12 Month Loan Note 15% Fixed Rate Return

12 Month Loan Note 15% Fixed Rate Return

Site Background

A prime location for development, Strawberry Place is situated between the city retail core, Newcastle Helix, St. James’ Park, and the termination of St James’ Boulevard. With an elevated position, the site is a prominent part of key viewpoints within the city and surrounding area, particularly St. James’ Park.

Formerly an industrial hub for Newcastle, in recent years the site has predominantly become commercial and retail oriented and continues to undergo substantial redevelopment, as it transitions into a high density, mixed-use city quarter.

Project Summary

  • Two residential blocks, circa 315 apartments, pre-sold to an institution. 
  • Includes 180-bed hotel and lease for a Grade A Operator. 
  • Additional provision of 140,000 sq ft of Grade A office space. 40% has been pre-let to one of the North East’s largest law firm.
  • Purchase price: £10.5 million.
  • GDV: £148 million. 
  • Targeting profit of £50 million.

FINANCIALS 

Heads of Terms have been exchanged. 

This Loan Note is for 12 months and has a fixed return of 15% which will be paid upon completion of the loan note. 

EXIT 

This project will be sold to an institutional investor, at which point the Loan Note investors will be repaid. The promoter will then retain the hotel and office space as a stabilisation, before eventually selling on to an institution. 

RISKS 

While the promoter does not envisage any other major factors which it would consider a risk to any investment, the company will be working within the property market and, as such, will be exposed to the usual development risks related to market conditions, rental or sales values. End purchaser / onward sales agreements are also subject to formal contracts.

This invitation is available for direct investment by; institutional investors, professional investors, sophisticated and high net-worth individuals, and companies. 

Requester Investors Report

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Key Investor Information

Location:Newcastle, UK
Minimum Investment:£20,000
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