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Revereum

Property Development Opportunity Apex House, Manchester, England

November 2018


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Introduction

Revereum Property Development is proud to present - Apex House, Manchester. This is an opportunity to invest in a commercial to residential conversion resulting in 21 units being constructed. Revereum have partnered with a reputable and experienced Manchesterarea developer with a history of realising exceptional projects with impressive bottom lines. The existing structure to be developed is currently an office building and ideally located in Levenshulme, Manchester. It’s close to major transport links, local amenities, schools, and parks.

Planning has recently been granted to start this conversion and debt has been secured for 74% of total costs. In addition to the impressive opportunity to redevelop this building and realise its maximum potential by completing this conversion, we have had early indications that the addition of another floor (consisting of 4-6 additional units) should not be a problem from our planning consultant as well as the architects. Costs for this haven’t been finalised, but this will increase the ROI of the project if approved. The construction timeline is a conservative 15 months.


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Headlines

Project Location Building and Land Cost Residential Units to Build Gross Internal Area Net Internal Area Total Development Cost Developer’s Equity In Debt Secured Equity Investment Required Build Timeline GDV (Low Estimation) GDV (High Estimation) Gross Profit (Low Estimation) Gross Profit (Low Estimation) Project Profit on Cost Equity Investor IRR

Manchester, England £1,325,000 21 11,485 sq ft 10,241 sq ft £2,282,568.30 £150,000 £1,682,568.30 £450,000 17 months £2,739,230 £2,909,230 £456,661.70 £626,661.70 20.01% - 27.45% 21.49% - 29.49%


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Site Plan

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Development Details

A contractor has been identified to conduct the works required. ÂŁ533,500 is quoted for the refurbishment of all units inside the existing building. Full refurbishment of the common areas and lifts will be conducted. Real Estate Sale Sales will be through reputable estate agents familiar with the local market. Their intentions to act on our behalf, assessment of the market, and proposals for work and fees have already been presented and considered. The units will be sold as freehold. The sale prices were assumed based on concrete and recent data from local/adjacent sales of similar developments.

Planning & Build Planning is in place for the development of the 21 units in the commercial building to be converted. If we were to additionally proceed with the addition of another floor onto the building, planning will need to be received for that addition. Conversations with the planning department have indicated that planning would be granted for the addition as well.


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Funding Required Breakdown Description

Total Cost

Land Purchase

£1,325,000

Legal & Professional Fees

£100,730

Pre/Post Construction

£56,333.50

Development Costs

£691,562.50

During Construction

£15,500

Sales Marketing

£72,892.30

Other

£20,550

Total

£2,282,568.30


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Units Constructed Detailed

Apex House - Levenshulme, Manchester, England Number of Properties

Property Type

Square Feet

Freehold

Low GDV

High GDV

£PSQFT (Average)

8

1-Bedroom

366-560

£105

£115,000

£120,000

£260.65

13

2-Bedroom

473-560

£125

£135,000

£145,000

£265.06

10,241

£2,465

£2,675,000

£2,845,000

21

Car Park Revenue

£10,000

Freehold Revenue

£54,230

Total GDV (Low)

£2,739,230

Total GDV (High)

£2,909,230


MIRASA

CH 2435 mm

15: 48 m2 (2 bed)

CH 2499 mm

48 m2 (2 bed)

8: 48 m2 (2 bed)

1:

16: 45 m2 (1 bed)

21: 52 m2 (2 bed)

9: 45 m2 (1 bed)

14: 52 m2 (2 bed)

2: 44 m2 (1 bed)

Exposed radiators - position TBC

7: 52 m2 (2 bed)

FIRE EXIT

STAIRS

SERVICES

STAIRS

STAIRS

STORE

Please note that all shaded furniture indicates where new is to be supplied and all furniture not shaded will be existing reutilised.

Second Floor

First Floor

Ground Floor

17: 46 m2 (2 bed)

20: 38 m2 (1 bed)

10: 46 m2 (2 bed)

13: 37 m2 (1 bed)

3: 46 m2 (2 bed)

6: 44m2 (2 bed)

18: 48 m2 (2 bed)

19: 34 m2 (1 bed)

11: 48 m2 (2 bed)

12: 34 m2 (1 bed)

4: 48 m2 (2 bed)

5: 36m2 (1 bed)

Rubber flooring with 2no. teal tiles up wall FFL

Rubber flooring with 2no. teal tiles up wall FFL


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Development Opportunity Financial Details - Apex House

Development Cost Land+Building Development Costs Legal & Professional Fees Pre/Post Construction During Construction Sales Marketing Other Total Cost Net Sales Profit GDP as a percentage of Costs Development Costs Refurbishment Utilities - Gas Utilities - Water Utilities - Electricity Employers Agent (EA) Project Management (PM) QS Contingency Asbestos Removal Demolition & Site Clearance External Landscaping Lift Warranty

Remarks £1,325,000 £691,562.50 £100,730.00 £56,333.50 £15,500 £72,892 £20,550 £2,282,568.30 £2,739,230 £456,661.70

Low 20.01% (Low)

£533,500 £2,000 £15,750 £15,750 £24,000 £13,337.50 £9,000 £26,675 £0 £20,800 £5,000 £10,000 £15,750

Gas Removal £750 per unit £750 per unit 2.50% 5.00% Incl. in demolition Incl. asbestos removal Lift refurbishment £750 per unit

Legal & Professional Fees Breakdown Purchase Legals Title Indemnity Insurance Valuation Report Guarantor Witness Search Fees Other Search Fees Structural Survey Stamp Duty Sourcing Fee Pre/Post Construction Breakdown Architect Fees - Plans Architect Fees - Building Regs Prior Approval Submission Planning Fees Planning Consultant Structural Calculations Building Regulation Application M&E Design Asbestos Survey Noise Survey F10, H&S Submission Water Calcs SAPP & EPC Waste Management Sound Testing Report Other Reports/Contingency Address Registration During Construction Gas Supply Electricity Supply Water Supply Security Setup Monthly Security Internet Building Insurance Accounting Fees Sales & Marketing Legal for Sales Marketing Materials Furniture Staging Sales Graphics Interior Designer Sales Fees Other Photography Other

Remarks £7,500 £500 £5,000 £1,200 £280 £1,000 £3,000 £55,750 £26,500

Assuming 2 directors Contingency

2.0%

£13,337.50 £3,150.00 £96.00 £1,500 £5,000 £2,500 £2,600 £4,200 £2,000 £2,500 £2,500 £2,200 £2,200 £2,000 £2,000 £7,500 £1,050

3.0%

£200 £3,000 £1,800 £1,500 £1,200.00 £600 £3,600 £3,600

To be removed

£10,500 £5,000 £5,000 £5,000 £20,000 £27,392.30

500 per unit

£550 £20,000

0.50%

1% using low GDV

Random contingency


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Financial Details Continued...

Financing Details Total Equity Equity Investor Developer Equity Debt Total Costs

£600,000.00 £450,000.00 £150,000.00 £1,682,568 £2,282,568

Remarks

Financing Costs Legals, QS, Monitoring, Etc. Other Development Finance (17 Months) Arangement Fees Total Finance Costs Debt IRR

£0 £0 £166,855 £57,064 £223,919 13.31%

Equity Investor Total Invested Total Return Interest True Return

£450,000 £187,998.51 £0 30.44%-41.78%

75% 25% 73.71%

Incl. Incl. 7.00% per annum 2.50%

Low-High

Equity Investor IRR: 21.49% - 29.49%


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Indicative Completed Project by this Developer


R DISCLAIMER:

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Contact Us

James Hargreaves, CEO ajay@revereum.com +44 (0) 3334.560.346 Manchester No.1 Spinningfields Quay Street Manchester M3 3JE United Kingdom London Berkeley Suite 35 Berkeley Square Mayfair, London W1J 5BF United Kingdom

Revereum

Revereum Property - Apex House  
Revereum Property - Apex House