Overview: Planning Uplift Project

Danelise Homes is a residential property development company that focuses on building new-build houses and apartments in London and the south-east.

They have an experienced team of Directors, who have been involved with land acquisition, property development, permitted development rights, mixed-use schemes, commercial space, asset acquisition, lease restructuring with planning being a major factor in many of these property scenarios.

Executive Summary

Danelise Homes are bringing their latest project, Stafford Gardens, Caterham, to the investor crowd.  Stafford Gardens is a planning uplift project, aiming to apply for planning permission to construct 42 apartments and four townhouses.

Investors have the opportunity to invest £319,000 (up to a maximum of £424,000) with a potential 50% return for the length of the project (proposed end date July 2023).

Location

The East Surrey town of Caterham is nine miles south of Croydon and is close to the A22, with Junction 6 of the M25 just minutes away, providing quick and easy access to the national motorway network. As a result, Brighton and other South Coast resorts can be reached by car in as little as 45 minutes, with Gatwick airport even closer.

Meanwhile, for the commuter, train journeys to both London Victoria (for the West End) and London Bridge (for the City) take around 45 minutes.



The town is split into two parishes; Caterham Valley and Caterham on the Hill, with local shops and services divided between the town centre in the valley and the smaller high street on the hill. Stafford Road is located in Caterham Valley.  Caterham Valley is now the more populous of the two parishes. Caterham was once a military town with the Army barracks for the Foot Guards (a senior infantry regiment within the British Army) located on the hill.  The barracks’ site was redeveloped in the 1990s, with a Tesco supermarket, medical centre, animal hospital, community facilities and housing now occupying the site.

Project Details

Danelise Homes have secured option agreements on the land and have appointed a leading firm of planning consultants to work alongside their experienced team of architects through the planning process.

If they achieve their target of obtaining planning permission to build the apartments and townhouses, the land will be worth over £1,293,452 more than they need to pay for it. Danelise Homes will then simultaneously purchase and sell the land in a back-to-back deal, via one of the exits identified later in this document. This will allow Danelise Homes to realise the £1,293,452 increase in land value. Investors will then be repaid their capital, plus the return on their investment.


The scheme involves demolishing the existing four detached houses on-site and building four x 1-bed flats, 29 x 2-bed flats, nine x 3-bed flats and four x 3-bed townhouses. Each flat will have at least one parking space and each house will have at least two parking spaces. The equivalent of a further 20 parking spaces will be provided by way of an on-site car club scheme, along with six spaces for visitors. Similarly, there are a total of 74 cycle spaces across the site. This enhances the scheme’s sustainable credentials at a time when the need to address the impact of private car ownership on climate change has never been more important

The Opportunity

Investors have the opportunity to invest up to a maximum of £424,000 with a potential 50% return for the length of the project (proposed end date July 2023).  The £424,000 will be used to meet the costs involved in securing planning permission, relating to surveys, reports, draft plans, submission costs and any appeal .  Investors will benefit from a number of exit options (detailed fully in the equity offer document), which will lead to the planning uplift being realised and returns being distributed to investors.



Investment in property related assets comes with risks as well as the possibility of rewards.  Please read the full risk warning on this platform before deciding to invest.  Past performance is not indicative of future results.

Financials

Equity investors receive a projected 50% Return on Investment (ROI) by way of priority shares. Priority share means that the equity investors will receive their profit share before the developer receives its share. A 50% ROI on £424,000 equals £212,000. This represents 16.4% of the projected net profits, estimated to be £1,293,452, based on the value of the land with planning permission.



Exit strategies for the apartments:

A. Pre-sale to an Investment fund
B. Pre-sale to Tandridge District Council
C. Pre-sale to a Housing Association

Exit strategies for the townhouses:

Upon the granting of planning permission, Danelise Homes will sell the townhouse development opportunity to a property development company. Danelise Homes will purchase the land relating to the townhouses from the landowners and sell it to the property development company in a back-to-back deal. The property development company will purchase the land with planning permission from Danelise Homes. 

Investment in property related assets comes with risks as well as the possibility of rewards.  Please read the full risk warning found on this site before deciding to invest.