PART OF THE LONDON RIVERSIDE COLLECTION · 2020. 7. 28. · ultra-luxury apartments on this most...

PA R T O F T H E L O N D O N R I V E R S I D E C O L L E C T I O N

C H E L S E A , L O N D O N

A N

D E V E L O P M E N T

Having secured this site on Cheyne Walk, London SW10 it’s no exaggeration to say that we now embark on the most exciting project I have ever been involved with. When the appraisal proposal crossed my desk many months ago I almost dismissed it out of hand, thinking the competition would be too high and too aggressive, and I was right, it was. A great many developers wanted this site and they pushed extremely hard to secure it for themselves. But we persevered, the team worked incredibly hard and we won the day.

Cheyne Walk is now the jewel in our crown, a magnificent location in glamourous Chelsea with views over the Thames, the resplendent Albert Bridge (to my mind, London’s most handsome river crossing) and across to the iconic Battersea power station.

Chelsea and Cheyne Walk in particular is a mecca for the worlds uber-wealthy. Roman Abramovich and Michael Bloomberg’s London homes are on Cheyne Walk, and its list of

other past and present residents is incredible, you’ll find a selection in this Investment Memorandum.

I now invite you to partner with me and Accumulate as we re-purpose this beautiful building and create 13 ultra-luxury apartments to cater for the huge demand for this asset class in this, the wealthiest area of West London.

Best Regards, Paul Howells CEO, Accumulate

Message from the CEO

3CHEYNE WALK RESIDENCES

It’s a pleasure to once again be working with Accumulate on this amazing project on Cheyne Walk in Chelsea. As Paul said we’ve all worked incredibly hard to secure this deal, it’s a location second to none, and I don’t say that lightly.

The building currently houses apartments along with some commercial and retail space. We will keep the same combination of asset class but the number of apartments will be reduced. At present they are small, dated units, our plans are for just 13 apartments, but apartments of such size and quality that suit the taste of the higher end of the market.

Store House London was founded with core objectives: to create modern, luxurious accommodation, to develop an enhanced quality of life for residents and to seek out unique projects that deliver market-leading returns and high security.

Our ethos is shared with our partners, Accumulate Capital. Together, we bring to the market the very best property development finance opportunities, such as here on Cheyne Walk.

Best Regards,

Jamie Chapman Constructor, Cheyne Walk Residences

Message from the Constructor

*Images are for illustration purposes only

5CHEYNE WALK RESIDENCESInvestment Memorandum4


The Project

The project will see the creation of 13 ultra-luxury apartments on this most famous of London streets. Currently, the 5 storey building is a split between smaller residential flats with a mix of commercial and retail space on the ground floor. Located on the banks of the River Thames in this uber-glamorous part of the UK capital, we will be demolishing the rear of the building, maintaining the grade 2 listed façade. The basement level will be extended and a steel frame structure will form the new, spacious apartments, the type of which are in such high demand from

buyers across the world looking for a Chelsea address in London.

This is an investment worthy of premier league status; Cheyne Walk is a mecca for the world’s mega-rich. We’ve already had enquiries about end units from Hong Kong, Beijing, Dubai, Moscow and New York.

This is your opportunity to join with Accumulate as a property development finance partner to create these stunning apartments and claim a share in the forecasted £2.7 Million profit.

C H E Y N E W A L K R E S I D E N C E S , C H E L S E A

*All images are for illustration purposes only


What you’ll find on Cheyne Walk’s doorstep

The Royal Borough of Kensington and Chelsea is best known for its array of extraordinarily lavish and upmarket establishments. And the area closely surrounding Cheyne Walk is the epitome of these impressive characteristics.

In Walking Distance St Thomas More Gardens: 1 min

Chelsea Embankment Gardens: 5 min

Chelsea Psychic Gardens: 9 mins

The Ivy Chelsea Gardens: 9 mins

Restaurant Gordon Ramsey: 9 mins

National Army Museum: 11 mins

Saatchi Art Gallery: 19 mins

Natural History Museum: 23 mins

Stamford Bridge Stadium: 23 mins

A V E R A G E W A L K I N G T I M E S :

Mezzanine debt:£2,545,500

Equity£1,201,772

11CHEYNE WALK RESIDENCES

C H E Y N E W A L K R E S I D E N C E S , C H E L S E A

The Opportunity

T H E O P P O R T U N I T Y

Type Short term mezzanine

Term 18 months

Coupon Frequency On redemption

Returns Up to 22.5%

Security Second charge on asset

Exit strategy Off-plan commercial sales and refinance

I N V E S T O R R E T U R N S

Investment Level Return

£15,000 to £30,000 16.5%

£35,000 to £60,000 18%

£65,000 to £90,000 19.5%

£100,000 + 22.5%

Senior debt:£10,041,504

Cheyne Walk A Street Like No Other

For almost three hundred years, Chelsea’s Cheyne Walk has been home to faces from the worlds of music, business, politics, art, and literature. The street’s residents have earned it a staggering ten blue plaques, awarded for historical importance, here are a selection of those famous past and present residents.

Roman Abramovich

Abramovich is an Israeli-Russian billionaire businessman and politician whose London residence is 100 Cheyne Walk. Abramovich is the owner of the private investment company Millhouse LLC, and Chelsea Football Club. He was formerly governor of Chukotka Autonomous Okrug from 2000 to 2008. In 2019, according to Forbes, Abramovich’s net worth was US$12.9 billion.

T.S Eliot

The American-English poet, playwright, literary critic, editor and the leader of the Modernist movement in poetry lived at 122 Cheyne Walk. His much acclaimed works include The Waste Land (1922) and Four Quartets (1943). Prior to his death in 1965 he was recognised as the greatest living English poet and man of letters, and in 1948 he was awarded both the Order of Merit and the Nobel Prize for Literature.

Ian Fleming

Ian Fleming, born May 28, 1908, the suspense-fiction novelist and creator of James Bond, the stylish, high-living British secret service agent 007. Fleming lived at 24 Carlyle Mansions, Cheyne Walk between 1950 and 1953, the son of a Conservative MP and the grandson of a Scottish banker, Fleming was educated in England, Germany, and Switzerland, and he was a journalist in Moscow before becoming a high-ranking officer in British naval intelligence during World War II.

Sir Mick Jagger

British music legend, lead singer with the enduring, iconic rock giants The Rolling Stones. During their whirlwind romance Jagger and Marianne Faithfull lived at 48 Cheyne Walk. Jagger’s career has spanned over five decades, and he has been described as “one of the most popular and influential front men in the history of rock & roll”. Jagger, as we’ll discover is not the only band member to have lived on Cheyne Walk.

Dame Elizabeth Taylor

Born on February 27, 1932, in London, England. One of film’s most celebrated and recognizable movie stars, Taylor fashioned a career that covered more than six decades, accepting roles that have not only showcased her beauty, but her ability to take on emotionally charged characters. In 1982 while performing in the play Little Foxes, Dame Elizabeth lived at 22 Cheyne Walk which she demanded was redecorated in lavender, a true diva indeed.

Michael Bloomberg

In 2015 former New York mayor, Presidential hopeful and multi-billionaire Michael Bloomberg bought 4 Cheyne Walk for a reported £25 Million. A graduate of Harvard Business School, Bloomberg began his career at Salomon Brothers before forming Bloomberg L.P in 1981 where he spent the next twenty years as its chairman and CEO. He still owns the house to this day.

Along with the above there were plenty more famous owners of property on Cheyne Walk including Sylvia Pankhurst, Bram Stoker, Laurence Olivier & Vivien Leigh, Keith Richards, George Elliot, David Lloyd George, Jane Asher and many more.

Sir Mick Jagger

Ian Fleming (Right)

Roman Abramovich

T.S. Eliot

Michael BloombergDame Elizabeth Taylor


Accumulate believes in fairness and transparency and as such investment in this project will be conducted on a strict allocation basis, floor by floor.

Importantly, each floor will carry a different tier return for clients, and only when fully allocated will the next floor be released to the market.

Please see the illustration on the right which outlines the tier returns per floor.

Cheyne Walk Tiered Investment Allocation

16.5-22.5%£340,060

Available allocation Tier Return

1

Phase

15-21%£815,490


2

Phase

12-18%£600,880


4

Phase

13.5-19.5%


3

Phase

£789,070


With an average property price, according to Rightmove and Foxtons of over £2,000,000 in 2019, the Royal Borough of Kensington and Chelsea is the most expensive borough in London at nearly four times the London average.

The average semi-detached house in Kensington and Chelsea costs £7,852,662 according to Land Registry data.

Ed Jones, director at Foxtons, said: ‘‘There’s always some nationality or socio-economic group who want to own property in Chelsea.”

‘’Chelsea and individual streets such as Cheyne Walk and Kings Road are international brands and property in the area comes with a trophy post code that is loved both in the U.K. and around the world.’’

“Prices are driven up by high demand. People have heard of these streets and areas more than other affluent places so they chose to invest there.”

‘’When the domestic market fails the international market picks up the slack and that’s what we see time and again in Chelsea.”

The Property Market in Kensington & Chelsea


About The Royal Borough of Kensington & Chelsea

The Royal Borough of Kensington and Chelsea is the most affluent borough in Britain. It is home to some of the most luxurious boutiques and finest restaurants in the capital and many of its most interesting tourist attractions. Sloane Square, King’s Road and Kensington High Street are all global attractions for their retail offerings alone.

“Filled with the affluent and the educated, over half of the borough’s residents have the equivalent of a university degree and more than one fifth work within the financial sector”

Stretching from the River Thames opposite Battersea Park to Kensal Green, this central London borough is renowned for its wealthy residents, opulent properties and prestigious schools. Filled with the affluent and the educated, over half of the borough’s residents have the

equivalent of a university degree and more than one fifth work within the financial sector, a figure which is second only to residents living in the City of London. Property investment is big business, with buyers from both home and abroad, and more than 50% of residents were born outside the UK with a relatively high number of Asian, Russian and Middle Eastern residents compared to most other boroughs.

There’s an array of different neighbourhoods and communities to be found in the borough, from the charming French community in South Kensington (known to some as the 21st arrondissement of Paris) to vibrant, artistic Notting Hill with its pastel-coloured houses, quirky antique shops and world-famous annual Notting Hill Carnival.

“Excellent eateries are in abundance here,

particularly for those seeking refined, award-winning dining with multiple Michelin-starred restaurants”

LIFESTYLE

The Royal Borough of Kensington and Chelsea offers some of the best shopping opportunities in the capital, with everything from vintage treasures to designer brands to be found. Big spenders should head straight to Knightsbridge, home to luxury department store Harrods as well as Harvey Nichols, Prada and Gucci. Residents of Cheyne Walk have easy access to King’s Road and Sloane Square where they will find among many more brands such as Brora, Whistles, Joseph and LK Bennett, much loved by Catherine, The Duchess of Cambridge. For something a little more alternative, Portobello Road and the streets


About The Royal Borough of Kensington & Chelsea

of Notting Hill are awash with vintage shops such as One Of A Kind, Frock Me, and Retro Woman, with products ranging from bargain buys to second-hand Chanel.

“Closer to Cheyne Walk there is Restaurant Gordon Ramsey, The Bluebird, Chelsea and right on the doorstep 50 at Cheyne and stunning Bright modern Provençal brasserie with river views”

Excellent eateries are in abundance here, particularly for those seeking refined, award-winning dining with multiple Michelin-starred restaurants such as Five Fields and Kitchen W8. The streets surrounding South Kensington are awash with good French restaurants (largely due to the many Gallic residents), with highlights including Le Colombier, L’Etranger and Aubaine. Meanwhile in Notting Hill, there are plenty of spots to choose from with The Ledbury and Ottolengi particularly beloved by locals. Closer to Cheyne Walk there is Restaurant Gordon Ramsey, The Bluebird, Chelsea and right on the doorstep 50 at Cheyne and stunning Bright modern Provençal brasserie with river views.

Kensington and Chelsea is also a hotspot for those seeking to mingle with London’s most glamorous young residents after dark, at high end nightspots such as Raffles, Embargo Republica and Barts Bar.

HEALTH

Kensington and Chelsea has some of the UK’s healthiest residents, so it comes as no surprise that there are many superb fitness facilities here. Branches of national chains such as PureGym, Soho Gyms and Virgin Active can all be found, as well as many private studios and exclusive facilities including Barrecore Chelsea, Heartcore Fitness, and KX Private Members Health Club.

CULTURE

Home to London’s Museum District, Kensington and Chelsea has more than enough cultural venues to rival the West End.

The Science Museum, the Victoria & Albert Museum and the Natural History Museum can all be found along the Exhibition Road in South Kensington and are some of the most popular museums in the capital, while other, lesser-known museums and galleries in the area include the Design Museum, the Museum of Brands, Packaging and Advertising and the Saatchi Gallery. Multiple well-respected theatre and music venues can be found in the borough, such as Cadogan Hall, Gate Theatre and Royal Court Theatre, while cinephiles can enjoy various arthouse cinemas, ranging from independent picture houses Electric Cinema and Curzon Chelsea to the French-centric Cinema Lumière.

The borough also hosts a variety of events throughout the year, the largest of which is the colourful, chaotic, Notting Hill Carnival, which takes place on the August Bank Holiday and sees around one million people descending on the streets of Notting Hill for drinking, dancing and celebrations.

“…the borough is dotted with beautiful garden squares, while for larger expanses Kensal Green, Kensington Gardens and Holland Park are firm favourites with both residents and visitors”

SCHOOLS AND EDUCATION

Kensington and Chelsea has a very impressive selection of schools, with the borough ranked best in London for exam achievement. For primary-aged children, the Oratory Roman Catholic Primary School, St Barnabas and St Philip’s CofE Primary School and Thomas Jones Primary School are among the best in the borough with 100% of pupils achieving the expected level of English and Maths, while independent prep schools Wetherby Place and Garden House School are highly recommended. For older children, Holland Park School and Cardinal Vaughn Memorial RC School are the leading state options, and Queen’s Gate School and Lycée Francais Charles de Gaulle the best among the borough’s many independent schools.

For higher education, Kensington and Chelsea

is home to Imperial College London, which regularly ranks among the top 5 universities in the UK.

GREEN SPACES

The borough is dotted with beautiful garden squares, while for larger expanses Kensal Green, Kensington Gardens and Holland Park are firm favourites with both residents

and visitors to the borough. The latter is particularly stunning, spread across 54 acres and home to the romantic ruins of Holland House, as well as an Orangery, a Japanese garden, and an open air theatre.

For budding botanists, on the other hand, The RHS Chelsea Flower Show is a spectacular event, with thousands of floral enthusiasts turning up to enjoy London in full bloom.


Riverside Place has now completed its £1.2million investment raise. Purchased in 2019 for a total of just over £4million, Riverside Place originally consisted of vacant A1 retail units on the ground floor with unused office space above. However, with such high demand for residential property within this affluent area and no further new-builds planned until 2024, this will be transformed into 26 apartments.

Project costs: £9.9million

Capital raise: £1.2million

Project GDV: £12million

Project Profits: £2.1million

KINGSTON UPON THAMES, LONDON

Previous Case Studies

INVESTMENT CLOSED

Purchased in March 2018 for a total just under £3.5million including professional fees this impressive building on Margate’s seafront was in need of a great deal of attention. However, local knowledge and intensive due diligence gave us and the developer confidence the target GDV could be achieved, and so it proved.



Project GDV: £6million


L E W I S C R E S C E N T, M A R G AT E

INVESTMENT CLOSED

This building was ideally located and prime for a residential conversion. A turn of the century, former printers warehouse the double-fronted building was the last of its kind in a street that had become mainly residential developments. £2.2million plus professional fees just short of a further £300,000 secured the purchase of the site.



Project GDV: £6.12million


C A LV I N R O A D , S P I TA L F I E L D S

INVESTMENT CLOSED

Over an intense build period in a location where access was difficult at best and council rules can never be overcome, 10 stunning apartments were created, complete with the highest specification fixtures and fittings, synonymous with our constructor’s work. Also, a single four storey townhouse, one of only a handful of river fronting properties of its size.

Project costs: £23million


Project GDV raise: £27million

Project Profits: £500,000

R O B E R T S T R E E T, W E S T M I N S T E R

INVESTMENT CLOSED



FrequentlyAskedQuestions

How do you select developments? We take a data-driven approach to property investment and are exceptionally selective when choosing investment opportunities with an average of just 1 in 20 potential projects meeting our strict criteria.

How often do you launch new projects? We launch one new project per quarter.

What proportion of total project funding do Accumulate investors provide? Typically, 15-20 per cent of the total cost of development for mezzanine debt, 60-80% for senior debt with the remainder made up of our own development equity. Can I visit the site? Absolutely, we encourage all potential and existing investors to see the project before investing or after building has commenced. There will be opportunities to visit the site on an organised tour along with fellow investors. Please ask your dedicated consultant and we can make the arrangements.

What happens if the local property market declines? Accumulate cannot control the property market, however, we mitigate market risk in any development with a security buffer, in most cases of 20 per cent, with preferred returns and securitisation for the investor over and above the developer. Is there a referral programme?* Over 40 per cent of our new investors come from personal recommendations. We have a referral programme to remunerate introducers. To find out more please speak to your dedicated consultant.

investment and the assets within our portfolio. However, your dedicated consultant is available during office hours to provide any information that is required.

Do I pay tax on my investment? Accumulate cannot provide tax advice. You should consult your independent financial advisor in your country of jurisdiction. However, investments from Accumulate are structured in a way whereas we are not obliged to retain withholding tax on interest of 20 per cent. Can I redeem my investment early? No, as an investor you commit to the project for the full duration.

managed as a standalone Special Purpose Vehicle (SPV), and as such investors have complete control over which development they want to invest in. What are the fees? There are no exchange or arrangement fees associated with this investment. When can I expect a return on my investment? Investment returns are paid on the redemption of your original capital. How will I be updated on the progress of my investments? Accumulate provides direct comprehensive communication with investors, including ongoing reporting and updates on the status of your

How do I get started as an investor with Accumulate? To get started as an investor with Accumulate you’ll need to register an investor profile online at the Accumulate website: www.accumulatecapital.co.uk. From this profile, you’ll be able to manage the entire investment process and gain access to your completed investments, portfolio performance, ROI statements and redemption dates.

Who can invest? Any investor who has completed our self-declaration of being either a High Net Worth Individual (HNWI) or Sophisticated Investor (SI), who is not a citizen or resident of the United States of America and is over the age of 18.

What is the minimum investment? The minimum amount that can be invested is £15,000.

How do I fund my investment? All transactions are received via bank transfer from the specified investor. During the investment process, you will electronically receive a form asking you to provide your bank account information in order for us to process your ROI and redemption. We are unable to accept credit/ debit cards.

What am I investing in? This investment is development debt structured via loan arrangement with specified returns and a fixed redemption date. The development itself is a residential property development on Cheyne Walk in London’s Chelsea which will see the creation of 13 luxury apartments. Is it a fund? No, this is not a collectively managed investment. Each Accumulate development is incorporated and

*Direct family members are not applicable

* These are fully appraised figures. Development fees and marketing costs includes a secondary security buffer to protect both the developer and investors.

P R O J E C T G D V

Development GDV £16,475,110

Acquisition Cost £7,350,000

Purchase Fees £693,000

Development Costs £3,740,673

Marketing and Sales Costs £316,552

Finance Costs £1,097,263

Professional/Other £591,288

Total Development Cost £13,788,776

Target Development Profit £2,686,334

Project Analysis


Book a Site Tour

The Reality of Investing with Accumulate

Meet the Accumulate team at the site of our current development

Unlike some, we don´t hide from scrutiny and curiosity. In fact, we actively encourage it. We believe that the best way to get a good idea about us and make informed judgements about our project is to see it in person. Nothing compares to the experience of being able to physically see a construction that you are involved in come to life. On a site tour, we explain the background, process and vision for our project in a thorough and informative conversation; here, you are more than welcome to ask any questions you might have. Although we provide extensive details in all of our updates and memorandums, being able to talk directly to the developers in front of the building is an unparalleled opportunity and an advantage that we are happy to offer.

To book your seat at our virtual tour please follow this link for an available slot.

Talk to your consultant or go to www.accumulatecapital.co.uk

PLAY

Whilst profit maybe our yardstick, transparency is our watchword, without it, there is simply no trust. That’s why we take steps to keep investors up-to-date at all times. It’s one thing to receive a monthly portfolio update from us, which we do, but reality wins everyday. That’s why with this Cheyne Walk development we will be setting up a live webcam, just like we have done at our Riverside Place development in Kingston upon Thames.

Long term, profitable relationships are those we look to engage. We want our clients to take profit from one project and re-invest in the next, and the next, creating a virtuous circle for your finances.

This link will take you to the webcam at Riverside Place, showing you the reality of investing with Accumulate.


https://www.accumulatecapital.co.uk/cheyne_walk_site_tour

https://iris.time-lapse-systems.co.uk/viewer/accumulate-capital-bishops-palace-house-nosx/

https://iris.time-lapse-systems.co.uk/viewer/accumulate-capital-bishops-palace-house-nosx/

Canterbury Innovation Centre

University Road, Canterbury, Kent. CT2 7FG

Email: [email protected]

Tel: 01227 936 996

www.accumulatecapital.co.uk

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