PM Asset Management Newsletter...May 2010

Please click here to download the newsletter.

February 2010...A report has been compiled for both the Sycamore II Property Development Fund and Sycamore IV Mezzanine Finance Fund. This report was carried out in January 2010 by AKG Actuaries & Consultants Ltd an independent actuarial company based in Dorking who specialise in the provision of ratings, information and market assistance to the financial services industry.  For more information please visit their website – www.akg.co.uk.

At PM Asset Management we feel this type of independent report will be required more and more by compliance officers to ensure the bona fides and suitability of product providers. PM Asset Management embraces this requirement for more due diligence to be carried out. To download this report please click here.

18th January 2010...We are pleased to announce that as of yesterday all 8 apartments are now under offer at our Shoreham development within the Sycamore II Property Development Fund.  We can now move towards the change of use for the 4 office units below to residential.

PM Asset Management Newsletter...December 2009

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Sycamore II – Shoreham Apartment update...2nd December 2009

A show flat was completed at the beginning of November. In the last three weeks six flats have gone under offer all for approximately £20,000 more per unit that our original valuations.

 
 


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Sycamore II: OPTION AGREEMENT CONFIRMED…6th November 2009

PMAM is entering into an option agreement to purchase a 2 acre site located in the heart of one of the most desirable villages around Winchester which is especially well located for commuters. This site was won through a bidding war with a major UK House Builder and although our bid was lower the vendor chose us due to the speed at which we can complete and the communication throughout the process so far.

The numbers are as follows

•       Option to purchase site for £1.4m – Current Value is £2.3m
•       Vendor requires £20,000 up front  & £700k on planning  =  £700k on completion of whole site
•       Total Equity required t purchase and build out the site  = £1.5m
•        GDV £6.8m = Profit £2m
•       Return on Capital Employed = 131%

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Sycamore II: Shoreham Apartments…5th November 2009

You may recall that back in April we purchased a shell of a block of flats that needed completing from Bovis Homes with the intention of either renting or selling the flats depending on the market. We estimated in our original figures the value of the flats at £150,000 each. With the show flat complete and the rest close to being finished the apartments were put on the market 4 days ago.

I have the pleasure of informing you that so far in 4 days we have sold three flats at the following prices:

For Sale Price    Sold Price
£178,500              £175,000
£171,500              £169,995
£179,995              £175,000

You can view our show flat on the link by Clicking here.

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Sycamore II: Jasmine Cottage...15th October 2009

Yesterday Sycamore II purchased a renovation and infill project on the edge of the New Forest. Jasmine Cottage is a 2 bedroom semi-detached cottage in need of comprehensive refurbishment. The cottage sits in 0.2 of an acre with most of the garden located to the side and rear of the property. We will split the title, leaving the cottage with a relatively large garden but more importantly a building plot for a new dwelling. After completing the refurbishment of the cottage and selling on we can realise our initial investment immediately.

The property was purchased for £212,000 at auction, £28,000 under our maximum budget. The additional plot is large enough for an 1800 sq. ft. house with detached garage. There has also been interest from local developers to purchase the land upon planning. Based on today’s prices and valuations the returns are as follows:

Net Profit of GDV        28%
Net Profit                    £188,975
RoCE%                         39.51%
RoCE Annualised         31.61%

Should we decide to build the site out then the estimated turnaround time of the new build from start to completion of sale is a maximum of 15 months.

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Sycamore News... 2nd September 2009

Sycamore II Fund
We have completed the signing of the promotion agreement for Binley Woods, a project which is already significantly through the planning process. The total developable area is 9.3 acres with a total value per acre at today’s prices of £750,000. We are set to receive the 10% discount upon final planning which, (at today’s prices) equates to a return of £1.2m including the reimbursement of our £500k costs. This equates to an annualised Return on Capital Employed of 60%. Please see the table below for further information.

Sycamore IV Fund
The Sycamore IV Mezzanine Finance Fund successfully launched at the beginning of August. This is a three year fund with an anticipated return of 15%. There has been an overwhelming response to this fund and we already have several mezzanine projects lined up from reputable developers.

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Sycamore II purchases a fine project from Bovis Homes...5th August 2009

Eight apartments over four B1 office units.

These will be finished and then let. Buy to let mortgages have been agreed which leaves around £300k in the project. The B1 office units are up for rent at “over the top” prices per foot. They will not rent over this period and after 6-12 months application for “change of use” to residential will be submitted. This raises the value from £90,000 to £150,000 per unit. These will then also be rented out. All the apartments will be held in this buy to let portfolio and then sold ready for the three year distribution.

At today’s values the total profit will be in excess of £500,000

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