Sparta

16 April 2018

 

 

Sparta Fund - Consulco

Consulco Real Estate is pleased to set out the latest news from its new property syndicate, Sparta Capital Holdings Limited (“Sparta”).

Fund Raising

Investors have invested £6.5million to date.

Financing

Following extensive negotiations, a Cyprus bank has granted Sparta a facility up to £10 million through an interest only loan, with a five year term. A portion of the financing has already been used for property purchases.

Acquisitions

Sparta has acquired 4 properties so far. Its first property acquisition was in Q1 2016. 

Location of existing properties

 


Properties

50 Ealing Broadway

Property Characteristics 

Tenure: Freehold

Tenant: Headmasters Salon

Use: A1

Total Area (NIA): Ground Floor 1.107 ft2 / 102.84 m2

Total Passing Rent: £50.300 pa ERV £68.300 in Jan2019

Lease Expiry January 2024

Price: £1.100.000

Net Initial Yield: 4.32% (5.87% at RR)

Development Opportunity: Build extra flat at rear

       Sparta property in Ealing                

Ealing Snapshot

Popular & affluent West London suburb

Property in prime location opposite rail station next to Ealing Broadway Shopping Centre, which attracts 1.6million visitors a year

Population: 342.500 (2013)

Third largest London borough

Ealing Crossrail station will be open in 2019

 

Asset Management Opportunities

  • Planning permission secured in January 2016.
  • Development opportunity to erect a one bedroom maisonette on the rear flat roof.
  • Negotiations slated to start end 2018 together with the rent review in Jan 2019.
Ealing asset management opportunities


4 D’Arblay Street, Soho

Property Characteristics 

Tenure: Freehold

Tenant: Sir Tom Baker, Various Artists Ltd

Use: A1 & B2

Total Area (NIA): 1,605 ft2

Total Passing Rent: £79.000 pa

Lease Expiry: May 2033        

Price: £2.525.000

Net Initial Yield: 2.94%

            Sparta fund property in Soho                 

Soho Snapshot

Home of late-night entertainment; restaurants, theatres, bars/clubs & boutique hotels, fashion and media firms

Convenient West End location 

500.000 visitors per week, drawn to its mix of history and trendiness

Red light district up until the mid-1980’s, turned into a hub for gay community after a government clamp down

Hub of creativity - home of many artists, musicians and authors 

Crossrail station will be open at Tottenham Court Rd in December 2018

 

29-31 Parkway, Camden

Property Characteristics 

Tenure: Freehold

Tenant: Bento Ramen

Use: A3 + Ancillary

Total Area (NIA): 3.196 ft2

Total Passing Rent: £90.000 pa / £28 per sq ft

Lease Expiry: March 2023

Price: £2.300.000(£720 psf)

Net Initial Yield: 3.68%

Future Plans: Obtain possession and develop flats above

                  

Camden Snapshot

Trendy area, visited for its markets and nightlife (the birthplace of punk rock)

4th most popular tourist attraction in the UK with footfall of 28 million per annum.

Area has a good mix of retail, residential and office space. Appealing to those wanting to live, work and enjoy

Area undergoing gentrification and increased development

 

Asset management Opportunities

  • Development opportunity to convert upper floors into flats
  • Reversionary rent – immediate rent review (Growth £90.000 pa to £130.000 pa)
  • Gentrification – Rental Growth prospects
  • JLL appointed to negotiate, ERV £125.000-£130.000 pa (£60 psf)
  • Negotiate new rent with tenant OR tenant leaves and Consulco develops property
  • Lease expiry 2023


68 Long Lane

Property Characteristics 

Tenure: Freehold

Tenant: Vacant

Use: A3

Total Area (NIA): 114 m2

Total Passing Rent: N/A Vacant/Under Refurbishment

Lease Expiry: N/A Vacant/Under Refurbishment

Price: £1.300.000

Net Initial Yield: N/A Vacant/Under Refurbishment

Development Opportunity: Build extra flat at rear

      Sparta Fund property in Farrington        

Farrington Snapshot

Historic part of the City of London, with an eclectic mix of commercial and artistic influences

Known for its top restaurants and quirky feel, partly driven by its history as a key marketplace. Smithfield Market is one of the oldest London open-air markets still in existence.  

Increasingly  becoming a desirable office location, and will be even more so once Farringdon East Crossrail Station opens in December 2018. It will be one of the biggest transport interchanges in Britain, with 140 trains per hour. 

 

Asset management Opportunities

This is the latest property acquired by Sparta in April 2018. The building is in quite serious disrepair but has exceptional uplift and development potential.  It stands at one end of a zebra crossing, leading to one of the entrances to the impending Farringdon Crossrail station, making it an absolutely prime location for a coffee shop serving commuters.  There is potential to add another floor to the building, expanding its upper floor office space. 

 

Strategy

We acquire retail and restaurant properties in central and greater London where one or more of the following factors are present:

  1. Government infrastructure investment, such as Crossrail, resulting in public realm improvements and an uplift in the commercial stature and profile of the location.

  2. Large scale residential development to accommodate London’s growing population.

  3. Gentrification or changing demographics and spending power contribute to economic uplift and attractiveness for retail business.

  4. Significant private sector investment

  5. Vacant or underused upper floors with development opportunity to create additional value.

 

Fund Terms       

Type of syndicate:   

Closed-ended

Structure:

British Virgin Islands Limited company

Target return: 

10+% per annum, including capital gains

Target equity raise:

£10 million

Minimum investment:

£125.000

Subscription period:

Expires 30/11/2018

Syndicate life:

5 years from the acquisition of the investment properties, and may be extended by 2 years at the discretion of the managing shareholder and extended by a further year subject to the approval of 75% of the investors



Conclusion and Invitation

London real estate has always been a quality investment asset type forming an integral part of wealth diversification and asset allocation strategies for professional and individual investors from all over the globe.

Consulco continuously successfully manages and launches London real estate funds, offering a rewarding relationship from which out high net worth clients can gain and prosper.

Our success story speaks for itself! Hermes fund, from 2010 to 2016, has generated average annualised returns of 30% p.a. after all costs and taxes and Sparta is set to follow the same steps towards success. As the subscription deadline is approaching, we invite you to grab the opportunity and contact us for more details at info@consulco.com

 

 

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