Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
What are the key risks?
You could lose all the money you invest
If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.
Checks on the businesses you are investing in, such as how well they are expected to perform, may not have been carried out by the platform you are investing through. You should do your own research before investing.
You won't get your money back quickly
Even if the business you invest in is successful, investment projects can overrun which can extend the length of time your funds are tied up in the investment.
Property investment projects and start-up businesses rarely offer to pay you back through dividends. You should not expect to get your money back this way.
The platform does not offer a secondary market. While another investor may be interested in buying your investment, there is no guarantee you will find a buyer at the price you are willing to sell.
Don’t put all your eggs in one basket
Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well. A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
The value of your investment can be reduced
If your investment is shares, the percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.
Any new shares or additional borrowing may be payable before the existing shares which could further reduce your chances of getting a return on your investment.
You are unlikely to be protected if something goes wrong
Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated platform, FOS may be able to consider it. Learn more about FOS protection here.
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.
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).
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.
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
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.
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.
Danelise Homes has already incurred costs in excess of £80,000 to reach this stage of the project. The £424,000 equity raise will form a pot of funds from which the costs and fees associated with applying for the planning permission from here onwards (along with any appeal) are drawn. Once the funds have been raised, they will be made available for drawdown and our application can be finalised and submitted for planning.
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.
Founder and Managing Director
Mark is the Founder of Danelise Homes.
He is an experienced property investor, a practising Barrister and the Executive Director of a leading London homecare service provider with a multi-million-pound annual turnover. He has over 15 years of experience of investing in property in London and the south-east.
The team’s previous experience of land acquisition and property development allows it to unlock the most value for landowners. It does this through intelligent design, planning and developing best-in-class homes.
Michael Magee is a seasoned property developer.
His first project in Dalston, London, saw him develop a mixed-use scheme of 19 apartments, which sold off plan to overseas investors. It also included over 6000 sq. ft of commercial office space. Michael has successfully used permitted development rights to convert disused office blocks to luxury apartments.
He has developed townhouses and apartments across London. Michael is currently co-building 100 residential homes with a leading property development company in Northern Ireland.
Cyril is a renowned expert in the fields of land acquisition and property development.
He has over 30 years of experience in the property industry. He is a Fellow of the Royal Institution of Chartered Surveyors (RICS) and has a PhD in Facilities Management.
Cyril is the former CEO of a London-based property investment company and was responsible for its overall management. He oversaw the growth of its portfolio from circa £160m to over £300m in just 5 years. This was achieved through strategic asset acquisition, property redevelopment and lease restructuring.
Stephen is a partner at the highly regarded Mackellar Stewart architectural practice.
He has considerable expertise in the residential sector and is a particular exponent of both traditional and modular construction, whilst championing BIM and modern representation methods.
Stephen was the lead architect when Mackellar Stewart was appointed by Tandridge District Council to design its 26-unit Bronzeoak affordable housing development, which is also located on Stafford Road in Caterham, a few hundred metres away from the development site.
Peter is Principal Director of Planning at DMH Stallard, a leading law firm.
He leads a team of seven planners. He has more than 25 years' planning experience in both the public and private sector. He provides advice on a wide range of major residential, commercial, and waste applications and appeals.
Peter has been appointed by the Planning Department of Tandridge District Council on a number of occasions to advise in respect of planning applications and appeals.
Paul is a partner at Greystone Partners, a London-based multi-disciplinary real estate consultancy.
He is the former Head of Corporate Finance at Genesis Housing Group (now Notting Hill Genesis), one of the largest housing associations in the UK. Paul is a highly rated financial modeller and advises PLC and local authority clients on structuring real estate projects and fundraising.
Paul recently advised Bromley Council on the deal structure and financial modelling relating to the Council’s raising of a bond through a UK pension fund to finance an £80m housing development programme.