Tag Archives: Barrington Howe

Empire property holdings update

Empire Property Holdings May Update

Empire Property Holdings Update

Empire Property Holdings is an investment opportunity providing a fixed return for up to 4 years at 15% pa. This update is to show you the ongoing developments of the company and how their business model allows for an above average yield for an investor. Empire are developing a number of buildings not just one. To ensure that clients and potential clients can obtain as much transparency from this investment we would like to show you the latest updated photographs from the sites acquired. Empire Property Holdings have been very busy over the last 19 months. With a few developments near to completion, it would be a great time for you to see what they have been up to.

Empire Property Holdings are not just developers but they are investors too.  They have refinanced the majority of the developments they have created to keep in their portfolio. The New Commerce House refinance has recently been completed. Following this successful refinancing, Empire Property Holdings acquired Newspaper House in Blackburn with plans in place to develop 66 apartments.

Newspaper House, Blackburn

Empire Property Holdings have completed the acquisition of Newspaper House in Blackburn.  A planning application has been submitted to build 66 flats with car parking with an extremely positive response.

  • £850,000 Purchase price
  • £2,640,000 Development Costs (£40,000 per unit x 66)
  • £3,490,000 Total Cost
  • £429,000 Income (66 units x £125 per week x 52 weeks)

A benefit to the site is a rear warehouse which has been leased back to the Lancashire Telegraph for 12 months.

The development is near to completions with some of the apartments partially let. And this is even before completion showing the demand for the units.  The remaining work is the lift refurbishment, which is due to be completed within the next month. Some of the external fascia has been modernised to give a fresh modern appeal to the building.

This development is ready to be refinanced at the end of May. In tune with the business model it will then allow Empire Property Holdings to acquire the Thornhill Street site. Buy, develop, refinance repeat!

Thornhill Street, Wakefield

On the refinancing of King Charles House, Empire will purchase the Thornhill Street site which has the benefit of full planning consent to change the current use to C3 apartments.

  • £850,000 Purchase price
  • £480,000 Development costs (16 units x £30,000)
  • £1,330,000 Total Costs
  • £112,320 Income (16 units x £135 per week x 52 weeks)
  • £50,000 Further Commercial Income
  • £162,320 Total income

Thornhill Street

Globe Works, Bolton

Empire Property Holdings have purchased another site as part of their property loan note investment. Globe Works a former town centre mill in Bolton on acquired on 3rd May 2017.

A former mill to residential conversion via full planning permission, which will create 24 one bedroom, 90 two bedroom & 10 three bedroom apartments.

  • £1,700,000 – Purchase Price
  • £6,200,000 – Development Cost (124 units x £50K)
  • £7,900,000 – Total Cost
  • £1,024,800 – Income (24 1 beds x £600 x 12) (90 2 beds x £700 x 12) (10  3 beds x £800 x 12)
  • £12,800,000 – Valuation based on 8% yield
  • £8,960,000 – Refinance exit (70% LTV)

 

Globe Works Bolton

Globe Works Bolton

Globe Works Bolton

The Investment Opportunity

2 Year Income
Year 1: Interest at 10% p.a. payable every 6 months.
Year 2: Interest at 12% p.a. payable every 6 months
Total Interest 22%

2 Year Growth
Year 1: Interest at 10% p.a.
Year 2 (compounded) Interest calculated at 12% p.a.
4% bonus
Total Interest 27.2%

4 Year Growth
Years 1-4: Interest at a total 60%
Total Interest 60%

For further information contact us on 0203 026 8820 or register your interest HERE

pensioners_investing

Pensioners Investing

Barrington Howe has seen an increase in pensioners investing over the age of 55 in the last 2 years showing that pensioners are being forced to invest their funds. There could be a number of reasons as to why the over 55s feel the need for extra income. With the new pension rules since April, people are able to draw down lump sums of their pensions or utilise pension release rather than take out an annuity. Maybe increase knowledge and awareness of other investment opportunities have acted as a catalyst to look beyond the traditional pensions which have not performed particularly well.

Why are more pensioners investing?

“We have noticed that when we sit down with clients and explain the opportunity, they clearly understand the investments”. Barrington Howe Managing Director Peter Evans states “with the feedback we receive from clients, it’s evident that they have not been given a clear explanation of investments and as such their understanding has not been what it should be”. Peter goes on to say “our role is to explain rather than hard sales. This then allows a client to make an informed decision going forward. The investment opportunities we have speak for themselves in terms of their clear business model for profit, performance and track records. We try to keep things simple and don’t use unnecessary jargon.

Due to underperforming pensions, the over 55s are using pension release to then go on to invest rather than spend so that they can increase their levels of income. Barrington Howe’s Managing Director states “We’ve noticed a trend towards clients wanting a combination of something secure, double digit returns and short term agreements. Pensioners are not looking for high risks and require the flexibility of a short term agreement should their circumstances change. Peter goes on to say “I think it’s a very sensible attitude to adapt. A pensioner does not have the luxury of being able to earn high salaries through employment so it’s vital that they are sensible in their attitudes to investing. One of our clients is an elderly couple in their 70s who invested to enjoy the returns with extended holidays. Some just for additional income for the long term”. But the trend is evident that previous financial markets have not performed well resulting in pension pots lower than expected. The over 55s have spoken and have now taken action.