Project for the construction of student accommodation in Nottingham.
The summary of the project: the purchase of a site in the center of the existing student campus with further pre-sale of the project to a large operator of student hostels until the completion of the construction.
There is a building permit.
The volume of investments is 6,000,000 £.
The minimum volume of investment is £ 500,000.
The term for the sale of a land plot: within one year.
The Investment is a loan to the English project company that buys a plot of land.
The profitability of the investor consists of two sources:
1. The loan of the project company at 12.9% per annum (12% plus a 12-month LIBOR rate of 0.9%).
2. Exit Fee in the amount of 49.9% of the project profit, but not less than 25% per annum until the date of repayment of the loan.
Investor's IRR is from 17% per annum (after English taxes).
Provision of investment (loan) of the investor — a pledge of the site and investment of the developer (10% of the project cost), subordinated to the investor's loan.
Exit from the project: pre-sale of the project to a large operator of student hostels until the completion of the construction. The buyer is identified and negotiated.
Location and nearby infrastructure
Nottingham is the largest city in the county of Nottinghamshire in the central part of the country, located in 200 km to the north of London. The city has about 320 thousand people (2015), including more than 60 thousand students.
Nottingham University was founded in 1881 and is one of the key universities in the UK.
There is a shortage of student housing in the city.