Front Elevation CGI
street and current site view
current site
aerial view
CGI
Latest Valuation
£750,000
ROCE
%
Location

PP Granted – Prime Location, Full New Build Development

Off-Market Development Site
Guide Price
£750,000

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Key Features

  • Planning Granted
  • Hands-Off
  • 34 Self-Contained Apartments
  • Developer and Project Manager in Place
  • Fully Costed
  • RICS Survey Report

The Property

The vendor is an active developer and has bought this plot at risk without planning permission and then has submitted an application with the council to get a scheme passed for 34 units:
11 x 1 Bedroom Apartments
22 x 2 Bedroom Apartments
1 x 3 Bedroom Apartment

Planning Permission has now been granted

The vendor is selling the land subject to the above planning permission being passed. The planning application has been ongoing since May 2019, and we have had confirmation that the site will be recommended for approval by the council at the Planning Committee meeting, which is to be held on the 20th January 2020.
The site previously got planning approval for 35 units in 2007, however that planning permission has now lapsed. The fact it has previously had permission gives high confidence that the
permission will be achieved again through the current application.
Also, on top of the previous success, the site has already been included within the council’s local planned as developed apartments, which shows intrinsically the councils desire for the site to be
developed.
In light of that information giving confidence on the planning achievability, the vendor is looking for a subject to planning approval exchange with the buyer on or before the 31st January 2020.
The trigger date for completion is six weeks from the date that planning approval is achieved.

The proposal is for the erection of a four, five and six-storey block comprising 34 self-contained apartments, the formation of the refuse store, cycle store, vehicular access and hardstanding for the parking of 30 vehicles. Through early collaboration with the local authority, a design has been developed that both enhance the appearance of the local area and meets local and national planning requirements. It is therefore considered to conform with the national planning policy framework and Blackpool's local plan.

This site has been recommended by the council planners to be approved by the planning committee on January/February 2020, so we are looking to agree to a deal subject to the planning approval with a six weeks completion from the date the planning is approved.

Level 1 390 square metres 4,198 square feet
Level 2 461 square metres 4,962 square feet
Level 3 461 square metres 4,962 square feet
Level 4 461 square metres 4,962 square feet
Level 5 372 square metres 4,004 square feet
Level 6 154 square metres 1,658 square feet

Total 2,299 square metres 24,746 square feet

£82,350 average build cost per flat including the communal areas

10-year NHBC Guarantee

An option would be to utilise the apartments in the serviced accommodation sector; this would also be popular in this location due to its relative proximity to Blackpool; Thornton Cleveleys and the promenade. This will attract quicker sales of the apartments to end buyers. We can also connect the end buyer to a local serviced accommodation provider making it entirely hands-off for the buyer

The completed flats should meet with good demand whether to an investor or for young families
.

Planning Information

Planning Permission has now been granted

For full details about the planning application: www.blackpool.gov.uk under Planning application number: 19/0720

Planning history;

19/0267: The principal of a multi-story development has been approved in the previous outline application and agreed in pre-consultation meetings.
Grant Permission Feb 2008 Erection of part four, five and six-storey block comprising thirty-five, self-contained apartments, the formation of refuse and cycle store, vehicular access and hardstanding for the parking of 37 vehicles.

19/0720 Erection of a four/ five and six-storey block 34 self-contained apartments including refuse store, cycle store, landscaping and vehicular access from Norbreck Road with car parking for 30 vehicles to the rear

Floorplans and site map

The Plan

There are two exits:
1) Develop to Sell
2) Develop to Rent

GDV: £5,250,000 (AFTER DEVELOPMENT)

PURCHASE PRICE: £750,000
DEVELOPMENT: £2,800,000
PROJECT MANAGEMENT £100,800
LEGAL COSTS £17,000 (INCLUDING SEPARATION OF TITLES)
STAMP DUTY £3,750 (BUY SPV SHARES)
HIGHWAYS CONTRIBUTION £22,000

RICS BUILDING SURVEY £0
PURCHASE LEGALS £0
CIL £0
S106 £0

2% SOURCING FEE £15K

TOTAL COSTS / CASH BUYER £3,693,550

£5K Deposit to secure, deducted from the purchase price.
If planning not gained fully refundable

Exchange subject to planning approval

GDV: £5,250,000 Based on Red book RICS Survey report October 2019 and sold comparables

£750K Land Purchase Price Based on Red book RICS Survey report October 2019

£2,800,000 Development. 18 months build term
A schedule of works (SOW) with a detailed breakdown of costs and timelines can be sent on request

Purchase Legals – The vendor will pay for the buyers to purchase legal fees in turn for the buyer using a solicitor that is recommended.

Other Legals - All additional legal costs are paid for by the buyer. i.e. splitting titles and sale legal fees.

RICS Building Survey – we can provide you with the report dated October 2019

Sourcing fee – Payable at Exchange through your solicitors and held until planning approved. If planning not gained fully refundable

FINANCED BUYER. WE HAVE LENDERS IN PLACE READY TO FINANCE
PLEASE NOTE THE FINAL FINANCE OFFERED WILL BE BASED ON YOUR PERSONAL CIRCUMSTANCES

Strategy: Develop To Sell (Exit 1)
This exit one strategy is to build the development out and then sell all of the units for a profit. There is good demand for high-end luxury apartments in this area with good examples of arguably inferior schemes selling very well within proximity to this site. This scheme would be very popular with first-time buyers and also retiring couples who are looking for a low maintenance property with views of the sea.

1 Bedrooms @ £140,000 x 11 Apartments £1,540,000
2 Bedrooms @ £160,000 x 22 Apartments £3,520,000
3 Bedroom @ £190,000 x 1 Apartments £190,000
Total Gross Development Value £5,250,000

Less:
Purchase Price £750,000
Development Cost £2,800,000
Project Manager £100,800
Stamp Duty £3,750 (Buy Shares of SPV)
Legals/Titles £17,000
Finance Cost £189,836
Open Space Cost £22,000
Estate Agent Fees £52,500 (1% incl VAT already in place)
2% SOURCING FEE £15K

Total Cost £3,693,550

Net Profit £1,299,114

Profit on Gross Development Value (GDV): 25%
Profit on Cost: 35%

Strategy: Develop To Rent (Exit 2)
This exit two strategies is to build the development out and then rent all of the units out for a profit.
There is good demand for high-end luxury apartments for rent in this area with good examples of arguably inferior schemes letting very well within proximity to this site.

Refinance
1 Bedrooms @ £140,000 x 11 Apartments £1,540,000
2 Bedrooms @ £160,000 x 22 Apartments £3,520,000
3 Bedroom @ £190,000 x 1 Apartments £190,000
Total Gross Development Value £5,250,000

Mortgage @ 75% LTV £3,937,500

Cashflow
11 x 1 Bedroom Apartments @ £600 PCM £79,200 per annum
3 x 2 Bedroom Flats @ £750 PCM £198,000 per annum
1 x 3 Bedroom Flats @ £850 PCM £10,200 per annum
Total Gross Income £287,400 per annum
Less:
Management Cost 10% £28,740 per annum
Monthly operational costs 10% £28,740 per annum
Mortgage @ 4% PA £157,500 per annum
Circa Net Cashflow £72,420 per annum
Circa Net Cashflow £6,035 per month

Sold As Seen
The development opportunity is sold as seen, and all numbers provided are a guide only based on professional opinions and should not be solely relied upon. You must do your due diligence.

Exchange
The development is expected to exchange on or before 31st January 2020. The exchange will be subject to achieving full planning permission.

Completion
The development is expected to complete on or before six weeks from the date that planning permission is achieved.

Development
The development is priced at £2,800,000
Introduction to the main contractor can be made upon request along with a site visit to talk through the scheme.

Project Manager – RICS Surveyor
The project manager will be an RICS building surveyor. Their job is to take care of the development and deliver the job on time and within budget, subject to unexpected circumstances
arising. All payments will be verified by the RICS building surveyor via payment certificates to ensure that payment is made for only works that have been completed. Meaning all payments will be made in arrears. The project manager will administer all of the paperwork concerning the building works including a JCT contract between you, the client and the contractor. Also, a service agreement between the project manager and you the client. Throughout the project, the project manager will provide weekly updates via written, photo and video updates

Finance Breakdown (figures are a guide only)
Purchase £750,000 : Deposit £225,000 (Cash)/ Purchase Bridge £525,000(Bridge Loan) +
£2,050,000 (Refurb) = £2,575,000
Bridge Costs:
Arrangement fee 1% £25,750
Valuation £1,000
Bridge Legals £1,000
Interest 18 months @ 7%pa £162,086*
Total Cost £189,836

* Development scheduled to be completed over a 18 month period. Interest is calculated at staged
drawdowns every month weeks @ 7% per annum:
Month 1: Purchase bridge drawdown of £525,000 x 7% pa interest for 18 months £55,125
Month 1: Refurb drawdown of £113,888 x 7% pa interest for 18 months £11,958
Month 2: Refurb drawdown of £113,888 x 7% pa interest for 17 months £11,294
Month 3: Refurb drawdown of £113,888 x 7% pa interest for 16 months £10,630
Month 4: Refurb drawdown of £113,888 x 7% pa interest for 15 months £9,965
Month 5: Refurb drawdown of £113,888 x 7% pa interest for 14 months £9,301
Month 6: Refurb drawdown of £113,888 x 7% pa interest for 13 months £8,637
Month 7: Refurb drawdown of £113,888 x 7% pa interest for 12 months £7,972
Month 8: Refurb drawdown of £113,888 x 7% pa interest for 11 months £7,308
Month 9: Refurb drawdown of £113,888 x 7% pa interest for 10 months £6,644
Month 10: Refurb drawdown of £113,888 x 7% pa interest for 9 months £5,979
Month 11: Refurb drawdown of £113,888 x 7% pa interest for 8 months £5,315
Month 12: Refurb drawdown of £113,888 x 7% pa interest for 7 months £4,650
Month 13: Refurb drawdown of £113,888 x 7% pa interest for 6 months £3,986
Month 14: Refurb drawdown of £113,888 x 7% pa interest for 5 months £3,322
Month 15: Refurb drawdown of £113,888 x 7% pa interest for 4 months £2,657
Month 16: Refurb drawdown of £113,888 x 7% pa interest for 3 months £1,993
Month 17: Refurb drawdown of £113,888 x 7% pa interest for 2 months £1,329
Month 18: Refurb drawdown of £113,888 x 7% pa interest for 1 months £664

Limited risk exposure;

RED BOOK RICS SURVEY REPORT CARRIED OUT OCTOBER 2019 verifying all figures

Project Manager –Experienced RICS Buildings Surveyor
An RICS surveyor will act as the contractor overseeing all works. The works have been costed already, and a schedule of works will be provided. Their job is to take care of the renovation and deliver the job on time and within budget, subject to unexpected circumstances arising.
All payments will be verified by the RICS building surveyor via payment certificates to ensure that payment is made for only works that have been completed. Meaning all payments will be made in arrears. The project manager will administer all of the paperwork concerning the building works, including a JCT contract between you, the client and the contractor. Also, a service agreement between the project manager and you the client. Throughout the project, the project manager will provide weekly updates via written, photo and video updates. The surveyor’s details/contact can be sent on request.

WE HAVE LENDERS IN PLACE READY TO FINANCE

One investor who has been buying for a few years now numerous BMV commercial to residential conversion projects has used the recommended build team, project management and the end to end services and was pleased to see figures, time-frames, and GDVs holding true. His quote: "Working with the teams was easy, trustworthy and reliable. Their teams are well versed in dealing with projects and investors alike. I don't live locally so having hands-on support as and when needed, was critical to seeing our projects through. I wholly recommend working with them and see massive value in their turnkey service." Tiruven, UK Property Investor.

Build costs - £2.8M incl contingency & miscellaneous. RICS report states build costs as £3M, but we can provide a SOW (Schedule of Works) breakdown supplied by a local contractor which come in at £2.8M

Sales fee 1% inclusive of VAT. Local sales agents in place

No affordable housing is required for the site as confirmed by the council. A viability study was carried out to eliminate it.

Selling Agent - Vijay Sharma vijay.sharma@sourced.co 07738 092 129 You can contact me by WhatsApp, phone or email.

The Location

The Development is situated just off the promenade of Thornton Cleveleys, Blackpool. Placed in a fantastic location which is just outside the hustle and bustle of Blackpool Center, but still within easy reach. The development has stunning views overlooking the Irish sea.With only a 5-minute Tram ride from Blackpool’s main attractions which provides guests with all the entertainment they require.
The property is situated in a prime location next to the seafront so is placed in an area with high demand for the accommodation on offer. The development plot is sea facing just on the promenade, with local amenities on the same road and the Train stop less than 200 yards away.

With only a 5-minute Tram ride from Blackpool’s main attractions which provides occupants with all the entertainment and amenities, it acts as a gateway to the resort.
Queens Promenade does benefit from excellent public transport links. There are bus stops within easy walking distance of the application site and a tram stop is located immediately opposite the NorbreckRoad/Queens Promenade junction where signalised crossing facilitates safe pedestrian and cycle movement. Several bus and tram services each hour run both north and southbound from these stops. Additionally, the national cycle network runs adjacent to Queens Promenade which forms part of the primary distributor route.
Whilst excellent transport links can be found to the west of the application site, a number of local services are located to the east which forms a defined Local Centre. These services include a Post Office, convenience stores and a pharmacy, underlining the sustainability of the application site.close to the corner of the promenade and Norbreck Road; adjacent to the Norbreck Castle Hotel North Shore, Thornton Cleveleys an established residential district, fairly mixed with some commercial usage and the large Norbreck Hotel which is adjacent. The property is situated on Norbreck Road, close to the promenade which is the A584, north of Bispham. The site itself faces a northwesterly direction with indirect sea views; almost opposite is the large Norbreck Hotel complex.

Local facilities are found in Thornton Cleveleys and Bispham; a tram service is found on the promenade; the property is within a short distance of Blackpool and the associated amenities and has relatively good access to Fleetwood to the north and Lytham St Annes to the south. Motorway connections are via the M55.
Thornton-Cleveleys is located to the north of Blackpool. The area is well-served by both bus and tram systems, giving easy access to both Blackpool and Fleetwood which is approximately 3 miles distance, where the Freeport Shopping Outlet is located; having a good variety of brand-name outlets. Poulton-Le-Fylde can be found approximately 3 miles away and Lytham St Annes some 10 miles, following the coastal road. Within a short distance to the east is the village of Thornton and a large Morrison's supermarket; a relatively new YMCA health and fitness centre, providing recreational and sporting amenities and the working Marsh Mill on Fleetwood Road is also close by.
Blackpool is a seaside resort located in the county of Lancashire in the north-west of England, approximately 15 miles west of Preston. The town is served by the M55 motorway with links to the national motorway network via the M6. Blackpool is one of Britain's major holiday destinations and the town is heavily orientated around the tourism industry. Attractions include Blackpool Tower, Pleasure Beach, Sealife Centre, Madame Tussauds Waxworks, Sandcastle Water Park, amusement arcades and other entertainment facilities. Blackpool also offers more relaxing attractions in the form of Blackpool Zoo, Stanley Park and Martin Mere Nature Reserve.

Average estimated value for a house in FY5

£

The most recent development of any size is the former Miners Home where two independent blocks of flats were built to either side, known as Admiral Point; Admiral Heights and Admiral View and identified within the sold comparables; sales range between £142,000 to £156,000 in recent years. These apartments do benefit from direct sea views, albeit set fairly well back.

There are hundreds of millions of pounds in investment presently being made in Blackpool with regeneration schemes throughout the town, breathing new life into areas with the creation of new leisure sites, hotels and restaurants. Large hotel chains such as PremierInn, and Hilton is building a brand new state of the art hotels on the sea-fronted promenade. This development will also play a key role in contributing to Blackpool'sregeneration plans. The site is located close to Blackpool town centre and with good road and train links leading to an associative motorway network the promenade through to Fleetwood in the northerly direction and Blackpool in the southerly direction. It is considered the design for this development and quality of the apartments will be the highest priority and key considerations in regards to the design. We also believe this development will be a will be the first impression for Blackpool's given its prominent location and provide sustainable growth and design. The site is surrounded by housing but further to the east is the NorbreckRoad Local Centre. The site is approximately 150metres to the east of Queens Promenade, the tramway and the north-south cycle route.

Currently advertised on the open market:

A two-bedroom apartment at Admiral Sounds, Thornton Cleveleys; this looks over the Irish Sea; it is a two-bedroom flat with en-suite and lift access with an asking price of £199,950 with Raistricks.

A similar two-bedroom flat on Admiral Sounds, Thornton Cleveleys; currently sold subject to contracts at an asking price of £189,950, also with Raistricks Estate Agents.

Admiral View, 160 Queens Promenade, is a two-bedroom apartment currently offered by Tiger Estate Agents at £l79,950. This has an open-plan lounge/kitchen area with two bedrooms (one ensuite).

One-bedroom, top floor flat in a conversion known as Sea View, New South Promenade, Blackpool. This is being sold as an investment opportunity where buyers receive an 8% return for five years and 110% by back after ten years. The development is connected to a hotel which is to be managed by an experienced operator.

Admiral View, 160, Queens Promenade. A one-bedroom apartment offered by Tiger Estate Agents at £144,950; this has an open plan lounge and kitchen/dining area; one double bedroom and bathroom with allocated parking.

A one-bedroom apartment known as B5 Coastal Point, South Shore, Blackpool (close to the Hampton By Hilton Hotel); this is a conversion to a one-bedroom seafront apartment with balcony; open plan lounge/living-dining space and off-road parking. This has been sold subject to contract at f 139,950 b'! Roman James Estate Agents.

Durban Court, Thornton Cleveleys; a two-bedroomed, second-floor apartment with a small balcony and open sea views; currently offered at £137,500 by Farrell Heyworth Estate Agents. This property is an older-style apartment.