The Development Process

Opportunity

1) Opportunity

Indentify Potential in Under Performing Assets

Purchase

2) Purchase

In Joint Ventures with
Our Equity Partners

Develop

3) Develop

Refurbishment, Conversion And Property Development

Exit

4) Exit

Though Pre-Selling and Asset Management

1) IDENTIFY THE OPPORTUNITY

The process begins once we discover a development opportunity worthy of our Investors.

 

We work meticulously to find exceptional Property Investment Opportunities for our growing database of Investors. Utilising our integrated network of property professionals who help to maximise the number of development opportunities we see each month. Before selecting the top 20% for a comprehensive financial appraisal and detailed due diligences. This allows us to calculate the maximum purchase price for each project we intend to offer on, based on the level of Risk involved and the associated Return on Investment.

 

WHAT WE LOOK FOR

  • Land or Property in City Centre locations ripe for redevelopment
  • Sites with outline or full planning permission in place.
  • Joint Venture proposals with existing Land or Property Owners
  • Permitted Development opportunities
  • Properties others may have either overlooked or lacked the skills to fix
  • Refurbishment, Conversion and Development Opportunities with an excellent purchase price

 

2) PURCHASE

Once we identify an exceptional project. We carefully select Investors from our database who specifically match our Investment requirements. Initially providing them with a detailing investment brochure and follow up with further details as required.

Once we have an Investors on-board… We move with a Sense of Urgency!

Each project is undertaken using a dedicated Special Purpose Vehicle (SPV) and project Bank Account. Utilising Investor funds for the equity requirements not covered by the initial loan. Such as the immediate upfront expenses required to make the deal work: Deposits, planning fees, purchasing cost, legal fees, debt servicing costs etc. We give our investors two types of investment option, either Fix Return or Profit Share depending on investment profile and appetite for Risk.

 

THEN THE PROJECT BEGINS

We have a Team of Professional who work with Eloquent:

Architects, Planning Consultants, Solicitors, Quantity Surveyors, Interior Designers, Engineers, Builders, Sales Agents, Accountants etc.

To develop the Concept into a Reality!

3) DEVELOP THE POTENTIAL

In order to develop a properties true potential

We look to add value at every stage of the development process. Whether that be stripping a property back to the shell and re-building it out in a much more efficient and modern format, as well as adding height and increasing depth to maximizing building mass. Then using the latest building materials and techniques to add simplicity and efficiency into the build.

To maximize the amount of desirable space in the building and hence increasing the number of saleable units. Ultimately increasing the Gross Development Value and Return on Investment for our partners.

 

HOW WE IMPROVE A PROPERTY

  • Strip the property back to the bare bricks & joists
  • Strengthen structure and lay new flooring
  • Install the latest specification insulation and sound-proofing
  • Fit new electrics, plumbing and gas services
  • Build new apartments, bathrooms, bedrooms and open-plan living spaces
  • Finishing the entire property to a high specification

4) EXIT PROFICIENTLY

We structure our investments to be as tax efficient as possible.

We sell the majority of our properties off-plan to the investor market giving a discount on market value and exceptional investment yields. This means our product moves fast with the majority of our stock being sold within the first weeks to market.

HOW WE ACHIEVE HIGH YIELDS

  • Finish properties to a very high standard
  • Employ flexible pricing structures
  • Offer discounts for advance payments
  • Review pricing to constantly achieve the optimum balance of occupancy and price
  • Promote properties in the right way to the right target market

5) RETURN ON INVESTMENT

Each property is bought through a dedicated Special Purpose Vehicle (SPV).

In addition, a formal Shareholder’s Agreement stipulates the order of payments:

  1. Debts and Costs
  2. Investor Equity with Priority Return
  3. Share of capital gains paid upon sale

Different levels of risk offer different levels of return: we aim to achieve margins on cost in excess of 15% for refurbishment, 20% for construction and 25% + for planning. We often use debt to further boost the returns on capital employed.

Investors fund the deposit, purchase costs such as legal fees and stamp duty, and initial build and debt servicing costs.

In the Fixed Return model the Investor receives a return of 6-24%pa the fixed return varies depending on the level of risk involved. Full planning / development risk attracts a higher return than simple investment risk in income producing assets.

In the Profit Share model; the Investor receives a priority return (typically 10% per annum pro-rata) plus a share of the remaining profits – weighted in our favour if we are paying a higher priority return or if we are required to guarantee the debt package.

There are no hard and fast rules in terms of profit and no absolute guarantees. As with any investment, values can go down as well as up. But we can state with utmost confidence that we have consistently delivered exceptionally high returns to our investors.

 

HOW WE CATEGORISE RISK

Refurbishment Risk: The property is tired and needs to be brought up to date in order to achieve its optimum capital and rental value

6-12% depending on scale and project difficulty.

Construction Risk: Planning permission is in place but the building works need to be completed

12-18% depending on scale and project difficulty

Planning Risk: The property is either a vacant site or an obsolete building which needs a change of use or wholesale redevelopment and so requires planning permission

18-24% depending on scale and project difficulty

 

CHECK OUT SOME OF OUR LATEST DEVELOPMENTS

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THIS DOES NOT COMMIT YOU TO ANY INVESTMENT

THERE IS NO OBLIGATION OR COST TO YOU.

Please tick one Statement for Eligible Investors below

If you wish to invest in Eloquent Groups real estate investment opportunities, you must be able to declare (and provide evidence if required) that you qualify as an eligible investor and meet one of the following definitions below.

PLEASE CLICK ON THE APPROPRIATE INVESTOR TYPE FOR YOU ABOVE.

Your capital is at risk and you may lose all of what you invest. Investments in property are not readily accessible and are therefore illiquid. Past performance is not a guarantee of future performance. Seek independent advice if you are in doubt about whether our product is for you or if you require tax advice.