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