Sunday, May 24, 2015

Buy a portfolio of 336 apartments

Are you looking at scaling up your residential investment portfolio and adding a portfolio of over 300 buy-to-lets in one go? Have a look at Project Vero with a portfolio of new properties located mainly in the midlands and north-west. The asking price for this little selection of apartments will probably be in the order of £30 million but at that price you would get a gross yield of over 10%. The critical thing will be able to raise the finance.

Of the 336 flats, 308 are currently either let or are vacant pending letting, and the breakdown of these flats is detailed below:
 • 279 x Assured Shorthold Tenancies
 • 6 x Company Lets
 • 23 x Vacant
 • 308 Total  

Appropriate tenancy details relating to each tenancy type are contained within the Master Schedule. Sample AST’s adopted within each development can also be found within the download section of the website.

The remaining 28 flats situated within the Marco Sky development in Nottingham are currently being completed/fitted out, with practical completion due at the end of May 2015. 

Further information relating to this development can also be found within the Supporting Information page of this website. These tenancy details will be updated prior to inviting offers.

Current Gross Rent and Estimated Gross Rental Value (ERV) The total current gross rent reserved is £2,467,363 per annum.

A breakdown of rents per flat and aggregate rents relating to the additional 
car parking spaces are contained within the Master Schedule. A summary breakdown by tenancy type is detailed below:

 Tenancy Type                                Rent £pa
AST                                               £2,235,840
Company Let                                 £46,200
Licences (Car Parking Spaces)      £185,323
Total                                               £2,467,363

The ERV of the entire portfolio, including flats and car parking spaces, is in the region of £3,642,300 per annum.

An individual breakdown of ERV’s is contained within the Master Schedule.

Commercial mortgages - buy-to-let finance
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2 comments:

  1. UnknownMay 26, 2015 at 5:25 PM

    Do you know where this portfolio comes from ie who is the seller?

    Sounds like a lot of work to manage 300+ properties.

    Any idea what kind of financing might be available?

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  2. The EditorMay 26, 2015 at 8:54 PM

    Hi Paul, I don't but looks like an institution given that the properties are new builds or newly refurbished properties. I would contact the seller for clarification. In terms of finance you can have a word with Property Hawk Mortgages to see what they can do but looking at the figures and using 80% as the maximum loan to value you probably need at least £6 million of equity to put into this investment.

    ReplyDelete