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“UK Strategic Land Acquisition”
18

Brownfield pdf

Apr 09, 2017

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Page 1: Brownfield pdf

“UK Strategic Land Acquisition”

Page 2: Brownfield pdf

Unique Investment Opportunity

We are offering the unique opportunity to invest into Brownfield land sites in the UK, focusing mainly in and around:

❖ London ❖ The South East❖ Selected Northern Cities

(“The PowerHouse” )

Page 3: Brownfield pdf

Why Brownfield*?*Brownfield - A site that has been built on or used previously

❖ Planning easier to achieve on Brownfield sites

❖ Eases pressure to develop Greenfield sites (which can be ‘sensitive’)

❖ Improves inner city areas & neighbourhoods

❖ Attracts new business (Restaurants, health clubs etc.)

❖ Rejuvenates inner cities - preferable as councils do not want decaying sites

❖ Reducing crime in inner city areas

Page 4: Brownfield pdf

UK Brownfield Opportunity❖ Share directly in the ownership of the land (SPV)

❖ Share directly in the profits when land is re-sold

❖ Mitigate Taxes to a minimum (Use of SPV)

❖ “Armchair Investment” - Allow a team of highly qualified professionals to manage all aspects of the investment opportunity

❖ No leveraging of investment - No mortgage/loans

❖ Lower risk compared to other property investments, no build out and waiting for completion of sales

Page 5: Brownfield pdf

UK Brownfield Opportunity❖ No ongoing fees associated with other property investments

❖ Developers searching for land with planning permission

❖ NOT Greenfield Investments - waiting for the slightest chance a site will be given any form of planning consent

❖ No buying off developer plan and waiting 4/5 years for build to complete

❖ Fast turnaround (typically 6-24 months) - enabling re-investment opportunities

❖ No land banking - site sold as soon as permission granted, often buyers sourced & confirmed beforehand

Page 6: Brownfield pdf

UK Policies & Proposals❖ New proposals by central government has relaxed planning

restrictions

❖ More power will be given to local councils to make planning decisions

❖ Government funding incentives to local councils to develop brownfield sites

❖ Proposal for “Automatic permission in principle” on certain brownfield sites using local well known Architects.

❖ UK property law considered to be fair, mature and transparent

❖ No restriction on foreign buyers investing into the UK

Page 7: Brownfield pdf

Case Studies

Leven Road, Poplar, London - Galvanising PlantPurchase Cost inc. planning & taxes (June 2013) - £6.3M

Planning Submitted December 2013

Approval granted July 2014 - 126 Apartments

Sold (English Rose) February 2015 - £10.5M

Profit - £4.2M (20 months) + 67%

Page 8: Brownfield pdf

Case Studies

St Ann’s Road, Holland Park, London - Public HousePurchase Cost inc. planning & taxes (September 2011) - £3.4M

Approval granted September 2012 - 84 Student Apartments

Sold (Silverwind Properties) April 2013 - £5M

Profit - £1.6M (19 months) + 47%

Page 9: Brownfield pdf

Case Studies

Railshead Road, Twickenham, London - Multi-let Industrial UnitsPurchase Cost inc. planning & taxes (August 2012) - £3.45M

Planning Submitted December 2013

Approval granted (2 Approvals) - 21 Apartments c/w ground flr. offices OR 30 Apartments

Sold (Mizen) September 2014 - £5.5M

Profit - £2.05M (25 months) + 59%

Page 10: Brownfield pdf

Case Studies

Blue Anchor Lane, Bermondsey, London - Car Workshop/WastelandPurchase Cost inc. planning & taxes (February 2012) - £2.2M

Planning Submitted December 2012

Approval granted April 2013 - 37 Apartments (9 Affordable Housing)

Sold (Family Mosaic) July 2013 - £4M

Profit - £1.8M (17 months) + 82%

Page 11: Brownfield pdf

Brownfield & the Media

University of the West of England, for the Campaign to Protect Rural EnglandDr Danielle Sinnett; Dr Laurence Carmichael; Professor Katie Williams; Paul Miner

November, 2014

FROM WASTED SPACE TO LIVING SPACES

The availability of brownfield land for housing development in England

Click to enter

REMOVING OBSTACLES TO BROWNFIELD DEVELOPMENT

How Government can work with communities to facilitate

the re-use of previously developed land

Foresight Paper No.2

Page 12: Brownfield pdf

UK’s most famous Brownfield SiteBattersea Power Station & surrounding Brownfield land - total 42 Acres (170,000 sq. m)

Page 13: Brownfield pdf

Sample Partner

One of the Worlds leading Property Advisory Companies with over 350 Worldwide Offices.

They carry out more valuations in the UK than any other Company.

They will be consulted on certain projects for:

❖ Investment Advice

❖ Valuations

❖ Due Diligence

❖ Detailed & Thorough Assessment of Planning Applications

Page 14: Brownfield pdf

Legal Partner

Based in The City of London, ELS Legal provide legal advice for private residential and commercial property transactions, for property developers, investors, landlords, tenants and high net worth individuals. In addition they assist those overseas looking to invest in the UK and London property market.

They will be used for:

❖ Purchase of Property

❖ Holding Client Funds in a secure Client Account

❖ Establishing SPV

Page 15: Brownfield pdf

The Process❖ Potential site is researched by team

❖ If viable the funding process begins

❖ Due diligence carried out on site

❖ Solicitors instructed to begin purchase

❖ SPV established as ‘owner’

❖ Purchase completed and shares issued to SPV owners

❖ Process begins to obtain planning consent, conferring with architects and other professionals etc

❖ During the planning process potential buyers are sought

❖ Planning granted, site sold

❖ Money returned to SPV investors as per their percentage of ownership

Page 16: Brownfield pdf

SPV - Special Purpose Vehicle

❖ Created, in this instance, for the specific purpose of buying & selling the property

❖ Confidentiality

❖ Tax Efficient

❖ Shares in SPV directly relate to investment holding

❖ Direct ownership of asset through the SPV shares

❖ Protection of asset against bankruptcy etc.

Page 17: Brownfield pdf

Process for ClientEach opportunity presented in considered in detail before any Investment Proposal is made, only those which meet the correct criteria will be pursued

❖ Opportunity is presented in the form of an IP (Investment Proposal)

❖ Client can review the proposal and request any further information as required

❖ Investment is then made by simple subscription form and monies paid directly to ELS Legal Client account

❖ Once purchase has been made Client will receive confirmation of settlement and notification of the amount of shareholding in the SPV

❖ Direct ownership of asset through the SPV shares

❖ Regular updates with be sent to the Client by preferred means

❖ In addition we are available to give ‘one to one’ updates directly to the Client or their appointed representative

Page 18: Brownfield pdf

Your Opportunity

❖ There is limited availability per ‘project’ - once adequate funding is raised then ‘project’ will close

❖ Application can be made and monies held in Client account in preparation for next ‘project’

❖ Lower risk as no gearing or debt.

❖ Minimum Investment level of £200k