36% return through eco-friendly property in the UK's top staycation destination
BACKGROUND
West Chevington Farm comprises of 24 stunning and meticulously planned properties. With a mix of a barn conversion and new build houses, all on generously-sized plots, complimented by landscaped community spaces and car-friendly access.
OPPORTUNITY
The capital raise for Phase Three completes the development, with 3 further new-build holiday homes in the style being developed in Phase Two together with the addition of a large farm shop containing a micro pub and café, a children’s play area, communal outdoor areas, and space for marquees to host special occasions.
INVESTMENT METHOD
24-month investment term
There were three investment models:
Option One: 24 Month Fixed Income – 36% Paid Biannually (9% x 4)
Option Two: 24 Month Fixed Income – 36% Paid Annually
(18% x 2)
Option Three – 24 Month Fixed Income – 36% Paid on Maturity (36%)
Security is held with a charge against the completed properties which are retained by the developer in Phase One, currently valued at £3m. The total development GDV is £12.9m which adds to investor security.
For additional security the developer has given a debenture against their construction company where future contracts between £15m-£20m are secured.
OUTCOME
I have made two separate investments personally, with Vine acting as a strategic partner in the capital raise. The capital raise is now completed and the investment opportunity is closed. The development is 75% completed and on target for delivery.
There has been a recent valuation upon the entire development with interest in purchasing the completed project as a staycation business for the future rental yield by a family-office. The valuation is beyond initial expectations based on the property values alone, further enhanced with the staycation opportunity which further underpins the investment.
