 6.32%.
Unit valuations:
Unit 102: £79,500
Unit 213: £79,500
Unit 216: £80,000
Unit 312: £80,000
Unit 314: £80,000
Unit 315: £80,000
Unit 415: £80,000
Due to securing the units directly with the developer, we have been able to agree a sales commission, which means that we only need to charge 1.5% upfront fee, as opposed to the usual 5%. Furthermore, as we need to fund this quickly to secure the opportunity, we will pay a cashback bonus on larger investments as follows:
£1,000 - £4,990 = 1%
£5,000+ = 2%
This will be paid to you following completion.
The Royal Institute of Chartered Surveyors have predicted a 6% property price increase for the North WEST which is used in our projected return calculations. You can see more information on our blog post HERE but please remember that property prices can go down as well as up.
Please note that £1,500 of the furniture fee relates to a finance fee payable to our partner Creditum Capital (Previously 'Property Moose Finance'). There is an additional ‘Acquisition cost’ (shown as 'Furniture cost') which represents a finance fee paid to PMF A Ltd, and property management disbursements (auction fee, inventory, checkout, inspection, visit). This structure can provide access to new routes of property sourcing at large discounts. In addition, a monthly Accounting Fee and Corporate Governance fee of £25 and £25 respectively has been factored into the rental yield calculation (this is shown as an annual 'Service Charge' cost and represents £600 of the total).
The insurance cost is covered within the service charge, so landlord insurance is also not required.