Kingsway, Stoke-on-Trent

The building was tenanted commercial/retail units with empty office space above.

The retail space was retained and is still running, while the offices upstairs were transformed into 11 en suite rooms. Titles was split accordingly to maximise the gross development value.

Finished Result

The investment…

Purchase price £235,000

Stamp duty £3,495

Professional fees £29,950

Cost of refurbishment £239,000
incl 10% contingency

Total costs £507,445
incl returns

GDV/DUV lower estimate £705,000 ( 70% remortgage at £493,500 gives us £13,945 money left in the deal )

Income going forward…

Residential income £7,050 PCM ( £84,600 PA incl. 5% void rate )

less: Interest only remortgage & Running costs £2,989.90 PCM ( £35,878.8 PA )

Total net income £4,060.10 PCM / c. £48,721.20 PA

Return on investment…

We will achieve an approximate net ROCE of 170% meaning we will see a velocity of return of around 7 months before we have all of the funds back out of the deal.

If you’re interested in becoming involved with similar opportunities, with the ability to earn excellent fixed returns, please contact us.