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Property Division - Current Opportunities
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Beer Property Division
Current Property Opportunities
At Beer we are constantly striving to bring you new investment opportunities that are exciting in nature and by way of monetary returns. We are an experienced team focusing on Residential & Commercial Investment & Development funding.
We are looking forward to what looks to be a busy and opportunistic time in the UK Property Market. Please have a look at the deals below and feel free to contact our property associates.
Requires short term funds to complete the purchase of a site in Berlin. Funds secured against seperate property and exit from funding due after completion
Stage: Bridge Financing
Funds Sought: £2,000,000
Location: Outside UK
Reference Number: 51663
Established in 1989 the company is one of the top 5 developers in Germany and the market leader in listed buildings refurbishment having completed more than 4,000 units successfully giving a track record of over €1.3 billion.
With more than 40 employees and tie ups with over 500 sales agencies, the company is completing a new project every month.
The company is contractually committed to acquire a property for €6,100,000 but has been let down at the very last minute by a funder. It is introducing €4,000,000 of its own funds into the purchase but has a short term requirement for the balance of €2,100,000.
Security against the property is available and repayment will be from the sale of a completed project in Baden Baden. Contracts on the b sale have been exchanged and the client will assign first receipts to clear this loan asap. Indicative terms required quickly followed by completion within 2-4 weeks
Contact: Steve Johnson - 07787 104 736
Email: johnson@beerandpartners.com
Construction Industry Project Cost Management Software
Stage: Early Stage
Funds Sought: £100,000
Location: East Anglia
Reference Number: 51621
Our client is a small software business with a unique product for the construction industry.
They have a rather pressing need for around £25,000 of investment and are currently valuing the business at around £125-150,000.
Development of a new release is almost complete and they have over 100 potential clients waiting for the release of the software before purchasing. The original version was aimed at the private self builder, a market which has temporarily stalled, hence the new release which is geared to, and requested by, professional builders.
They require funds to complete the development and to then move on to converting the sales enquiries. It is anticipated that development will be completed within a matter of weeks of funding being committed.
With no further investment above the sum currently sought, they conservatively forecast profits of £3,000, £181,000 and £312,000 over the next 3 years.
Contact: David Rich - 07833 096 196
Email: rich@beerandpartners.com
Investment to Accelerate Growth
Stage: Late Stage Venture
Funds Sought: £1,000,000
Location: South East
Reference Number: 51673
Our client provides tenant referencing and rent protection solutions for landlords, via its rapidly growing distribution network of letting and property management agents.
Using their proprietary, industry-leading technology platform, the company already performs over 4,500 references each month, and is on target to complete 68,000 references and turnover £1.6m in the 12 months to December 2012. (Actual turnover in 2011 was £756k). Break even is expected in January 2013.
The founders, who previously established and subsequently sold a similar business, have largely funded the company to date and are now raising investment to accelerate growth, and take advantage of an unexpected market opportunity, resulting from a significant misstep by one of their major competitors.
Up to 25% of the equity in the company is being offered, and investors with relevant skills or experience would be welcomed onto the board.
Investment is expected to qualify for EIS relief.
Contact: Dave Flockhart - 07815 931 414
Email: flockhart@beerandpartners.com
Opportunity to Back Two Industry Veterans Setting Up New and Innovative Property Business
Stage: Start Up
Funds Sought: £750,000
Location: South East
Reference Number: 51287
Our clients, with almost fifty years' experience in property between them, are seeking funds to launch their own business addressing an exciting market opportunity. They are eager to leverage their senior Director-level expertise, network and complementary skill-sets to develop a business specialising in strategic land. They plan to build a portfolio of development sites (acquired now while prices are at a depressed level), secure the most profitable planning permission, and then sell the land when the property market recovers. Additional income is also forecast from consultancy and commercial development / trading.
The founders are two very well-regarded property and planning experts who have been involved in development projects across all property sectors with a combined value in excess of one billion pounds.
The business is forecast to operate profitably from Year Two. The funding will be used to help fund land acquisition, development and overheads until the business is forecast to break even in cash terms in Year Three. The company is forecast to generate a cumulative project of over £2m over the first three years alone. Investors would be offered a significant minority stake in this new business.
A detailed business plan and financial forecasts are available for review.
Contact: Dave Flockhart - 07815 931 414
Email: flockhart@beerandpartners.com
Major Fund-backed Property Development Company Now Opening JV Developments to Angel Investors
Stage: Other
Funds Sought: £500,000.00 up to £3m
Location: South East
Reference Number: 51228
This well-established and award-winning property development company seeks investors to co-fund specially chosen upcoming developments.
The company is privately owned and has completed projects worth over £200m in the last ten years. Its focus is on commercial and mixed-use property investment and development opportunities, with approximate completed project values ranging from £1m to £30m. Historically, its development projects have been financed primarily by property funds. Now individual investors are being given the opportunity to participate through Beer & Partners, with the total investment required per project likely to range from £500,000 to £3m.
Investors would directly fund the Investor SPV that would acquire and own the assets of the specific development, with day-to-day management of the project contracted to the developer. On successful completion, initial capital would be returned to the investors with a first-priority return of 10% IRR, plus a 50% share of profits.
A summary of the company, its past performance, its planned future projects and the deal / return structure is available for review, in advance of the presentation of specific project opportunities to investors in the coming weeks. Please get in touch to register interest.
Contact: Dave Flockhart - 07815 931 414
Email: flockhart@beerandpartners.com
Successful, Well-Established Property Company Seeking Funding for Retail Development, Pre-Let to a Leading Supermarket Chain
Stage: Other
Funds Sought: £750,000.00
Location: South East
Reference Number: 51280
The company is under offer to acquire the freehold interest of a part-occupied shopping centre in Essex, on a subject to planning, subject to pre-let and subject to vacant possession basis.
An Agreement to Lease and Lease have been agreed with a major supermarket chain, which the company plans to forward fund on securing planning permission and vacant possession.
The company has been actively working on the project since mid-2010 and now seeks funding of the costs necessary to take the scheme through planning and to achieve vacant possession.
Based on successful completion, initial capital would be returned to the investors with a first-priority return of 10% IRR, plus a 50% share of profits.
Planning and vacant possession are expected by month 18 and practical completion 12 months thereafter. Forecast ‘mid-case’ project profit exceeds £3m, representing a profit on cost of 421%. Using the same ‘mid-case’ forecast, investor IRR would be c.60%, a 2.9x cash multiple in 30 months.
Contact: Dave Flockhart - 07815 931 414
Email: flockhart@beerandpartners.com
Experienced award-winning developer requires development funding secured by first charge. Return of capital within 12 months plus upto 50% profit share
Stage: Debt
Funds Sought: £2,500,000
Location: South West
Reference Number: 51691
Award winning very experienced developer with much (20 years plus) experience in similar sites. Land acquired at £1.45m. Current owners have introduced £450,000. Funding of between £2.0m - £2.5m required over 18 months. Opportunity to fund whole requirement (first charge available) or sufficient to facilitate a balance of senior debt (second charge and supporting guarantees available). Developer is flexible with regard to return and can structure a coupon, profit share or combination of the two and has successfully built and sold site immediately opposite.Land purchased for £1.5m + costs and funded by RBS. The directors have previously agreed funding on this site and have only been let down by funders change of circumstance.
GDV including affordable £8.67m
Margin £1.8m or £2.25m for distribution (developer will accept repayment of funds introduced from their share of project margin)Max cash flow prediction (borrowing) £1.75m month 6. Cash positive month 16.
Investor return –capital month 12 – profit share 50% of distribution of ongoing net profit on sales.
Security – First charge on site plus directors capped personal guarantees.
Contact: Steve Johnson - 07787 104 736
Email: johnson@beerandpartners.com
Energy Neutral Lodges
Stage: Startup
Funds Sought: £166,000
Location: South West
Reference Number: 51326
17,000 lodges were purchased in 2009/10, an increase of 30% over the previous year, with a capital value of Circa £2bn.
Almost all of these units are of traditional inefficient timber construction, with high running costs due to the need for both heating in winter and air conditioning in summer. This company manufactures state of the art highly efficient, (passive) modules that consume virtually no energy and are powered by a central hub, which, in turn, offers a long term income stream.
Traditional lodges cost between £75,000 to £120,000 excluding land, and this company can price match with a modern, more energy efficient product generating a net margin of 42%. To this margin can be added profits generated by supplying renewable energy via the hub, and providing site management if required by the site owner.
The principals combine relevant construction, heating and refrigeration expertise with a proven administrator of long standing commercial experience. Both have a strong sales and marketing background.
The company seeks investment of £166,000 which will be used to construct 2 demonstration lodges and a renewable energy hub. Projections suggest that the company will generate sufficient cash to repay and reward investors within 4 years if required.
Contact: Malcolm McGregor - 07795 250 103
Email: mcgregor@beerandpartners.com
Secured UK Residential Property Investment which Delivers Cashflow and Instant 50% Minimum RoI on Retained Capital, Cashflow and Capital Repayment
Stage: Expansion
Funds Sought: £75,000
Location: South West
Reference Number: 51364
Creation of a hands off professionally identified, purchased and managed property portfolio from off market opportunities. The properties are acquired using an extensive knowledge base with, on average, a 26% discount using RICS valuations securing an instant profit. The established company uses in-house teams of expert buyers, project managers, builders and rental agents to let and manage properties on an ongoing basis until they are sold to return cash and realise profits.
There is, on finalising the portfolio, an immediate minimum equity gain of 50% supported by a contractual guarantee which includes an agreed timescale.
On completion of the portfolio the £35,000 working capital element of a £75,000 investment is returned to the investor leaving a retained investment of £40,000. An initial investment of £75,000 generates a portfolio worth £320,000 with a minimum retained equity of £60,000, returned working capital of £35,000 and generates surplus cash of between £2400 – £3600 per annum.
The immediate ROI is between 50% and 76% and is dependent on size of the initial portfolio.
The benefits include immediate equity gain, monthly cash surplus and longer term growth in line with the housing market in a tangible asset.
Larger portfolios can be built and managed for clients who wish to maximise the opportunities in this sector.
The very experienced and successful management team have invested heavily themselves and have been delivering this type of portfolio to existing clients for the last 3 years and have now opened this opportunity to a wider audience.
Contact: Steve Johnson - 07787 104 736
Email: johnson@beerandpartners.com
Major Well-Established Property Company Seeking Funding To Purchase a Brownfield Site and Enhance Existing Planning Consent to Increase Value
Stage: Other
Funds Sought: £1,800,000.00
Location: Thames Valley
Reference Number: 51426
This award-winning property company seeks investors to fund the freehold purchase of a vacant 13.5 acre site close to the A1M in Stotfold, Bedfordshire (previously a government Development and Research Unit).
The site has an existing planning consent for B1, B2 and B8 development to include the replacement of 5 residential dwellings.
The company plans to add significant value by gaining consent for a care home on part of the site, and for residential or other higher-value uses on the remainder. The company’s appraisal assumes a project term of 36 months, with capital returned in 22 months.
A leading care home business has already offered to acquire 2 acres (subject to planning) for £1.2m, and interest has been expressed by operators for other uses on the site including a Children’s Nursery, Garden Centre, retail outlet and pub.
The investment is backed by the land’s capital value with existing consent. Based on successful project completion, initial capital would be returned to the investors with a first-priority return of 10% IRR, plus a 50% share of profits.
Mid-case project profit (after priority return payment) is £2.15m, representing 75% profit on cost, and a project IRR of 60%.
Contact: Dave Flockhart - 07815 931 414
Email: flockhart@beerandpartners.com
If any of the above deals are of interest to you then please contact the Property Division:
0207 329 4884