Different levels of risk offer varying returns, with margins normally on cost in excess of 25% for refurbishments, 35% for construction and 45% for planning.
Investors fund the deposit, purchase costs such as legal fees and stamp duty, and initial build and debt servicing costs. In return they receive a priority return (paid on a pro-rata basis as required) plus a share of the remaining profits – weighted in our favour if we are paying a higher priority return or if we are required to guarantee the debt package.
In the fixed return model the investor receives returns with the benefit of a second charge on the asset(s) we acquire for them. The fixed return varies depending on the level of risk. Full planning/development risk attracts a higher return than simple investment risk in income producing assets.
Investors with Browntree Properties can expect to receive their initial investment plus final share of the profits within two to three years. We are often able to return a proportion of this much earlier, however, by completing and refinancing/selling of the property development in stages.
No investment of any nature can be guaranteed, but we can transparently state that we have consistently delivered exceptionally high returns and are able to provide personal/corporate guarantees to add security to our investments. Our exceptionally exciting pipeline of projects include both residential and commercial investment opportunities that many property developers in UK would gladly add to their own portfolios.
HOW WE CATEGORISE RISK:
- REFURBISHMENT – The property is tired and needs to be brought up to date in order to achieve its optimum capital and rental value.
- CONSTRUCTION – Planning permission is in place but the building work needs to be completed.
- PLANNING – The property is either a vacant site or an obsolete building which needs a change of use or wholesale re-development and so requires planning permission.