BROCHURE 2016
EMPIRE PROPERTY HOLDINGS LOAN NOTE INVESTMENT OFFER
BROCHURE 2016
2|
BROCHURE 2016
CONTENTS THIS DOCUMENT SHOULD ONLY BE READ IN CONJUNCTION WITH THE INFORMATION MEMORANDUM (IM). PLEASE REFER TO THE RISK WARNING PAGE FOR FURTHER INFORMATION. ABOUT US –
4-5
STRATEGY –
6-7
INVESTMENT OPPORTUNITY –
8
SIMPLE GUIDE –
9
RISK WARNING –
10
CHARACTERISTICS OF LOAN NOTE –
11
PROTECTION & ASSURANCE – 12 SENIOR MANAGEMENT –
13
SUMMARY –
14-17
KEY PARTNERS –
18
FAQS –
19
TEL: 01302 639 444 EMAIL: info@empirepropertyholdings.co.uk WEB: www.empirepropertyholdings.co.uk
|3
BROCHURE 2016
ABOUT US EMPIRE PROPERTY HOLDINGS WAS INCORPORATED AS A SPECIAL PURPOSE VEHICLE,TO ACQUIRE COMMERCIAL PROPERTIES FOR DEVELOPMENT INTO RESIDENTIAL ACCOMMODATION BY THE DEVELOPER, EMPIRE PROPERTY CONCEPTS. The Developer is a separate limited company that will project manage the Developments. The Developer will also manage the lettings of the Properties and will liaise with its private and council letting contracts to secure lettings in order to provide funds out of which the capital and interest returns to subscribers will be met.
EMPIRE PROPERTY CONCEPTS (‘EMPIRE’) Empire Property concepts was set up by Director, Paul Rothwell, in september 2009. He had already completed his first property investment at university & also continued to develop with his brother Adam since 2003. Paul wished to make his property development formal as a company but also seek investors to provide his services to. Empire’s progress has been strong, even against the backdrop of difficult economic & property market conditions respectively. The company has continued to market itself well & attract new investors to aid its growth. Since its inception, Empire has grown the product offering to consultancy, Joint Ventures (JVs) and Loans for Property. The latter is used to facilitate the development of projects to be retained as an investment within a special purpose vehicle, and then refinanced to return investors funds.
4|
Empire seeks to market to new investors, and deal with the administration & development cost collection only. Empire has also expanded its team in terms of management, build management, accounts & administration. Paul has reserves of £500k as a contingency for the current Empire business model. Paul also has a 50% equity stake in a £10million portfolio through DPIL & DPDL. Empire is currently developing & managing properties for Paul, his family, DPIL & DPDL, & private consultancy clients. He currently has 600 units under management to include the various aforementioned portfolios & consultancy clients. Empire recently developed a 25 unit permitted development conversion called Britannia Inn in Balby, Doncaster. This was finalised in November 2015, 12 months after acquisition.
BROCHURE 2016
DONCASTER PROPERTY INVESTMENTS LIMITED (‘DPIL’) AND DONCASTER PROPERTY DEVELOPMENTS LTD (‘DPDL’)
ROTHWELL FAMILY (‘FAMILY’)
DPIL and DPDL are JVs companies set up between Paul Rothwell & a private investor called John Lodge.
This company buys, develops and sells properties as going concerns.
This is a successful example of Paul’s HMO investment model securing private backing and creation of a successful Joint Venture. It has also grown into a successful & profitable company, which is continuing to upscale its investment & development portfolio. DPIL has recently developed a 29 unit permitted development conversion called York House in Doncaster town centre. This was finalised in 12 months after acquisition & achieved 50% occupancy in six weeks.
Paul Rothwell has also set up a company on behalf of his family.
This company is separate to the property portfolio which is held in individual names with Paul’s family members (P&P Rothwell, P&R & A&N Rothwell) The Family are currently developing a mixed use development in Doncaster town centre called Weston House in Doncaster. The permitted development allows for 24 self-contained flats & includes three ground floor commercial units, one of which will site Empire’s new office space. This is due for completion in February 2016.
Empire provides full development services for DPIL and DPDL.
DONE DEAL 1 – YORK HOUSE, DONCASTER Purchase price Development costs (29X£31k) Total cost (including interest) Income Valuation based on 10% yield Refinance exit (70% LTV)
£400,000 £900,000 £1,500,000 £180,000 £1,800,000 £1,260,000
DONE DEAL 2 – BRITANNIA INN, BALBY, DONCASTER Purchase price Development costs (25X£30k) Total cost (including interest) Income Valuation based on 10% yield
£160,000 £750,000 £1,100,000 £162,500 £1,625,000
DONE DEAL 3 – WESTON HOUSE, DONCASTER Purchase price Development costs (62X£30k) Total (including interest) Income (24 x 125 x 52) Commercial Income (4x£10,000) Valuation based on 10% yield Refinance exit (70% LTV)
£455,000 £720,000 £1,250,000 £156,000 £40,000 £1,960,000 £1,372,000
TEL: 01302 639 444 EMAIL: info@empirepropertyholdings.co.uk WEB: www.empirepropertyholdings.co.uk
|5
BROCHURE 2016
STRATEGY THE COMPANY INTENDS TO USE THE FUNDS RAISED,TO ACQUIRE SUITABLE COMMERCIAL PROPERTIES, AND STRATEGICALLY RENOVATE AND MANAGE THESE ASSETS TO ACHIEVE THE FIXED RETURNS. Investment will provide a fixed double digit return on investment, and allow investors to benefit from opportunities in the real estate market without management commitment or concentration of investment in any one property. Once converted, the properties would become a commercial asset, whose underlying value whilst linked would not be reliant on the variable housing market price index. The Company plans to take full advantage of current market conditions and acquire assets through the following methods: • Acquire suitable commercial property in prominent towns or cities • The funds will be used to acquire & develop the property into residential accommodation • The properties will be renovated using permitted development rights where possible, or the equivalent full planning requirements • The Company will purchase commercial properties and undertake the necessary development to provide quality letting HMO studios or self-contained flats at a significant yield • The Company will then liaise with known private, and council letting contacts, to speedily let the properties.
6|
BROCHURE 2016 BUSINESS STRATEGY
SALE TO PORTFOLIO LANDLORD
The cost of every project and every future project can be standardised to provide a business plan for each property. The details of each potential project will be input into a feasibility spreadsheet and the viability can be quickly assessed. The main factors affecting the project are the purchase price of the property and the cost of renovation. These factors are controlled as explained below.
We have already strategically sold existing Empire HMO portfolio properties to existing landlords & we have also assisted existing Empire clients to do likewise.
Each room is given an average cost to complete, which takes into account all aspects of the renovation, project management, administration, licensing, and liaison with councils. The only other factor is the purchase price of the room and therefore in each case, we can identify the purchase price of each room that should not be exceed.
EXIT ROUTES RETENTION AND REFINANCE BY THE DIRECTORS
Furthermore, due to the high yield we can achieve, we are being asked to purchase and develop properties with the intention that investor clients then purchase from them. This is supported by Empire’s attitude to building long lasting relationship; Empire usually then assist with finance sourcing, manage the properties in question and support further development of the clients’ portfolios.
SALE TO THE OPEN MARKET We have experienced an increased demand to not only produce larger developments, such as pubs and offices but also market them via traditional estate agents. Foreign investors are particularly interested due to the UK’s rental demand & reliable legal system.
Loans for Property backed developments are generally being developed in order to retain as an investment. The preferred exit route will be via a refinance with one of a number of lenders we use currently namely CCB, Lloyds, Shawbrook & Aldermore.
DEVELOPMENT 1 - COMMERCE HOUSE, WAKEFIELD The plan would be to convert the building to 40 self-contained apartments using the permitted development right which allows conversion of b1 offices to c3 residential accommodation Purchase price Development costs (40 x £32k) Total cost Income (40 x £125 x 52) Valuation based on 8% yield Refinance exit (70% LTV)
£370,000 £1,280,000 £1,650,000 £260,000 £3,250,000 £2,275,000
DEVELOPMENT 2 - KING CHARLES HOUSE, PONTEFRACT Permitted development to convert town centre office building into 62 self-contained apartments for the rental market Purchase price Development costs (62X£30k) Total Income (62 x £125 x 52) Valuation based on 8% yield Refinance exit (70% LTV)
£900,000 £1,860,000 £2,760,000 £403,000 £5,000,000 £3,500,000
DEVELOPMENT 3 – 63 BRADSHAWGATE, BOLTON Partially listed building conversion via full planning permission, into 70 self-contained apartments for the rental market. Purchase price Development costs (70 x £32k) Total Income(70 x £135 x 52) Valuation based on 8% yield Refinance exit (70% LTV)
£900,000 £2,240,000 £3,140,000 £491,400 £6,142,500 £4,299,750
TEL: 01302 639 444 EMAIL: info@empirepropertyholdings.co.uk WEB: www.empirepropertyholdings.co.uk
|7
BROCHURE 2016
INVESTMENT OPPORTUNIITY Empire Property Holdings Ltd are offering loan notes to investors that are seeking a secured fixed return on their capital, with tangible security, via a first and only legal charge which is registered at the Land Registry. The legal charges are held by independent security trustees on behalf of the loan note holders. The loan note holder is effectively ‘the Bank’ & is very similar in nature to residential development funding or bridging finance offered by UK financial institutions. It offers financial lending in return for a pre-agreed interest rate & security via a legal charge. The Empire Property Holdings Loan Note is structured by JMW Solicitors LLP, a leading North West law firm. 1)
income product (the “Income Product”) which is a 2 year fixed rate secured loan note which will accrue 10% simple interest in the first year and 12% simple interest in the second year. Interest is payable every 6 months in arrears and the subscrip- tion price is repaid at the end of the term
2)
growth product (the “Growth Product”) which is also a 2 year fixed rate secured loan note which will accrue 10% simple interest in the first year and 12% compound interest in the second year. Interest is compounded annually and payable at the end of the term with a 4% bonus (equating to 4% of the subscription price) together with the subscription price.
Security is a first and only legal charge on prime developments sites, with full planning permission or permitted development rights, registered at the Land Registry and held by the trustees on behalf of loan note holders. Development work will be undertaken by a pioneering developer with a proven track record & lettings model. Empire Property Holdings & Empire Property Concepts welcome any professional due diligence or risk assessment. The developments will be retained within the group portfolio as the Company has exit finance lined up with mainstream lenders.
8|
In accordance with Inland Revenue regulations interest is paid net of withholding tax at 20%.
LOAN NOTE HOLDERS SECURITY On behalf of loan note holders leading independent security trustees, NCM Fund Services Limited will have, on behalf of loan note holders, the first and only legal charge on the development sites.
OUR TEAM The experienced members of the team within Empire Property Holdings (company registration number 09732889) and Empire Property Concepts (company registration number 06931800). The Team, headed by Paul Rothwell, and his team of external professionals, have built an impressive network of contacts. The team undertake strict due diligence before purchasing any development site. Empire Property Concepts are also responsible for the project management and construction of each development. Empire Property Concepts also liaise with a reliable network of letting contacts to ensure an efficient occupancy uptake.
BROCHURE 2016
SIMPLE GUIDE You have read this brochure in conjunction with the Information Memorandum (IM) and wish to invest. You complete the application form and send it together with a copy of your passport and a recent utility bill so that your application may be assessed by Empire Property Holdings.
Once your application has been underwritten and the anti-money laundering (AML) checks have been completed by Empire Property Holdings and we will ask you to transfer your funds directly to the Company bank account.
Your investment starts and interest accrues the day after funds are received by Empire Property Holdings.
Empire Property Holdings will then issue a loan note certificate to confirm your investment.
The team at Empire Property Group of Companies identify a development site with full planning permission or permitted development rights and a RICS surveyor submits a valuation report to the trustees for assessment.
Upon successful evaluation of the surveyor’s report the trustees authorise the site acquisition funds to Jackson Barrett & Gass Solicitors in Cheshire, the group’s property lawyers, who simultaneously register the legal mortgage charge, held by the trustees on behalf of the loan note holders, at the Land Registry.
NCM Fund Services Limited authorise the construction funds to Empire Property Holdings in stages, against Quantity Surveyor reports, as the works progress.
Once the site construction is complete, the individual units will be let & refinancing will be organised. Funds are returned to the Company & simultaneously the legal charge is removed at the Land Registry.
The team at Empire identify another development site and the process starts again.
The stages above will take approximately 12 months; depending on the size of the development.
At the end of year 2, your original investment is returned to you
TEL: 01302 639 444 EMAIL: info@empirepropertyholdings.co.uk WEB: www.empirepropertyholdings.co.uk
|9
BROCHURE 2016
RISK WARNING An investment in Loan Notes involves a high degree of risk. Accordingly, prospective Investors in Loan Notes should consider carefully all of the information set out in the Information Memorandum which should be read in conjunction with this document (and is available on request) and the risks attached into investment in the Company, including, in particular, the risks outlined in The Information Memorandum, prior to making any investment decision. The information in The Information Memorandum does not purport to be an exhaustive list or summary of the risks which the Company may encounter and is not set out in any particular order of priority. Investors should consider carefully whether an investment in the Company is suitable for them in the light of the information in this document and the Information Memorandum and the financial resources available to them. The Company’s business, financial condition or operations could be materially and adversely affected by the occurrence of any of the risks that are described in The Information Memorandum. In such case, the value of the Loan Notes could decline due to any of these risks and investors could lose all or part of their investment. Additional risks and uncertainties not presently known to the Director, or that the Director currently deems immaterial, may also have an adverse effect on the Company. The Director of the Company is responsible for the information contained in this document and, to the best of his knowledge and belief, having taken all reasonable care to ensure that such is the case, the information contained in this document is in accordance with the facts and no material fact has been omitted. The Director of the Company has taken all reasonable care to ensure that every statement of fact or opinion included in the communication is true and not misleading given the form and context in which it appears. Any person who is in any doubt about the investment to which this document relates should consult an authorised person specialising and advising on investments of the kind in question. The Director of the Company has taken all reasonable care to ensure that any subscriber for Loan Notes (or their professional advisers) have access and can have access at all reasonable times to all information that he or they would reasonably require and reasonably expect to find for the purpose of making an informed assessment of the assets and liabilities, financial position, profits and losses and prospects of the Company, and of the rights attached to the Loan Note, which are contained in this document and supported by the Information Memorandum, any accompanying form of acceptance letter or offer letter and which are available from the company. The communication to which this investment relates is exempt from the general restriction in Section 21 of the Financial Services and Markets Act 2000 on making financial promotions to members of the public where the promoter is not an authorised and regulated
10 |
person for the purposes of the Financial Services and Markets Act 2000 on the basis that it is made to and only to certain groups who are exempt within the meaning of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005. These include sophisticated investors, self-certified sophisticated investors, high net worth individuals, certified high net worth individuals and certain investment professionals. This document is not being distributed to persons outside the UK, however, any recipient of this document in jurisdictions outside the UK should inform themselves about and observe any applicable legal requirements. This document does not constitute an offer to sell or an invitation to purchase securities in the Company in any jurisdiction.
BROCHURE 2016
PROTECTION & ASSURANCE Empire Property Holdings Ltd use Security Trustees to control investor funds. The Security Trustees have the first and only legal charge on each site, which is registered at the land registry.
INVESTORS’ FUNDS £££
ASSURANCE: INDEPENDENT SECURITY TRUSTEE HOLD......on behalf of Loan Note Holders
FIRST and ONLY LEGAL CHARGE on the development sites
INVESTORS’ FUNDS in the Company bank account
RESIDENTIAL DEVELOPMENT
TEL: 01302 639 444 EMAIL: info@empirepropertyholdings.co.uk WEB: www.empirepropertyholdings.co.uk
| 11
BROCHURE 2016
SUMMARY AT THE END OF 2004,THE AVERAGE UK HOUSE PRICE HAD RISEN BY 63% IN JUST THREE YEARS, RESULTING IN A SIGNIFICANT SHIFT IN HOUSE PRICE TO HOUSEHOLD INCOME RATIOS. Together these two factors mean that the housing market has been, and will continue to be shaped as much by the affordability of a mortgage deposit, as by servicing that mortgage on a monthly basis. Transactions remain 28% below the average for the 25 years prior to the credit crunch, and the implementation of the Mortgage Market Review has limited both the number of people who can access mortgage debt and the amount they can borrow. Furthermore, there is little sign that the issue of deposit affordability will be anything but permanent unless there is a major housing correction, something we do not anticipate.
12 |
BROCHURE 2016 IMPACTS ON OWNERSHIP This will have several impacts. It will suppress the recovery in transaction levels and continue to put downward pressure on levels of mortgaged homeownership. Combined with limited prospects for a significant expansion of social housing provision, this means continued growth in the number of households in the private rented sector and a widening of the generational divide in the UK housing market.
As a result, Savills forecast the number of private rented households in England and Wales will increase by 1.2m over the next five years and levels of owner occupation will fall by 202,000 households. This would mean that by the end of 2019, over 24% of all households across the UK would be in the private rented sector. Among the under 35s, the proportion of households in the private rented sector would increase to 66%, with homeownership falling to just 16% of the total. Even in the next age band (35-49), homeownership would fall to just 55% of all households, with private renting accounting for 28% of households – rising to 38% in London. This trend will present opportunities for investors and major challenges for government. More fundamentally, it has the potential to change the way we look at housing in the UK and the role of homeownership in particular.
HOUSEBUILDING FORECASTS SOURCE: SAVILLS RESEARCH
The recent analysis of the annual cost of housing by Savills found that the under 35s have the highest outgoing on housing, equivalent to an average of £8,571 per household across England and Wales. Some 56% of the £37bn paid by these households was to a private landlord. By contrast, the annual housing costs of the 50-64 age group fell to an average of £4,182 per household, reflecting the extent to which they have been able to access homeownership historically, pay down their mortgage and enjoy the benefits of low interest rates on their remaining debt.
Initiatives such as Help to Buy can only limit the flow of households into the private rented sector to a degree. When the cost of servicing a mortgage rises as interest rates eventually climb, mortgaged owner occupation will continue to fall, while limited accessibility to mortgages means that the bulk of new households will be private renters.
Current projections for household growth suggests that we should be building 240,000 to 245,000 new homes in England a year. Just over 112,000 new homes were completed in the 12 months to March 2014 in England. This represents an increase of 4.5% on the previous year but remains well below the 170,000 achieved in 2008. However, despite the political will to support housebuilding, the strengthening economy and growing consumer demand, Savills expect the number of housing completions to increase to 152,000 in 2019, as current conditions stand. This falls well short of Labour’s and Liberal Democrat’s targets and assumes that private housebuilders will continue to deliver the bulk of new homes. Private housebuilders have responded to strong demand for homes by increasing production.
OVER 111,000 NEW HOMES WERE STARTED BY PRIVATE BUILDERS IN THE YEAR TO MARCH 2014 AN INCREASE OF 28% ON THE PREVIOUS YEAR. WE EXPECT THE MOMENTUM TO FEED INTO THE COMPLETIONS DATA NEXT YEAR BUT CONSTRAINTS SUCH AS A SHORTAGE OF LABOUR AND MATERIALS WILL PREVENT CONTINUED GROWTH AT THIS LEVEL.
TEL: 01302 639 444 EMAIL: info@empirepropertyholdings.co.uk WEB: www.empirepropertyholdings.co.uk
| 13
BROCHURE 2016
PUBLIC SECTOR AND AFFORDABLE HOUSING While housing associations and local authorities have the potential to play a significant part in boosting housing numbers, we do not expect the public sector to fill the gap between private developers’ output and housing need in the short-term. Housing associations have not delivered more than 27,000 new homes a year at any time in the last 15 years and there is little sign of this changing soon, particularly as there seems to be limited appetite for the Government’s 2015-18 Affordable Homes Programme, which was 48% ‘underbid’ in the most recent round. Local authorities are developing a lot more, but much of this is via joint ventures, so it is likely to be recorded in the house building statistics as activity by either the private sector or housing associations.
With the weight of money looking to invest in large scale rented housing and a shortfall in private rented supply, there must be a policy priority to bring forward large sites with substantial elements of build to rent, in addition to established forms of development. EMPLOYMENT Yorkshire and The Humber has the lowest labour productivity of all the English regions. Between 2006 and 2011 it was also the region with the lowest growth in gross disposable household income (GDHI) per head. In 2011 productivity, as measured by gross value added (GVA) per hour worked, was 12% below the UK average. Relative productivity had declined the most of all English regions since 2001, when it was 6% below the UK average. The gross disposable household income (GDHI) of Yorkshire and The Humber residents at £13,800 per head in 2011 was second lowest of the English regions, after the North East. The region had the lowest growth in GDHI per head between 2006 and 2011 at 11.2%, compared with 14.7% growth for England. Yorkshire and The Humber had one of the highest increases in unemployment rates between Q4 2007 and Q4 2012, increasing by 3.5 percentage points from 5.4% to 8.9%. At its most recent peak the unemployment rate was 10.2% in Q3 2011. The economic inactivity rate reduced from 24.0% in Q4 2007 to 22.7% in Q4 2012.
14 |
SOURCE: SAVILLS RESEARCH, 2011 CENSUS, DCLG
The employment rate in Yorkshire and The Humber declined from 71.8% in Q4 2007 to 68.2% in Q4 2010. More recent data show it had still not recovered from the decline and stood at 70.2% in Q4 2012. This magnifies the impacts on ownership above.
HOWEVER,THE LARGEST INCREASE IN UK WORKFORCE JOBS, FOR JUNE 2015, WAS IN YORKSHIRE AND THE HUMBER, AT 37,000.YORKSHIRE AND THE HUMBER WAS RESPONSIBLE FOR 6.9% OF THE UK’S GVA IN 2011, AMOUNTING TO £90.9 BILLION. Manufacturing accounted for 15.3% of Yorkshire and The Humber output in 2010, compared with the average of 10.8% for the UK. In other respects the industrial distribution in Yorkshire and The Humber is similar to that for the UK excluding London, the South East and East of England. Changes in the North Yorkshire labour market were mostly positive recently. There has been a fall in the total number of Jobseekers Allowance (JSA) benefit claimants. There were also falls in the number of people claiming for more than six months, those claiming for more than a year and those aged between 18 and 24.
BROCHURE 2016
The York, North Yorkshire and East Riding Growth Deal has secured £122.2m in Government funding which will support the LEPs ambition to become a national and international centre for food, agri-tech and bio-renewables as well as promoting business growth investment, infrastructure investment and skills creation. It is estimated that up to 5,000 jobs could be created and 5,000 new homes built In June, there were 31.03 million people in work in the UK, 63,000 fewer than for January to March 2015 but 354,000 more than for a year earlier. There were 22.76 million people working full-time, 352,000 more than for a year earlier. There were 8.27 million people working part-time, little changed compared with a year earlier. The employment rate (the proportion of people aged from 16 to 64 who were in work) was 73.4%, little changed compared with January to March 2015 but higher than for a year earlier (72.8%).
Yorkshire has a strong labour market & a growing migrant worker market. This is complimented by Empire selecting large towns & cities which reflect this. REFERENCES
http://pdf.euro.savills.co.uk/residential---other/rpf-q4.pdf
Comparing April to June 2015 with a year earlier, pay for employees in Great Britain increased by 2.4% including bonuses and by 2.8% excluding bonuses. In Yorkshire and The Humber, employment rose by 16,000 during the quarter to stand at 2.520 million giving an employment rate of 71.8%. Unemployment fell by 3,000. Ten out of twelve regions/countries saw a decrease in the level of unemployment over the last quarter, with the largest being Yorkshire and the Humber (down 30,000) followed by the North East (down 19,000). With the largest manufacturing employment base anywhere in the UK, West Yorkshire currently employs 160,000 including 47,000 in engineering alone. 66% of the world’s turbo chargers are manufactured in the areas around Huddersfield and Bradford. Key sub-sectors include textiles, electronics, printing, medical equipment, automotive engineering and aerospace and energy components. In South Yorkshire, Sheffield City Region is to benefit from a £180m EU funding programme which is designed to enhance economic growth, create jobs and boost skills training in the area. Finally, in East Yorkshire, the Port of Hull is one of the UK’s leading foreign- trading ports; handling in excess of 12m tonnes of cargo each year and nearly one million passengers take advantage of the ferries. In the region of 16,000 jobs in the city relate to port activity. 1,000 jobs are being created as part of Siemens £160m investment to build an offshore wind manufacturing site in East Yorkshire, with its port partner Associated British Ports (ABP) investing a further £150m.
REFERENCES http://pdf.euro.savills.co.uk/residential---other/rpf-q4.pdf http://pdf.euro.savills.co.uk/residential---other/yougov-survey.pdf http://www.ons.gov.uk/ons/rel/subnational-labour/regional-labour-market-statistics/october-2015/stb-regional-labour-market--october-2015.html http://www.ons.gov.uk/ons/rel/regional-trends/region-and-country-profiles/economy--june-2013/economy--yorkshire-and-the-humber--june-2013.html http://www.northyorks.gov.uk/media/23642/Monthly-economic-monitor-for-North-Yorkshire/pdf/North_Yorkshire_Economic_Monitor_August_2015.pdf http://researchbriefings.files.parliament.uk/documents/ SN02798/SN02798.pdf http://www.bdo.co.uk/yorkshire-report/a-regional-review
TEL: 01302 639 444 EMAIL: info@empirepropertyholdings.co.uk WEB: www.empirepropertyholdings.co.uk
| 15
BROCHURE 2016
KEY PARTNERS EMPIRE PROPERTY CONCEPTS - www.empirepropertyconcepts.com Empire Property Concepts will provide full development services for Empire Property Holdings.
DLP PLANNING - www.dlpconsultants.co.uk DLP provides Empire with planning consultancy on all projects undertaken. DLP provide the initial appraisal of all subject development sites, upon which a purchase decision and entry price is determined. The property is either then developed using permitted development rights or full planning. DLP also deal with the discharge of conditions on approval and liaise directly with the local authorities.
JACKSON BARRETT & GASS - www.jbgass.com Jackson Barrett & Gass is an award winning law firm who specialise in property. They will deal with all conveyancing matters & ensure sound legal title for stakeholder security.
BROWNHILL VICKERS - www.brownillvickers.com Brownhill Vickers are a large Sheffield firm of surveyors who have a good understanding of the local market and provide surveying and valuation services to Empire projects.
ANTHONY BURKE & ASSOCIATES Anthony Burke are private building regulations advisors who provide building regulations supervision to all Empire development sites.
ENS NOISE & SOUND CONSULTANTS - www.environmental-noise-solutions.co.uk ENS Noise provides specification advice and noise testing services in order to ensure the development sites attain the required profile.
NCM FUND SERVICES LTD. www.ncmfundservices.com/news The Security Trustee will act as agent and security trustee on behalf of the Noteholders in connection with the Debenture. JMW - www.jmw.co.uk JMW is one of the North West’s leading full service law firms. They are responsible for the Loan Note & Information Memorandum (IM).
SUB-CONTRACTORS Empire has 7 main sub-contractor builder teams & usually have around 50 people active at any one time.
16 |
BROCHURE 2016
SENIOR MANAGEMENT PAUL ROTHWELL – MANAGING DIRECTOR Paul has been a successful property developer and investor since 2004, and is a member of the National Landlords Association. He acquired his first property at University and has grown his personal and family property portfolio significantly. Paul has extensive experience of property acquisition, development management, and a thorough knowledge and understanding of planning, housing and regulation departments, which has led to his successful strategy to acquire and develop land and property. He has prepared proposals for suitable investments, and has developed a growth strategy utilising both private and commercial investment. Paul has worked tirelessly with planning consultants, architects, and Local Authority Officers, to perfect his HMO strategy, ensure full compliance, and achieve significant rental yields. Paul transferred the intellectual property he has acquired through his personal portfolio, to a tangible ready to market service. His company, Empire Property Concepts Limited, has created Paul with multiple income streams from consultancy roles and Joint Venture Partnerships (JV). Paul’s JVs, including his personal portfolio, are valued in excess of £10million.
RICK BARROW – DIRECTOR Rick Barrow is an affiliate of the Chartered Institute of Marketing and has marketing experience in several distinct sectors. Rick joined private client law firm Jackson Barrett & Gass in October 2007, ultimately becoming Marketing Director. Rick has been instrumental in developing and growing the firm, including year on year turnover and profit growth, despite the worst recession for decades. As well as being responsible for the firms marketing and business development, Rick is also responsible for risk management. Rick ensures the firms compliance with the Solicitors Code of Conduct, Solicitors Accounts rules, and adhering to the ever changing Council of Mortgage Lenders (CML) handbook rules. As a result, Jackson Barrett & Gass have been accredited with two Quality Marks by the Law Society following rigorous annual assessments. Rick has been a marketing & business consultant for Empire Property Concepts for over 5 years.
JEFFREY TAYLOR – OPERATIONS MANAGER Jeffery is an experienced project manager with 15 years in the building trade. He has been a contractor to Empire for several years before joining Empire as a full time employee in February 2014. Jeff handles all main contractors, sub-contractors and materials. Jeff oversees all regulatory requirements onsite including building regulations adherence, sound specifications, thermal upgrading and health and safety. Jeff has grown with the company and now sits firmly as number 2.
PAUL CONNOR – OFFICE MANAGER Paul oversees the office based aspects of all projects. He deals with the installation of new utility services such water & electricity supply upgrades. Paul also is the main liaison with the planning consultants and architects. Paul was previously a senior quality inspector for Whitbread plc, the UK’s largest hospitality company, owning Costa Coffee, Premier Inn, Beefeater Grill, Brewers Fayre, Table Table and Taybarns.
TEL: 01302 639 444 EMAIL: info@empirepropertyholdings.co.uk WEB: www.empirepropertyholdings.co.uk
| 17
BROCHURE 2016
FAQ’S CAN A COMPANY INVEST AND ARE JOINT INDIVIDUAL APPLICATIONS ALLOWABLE?
WHY ARE THE INTEREST PAYMENTS MADE AFTER THE DEDUCTION OF WITHHOLDING TAX?
Yes, a company can make an investment, subject to receipt of the necessary money laundering documents (AML). Joint applications are also acceptable subject to receipt of money laundering documents for each investor.
Under current HMRC rules the payment of interest must be after the deduction of withholding tax at 20%. Empire Property Holdings will send investors a tax voucher with each interest payment confirming the gross interest, net interest and the amount of withholding tax deducted.
WHAT DOCUMENTS DO YOU REQUIRE TO COMPLETE YOUR AML CHECKS? The Company initially undertake an electronic AML check. In addition to this check for UK residents and for each investor, if the applicant is in joint names, we will require a proof of identification and a recent proof of address less than 3 months. For non UK residents we will require the same documents but these will need to be certified.
DOES THIS ELECTRONIC AML CHECK LEAVE A FOOTPRINT? No. It matches you against the addresses you provide and doesn’t undertake a credit score and therefore leaves no footprint. It is a specialist AML system.
CAN I INCLUDE THIS INVESTMENT AS PART OF MY SIPP/SSAS? No. This investment is only open to cash investors.
WHEN IS THE START DATE OF THE INVESTMENT CALCULATED FROM? Interest starts to accrue the day after your funds are received by the Company.
WHEN ARE INTEREST PAYMENTS MADE? Interest payments are only relevant for income investors. Growth investor will receive compounded interest at the end of the 2 year term. There are two interest payment dates per year.
18 |
IF I AM A NON-RESIDENT OF THE UK CAN I HAVE TAX PAID GROSS? Under HMRC rules Empire Property Holdings still have to deduct withholding tax from the interest payments. Investors should seek professional tax advice.
IS THERE A DUE DILIGENCE PACK AVAILABLE? A full suite of documents is available on request.
I WOULD LIKE TO SEE ONE OF THE DEVELOPMENTS AND MEET A REPRESENTATIVE OF THE COMPANY; IS THIS POSSIBLE? We welcome on site visits and face to face meetings where one of the team would be pleased to show you around.
WHAT ARE PERMITTED DEVELOPMENT RIGHTS? The Permitted Development Scheme allows developers to convert office buildings into residential apartments without the need for planning permission. A simple form is submitted to the relevant planning department and as long as the exterior look of the building is not being changed, for example by adding extensions or another floor, nor does the building in itself present a flood/asbestos risk and no transport issue is created in the process the local authority cannot say no.
BROCHURE 2016
TEL: 01302 639 444 EMAIL: info@empirepropertyholdings.co.uk WEB: www.empirepropertyholdings.co.uk
| 19
DONE DEAL
TEL: 01302 639 444 EMAIL: info@empirepropertyholdings.co.uk WEB: www.empirepropertyholdings.co.uk