Full Description

Great opportunity to invest in this 10.8 acre greenfield site in Newtown St Boswells, a small rural village approximately 2.5 miles south east of Melrose, in the Scottish Borders

The project is in two stages. Stage one is now being launched and relates to the site and the high potential for us to be able to increase the number and layout of the units. This together with a higher re-sale value for the units should show investors a substantial profit on their investment within a 24 month period.

At present, the site has detailed planning consent for 80 two-story houses with eight house types ranging from 1,503 sq ft to 2.239 sq ft. (planning ref 04/01521/FUL). We are of the opinion that we can increase the housing on this site by 25% to 101 units. This together with a better designed scheme should result in us being able to re-sell the development site for a 25% profit. As this project has funding in place, this means that investors could see net returns of over 50%.

Following the outcome of our revised planning application, the site will be re-valued and either put on the market for re-sale or developed by ourselves. If it is decided to develop the site, investors in stage one will be offered the opportunity to either stay in the project, or to cash in their shares at the market price at that time.

The development site has been valued by Savills at £6,200,000.00. The simple basis of the valuation, is the amount of houses to be built(141,808 sq ft) multiplied by projected sales of  £165 per sq ft giving a gross development value of £23,398,000. From this a developers profit of 15% on costs is calculated giving a land value of £6,200,000.00.

Therefore an increase in either the density of housing on the site or the projected sales value will increase the value of the land. We are aiming to incease both these figures.

Potential Profit From An Increase Re-Sale Values

The valuation at present is using a conservative re-sale value of £165.00 per sq ft. The value of properties per sq ft is generally dependant on the size of a property. That is to say that a terraced house will sell for more per sq ft than a large detached house next door. By changing the mix of houses on the site, we will increase the number of smaller houses thus increasing the value per sq ft.

In addition, examples of new builds in the area indicate that the £165.00 per sq ft value is low.

Barratt Homes have developed 150 residential units in Weavers Linn, Tweedbank. They have achieved an average re-sale price of £174.00-£197.00 per sq ft, depending on the size of the property.

Trimontium Heights, Melrose has been developed by Rivertree Developments and is a mixture of 300 residential units. Their 2 bed semi detached houses (1,137 sq ft) are being sold for an average £220.00 per sq ft and their three bedroom semi detached houses for an average of £225.00 per sq ft.

These figures are up to 30% higher than those used in our valuation. Add to this a conservative 4% increase in house prices over the next twelve months and it is easy to see the potential increase in value of our site.

Ownership and Taxation

This property is owned through a UK partnership. Investors can either choose to invest through our trust company or as a partner. (as a partner your name or the name of your company will be noted on the deeds) To become a partner the minimum investment is €50,000.00. Partners pay a lower commission when purchasing and selling shares.

Both methods have identical tax implications. As a partnership, there is no capital gains tax charged to the partnership on the profits . The profit is passed directly to investors without deduction of tax or any witholding tax. This is ideal for investors in offshore juristictions, or investors purchasing through offshore companies. It is up to investors to declare their profit.