Case Study
Maresfield
The site comprises of a semi-rural location in the village of Maresfield, East Sussex, with planning to erect seven five-bed detached houses. All houses will have brick walls, pitched and tiled roofs, and timber framed double glazed casement windows. It benefits from good garden amenities with a double garage.
The development is a short drive from the A26 and A22, giving good access to the Southeast road network, and is located close to the large town of Uckfield which is 80 minutes by train to Central London. Maresfield is 20 miles from the popular coastal tourist hotspots of Brighton, Hastings and Eastbourne. Additionally, the development is 45 miles from Ashford International Train Station which connects travellers with European cities such as Paris, Brussels and Lille, via Eurostar services.
Summary
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In the village of Maresfield in East Sussex
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Site with planning to build 7 x 5 bedroom detached houses
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Address: Land adjacent to Furnace Bank House, High Street, Maresfield, East Sussex TN22 2ED
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1st Charge funding £3,800,000 from ActivTrades http://activtradesbridging.co.uk/
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2nd Charge funding £1,565,000 from P1 Capital
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Total Funding (P1 & ActivTrade) £5,365,000
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Lawyers, Isadore Goldman
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Security: 2nd Legal Charge, Debenture, Corporate Guarantee from Harlequin New Homes Limited, Personal Guarantees from Directors at Harlequin New Homes Limited
INITIAL ANALYSIS
Review of Developer Appraisal.
Review of Redbook Valuation and analysis of reasonableness of GDV.
Property valuation analysis in local area.
Site visit.
Evaluation of security.
Stress testing appraisal against historic market downturns.
CREDIT COMMITTEE
Based on the analysis, P1 Capital accept the risk associated with the developments, which in the opinion of the Credit Committee, offers a strong risk-adjusted return to investors.
ONGOING MONITORING
Review of monthly Developer Site Update Report on site progress.
Periodic review of Monitoring Surveyor Report.
Periodic site visits to observe the status of the build.
Regular meetings with Developer to understand site progress and identify any issues.
SALES MONITORING
Engage with Developer to support the sales process for the properties, providing expertise and guidance on sales methods and supporting conversations with Estate Agent.
Review frequent sales progress updates, including details
of reservations and exchanges, sales prices and expected
completion dates.
Since funding, all units have been reserved off plan for a total of £7,350,000, a 14.2% increase above GDV.
COMPLETION & EXIT
Site on schedule to be completed October 2022.
Upon completion P1 will receive applicable sales proceeds based on deal investment terms.
