We maximise returns on property investment by spotting and delivering the marginal gains others miss. We have both the know-how and know-who to transform opportunities into higher yields & margins on cost faster and more efficiently than anyone else.
We aim to achieve the maximum possible risk adjusted return on our projects. We typically out perform targets by a significant margin, thanks to the results-oriented approach we drive throughout the process.
It all begins with finding the right opportunity. Needles and haystacks come to mind - with a haystack the size of London. Our relentless search for the next project never ends, working closely with auction houses, receivers and agencies.
We filter through more than 1,000 properties every month before selecting up to 25 for detailed due diligence. Yes, you can imagine we’re a lot of fun to hang out with.
We then build a detailed financial model for every property we bid on, allowing us to calculate a maximum purchase price based on the expected level of return and the level of risk involved (e.g. planning permission) - a cap we strictly adhere to.
WHAT WE LOOK FOR
- Areas of Inner and Outer London undergoing significant improvements to transport, amenities and overall landscape. This “gentrification” typically leads to rising property values.
- Properties within easy walking distance (usually less than 10 minutes) of rapid public transport routes into Central London.
- Properties that others may have either overlooked or not had the skills to fix, usually in need of refurbishment or development at exceptionally low prices.
Purchase (In joint ventures with our investors)
Each property is bought through a dedicated Special Purpose Vehicle (SPV) reflecting the agreed profit share. Investor funds are used to cover the immediate upfront expenses not covered by the initial loan: deposit, purchasing costs, initial building works and debt servicing costs etc.
Once we’ve identified a property and have it signed-off by an investor, we move fast. Short-term bridging finance allows us to complete rapidly, making our offer more attractive.
HOW WE MINIMISE OUTLAY
- Buying properties that are worth more than we pay
- Phasing building works efficiently and completing them quickly
Maximise Value (Through refurbishment and development)
All our new builds are built to a high standard with high quality craftsmanship backed by professional management.
Whether a modern and contemporary build or a more traditional build we have the broad range of skills required.
A typical refurbishment project involves stripping back a property to its bare shell and then re-building it in a much more efficient, contemporary and profitable format.
Wherever possible we add space, restructure the layout and increase the number of bedrooms to boost the re-sale value.
We’ve got pretty good at it too. We can usually complete the refurbishment of a whole flat or house within just two months - always to the highest of standards.
HOW WE IMPROVE A PROPERTY
- Strip the property back to the bare bricks & joists
- Lay new flooring
- Fit new electrics, plumbing and gas services
- Build new bathrooms, bedrooms and an open-plan living space
- Plaster and paint the entire property to a high specification
- Finish properties in the right way to the right target market
Return On Investment (Significant capital gain)
As already described, each property is bought through a dedicated Special Purpose Vehicle (SPV). In addition, a formal Shareholder’s Agreement stipulates the order of payments:
1) Debts and costs
2) Investor equity with priority return
3) Share of capital gains paid upon sale
The percentage of profit share is equal to the initial percentage of investment. Therefore if an investor invests 50 percent of the total cost they will receive 50 percent of the profit.
Investors can expect to receive their initial investment plus their share of the profits within one to two years on a new build project and four months to 9 months on a refurbishment project.
Obviously there are no hard and fast rules in terms of profit and no guarantees. As with any investment, values can go down as well as up. But we can state with utmost confidence that we have consistently delivered exceptionally high returns to our investors.