|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
17-19 Nicholas Street, Burnley is a substantial, stone-built freehold 3 storey building located in the heart of the business district in Burnley town centre.
It was constructed approximately 1844 and is a building of character with some excellent features including an archway entrance to the rear car park of the property – parking on site is rare in the town centre and this is a huge benefit of the building, as well as the centralised location, many competitor office spaces for rent, are located away from the centre and in an undesirable location with little or no amenities near the property.
This business centre is surrounded by many amenities including restaurants, bistros, banks and many more facilities for tenants and clients to enjoy.
Internally the property currently comprises a reception on the ground floor, 3 offices and 1 kitchen on the 1st floor and 3 offices and 2 bathrooms on the 2nd floor of the building as well as a large communal space.
Externally to the rear of the property is a secure/ private car parking area with space for 4-6 vehicles.
Property size/ measurements carried out by a RICS professional.
Ground Floor Reception 19.88 sq. m. 214 sq. ft.
First Floor 91.98 sq. m. 990 sq. ft.
Second Floor 70.51 sq. m. 759 sq. ft.
Total – 182.37 sq. m / 1,963 sq. ft
The property is registered with the local authority as a commercial building and the intended usage will remain commercial with Burnley Property Investments refurbishing the building to benefit from 9 office spaces, 3 bathrooms, 1 communal kitchen and meeting room/ kitchen facilities as well as the external parking spaces.
No planning permission is required due to the retention of the existing usage of the property resulting in this providing a simple refurbishment process of improving and expanding on the current layout, design elements and facilities of the building.
Burnley Property Investments Limited have owned the property and the freehold since June 2021.
The purchase price of the building was £160,000 (£50,000 deposit paid by Burnley Property Investments) and the current RICS valuation is £180,000 with vacant possession as it stands and a finished RICS valuation of £250,000.
A first mortgage of £110,000 has already been established to purchase the property.
A second rank mortgage of € 70,000 excluding interest and execution costs will be established on behalf of investors to secure the loan while the market value after completing renovations is estimated at approximately € 292,500. In addition, a business guarantee of € 50,000 qualified as the material will be provided to secure the loan. Combined, resulting in a loan to value (LTV) of 58.3% and a Total Loan Coverage (TLC) of 171.4%
Burnley Property Investments Limited has a B rating from Creditsafe, indicating a low 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.
|Second rank mortage provided as security||Low||As property is stripped ahead of refurbishment, current execution value is low. Market price after completion provides more than sufficient coverage. In addition, a business guarantee of 50,000 EUR secures this loan.|
|Renovation not completed on time / within budget.||Low||Sufficient reserves have been planned/are available to cover for setbacks in refurbishment.|
|Currency exchange||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.|
Registration number 12145106
Address Nicholas Street Office 9, 17-19 BB11 2AQ Lancashire United Kingdom
Contact Burnley Property Investments Limited
Message from fundraiser
ABOUT US & BURNLEY PROPERTY INVESTMENTS LIMITED
I am an experienced property professional with over 10 years of experience in the local and international real estate sector, operating both in the UK and in Spain running several successful real estate agencies and being involved in a number of highly successful property development and investment projects.
In 2011 whilst living in Spain with my family of 3 children and my wife, I was appointed director of operations for an international real estate business with locations in Spain, United Kingdom and Norway – this role involved the complete management of the Spanish real estate division which included a commercial, residential, land and development/ construction team with a lot of involvement in investment projects throughout the country and dealing with local, national and international investors.
I returned to the UK in late 2017 and set up my own family based estate agency in Burnley to give people the option of an experienced property professional with family values and ethics to local people looking to buy and sell property in Burnley and Pendle.
During the period of 2017 to now I re-invented the company and my goals to create an investor/ investment-focused business that offers a full-service solution to property investors as well as having our own investments, this business is Kay Invest.
Kay Invest has offices in Burnley and Colne with an in house team of builders/ contractors as well as recommended partners to assist with all aspects of property investment from identifying properties through to delivery and management.
We have undertaken and completed over 20 property refurbishments this year including buy to let, HMO conversions, commercial and projects for social care/ homeless accommodation. The company has a number of houses buy to let properties and the plan is to continue expansion year on year.
My passion for property investment and real estate also coincides with my passion for my local town and surrounding area of Burnley & Pendle and wanting to regenerate derelict/ un-used properties and buildings in need of some attention to bring them back to life and into use either residentially, commercially or for mixed-use.
For past projects refer to the downloadable document, "Past Projects".