Update from the originator:
The target amount has been reduced to € 615,500 with a minimum amount of € 600,000, but nothing changes in terms of the term and the interest rate. Due to an agreement between the borrower and the selling party, the minimum amount is currently sufficient for the purchase.
Naturally, the loan will be activated as soon as the target amount has been raised and the loan has been fully subscribed.
|Criteria||From a+ to d||Project rating|
Macro Location Analysis
EvoEstate Risk rating is of an informative nature only & can not be considered investment advice.
Loan To value
Bluetouch Ventures Ltd are looking to raise funds against a large 4-storey Victorian property on a tree lined private drive in the highly desirable suburb of Heaton Chapel, South Manchester, for a full refurbishment and extension within permitted development rights.
Similar properties in the area continue to exchange hands for over £1,000,000 and the end value of this property with small extension and utilisation of attic and basements will take the property over 3000 square foot and comfortably reach a valuation of £975,000. We have pre-sold the property to a long-standing client for who we have sourced and renovated numerous similar properties over the past 3 years. On completion they will add the property to their portfolio of high-end HMO properties (Houses of Multiple Occupancy).
The total cost of the project including contingency and funding costs is £837,000. We have funded the purchase up to exchange of contract, along with survey, architects’ fees and site clearance to enable immediate start on completion of purchase. The shortfall between the gross loan amount of £720,000 and total cost is to be made up comfortably from business cash, regular business activity cash flow and we also have a sale completing in January that will provide the business with a £125,000 cash injection.
The project represents good value for an investor to secure a healthy, low risk return on a project that we have a guaranteed exit strategy for. We expect to complete the program of works within 7 months allowing 2 months flexibility on our proposed schedule
|Agreed Sale Price||€1,140,750.00|
A first rank mortgage valued at € 1,095,510 will be established on behalf of investors to secure the loan. This value is calculated from the lowest from (A) loan amount, a minimum of 2 years interest and 10% coverage for execution cost (€ 1,095,510) or (B) agreed sales price (€ 1,146,040). This results in a loan to value (LTV) of 76.9% and a Total Loan Coverage (TLC) of 130.0%.
Bluetouch Ventures Ltd has a C rating from Creditsafe, indicating a moderate risk. The identified risks are estimated as limited. The project owner is confirmed to be very experienced in real estate investing. This loan has been assigned a score of C on the basis of the risk analysis.
|Refurbishment Cost||Low||The fundraiser is an experienced developer and in a position to fund additional refurbishments should it extend beyond the initial projection, therefore this doesn't present any significant concern.|
|Economic Downturn||Low||The location is in a high demand area for Houses Of Mulitple Occupancy|
|Currency Risk||Low||The loan is in Euro and as the property is located in the UK, everything is in GBP. The currency exchange risk is borne by the fundraiser.|
The loan will be paid out to the solicitor’s bank account to purchase the property and establish the legal charge, after which the remainder will be made available to fundraiser.
Registration number 09379884
Address Unit 7 Crown Industrial Estate, Poland Street M4 6AZ Manchester United Kingdom
Contact Bluetouch Ventures Ltd
Message from fundraiser
Bluetouch Ventures Ltd
Bluetouch Ventures Ltd was founded in 2015 with the purpose of carrying out construction and new-build developments and a long-term goal of building up equity to fund its own developments and build a portfolio of rental properties. Over the past 7 years Bluetouch has successfully carried out a wide range of projects across the North-West of England and now possesses a core team with over 60 years’ industry experience.
We have an established team of consultants, including a vastly experienced architect, CAD technician, M&E consultants, structural engineers and numerous other outside experts on ecology, health & safety and sustainability. Our project manager has been with us from the outset and our contractors work exclusively on our projects allowing us the flexibility to priorities works on projects as and when they require. Between us we can cover all aspect of any residential project from a small refurb and flip to multi-unit new build sites.
2015 - 2017Bluetouch acted as buyer and project manager for a developer based in Manchester. During that time, the company assisted with numerous projects around the North-West. The largest project involved sourcing/negotiating and obtaining planning permission including appeal of affordable housing obligation and subsequent conversion of a prestigious 1880’s country manor house estate on outskirts of Chester, project managing the conversion of the barn into three cottages and discharging the planning conditions and carrying out the initial site-setup works on the manor house to convert this into 13 luxury apartments.
2015Competed a JV refurb, extension and flat conversion at Buxton Old Road, Macclesfield
2016Demolition of garages and construction of 6 new dwellings at Bond Street, Macclesfield
2017Successfully carried out the build contract of two large executive new-build dwellings in Stretton, Warrington with a GDV of £1,400,000. Along with two 4-bed dwelings on Cape Street Withington Manchester
2018 - 2020The business carried out a larger development of 13 new-build dwellings on a build contract in Whitchurch, Shropshire with a GDV of just over £3,000,000.
2018 - 2021Refurb contracts on several BTL Properties including properties on Reeves Avenue Stoke-on-Trent, Coronation Road Newcastle-under-Lyme and 2 properties on Hanover Street Newcastle-under-Lyme.
2020 - currentBluetouch purchased a plot of land in Shropshire for 4 executive detached homes and has spent the past 12 months working through the pre-construction conditions, and resubmitting the planning, with amended layout and more prestigious house designs and are now expecting planning permission to be granted in December 2021 following positive feedback from the planning officer.
2021Completed a full refurbishment and extension of a property in Macclesfield that is now rented out as part of the rental property portfolio. We have also recently agreed a sale on a further project in Macclesfield at £390,000 that represents an £80,000 profit and £125,000 net positive cashflow to the business with the sale expecting to complete in January 2021.
Bluetouch are now looking to raise funds against a large 4-storey Victorian property on a tree lined private drive in the highly desirable Manchester suburb of Heaton Chapel requiring full refurbishment and an extension within permitted development rights. Bluetouch has exchanged contracts on the purchase paying the 10% deposit, and covering the agents’ fees, architects’ fees and site clearance so that construction can commence immediately upon completion of purchase. The loan term is for 9 months, we have a pre-agreed sale at £975,000 with an expected construction time-frame of 7 months this allows for 2 months flexibility in the build schedule.