Target Five
As we reach the end of another busy week, we are excited that another property in our pipeline has exchanged!⠀ ⠀
Queen Street a mid-terrace building in Littlehampton, West Sussex.⠀The property has previously been leased to a local housing charity providing accommodation across the six bedrooms. With special thanks to Richard and the fantastic team @starpropertyuk always a pleasure to work with you all. ⠀
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Part 4 of Sven’s video series on The Stages of Development, has landed! here are his Deal Options:
– Unconditional Purchase: is the most basic form of purchase and in our opinion ‘quite dodgy’ if the land does not have planning, we don’t use this option very often!
– Conditional Land Purchase Contract: once conditions have been met such as planning the developer is obliged to buy the land.
– Option Agreements: Our favoured method of deal. A contract with a set time, a long stop date and set price. It gives the developer the option of purchasing the land in that time frame, allowing the developer to obtain planning, undertake due diligence and to purchase the land if they still want to.
– Promotion Agreement: Between the land owner and developer, usually the developer will do the work to promote the land i.e. get the planning, then sell to the open market. Splitting the profit with the land owner.
– Joint Ventures: These can take many forms, usually between land owner, developer and a finance partner. Who come together with an agreement to suit all parties. Make sure there is CLARITY on this agreement, highlighting what everyone’s roles are and what they are bringing to the table. Our advice is to try not to partner with people who have the same skill sets as you, compliment not duplicate!
There will be a total of 8 videos in Sven’s series on The Stages of Property Development, missed any? don’t worry you can find them all on our news page, scroll down.
We have received some exciting news, we have reached the finalist stage of the Property Investors Awards 2021 for the following categories;
– Co-Living Deal of the Year
– Commercial Property Conversion of the Year
– HMO Property Investor of the Year
– Property Deal of the Year
Becoming a finalist is a great achievement, especially after the past couple of years with the challenges of Covid and how this impacted the industry and business. We are lucky enough to continue to thrive, which is down to the fantastic team we have and all their hard work.
Fingers crossed for the winners announcement coming soon!
We are definitely having a Happy Friday vibe today at T5 HQ. We have had planning approved for our next development in George Street, Hove, on behalf of our longstanding investor.⠀
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Planning granted, is a commercial to residential from class E commercial unit to class G.⠀with thanks to @whaleback.ltd
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Our Plan:
To form a 7 bed coliving Sui Generis HMO above and retain the ground floor commercial unit, which we have already had lots of enquiries about already ⠀
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Watch out for our upcoming development build updates.⠀
Some further good news we have received today, as we round off a very bsuy week, we have completed on our new mixed use development property, Tarring Road, Worthing.⠀
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Currently a ground floor shop with a 3 bed flat above.⠀
Our Plan:⠀
To convert the uppers to a coliving 5 bedroom HMO and retain the shop. There is also potential for future development to the rear STNC.⠀
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We will keep you up to date as this property is developed.⠀
The re-val figures are in on our recently completed development (May 2021), on Arundel Street, Brighton. ⠀
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This project was done in two phases, in 2019 the property was converted simply from a 4 bed HMO to a 6 bed with 2 bathrooms.⠀
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In January 2021 after additional planning consent was agreed, we converted the property to an 8 bed with 3 shower rooms, separate kitchen/diner and separate living room.⠀
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This property is set in a fantastic location, moments from the seafront in Kemp Town, making it an ideal property to let to professional sharers with the Royal Sussex County Hospital being a short distance away, as well as the American Express European HQ and Brighton Marina. The property is fully let via our partner company @proletsuk.⠀
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Purchase Price £310,000⠀⠀
Build Costs £133,001⠀⠀⠀
Refinance £825,000⠀⠀⠀
Rental Income £66,900 PA⠀
ROI 53%⠀⠀⠀
Gross Yield 8.1%⠀⠀⠀
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We have a very happy investor and even happier residents!⠀
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Southern Enterprise Awards have announced us as winners of ‘???????? ?????????? & ??????????? ??????? ?? ??? ????’⠀
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We are very proud of the hard work that team T5 put in everyday. Here’s to the future and fingers crossed for more to come!⠀
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This award goes to show hard work and tenacity pays off even during a pandemic!. We couldn’t have done it without the effort and support from @brightonrenovations @ccrdryliningltd @focus_brighton @bpmarchitecturalservices and of course @whaleback.ltd
We are excited to announce that Target Five’s Director, Andy Babbayan, has been elected to serve on the Property Entrepreneur Board (part of the PPN UK Group), for 2022
Andy is currently in Birmingham @thebelfryhotelandresort as we speak on day 2 which see’s the start of the new course year for the PE applicants.
We checked in on Andy this morning to see how thing’s were going?
“Absolutely buzzing after the first day of the PE Board 2022. Really proud to be joining such an illustrious bunch of Uber achievers. More than that though, so refreshing to see such honesty, humility & genuine interest in others from such a group. It’s going to be a great year!”
It’s not only Andy involved with PE, Tina is also following the Advanced course/workshops with Tim and Sven on the Programme course. The courses enable us to execute the next level of business strategy, systems, raising & refining finances, building a world class team and moving into niche & market leading positions that deliver sustainable levels of growth & the lucrative returns of both time and profit.
To find out more about Property Entrepreneur and their programmes, please click the link https://buff.ly/3gWOnWJ #propertyentrepreneur
Six days ago our flat pack Carbon sustainable development (Cross Laminated Timber (CLT), Modular Construction), was delivered from Austria, all 25 tonnes!
Today we have been to site and the rooms are taking shape with the first few panels in place, very exciting – fingers crossed the weather holds out ?⠀
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Thank you to @rjlandanddevelopment and ⠀
@cseeinvestments for helping to document our new build journey.⠀
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We will keep you updated of course with progress, it’ll be coming thick and fast now!⠀
It is quite a momentous day for Target Five, as our team are onsite at our project in Newland Street, Worthing, as our CLT construction (Cross Laminated Timber carbon sustainable development) has arrived from Austria.
25 tonnes of materials, shipped over on the back of an artic lorry via the fabulous team at Stora Enso. There are 14 packs which are positioned sequentially for the build progress, very much like Meccano but on a mammoth scale! not that we are daunted or anything. This is a first for T5 re: modular building and we are very much learning enormously as we go along with our trusted team and guides at Olive Modular with our PM Tim overseeing.
To the plan then, the main construction will take circa 2 weeks! starting at the rear back gable and working towards the front pavement.
By using a Cross Laminated Timber (CLT), Modular Construction designs and building methods we will be delivering low carbon results with high quality standards compared to traditional methods of constructing developments re: the use of cement and how this impacts CO2.⠀Creating Energy efficient, Environmentally beneficial buildings.
We will keep you updated of course with progress, it’ll be coming thick and fast now!