INVESTOR CHOICE: 4 flats(planning GRANTED) target ROC 35.3%~38.9% or HMO/SA ROC 76.0%~80.0% ?

• 

  KEY FINANCIALS (Partner Refis £217k Bridge + Funds Recon):

OPTION A: FLATS OPTION A+: OPTION B: OPTION B+:

(Asset Sale) FLATS (SPV) HMO/SA (Asset Sale) HMO/SA (SPV)

Partner Funds £337,000 £337,000 £354,500 £354,500

Projected GDV £572,500 £592,500 £760,000 £780,000

(+£20k Premium) (+£20kPremium)

Est. Net Profit ~£198,500 ~£218,500 ~£385,000 ~£405,000

Target Profit (Example) ~£119,100 ~£131,100 ~£269,500 ~£283,500

Target ROC % (Example )~35.3% ~38.9% (+3.6%) ~76.0% ~80.0% (+4.0%)

• RENT & REFINANCE POTENTIAL (Based on Latest Rents):

  • 4 FLATS: Full partner capital return + kicker. Est. £13,728 p.a. net cash flow (total).

  • HMO/SA: Full partner capital return + larger kicker. Est. £15,960 p.a. net cash flow (total). (SA potential for higher income).

• INVESTOR TAKEAWAY – DATA-DRIVEN DECISION:

  • Flats: Solid, de-risked returns (~35-39% ROC), simpler management.

  • HMO/SA: Exceptional ROC potential (~76-80%), leveraging surging local HMO rents. (Requires proactive HMO planning/licensing confirmation).

  • Both options benefit from the potential SPV Share Sale uplift.

  
  

• TRANSPARENT DATA PROMISE

  • Market Data Source: PropertyData.co.uk (Dashboard Ref: xV19jjqV)

  • Sales Data: Sold Prices (CF37 2BW), Last 9 Months.

  • Rental Data (Flats & HMO): Achieved Rents (CF37 2BW), Last 9 Months.

  • Dashboard Generated: refreshed the xV19jjqV dashboard 08-Nov-2023, 10:30 AM

  • Other Sources: Houzy Ltd Internal Costings & Development Plans, Local Authority Planning Portal (Ref: 22/1466/10).

  
  

Explanation of "Transparent Data Promise" Points for an Investor:

1. Market Data Source (PropertyData.co.uk):

   • Explanation for Investor: Market valuations and rental income projections are underpinned by independent, third-party data from PropertyData.co.uk, a reputable source for UK property analytics. This ensures assumptions are grounded in current market reality, not just internal optimism.

   • Dashboard Reference (xV19jjqV): screenshots from the specific dashboards (Ref: xV19jjqV) used for this analysis, allowing for full transparency on the comparable data points.

2. Sales Data (Sold Prices, Last 9 Months):

   • Explanation for Investor: Gross Development Value (GDV) for the 4-flat option is calculated using the average price per square foot (£182/sqft) derived from actual sold properties in the immediate CF37 2BW postcode over the most recent 9-month period. This provides a realistic benchmark for achievable sales prices.

3. Rental Data (Flats & HMO, Achieved Rents, Last 9 Months):

   • Explanation for Investor: Projected rental income for both the 4-flat and HMO/SA strategies is based on actual achieved rents for comparable properties in CF37 2BW over the last 9 months. To ensure our income forecasts are robust, we've referenced average figures for different room/property types (e.g., £600/pm for 1-bed flats, £625/pm for ensuite HMO doubles).

4. Dashboard Generated Date & Time:

   • Explanation for Investor: Commitment is to using the most current information to assess this opportunity. We acknowledge that markets are dynamic and will continue to monitor trends.

5. Other Sources (Internal Costings, Planning Portal):

   • Explanation for Investor: Reconstruction costs are based on detailed internal plans and quotations. The existing planning permission (Ref: 22/1466/10 for 4 flats) is publicly verifiable on the Rhondda Cynon Taf Council's planning portal, providing a secure foundation for the development.