Introducing St. Thomas Becket Chambers A Contemporary City Centre Development of 43 Studio Apartments for Students In Canterbury, Kent
2 Thomas Becket Chambers Canterbury The Opportunity St. Thomas Becket Chambers student development is located in one of the most densely populated and under-serviced student areas in the UK. With an estimated 40,000 students attending at least one of three universities in the city, matched to the extremely strict planning rules, the educational institutes in Canterbury are in clear need of additional accommodation. The Investment The projected investment time line is 16 months. Along with this projected schedule, we forecast an ROI of 31.8% upon your investment. In addition to this highly competitive return, you are able to invest your pension in this project as it is both SIPP and SSAS compliant. 32% ROI in 16 months Planning Permission Canterbury is a beautiful city located just off the Kent coast. With an extraordinary amount of period medieval features, the county council are strict on what new developments are permitted. As a result, gaining planning permission has been a challenge. For further information, see page 13.
3 Thomas Becket Chambers Canterbury INVESTING IN CANTERBURY S GROWING STUDENT POPULATION Canterbury is located in the South East of England and is the regions top student destination. Nearly a third of the cities population are students, with that number forecast to grow in line with local university growth plans. The 40,000 students in Canterbury attend either; University of Kent, Canterbury Christ Church University, University for the Creative Arts, or the Girne American University Canterbury. University of Kent recently achieved an outstanding teaching Gold Award, testament to their ambition to provide the best possible teaching environment for their students, and additionally, grow their student numbers. Kent University is not the only educational institute in Canterbury commit to improving their teaching environment. Christ Church University have joined forces with Kent University to develop the county s first medical school. The bid for funded placements was accepted in March 2018, meaning up to 6000 additional student will be based in Canterbury.
5 Thomas Becket Chambers Canterbury INVESTMENT SECURITY First and foremost, we must highlight that the developer never receives any investor s funds, nor have control of those funds, at any point in the investment life cycle. Once deployed the investment funds are ring fenced in escrow, then transferred directly into the projects bank account. Brickowner is a property crowdfunding platform designed to offer property investment opportunities to investors in a clear and easy way using an FCA authorised and authorised structure. Brickowner is pleased to manage all investor onboarding and administration of St.Thomas Becket Chambers student development. The Brickowner platform has been specifically designed to streamline the investment process, saving both time and hassle for potential investors. In the Brickowner SPV, a shareholder (investor) is appointed as director who is the main point of contact to the SPV s independent accountant who handles all invoicing for the investment away from the developer. Corporate governance is also achieved as all invoicing is instructed by the independent accountant and all significant decisions relating to the SPV being made via the director and shareholders. The Brickowner SPV engages the developer through a comprehensive management agreement to deliver planning, construction and sales according to the nature of the project. On completion, the profit distribution is 65% to investors and 35% to the developer, thus we are inextricably linked; the developer are not only legally bound to deliver the project but intrinsically, through the profit share, are motivated to ensure a profitable outcome for the project. We offer investors a direct share holding in the Brickowner SPV that owns the asset (please note, the developer is not authorised to and never gives tax advice, it is your responsibility to seek appropriate independent financial advice). On any project, the first charge will always be to the senior lender i.e. the bank/boutique fund/family office who is supplying the primary debt and then the second charge the investors. Investor funds are secured against the underlying asset which is owned by them. By targeting a maximum LTV of 60% a conservative approach to leverage is being taken. By adopting this defensive approach to gearing we further safeguard investor funds. Further, to be crystal clear the SPV independently raises finance for the development. The developer is entirely external of this. Again, this demonstrates the independence and discretion the SPV can exercise over the project. Investors 2ND CHARGE Development SPV New Company Owning The Development OWNERSHIP Management Appointment Roles & Responsibilities of Coyne Wealth SPV Property Sale Profit share Agreement GROUP UK LTD JCT Work Contract Programme Budget Build Standard Health & Safety Risk Management BUILD Investment Exit Strategy Land & Property 1ST CHARGE Bank
7 Thomas Becket Chambers Canterbury INVESTMENT STRUCTURE With the removal of commitment fees, the introduction of better ROI protection and a 5% midterm uplift during the planning phase, we now provide an unmistakeable market leading opportunity 32% ROI Planning Gain Build Out We have changed our investment structure. Up until this project, we raised equity for our developments in two tranches. Typically, this consisted of an initial campaign for acquiring planning permission and a secondary campaign for the construction phases. We found this structure presented significant hurdles which then impacted the development process, and lessened the return we could provide for our investors. Using this knowledge, we have re-designed our structure with two main objectives in mind; to streamline the investment life cycle and to create a more hospitable investment environment for our clients. To do this we now raise equity for a project in a single campaign over dividing the project down the middle, we believe we have achieved this. A 5% fixed fee is now included in the appraisal which would otherwise be allocated to a bridging facility. These facilities are incredibly expensive and have a detrimental impact on the developments ROI. Changing this strategy provides a midterm uplift to your investment, but also means we are better equipped to protect the overall ROI figure, saving up to 5000 on every 100,000 loaned. Your 5% uplift will be deployed on the 12 month anniversary of the development, and paid via your SPV Managing Director. This will not be deducted from your protected ROI. 16 Month Projected Time Line Obtaining planning permission for the development Operating as a cost effective bridge facility, the SPV will pay you 5% on the 12 month anniversary of the development or until we gain planning permission Produces instant income during the planning gain phase with a midterm uplift. Construction phases through to completion of the development During the construction phases you don t accumulate 5%. This is because the construction phase is largely de-risked as the planning phase has been completed. Our in-depth project reporting provides transparent insight into your investments progress. Our Investor Relations Manager keeps you up to date on a monthly basis across key variables such as; funding, marketing, construction, SPV changes & exit strategies.
9 Thomas Becket Chambers Canterbury UNDERSTANDING THE FINANCIALS Sales St. Thomas Becket Chambers Sales GDV 5,025,000.00 Selling Costs - 110,500.00 St. Thomas Becket Chambers NET Sales 4,914,200.00 Costs Planning & Pre-build 1,026,000.00 Build Costs 2,123,000.00 Finance 415,600.00 Total Costs 4,262,000.00 Profit Net profit 651,900.00 Total Investor Profit 419,000.00 Developer Profit Share 225,900.00 Return on Investors Loan 31.8% Annual ROI 23.8% Funding Total Investment 1,320,500.00 Senior Loan 2,941,800.00 Total Funding 4,262,300.00
11 Thomas Becket Chambers Canterbury A smooth exit away from the investment is crucial, both for us and for our clients. The designated exit strategy for St. Thomas Becket Chambers utilises our network of family offices and private funds. We have successfully exited several developments in this fashion and have been approached by a number of institutions regarding the sale of the development.
13 Thomas Becket Chambers Canterbury THE JOURNEY TO GAINING PLANNING PERMISSION Canterbury is fortunate enough to be one of the most historical cities in the UK. With thousands of period features preserved from years past, Canterbury is a marvel to visit and a gem in the UK s crown. Unsurprisingly however, this makes acquiring planning permission for a development of student accommodation difficult. However, there is clear demand for more accommodation stemming from the local university growth plans & the considerable amount of students taken on currently & plan to in the future. Due to this, we are determined to bring this development to life. The road to where we are now has not been smooth, nor easy. However with the help of our expert partners we are confident planning consent will be granted. Below we map out our journey so far, what we learned & how we rectified our mistakes, leading to the unmistakable conclusion that we will be granted permission to build St. Thomas Becket Chambers. Planning Application 1 45 Studio Apartments Planning Application 2 Amended to 43 Studio Apartments Formal Planning Appeal Initial submission: 23rd May 2017 Refusal received: 29th November 2017 Initial submission: 8th January 2018 Refusal received: 23rd April 2018 Appeal submission: 23rd July 2018 The proposed scheme was refused on a select number of points by the local council. We completely redesigned the development to look much more traditional. We included a tiled pitched roof, red brick facade and wooden sash type windows. Design Car Free Development The design did not adhere closely enough to the local area. We did not include enough drop off bays for arrivals and departures. Our storm drainage measures where not robust enough. The development needed to be car free. Further changes required are: The design of the roof was not in keeping with the local street scene. The architect is addressing the issues raised with regard to car parking. We will argue that the flat section of roof will not be viewed from any angle and contrary to the refusal, our proposal will improve the conservation area, especially as the site currently sits derelict with the existing dilapidated building still present. This issue can be dealt with easily at appeal by submitting a draft legal agreement to the council at the same time as the written representation. A student management plan will be adopted to ensure have limited access to the site. Scheme 1 Scheme 2
15 Thomas Becket Chambers Canterbury Next Steps If St. Thomas Becket Chambers student development is an investment opportunity you would like to explore further, please get in touch with us to speak to one of our specialist consultants. By telephone 01275 866445 By email info@coynegroup.co.uk By social @coyneinvestment Or if you prefer putting pen to paper, you can write to us at: The Coyne Group Quays Office Park Conference Avenue Portishead BS20 7LF
Disclaimer: Please note that Coyne Group UK Ltd is not authorised or regulated by the Financial Conduct Authority and is not permitted to offer financial or investment advice to UK resident investors, whether or not the intended investments are regulated or unregulated. We strongly encourage all prospective purchasers to consult an FCA-authorised Independent Financial Adviser before committing to any form of investment. This is not an offer to participate in a collective investment scheme as defined in section 235 of the Financial Services and Markets Act (2000) and Investors will not have access to the Financial Services Compensation Scheme or the Financial Ombudsman Service. This email, videos and documents referred are intended to provide general information concerning the proposed development, construction and the management of The Development. The information provided has been prepared in good faith and to give a fair overall view of the Development. Photographs and electronically generated images, furnishings and accessories featured are for illustrative purposes only. All information provided by us at our web site or otherwise is provided on an illustrative basis. This email is for the sole use of potential business partners and/or prospective purchasers. It is your responsibility to seek all appropriate commercial, tax and legal enquiries and advice is taken before entering into a legally binding contract to purchase a property forming a part of the development. Copyright in and to this email and documents and videos referred belong to Coyne Group UK Ltd. Coyne Group UK Ltd is a registered in England & Wales: Quays Office Park, Conference Avenue, Portishead, BS20 7LF No: 04246869 Past performance is not a guide to future performance. Investment value may fall as well as rise, as a result of market and currency movements. Discover the wise way to invest in property For more information: info@coynegroup.co.uk 01275 866445 www.coynegroup.co.uk