LandDevelop launches value - added property conversion product

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LandDevelop, a global marketplace for property investment and a one stop shop for property investment strategies, is expanding its range of services, launching a Value-Added Conversion product which enables registered investors to venture into the property conversion market.

It’s estimated that this Greater Manchester Resi to HMO conversion project will make a projected net return of 13%.

LandDevelop, a global marketplace for property investment and a one stop shop for property investment strategies, is expanding its range of services, launching a Value-Added Conversion product which enables registered investors to venture into the property conversion market.

Through its bespoke online crowdfunding platform, LandDevelop’s pool of investors are given exclusive access to investment opportunities throughout the UK. The first of the company’s conversion projects to be made available is a £190,000 residential development in the Salford district of Manchester, turning an existing property into a five or six en-suite bedroom HMO.

It’s estimated that the project, which is expected to take around three months to complete, will make a projected net return of 13%. Acting as the project originator and fundraiser, LandDevelop has set up a Special Purpose Vehicle (SPV) company which will own 100% of the assets. The SPV will pay investors an estimated interest of 5.5% p.a., based on the total investment plus a 50% share of remaining net rental income and any gain from the sale of the property. Please note that capital is at rick and returns are not guaranteed.

The company has appointed local developer BH Property Investments to act as the management agent for the refurbishment and they will be responsible for acquiring, converting, renting, maintaining and selling the property. Once complete, the property is expected to be fully let within one month with a projected annual rental income of £30,000. Any net capital gain and net rental income will be shared equally between the local partner and investors.

Founder and Managing Director of LandDevelop, Shuo Zhao, explained the thinking behind the new venture:

“Over the past decade, Salford has undergone a massive regeneration with hundreds of millions of pounds being invested in the area. With a world-class university, good schools, a buzzing cultural scene, lots of open green spaces, superb transport links, a new wave of businesses taking residence and a short commute to the centre of Manchester, Salford is experiencing the fastest growth in the UK and has become a prime opportunity for buy-to-let properties.”

Investing in property crowdfunding involves risks, including loss of capital and illiquidity. Investments made through LandDevelop are not covered by the Financial Services Compensation Scheme (FSCS). Please read our full risk warning on our website before deciding to invest.

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Shuo Zhao
LandDevelop
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