|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 plot of land, which the business purchased in 2020, with planning approval for four large detached homes in Woore, Shropshire. The permission came with numerous planning conditions that they have managed to discharge over the past 12 months as well as developing a more appealing and valuable proposal for an alternative scheme. They are now looking to recapitalise the business for the next phase of the development to bring the site to market as a fully prepared and licensed development project with site infrastructure in place.
They have already funded all architect, engineer and site investigation works along with all ecological, archaeological and arboricultural investigation and reporting required to discharge all pre-construction planning conditions to get the site to the point where it can be sold quickly without obstacles once the new planning approval is granted.
Due to market conditions during the pandemic, this land in Shropshire was obtained for just over £200,000. The site has been valued on the existing planning permission at £529,000 by a RICS surveyor. There is also a new planning application pending decision for an improved scheme which has been valued at between £1,000,000 - £1,100,000 by a local estate agent. Reflecting a significant uplift from the auction price. The funding application is based on the current valuation and LTV will significantly improve on approval of new scheme.
The exit strategy is to have the new scheme approved by the end of 2021, marketing the development for sale in the new year as a whole and as individual plots to appeal to either a small local developer or the self-build market. Expecting to achieve sales at worst case £529,000 on the existing scheme or circa £1m if successful with the revised application.
Bluetouch Ventures Ltd feels the site represents good value for an investor to secure a healthy, risk-free return within 6-12 months as the sale of 2 plots will enable the return of the loan in full.
A first rank mortgage of €482,000 including 2 years interest and 10% execution costs, for a total of €626,600 will be established on behalf of investors to secure the loan. This results in a loan to value (LTV) of 76.9% and a Total Loan Coverage (TLC) of 106.8%.
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.
|Building not completed on time / within budget.||Low||Sufficient reserves have been planned/are available to cover for setbacks in building.|
|Unknown whether deleterious materials have been used.||Low||If present, this may result in additional costs. This risk is considered to be low.|
|Failure to optain additional planning approval.||Low||The site itself is already valued at more than the loan amount, and as such a sale would be able to repay the outstanding loan.|
|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.|
Unit 7 Crown Industrial Estate, Poland Street M4 6AZ Manchester United Kingdom
Bluetouch Ventures Ltd
Message from fundraiser
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. 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 of industry experience and strong working relationships with quality, reliable professionals, tradesmen, and contractors.
Between 2015 and 2017, Bluetouch 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 the 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.
In 2017, Bluetouch successfully carried out the build contract of two large executive new-build dwellings in Stretton, Warrington with a GDV of £1,400,000.
Between 2018 and 2020, the 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.
In 2020 Bluetouch purchased a plot of land with planning permission for four dwellings in Woore, Shropshire for just over £200,000. The team has spent the past 12 months working through the pre-construction conditions, and resubmitting the planning, with amended layout and more prestigious house designs.
In 2021, the land has been valued by a RICS valuer based on the extant planning permission at £529,000. Based off the current revised plans (pending approval), the scheme has been valued by a local estate agent at £1,160,000 if the plots are sold off individually or £900,000-£1,000,000 if sold as a whole, marking a significant uplift on the auction price.
The previous four months have also been spent successfully carrying out a now completed extension and refurbishment project on a property in Macclesfield.
|29.11.2021||Paid||No||29 November 2021, 19:58|