The financial model for costings/net profit is as follows:
We can offer the investor an early exit strategy as follows:
The investor puts 10% of total acquisition costs of £18-19 m on escrow with their solicitors and we arrange for completion within 6 months subject to planning. Once the planning is granted and completion takes place, we can leverage the purchase for 50% of the new value and 'flip' it to another developer or financial institution for around £25 m.
Alternatively, we will re-invest the funds released by leverage into construction works and sell the project once it is built in shell and core or handle resales of individual units upon completion of works. The latter option will provide the investor with the best uplift on their money but will take 2 years to exit.
If any foreign investor/financier is interested in this off-market development, please drop us an email with any questions, level of interest, some background information about your company and any past experience in financing new property development/re-development. Please email us: commodx@hotmail.com ref: aa-london-commodx.
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