|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
This development by Alfa Property Group is being conducted under full planning permission from the local council under reference APP/21/00128. The developer is converting the upstairs of these 2 office buildings into 6 residential apartments whilst retaining the commercial units below. The objective would be to sell the units once converted which will redeem the loan so the developer can move onto their next project. If that is not possible then the developer will seek mortgage finance to repay the loan.
This initial loan is towards the purchase of the building and associated costs. A further loan will be added to cover the renovation costs expected to be 376,000 euros with an overall Gross Development Value of 1,410,300 euros.
The properties stand within an established mixed commercial area with similar trading premises.
4 - 6 Liscard Road Wallasey CH44 5TP United Kingdom
Interest per annum
Loan To Value (LTV)
Total Loan Cover (TLC)
|Legal Fees and stamp duty||€22,800.00|
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.
The currency exchange risk is borne by the fundraiser.
A first rank mortgage valued at € 760,500 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 (€ 760,500) or (B) minimum execution value after completion (€ 777,400). This results in a loan to value (LTV) of 76.9% and a Total Loan Coverage (TLC) of 130.0%.
Higher Barrowfield Ltd. has a D 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.
Below mortgage will be established on behalf of investors to secure this loan.
|TYPE OF PROPERTY||MORTGAGE RANK||AMOUNT||LC|
No result found.
|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.|
|Economic downturn could affect property market/values.||Low||Given the area, this risk is considered to be low. The project owner is flexible in terms of exit strategy.|
|Building not completed on time / within budget.||Low||The project developer has a detailed business plan. Risk considered to be low and sufficient slack in timeline and budget to cover for any setbacks if they may occur.|
Suite 4 Second Floor Honeycomb 7-15 Edmund Street, Liverpool L3 9NG Liverpool United Kingdom
Higher Barrowfield Ltd
Message from fundraiser
Before founding Alfa Property Group, my professional experience was working as a project engineer working in the rail industry. Gaining first-hand experience planning and delivering a series of major rail infrastructure projects has provided invaluable experience and insight.
Development is a complex and challenging sector. It brings together many different professional and technical skills and disciplines. My professional and life experiences have been invaluable in helping me to launch and grow Alfa Property Group. Delivering successful developments means understanding every aspect and every stage of the process, including the most important task of all - getting it built.
Every site is a challenge to innovate – every development an opportunity to be original.
We are a young and ambitious property development company. Our story is about sustainable, organic growth, starting with small-scale residential refurbishments, we have built up an extensive rental portfolio. By building capacity, gaining experience and forging valued partnerships, we are now able to tackle more challenging larger scale development opportunities. Our current projects include design-led residential developments for both the private and social rented sector.
Our solid track-record of delivery has helped Alfa to build robust and trusted relationships with investors and bring together a talented and experienced team with a shared vision to deliver developments of exceptional quality and originality.
|21.03.2022||Paid||No||22 March 2022, 21:25|