Freshwater, Isle of Wight, PO40
Address:13 houses in Golden Hill Fort
Ownership:13 Unit Block | Freehold
Latest Valuation £2,260,308
Dividend Yield 2.12%
Information correct as of 31/03/2021 and updated bi-annually.
Address: Units 1, 2, 4, 5, 6, 7, 8, 12, 13, 14, 15, 16, 17 & 18 Golden Hill Fort, Colwell Road, Freshwater, Isle of Wight, PO40 9GD
Composition: 5 x 3 bed terraced houses, 7 x 4 bed terraced houses, 2 x 5 bed terraced houses
Tenure: Freehold interest of the whole Fort
Purchase Price: £2,680,000
Latest Investment Value: £3,195,000
Latest Vacant Possession Value / Break-Up Price: £4,565,000
Exit Mechanic: Our exit strategy is to sell the units individually rather than as a single investment, thereby realising the discount that we have secured from buying in bulk
Total Return: N/A (before AUM fee)
Leading research agencies Savills, Knight Frank and JLL, have predicted house price growth in South East of N/A, N/A and N/A respectively, over the next 5 years (correct as of 31/03/2021). The average of these predictions is N/A and once geared by the mortgage debt would deliver 5-year capital growth of N/A, based on selling the units individually. Once the dividend yield is added, this would equate to a total return of N/A p.a. (N/A over 5 years) over a 5-year period based on the 90-day weighted average share price of N/A per share (correct as of 31/03/2021) and after deducting all costs of purchase (including the initial Property Partner transaction fee and 0.5% Stamp Duty Reserve Tax) and accounting for corporation tax on the capital gain, if the units were sold at this value, but not accounting for the AUM fee.
Level of gearing: 51% loan-to-value (LTV) based off latest valuation
Mortgage Details: The mortgage is provided by a major high street bank and is subject to a variable rate of interest based on the bank’s base rate.
Rental Information: The dividend yield fully accounts for and after mortgage interest payments, purchase costs, furnishings, forecast maintenance, annual voids, corporate taxation and all fees. For prudence, we haven’t included any growth in rental values in our forecasts
Further Information: Given the nature of this opportunity, there is capacity to enhance returns for investors. As this opportunity was secured at a discount to its Vacant Possession (VP) value, there is potential to realise capital value uplift if the units are sold individuallyLeave a comment