SO-20 The Box Works, Manchester

Castlefield, Manchester, United Kingdom

Offering Description

CAPITAL AT RISK. For further information please see our Risk Statement.

LOAN SUMMARY

  • Loan Purpose: Commercial-to-Residential conversion
  • Loan Amount : £261,000
  • Loan Interest †: 10% per annum
  • Loan Term †: 12 months
  • Loan Security †: First legal charge (RICS valuation supported)
  • Loan Exit: Commercial re-finance
  • Minimum Investment: £250

† please see The Financials below for additional information.

 

Sourced are pleased to offer this 12-month loan opportunity for the purchase and conversion of a project situated in the heart of Manchester City centre.

The Property

Address: Apartment 216, The Box Works, 4 Worsley Street, Manchester, M15 4NU. (Google Maps).

The property is part of The Box Works building that has been successfully developed by the prominent UK developer, Urban Splash.

The property is currently designated as a commercial property and occupies a prominent location on the Ground Floor of the development along a promenade of other glass fronted commercial units (mainly utilised as office spaces).

The property is currently in a very good condition having been vacated for a period of time.

The Plan - Phase One (months 1-3)

The Borrower has an agreement in place for a conditional exchange on the property, before completing the purchase. It has been agreed that during the exchange period, the Borrower will commence the commercial-to-residential conversion work.

Planning permission to convert the property from its current use as offices (use Class B1(a)), to residential dwellings (use Class C3) was sought and approved in November 2018.

Planning information.

The conversion work consists of sub-dividing the current commercial space in to three smaller self-contained studio apartments, whilst bringing the use of the property back in to it's original residential use.

Each studio apartment will include space for a double bed, with separate shower and kitchen facilities. Two of the studio apartments will also have separate lounge areas.

The conversion involves no structural alterations and it is forecasted by the Contractor that it will take no longer than three months to complete the work, including having the work signed off by Manchester City Council for Building Regulation purposes.

The Plan - Phase Two (months 4-12)

Given the location of the property and the local demand, the Borrower intends to operate the three newly converted studio apartments as Serviced Accommodation units similar to those made very popular by Airbnb.

A recent RICS valuation suggested each furnished apartment should achieve between £50-70 per night, with a minimum expected occupancy forecasted by the Borrower at 70% per annum (although a lower more prudent occupancy rate of 60% has been assumed for valuation purposes).

The Borrower intends to manage the properties himself and will aim to cater for the young professional market, either visiting Manchester for work and/or pleasure.

The Location

The property is located in the inner City conservation area of Castlefield, which is a ten minute walk from Manchester City Centre. Castlefield is bounded by Quay Street and Deansgate; two of the most notable roads in Manchester, whilst also being bounded by the River Irwell.

Castlefield's location alongside the Bridgewater and Rochdale canals, has created some of the most desirable locations to enjoy a drink and relax. Or if you prefer, there is the Museum of Science & Industry and the old Roman fortress, along with many other sites of cultural significance.

The Financials

CAPITAL AT RISK
Loan Amount † £261,000
Forecasted Commercial Valuation aka GDV †† £394,000
Loan-to-GDV 66%
Loan Term 12 months
Loan Interest ††† 10% per annum
Cash-back Reward †††† 2%
Loan Interest Payment ††††† Annually in arrears
Loan Security First Legal Charge
† includes purchase and funding fees
†† based on a commercial multiple of x10 forecasted annual Gross rental income as per RICS survey (£60 p/night & 60% occupancy)
††† interest is calculated on a pro-rata basis and is an illustration of the maximum interest amount achievable
†††† reward is calculated on all loan pledges to the value of £25,000 or more
††††† interest will be deposited in each Investors' dashboard wallet

Loan Schedule

PURCHASE FUNDING money paid to the Borrower's solicitor on completion of the purchase
CONVERSION FINANCE money paid to the Contractor per agreed drawdown schedule

Cash-back Reward

Cash-back Reward: 2% when you lend £25,000 or more.

Type:  Cash-back paid on completion (i.e. drawdown) of the loan by the Borrower.

Terms: To claim this offer, you will need to invest a minimum of £25,000 into the loan opportunity - SO-20 The Box Works, Manchester. You will then have your account credited with 2% of the final amount you have invested on drawdown of the loan. Lender Terms and Conditions apply.

Bonus

Bonus: £50 when you lend your first £500.

Type: Bonus paid on completion (i.e. 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 - SO-20 The Box Works, Manchester. 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.

Management Team

The Box Works SPV Limited

The Box Works SPV Limited

The Borrower

Rich Travis is the director and shareholder of The Box Works SPV Ltd, who will be the ultimate borrower. This entity is an SPV and has been incorporated for the sole purpose of this project.

Rich has been a Sourced franchisee and network member since February 2018.

Rich brings a wealth of operational experience to this project having been an owner/manager of a courier business for over seven years in the past. Rich can also call on his property experience which includes working for a family owned sales and lettings agency, and more recently property sourcing and structuring deals for property investors.

Nine Point Eight Construction Limited

Nine Point Eight Construction Limited

The Contractor

The project has been provisionally awarded to the sole contractor - 9point8 Construction.

Companies House reference.

The Contractor comes highly recommended for this project and has undertaken a number of similar schemes recently. They are building contractors located in the North West of England, who bring a wealth of technical and practical experience to each project that allows them to complete projects to the very highest of standards, and deliver them on time and on budget.

The Contractor specialises in both domestic and commercial contracts, including a wide variation of installation types. They have extensive experience working with property investors and developing properties into single and multi-let units.

Focusing on the highest levels of safety, efficiency and quality workmanship allows the Contractor to cater for its diverse customer base, whilst striving to provide the highest level of customer care possible.

Sourced HQ

Sourced HQ

The Support Network

Sourced HQ is the name affectionately given to the Sourced head office team.

Sourced HQ is a complete and essential resource hub, with the team being responsible for training and supporting Sourced franchisees and network members, who can call upon a cumulative experience of over thirty years in the property industry undertaking all things including: property sourcing, property developing, property sales and lettings, and property funding.

Jark Security Trustee Limited

Jark Security Trustee Limited

The Security Trustee

All loans offered on the Sourced platform are secured against UK property, more often than not, against the underlying property that forms part of the transaction.

Security is registered in the name of the Security Trustee, Jark Security Trustee Limited, and is managed on behalf of the Investors in accordance with the Security Trust Deed as referenced in our Lender's T&C's.

Security address: Apartment 216, The Box Work, 4 Worsley Street, Manchester, M15 4NU

Title Number: GM906204

Tenure: Leasehold

£1,000.00

Raised Of £261,000.00 Goal

Days 22
Hours 03
Mins 29
£1,000.00
 
Debt Offer. Structure
10% Ann. return
12 Months Term

Call 0333 123 1330