Cambridge Development Investment Opportunity

The proposed scheme calls for 91 serviced apartment accommodations which have been designed. The current promoters/developers are seeking an additional £1 million to purchase the land and move forward with the planning application process. Previous schemes with fewer units have been approved and the developer is confident the new scheme can get approval. The land is at a discount due to the pre-approval status. 

The current plan is to partially acquire the land for £2 million in a JV with the landowner and the development consortium. The group will then follow up and submit a planning application for approval. Following the approvals, the group will apply for construction finance and begin the construction process. Once stabilised the NOI is expected to be up to £1.3m and potentially move upwards to £1.5 to £2m per year adding substantial value to the property. The group can consider a sale to an institutional investor at approximately a 5% rental yield.