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EXECUTIVE SUMMARY Knightsfort Estates specialises in residential property investment portfoliobuilding. Knightsfort Estates offers an opportunity for both individuals and companies to receive a return from property within the United Kingdom. Our aim is to establish a diversified portfolio of residential properties in desirable areas throughout the United Kingdom. We believe property investment is an essential part of any balanced portfolio. The Company will invest in a portfolio of approximately 20 exclusive residential properties in strong rental areas with medium term capital growth opportunities. The portfolio will be made up of high yielding exclusive residential properties, which will be actively and professionally managed. Acquisitions will focus on strong future rental demand and capital growth opportunities, targeting a return of 14% p.a. over a minimum term of 5 years. The term can be extended or reduced on the agreement of the company management team. We will rely on our experience and knowledge within the market to select suitable properties which have the greatest appeal to the target market. These properties will be sourced at competitive prices and will be efficiently refurbished and interior designed with strict budgets in place with a view to generating immediate uplift in value and high rental returns. Knightsfort Estates intends to raise ÂŁ600,000 through a combination of investment and loans. The funds will primarily come from the executive management team and individuals looking to generate healthy returns through property. The Company will be based within the UK; the benefit of this is the availability of favourable finance terms.


KEY FEATURES COMPANY : Knightsfort Estates STRUCTURE : UK based Limited Company OBJECTIVE : Rental Yield on Cost: 15% TARGET PORTFOLIO SIZE : £4.5m MINIMUM TERM : 5 years MINIMUM LOAN/INVESTMENT : £50,000 ELIGIBILITY : UK res, non-res & non-dom investors, SIPP & SSAS Number of Properties : 20+


COMPANY OBJECTIVES Knightsfort Estates aims to acquire in the region of 20 properties across specifically targeted areas with strong long term rental demand. The Company will utilise all available avenues to source these properties from independent real estate agents, accountants, solicitors, banks and auction houses. We are committed to conducting due diligence of the highest possible standard and to working only with the very best providers of financial, legal, accounting and banking services nationwide. Our philosophy is based on trust, good sense, transparency, accurate research and a clear focus on pursuing medium to long term investments that yield healthy, steady and sustainable profits. Knightsfort Estates unique service is dedicated to maximising profit opportunity. Based on sophisticated financial modelling, we will source, buy, refurbish, let and handle the rental management, all in house. Thus stream lining the business to reduce any wastage or unnecessary costs. Tenants will be on strict AST’s or Licenses enabling the Company to insure that the assets are well maintained which in turn will help support the rental stream achievable. The portfolio will have a very broad appeal amongst the target tenant market. Each tenant is also entirely independent which means that at any given time only 1 or 2 of Knightsfort Estates properties should be vacant. There is an annual option to extend the five year term on the agreement of the company management team. Knightsfort Estates will reduce or relieve the UK tax liability on the Company’s returns by the proper and legitimate use of tax planning specialists.


PROJECTED RETURNS Analysis of Returns 5 yr Return Structured Finance (Loan to Value) Equity Return on a £100,000 loan/investment

Upside 14% p.a. 65% 35% £170,000

Base Case 10% p.a. 75% 25% £150,000

THESE PROJECTIONS ARE BASED RESPECTIVELY ON i. Rental prices remaining on their current upward trend ii. Marginal capital growth over the term iii. KE’s downside projections are based on a reduction in rental prices In some instances returns can be compounded to increase the level of return over the term, this may or may not be possible depending on the route of funds into the company. The properties will be made up of Houses in Multiple Occupation (HMO’s), Studio apartments and 1 and 2 bedroom apartments which appeal most to the professional tenant. Knightsfort Estates will also operate in the student accommodation market, targeting University Towns and Cities which offer sustainable investment opportunities. Suitable properties will be purchased and converted into efficient layouts to maximise both rental return, capital values and close attention will be spent on insuring the asset is designed to meet future market needs. The properties will be renovated and interior designed to add value and generate maximum rental returns of approximately 15% p.a. on costs. With average occupancy rates in the existing portfolios managed by the management team at 98% for the past 8 years, this is likely to provide a consistent income stream. One off projects will also be completed in prime areas within commuter distance to London. These one off projects will be purchased, refurbished and sold on for profit.


KNIGHTSFORT ESTATES STRATEGY TIMING Knightsfort Estates will commence acquisitions immediately, acquiring the best opportunities as they arise. It is intended to have the properties fully let within 6 months of purchase; on average we envisage this to be 3 months.

LOCATION The location of the investments shall be in strong rental areas, the portfolio will concentrate on the core rental market of professional tenants at the higher end of the chosen areas.

REFURBISHMENT It is intended that the Company will allocate part of their assets to the refurbishment of properties, where there is a potential to enhance value and achieve immediate capital uplift. The properties will then be furnished to meet general market requirements. It is anticipated that this will provide an immediate value uplift of 20% beyond expenditure in the first year that the properties are refurbished.

TENANCIES Each property will be rented to high quality, often corporate tenants on Assured Shorthold Tenancies. Average tenancy duration is anticipated to be 12 months and average occupancy rates are projected to be in excess of 95%.


PROPERTY TYPE Knighstfort Estates will identify approximately 20 properties with refurbishment upside in suitable areas. Typical selection criteria include being within a ten minutes walk of a City/Town Centre or close to good transport links and in areas of high employment. Examples of properties that have been acquired and refurbished for previous portfolios. We pride ourselves on quality and attention to detail, as can be seen from the examples of recently acquired properties under management. The standard of accommodation will be determined by the area and location of the property, there is a fine balance between quality and cost. Properties in the Capital will require more investment in materials and closer attention to detail in the interior design phase. Investment policies are subject to review from time to time in the prevailing economic climate and any changes will be made apparent prior to any action.


RECENTLY ACQUI

Details of some of the most recently acquired properties, these properties hav CLARA STREET Conversion to 6 Ensuite Bedroom HMO Acquisition cost: £ Refurbishment cost: £ Total cost incl fees: £ Value after refurbishment: £ Annual rental income: £

CHESTER STREET Conversion to 6 Ensuite Bedroom HMO Acquisition cost: £ Refurbishment cost: £ Total cost incl fees: £ Value after refurbishment: £ Annual rental income: £

THE LODGE 4 Bedroom 3 bathroom Acquisition cost: £ Refurbishment cost: £ Total cost incl fees: £ Value after refurbishment: £ Annual rental income: £


IRED PROPERTIES

ve been acquired by our team in other portfolios and serve as a good example. CLEMENTS STREET 5 Bedroom 3 bathroom Acquisition cost: £ Refurbishment cost: £ Total cost incl fees: £ Value after refurbishment: £ Annual rental income: £

CAMBRIDGE STREET 4 Bedroom 2 bathroom Acquisition cost: £ Refurbishment cost: £ Total cost incl fees: £ Value after refurbishment: £ Annual rental income: £


EXECUTIVE M NAME........

NAME

.... is by trade a professional .........., currently playing with ........ in the.............. has achieved full .............................. honours, with a career highlight facing the.......................... .............. has been investing in property since the age of 19; he has developed a vast amount of experience within the property investment market. Property investing has allowed ....... to generate additional

.... is by trade a profession with ........ in the.............. has a honours, with a career highli .............. has been investing of 19; he has developed a v within the property inve investing has allowed .....

income streams away from his full time ......... career.

income streams away from


MANAGEMENT

E........

NAME........

nal .........., currently playing achieved full .............................. ight facing the.......................... g in property since the age vast amount of experience estment market. Property ... to generate additional

.... is by trade a professional .........., currently playing with ........ in the.............. has achieved full .............................. honours, with a career highlight facing the.......................... .............. has been investing in property since the age of 19; he has developed a vast amount of experience within the property investment market. Property investing has allowed ....... to generate additional

m his full time ......... career.

income streams away from his full time ......... career.


C O N TA C T D E TA I L S K N I G H T S F O R T E S TAT E S L I M I T E D THE LODGE RU X L E Y R I D G E SURREY KT10 0HZ info@knightsfor testates.com

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