Chilton: exclusive residential property investment opportunity
Residential property is an established asset class favoured by UK investors because it has historically provided strong returns through investments that are easy to understand.
Investors who have previously made regular property investments have generally been driven towards investing into buy-to-let properties. Although still favourable, the benefits of being a buy-to-let landlord have decreased in recent times due to changes in tax reliefs.
Fortunately for investors, the growth of fintech has led to alternative investment platforms to embrace property investments alongside growth SMEs, and away from traditional buy-to-let models.
Making equity investments in property through Special Purpose Vehicles (SPVs) offers a range of investor groups the opportunity to invest alongside one another and take on the role of property developers.
As equity investments, the return on investment would come in the form of capital growth, an outcome that is traditionally considered a long-term objective. However, equity investments in property can offer the potential for elusive, rapid capital growth.
How profitable the SPV is will depend on a range of factors including, but not limited to, the ability to deliver the development and market demand for the properties being constructed.
Chilton: an exclusive residential property investment opportunity
With this in mind, I would like to introduce you to our next residential property investment opportunity; an opportunity to invest in the purchase of a single residential development site in Chilton, County Durham for residential development and sale of 14 units.
Carlton SPV 1 Chilton Limited ('SPV1'), a special purpose vehicle, will be set up to develop the 14 luxury family homes. GCV is seeking to raise £0.4 million of investment alongside the senior debt to finance the project.
This development investment opportunity will allow each investor to co-invest in this residential development scheme and share in the development profit.
The site is located in the North East of England within the desirable area of County Durham. The site will be acquired with the benefit of detailed planning consent and the project is targeting a base case 1.5x multiple of money return.
The scheme will be built and developed by startegic delvery partner, Homes by Carlton, who specilaise in delivering high quality new build houses in the North East. The project is being made available to the GrowthFunders investor base, and is now live on the GrowthFunders online co-investment platform. This is represented on the platform alongside a £200,000 investment from corporate investor and fellow joint venture member of CoreHaus, Fusion21.
The models through which investment most appeal to investors are changing, and the versatility offered through property investments is considerable.
To get into property as an investor, there a whole host of considerations, and we've produced a guide to integrating property investments into your portfolio, which offers a great starting point. The guide (and associated property investing webinar) lead you through these in more detail, and feature worked examples to give you a number of real world scenarios.