Woodhill by Alfred Homes

Chandler's Ford, Hampshire
Chandler's Ford, Hampshire
Designer's Impression
funds raised

Investment Highlights

Forecast Annual Return 10.5% (paid at the end of the term)
Estimated Term 24 months
Expected Total Return 22.1% (based on estimated term)
Mininum investment £ 1,000
Amount Being Raised £ 1,350,000
Product Type Debt
Loan to value ratio 66% (at exit)

The expected total return is a forecast based on the estimated term and is not guaranteed. Past performance of previous projects is not indicative of future results for this project.

Investment Summary

  • Developer – Alfred Homes is an experienced house building company, specialising in Hampshire. It was established to create exceptional homes of great quality for 21st-century living. In the past 8 years they have developed over 66 homes worth in excess of £69m.
  • Location – Chandler's Ford is a highly desirable town in Hampshire some 7 miles south of the cathedral city of Winchester. This year it was ranked as one of the top ten places to live in the UK by the Centre for Economic and Business Research.
  • Project – Woodhill, designed by architect Andrew Smith, is a mix of twelve detached and semi-detached homes of a traditional external design with imaginative and contemporary interiors, set around a short private road.
  • Pricing – The average forecast sales price of £408 per sqft compares favourably to other projects Alfred Homes has already sold in the area. Local sales agents are forecasting higher average sale rates between £424 per sqft to £427 per sqft. House prices range from £715,000- £900,000.
  • Protection – The property would have to fall in value by over 34% for any of your invested capital and accrued return to be at risk. Investors benefit from the security of a second legal charge over the property.

Opportunity video


Returns Calculator

Return - Forecast annual return of 10.5% (paid at the end of the loan term)

Investment amount

Return accrues

You Invest

Jun 2017
Jun 2018
Jun 2019

Total Return

On original Investment of

Note: These returns are an indication only and are not guaranteed. Your capital is at risk and you may not get back the money you invest.

The Plan

  • Alfred Homes received enhanced planning for the scheme in June 2017 to provide two 3-bedroom homes and ten 4-bedroom homes.
  • Your investment will be used to assist the developer in purchasing the land.
  • Construction is anticipated to commence in July 2017 and will be completed to the same high standard as the developer’s previous projects.
  • The cost of construction will be funded by a loan from a large high street bank. This facility will be entered into at the same time as the CapitalRise loan is given to ensure the project is fully funded.
  • Only eight of the twelve homes would need to be sold for your capital and accrued return to be paid.

Financials

Investment Structure

  • The property will be acquired by Alfred Homes Limited.
  • A new subsidiary company of CapitalRise, CR Chandlers Ford PLC, has been incorporated to issue bonds to investors. CR Chandlers Ford PLC will use the proceeds of these bonds from investors to provide funds to the developer that will be applied to purchasing the property on 30 June 2017.
  • Your investment is ring-fenced because CR Chandlers Ford PLC will not carry on any other commercial activity. The directors of this company will (through CapitalRise) administer and enforce the terms of the bonds issued by CR Chandlers Ford PLC.
  • The investment is structured as deep discounted bonds . The bonds will be issued at a discount to the nominal amount and (if sufficient proceeds are generated from the sale of the property) at the point of redemption of the bonds, investors will receive proceeds equal to the issue price of the bonds and a return equivalent to 10.5% per annum, compounded annually.
  • CR Chandlers Ford PLC is the beneficiary of a second legal charge .In any forced sale of the property, the holder of the first legal charge will recover its investment first.
  • CR Chandlers Ford PLC is not required to withhold UK income tax on this investment and so returns will be paid gross. Income tax may be payable by investors on any return on the investments unless you invest via your CapitalRise ISA. Investors should take their own tax advice from an appropriately qualified professional.

Risks

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

Risks Mitigation
Capital and Income Risk – Your capital is at risk and the income is not guaranteed. CR Chandlers Ford PLC has the benefit of a second legal charge against the property. This means in the event that the developer cannot repay your capital and accrued return, the investors may be able to force the sale of the property. However the outcome is uncertain and there is a risk that you may not recover the full amount due. The bank loan is secured against the property with a first legal charge so in the event of a forced sale the bank will recover any amounts owed to it first.
Investment Liquidity Risk – You need to be prepared to hold this investment for the full term. We help you try to sell your investment if you want to exit early but this may be difficult and a sale is not guaranteed.
Construction Risk – The valuer has allowed a fifteen month construction period. In the event of a delay, you will continue to accrue returns until the developer repays the loan in full. The target date for sale of all townhouses is June 2019; however, your investment is forecast to be repaid by March 2019 from the sale of eight of the twelve townhouses. Your investment allows for this to extend until December 2019 and the developer is obliged to repay the CapitalRise loan by this date at the latest.
UK Property Market and the value of your security – If the market deteriorates, it may not be possible to sell the property at the price currently projected and/or there could be delay in the sale.

The property value would need to fall by 34% in order for your capital and accrued return to be at risk.

Compensation Scheme – The Financial Services Compensation Scheme does not cover poor investment performance.

You cannot claim compensation if your investment does not perform as expected, unless it results from us or Gallium not discharging our obligations to you. The FSCS would cover amounts owed to our customers in the event of our insolvency, up to a maximum of £50,000 per customer.

Product – The market in Chandler's Ford for townhouses is untested.

The valuer has confirmed that Alfred Homes achieves a premium for its product which has pushed up ceiling prices and rates per sqft being achieved in the area. The valuer believes based on their research that there is a gap in the local market for townhouses.

The Developer

Overview

  • Alfred Homes is a specialist house building company, established in 2009, to create exceptional and inspiring homes for 21st-century living.
  • They have a well-founded reputation for delivering quality luxury homes inspired by traditional design. 
  • Collectively the team has over 80 years of experience.

Contact



ALFRED HOMES

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More information

Location

  • Chandler’s Ford is an established residential area, typified by its abundance of large detached homes built on expansive garden plots.
  • It is supported by good local amenities and a number of high achieving schools in both the private and state sectors.
  • The train station is only ten minutes by foot from the development providing excellent commuter services to Winchester, Southampton and further afield.
  • Trains to London from Winchester take approximately one hour and run every 15 minutes.
  • The popular city of Southampton is only 8 miles away.
Address
59 Brownhill Road, Chandler's Ford, SO53 2EH.
Nearest Stations
  • Station iconChandler's Ford Station (0.5 miles)
  • Station iconWinchester Station (7.5 miles)
  • Station iconSouthampton Airport Parkway (5 miles)
Nearest Motorway
  • car iconM3 Junction 12 - 1.5 miles
  • car iconM27 Junction - 5.5 miles
  • car iconA34 Junction - 8 miles

Comparable Properties

Sales values in £ per square foot

Data source: JLL valuation report

Deal Room

Documents

Valuation Report

Alfred Homes Brochure

Bond T&Cs & Trust Deed

Sparks Ellison Real Estate View

Winkworth Real Estate Agent View

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Capital at risk. Interest not guaranteed. See key risks.