258 Shinfield Road, Reading, RG2 8EY
The borrower of this project has exchanged contracts on the purchase of this office block in Reading. The property will be converted from an office to five apartments (potentially six, depending on further planning permissions). The investment opportunity was identified by the borrower, a developer who is local to the area.
The borrower is raising £688,500 for the purchase and conversion of the property, the apartments will then be sold on the market in the 9-month period with a second viable exit of refinancing the apartments.
One of Reading’s claims to fame is that it is the largest town in the UK that is not actually a city. But that aside, Reading has everything else a big city could need including great amenities, great transport links and above all lots of national and international companies providing lots of well-paid jobs. These are all things that make Reading a great location for property investments too.
• Property is a 15-minute drive into the town centre
• Access to M4 is a stone’s throw away
• 25 minutes by rail to London
• 4-minute drive to the University of Reading
• Close to many amenities
The property gained planning permission to be converted into 5 dwellings. Ben has submitted another planning application to Reading Council to increase it to 6 apartments – meaning the GDV would increase should he be successful. In the meantime, the project works as is, so this would be an added bonus should the planning application be accepted.
A detailed report of the due diligence for this project can be found within the downloads tab.
Every project is evaluated, looking at if the loan-repayment schedule and the borrower’s exit strategy (sale of the developed property or refinance) is realistic, to ensure the most secure and profitable plan is followed. Sourced Capital employ solicitors for every loan that is provided, who work with the borrower’s legal adviser.
For this project, as the homes are being built they will go onto the market off-plan. A refinancing option has been agreed in principle should the open market sale take too long.
Interest will be repaid with the capital at the end of the term.
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|Forecasted Valuation aka GDV ††
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|Cash-back Reward ††††
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||First legal charge + borrower’s equity + personal guarantee
Bonus: £50 when you lend your first £500.
Type: Bonus paid on drawdown of the loan by the Borrower.
Terms: To claim this offer, you will need to invest a minimum of £500 into the loan opportunity. You will then have your account credited with £50 on drawdown of the loan. This offer only applies to your first £500 investment. Lender Terms and Conditions apply.
Cash-back Reward: 2% when you lend £20,000 or more.
Type: 2% Interest added on drawdown of the loan by the Borrower.
Terms: To claim this offer, you will need to invest a minimum of £20,000 into the loan opportunity. You will then have your account credited with 2% of the final amount you have invested on completion of the loan. Lender Terms and Conditions apply.