14 Eaton Square

Eaton Square, Belgravia, London

Investment Summary

  • Developer – Finchatton is a leading luxury residential specialist with a reputation for world-class design and a successful track record, having completed over 120 projects in prime central London and worldwide.
  • Location - Eaton Square, considered one of prime central London’s top three residential addresses.
  • Property – We believe it is a highly desirable residential property as it has its own private entrance onto Eaton Square, high ceilings, south-facing garden and development potential for 3 bedrooms.
  • Pricing - Bought at an attractive acquisition price & forecast sales price below other comparable sales evidence.
  • Investment – Receives an interest return of 10% per year paid quarterly & benefits from the security of a second legal charge over the property.
  • Protection – The Property would have to fall in value by 35% for your invested capital to be at risk.

Investment Highlights

Amount Being Raised £ 1,000,000
Mininum investment £ 1,000
Annual Interest Return 10% (paid quarterly)
Estimated Term 18 months
Expected total return 15%
Product Type Debt

The returns above are a forecast and are not guaranteed.

Returns Calculator

Return - Annual interest rate of 10% paid quarterly

Investment amount

Quarterly Interest

You Invest

3
6
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12
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18
Time (Months)

Total Return

On original Investment of

Note: These returns are an indication only and are not guaranteed. This assumes the investment duration is 18 months, so you will receive 6 quarterly interest payments.

The Plan

  • Developer has already acquired the property.
  • Planning permission & all other consents already obtained to extend the property to the rear and provide an additional bedroom.
  • Developer is applying to enhance this planning permission to extend further and create additional saleable area.
  • Your investment will help fund the reconstruction of the property.
  • The renovation of the property will be a complete refurbishment to create a property of world-leading design with all of the latest modern technologies.
  • Interior will be redesigned by the developer’s in house design team and fully furnished to maximise sales revenue.
  • On the sale of the property your capital will be repaid.
BEFORE WORKS COMMENCED
DESIGNER’S IMPRESSION POST RENOVATION

Dates are for guideline purposes and may vary

Financials

Property funding structure
- At investment

Value
% of Value
You will be repaid 2nd. After the bank but before the developer.

Property funding structure
- At exit

Value
% of Value
The post development property sales value would have to be more than 35% less than the anticipated sale value for your invested capital to be at risk. The developer would have to absorb up to £2.1m loss before you would be impacted.
You will be repaid 2nd. After the bank but before the developer.

Investment Structure

  • The property is owned by Finchatton 2012 Limited (Finchatton).
  • Investors will acquire bonds issued by 14 Eaton Square Limited, a new company that has been set up to make loans to Finchatton to assist with the development of the property. Your investment is ring-fenced because 14 Eaton Square Limited will not carry on any other commercial activity.
  • The loans made by 14 Eaton Square Limited to Finchatton are secured by a second legal charge over the property. There are mechanisms which enable investors collectively to require 14 Eaton Square Limited to enforce that charge in the event of default. 
  • Like all companies who pay interest to individuals, 14 Eaton Square Limited is required to retain tax at the UK basic rate - currently 20% - on all interest payments made, and pay it over to HMRC on the investor’s behalf. A tax certificate will be issued to each investor annually after 5th April.

Risks

As with all investments you should carefully consider the key risks involved which include:

RisksMitigation
Liquidity risk – You need to be prepared and able to hold this investment for the full term.We help you sell your investment if you want to exit early but this may be difficult and a sale is not guaranteed.
Capital risk – Your capital is at risk.Your investment is secured against the property with a second legal charge which means that in the event that the developer cannot repay your capital you could force the sale of the property. However, this may take time and there is a risk that you may not recover the full amount due.
Income risk – Your income is not guaranteed.Your investment is secured against the property with a second legal charge which means that in the event that the developer cannot pay interest payments you could force the sale of the property. However, this may take time and there is a risk that you may not recover the full amount due.
If the development fails to complete on schedule the developer is obliged to continue to pay you interest until it completes. As the project will not generate income during the investment term the developer has budgeted for these interest payments within their business plan.
Planning risk – The developer may not receive revised planning consent for the small extension to the rear of the property.Even without this extension the value of the property should be more than enough to cover the repayment of the bonds.
Construction risk – Construction works to the property may be delayed by events outside the control of the developer such as contractor insolvency or mismanagement.The developer has built in a significant margin of error for delays and these should therefore have minimal impact on the ability of the project to repay the capital owed to investors. Investors will continue to earn interest on their bonds during any delays.

Location

  • World-famous Eaton Square, considered to be one of London’s top three residential addresses.
  • With views over Eaton Square gardens, the property benefits from high ceilings and a south facing private garden. It is also only one of only 11 flats on Eaton Square with its own front door.
  • Eaton Square gardens is a stunning, 6 acre private garden with its own tennis court exclusively for Eaton Square residents.
  • Round-the-clock security & concierge services from Grosvenor Estate dedicated uniformed team who patrol the square.
  • Walking distance to Sloane Square and the shops of the King’s Road.
  • Excellent selection of restaurants and bars nearby.
Address
Eaton Square, SW1W 9DD
City
London
NEAREST STATIONS

Victoria (0.3 mi)

Victoria (0.3 mi)

Hyde Park Corner (0.4 mi)

Sloane Square (0.4 mi)

Comparable Properties in Eaton Square

Sales values in £ per square foot

Data source: The Land Registry

The Developer

Overview

  • Finchatton, a leading luxury residential specialist.
  • Established in 2001.
  • Delivered over 120 projects with in excess of £1 billion Gross Development Value.
  • A dedicated and creative team of 40 professionals operating out of Chelsea, London.
  • Specialists in architecture, interior design and project management.
  • Deliver beautiful and immaculately planned homes.
  • Focus on the finest addresses in prime central London and globally.
  • Some shareholders in the Developer Finchatton are also shareholders in CapitalRise.

Contact



Matthew Robertson

Finance Director

www.finchatton.com

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Capital at risk. Interest not guaranteed. ISA rules apply. See key risks.