What's Hot - Property

FNG works with property developers and their partners to offer Off Market Property deals. Typically, these can range from £1m to £30m, distress assets, discounted projects with planning or planning assured direct with owners, looking for an exit especially this year due to Covid19. These deals normally turnaround within a couple of weeks, ideal for family offices, UHNW investors and institutional investors with liquidity looking for good ROI within 12-24 months. Please direct your enquiry to info@fngassociates.com

Below is a sample of recently completed projects

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41 number detached properties in Greater London


Purchase price of the development is £24,000,000 which values each unit at £585,365

Current value of 4/5 bed detached properties ranges from £1m - £1.5m, we estimate the units to be sold circa £1.25m giving a GDV of (top end) £51.25m (bottom end) £41m.

Planning has been granted to extend all the units via loft conversion and or extensions/conservatories etc with a estimated cost of circa £4m.

70% debt funding is in place for the acquisition and we can also fund the extensions to all the units.

Proposal

Of the 30% equity required (£7.2m) we are looking to raise (£5.2m)

The investor shall have preference shares meaning there capital is paid first, and we propose a 30% profit share.

Scenario

Buy £24m

Build £4m

GDV £41 - £51.25m

Gross Profit - £13m - 23m

Gross Profit to investor - £3.9 - £6.9m.

ROI - 75% - 132%.

We propose that from the first 10 units that are sold the revenue to repay the investors initial capital of £5.2m to be repaid within the first 12 months.

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West London conversation Project

Planning has been granted for 6 units configured in 1 x 1 bed, 4 x 2 bed, 1 x 3bed.

Acquisition £1.27m

Build £652,000

GDV £2.75m (conservative)

Gross Profit £734,000

JV Proposal

Investor to invest 80% of acquisition 20% invested by FPC.

FPC arranges funding for development

Hurdle rate of 6% paid to investor/FPC

Profit share 50/50

Investor projected return of 42% = £438k.