HUBB DEVELOPMENT FR14

£830,000
Now Funding

28
Month Term

13-15%
Annual interest

£20,000
Minimum Investment

Hubb Development FR14 is an opportunity to acquire an industrial unit with planning consent to build three substantial executive homes in the beautiful English town of Malmesbury, in the Cotswolds.

The planning consent permits the development of a four bedroom family home on each plot, of which will have a garage, off-street parking and private gardens. We plan to make a number of changes to the approved designs by increasing the footprint and internal area of each plot, create a luxurious living space throughout, and to secure the development within a gated community.

Based upon our previous success with this type of development, we are aiming to complete the project within 15-months and projecting a Gross Development Value of £2,550,000.

Our projections are calculated using 10+ years of proven Hubb Property Group experience and expertise supported by live industry analytics, credible estate agents and Royal Institute of Chartered Surveyors (RICS).

Key features:

• Brownfield development site with planning
• Freehold
• Located in Malmesbury, the Cotswolds
• The proposed site will comprise three substantial luxury homes within a gated community, each of which will have a garage, off-street parking and private gardens

Hubb Development FR14 Limited, is a special purpose vehicle (SPV) which is 100% owned and controlled by Hubb Property Group Limited. This SPV was solely set up to acquire and manage this asset and no further assets will be held within the company throughout the duration of the term.

Fund Size: £830,000

Funding: Secured Loan Note (also known as a coupon or bond)

Projected Loan Term: 28 months

Minimum Investment: £20,000

Interest Rate: 13% pa

Details of a further 2% bonus rate is available for registered members

Composition: Brownfield development site with planning.

Latest RICS Valuation: £750,000

Security: Investor funds are secured as a 2nd legal charge on the SPV.

Liquidity: Loan note certificates are transferable but note there is no guarantee of a secondary market so investors should plan to invest for the full term.

Interest: Interest is paid on redemption. With overseas investors, any interest paid may be subject to a 20% Withholding Tax, as required by UK law.

COVID-19 Pandemic Protection: Following the recent outbreak, we have had to make a number of changes to our Loan Note Instrument and legal documentation not only to protect your investment and interest but to protect the SPV and Hubb Property Group Ltd. The changes are described below.

• A Pandemic Event clause; should there be a further lockdown during the term of the project, the SPV may extend the Repayment Date by a period of up to 60 days.
• A GDV reduction clause; should the actual gross development value at the end of the term is at least 10% lower than projected, then the SPV may reduce the interest rate payable from 13% pa to 9% pa, or 15% pa to 11%pa.

Due Diligence: The financial projections for this opportunity have been calculated with consideration to the current COVID-19 pandemic. Integrated contingency lines have been included to ensure that the figures presented represent a realistic and achievable return-on-investment at the end of the project term. In our view, taking into account our research and due diligence, Hubb Development FR14 is an attractive and safe investment for investors, particularly given the current climate.

“The proposed development offers a unique style, high specification and manageable garden size, therefore I believe attracting a slightly older demographic. Most likely semi-retired couples being drawn to the area by family ties and incredibly good communication links to all of the South West including Bath, Cirencester, Bristol and Swindon. Such as our buyers on the bungalow. We still have strong demand for property in the target price range which I feel will be somewhere in the region of £875,000 – £900,000.”
Senior Manager, Strakers

“Further to reviewing this opportunity, I project a total resale value for all three sites between £2,500,000 and £2,650,000.  The advantage we have is that we’ve seen the quality of your product and we also know how well you present your property’s in terms of furnishing and finishing touches. When I did the research a lot of the new builds I came across were marketed with photos of empty rooms which just doesn’t sell the lifestyle to buyers and therefore doesn’t achieve the optimum value.”
New Homes Manager, Knight Frank

Malmesbury is an ancient town dominated by its historic Abbey and reputed to be England’s oldest borough. The town offers an excellent range of everyday facilities including a Waitrose as well as a number of pubs and restaurants. Other local centres include Tetbury, Cirencester and Chippenham whilst more specialist shops and cultural activities can be found in Bath and Bristol.

The area has a number of highly regarded private schools which include Westonbirt, Beaudesert Park, St Marys Calne, Marlborough College and those in Bath and Cheltenham. Malmesbury School is rated outstanding by Ofsted.

Recreational and Sporting facilities in the area include Racing at Cheltenham and Bath, Polo at Cirencester Park and Westonbirt, Eventing at Badminton and Gatcombe, Golf at Castle Coombe, Chippenham, Bowood and Westonbirt and Watersports at The Cotswold Water Park. In addition nearby places of interest include The National Arboretum at Westonbirt, the National Trust properties at Lacock and Dyrham Park, Bowood House and the historic village of Castle Coombe.

The proposed development is also well placed for the commuter being accessible to both Junctions 16 and 17 of the M4 which provides fast access to the East and West where it links with the M5. There are regular main line train services from Chippenham, Kemble and Swindon to London Paddington taking just over 60 minutes.

You can find our most frequently asked questions by clicking the link below, or email us at investments@hubb.co.uk if you have a different question.