Our Development projects Focus in 2023

Why do we carry out development projects?

The objective of our developments is to create high cash-flowing assets. This is because this is the most cost efficient way for us to enrich our portfolio of high valuable and especially high cash-flowing assets.

In this way we are able to make our assets outstanding to the  rental market because we are able to add luxury elements to our projects. This will ensure that once our projects are completed we will be able to attract the best tenants and at very attractive prices (even below market rental value if necessary) This will protect our asset base under any market conditions.

To be clear we do not have any intention on flipping the development or any part of it upon completion. We Develop to increase our cash flowing asset base. The only exit strategy is financing the finished asset itself.

 

What we want to develop in 2023.

Our main aim is the build up of high cash-flowing assets concentrated in one building. The UK offers huge opportunities through permitted Development rights of Commercial unused buildings. This gives us the confidence to invest into this type of development knowing that planning permission will not be an issue to convert the building into the high cash flowing assets we want.

This coupled with the depressed prices which will be experienced in the second part of 2023 will provide an even greater opportunity to build both equity and cash-flow at the same time.

We are Converting commercial buildings into residential. This is because some commercial buildings in the UK are located in the center of cities and towns where there is a high demand for rooms and flats.

We can take advantage of Class G permitted Developments rights in order to convert the first and second floor into HMOS and Class MA to convert the ground floor into flats if the numbers stack up. In certain cases it may be beneficial for cash-flow purposes depending on the area to keep the ground floor commercial.

This allows us to convert all our cash into real estate while multiplying it at the same time and ending up with a very high cash-flow after refinancing at the end of the project.

 

The Finance of the projects.

At the end of the project these are very easily remortgage-able assets as the residential element is high in percentage and the cash-flow is high too. Therefore these are the type of assets preferred by banks as they provide high levels of suitable security both in terms of brick and mortar and cash-flow valuation at the same time.

Therefore the type of finance available if both residential and commercial. This will secure the lowest cost of money in all money markets conditions.