Completion at Great Oakley
We are pleased to report that we have recently completed the sale of the final of 17 residential property units at our site in Great Oakley.
Great Oakley Development Partnership entered into a joint venture partnership with Raer Group to develop 17 residential units in Great Oakley, Essex on behalf of Stellar Growth IHT Service investors.
All sales prices achieved exceeded the original appraisal. This contributed to Great Oakley Development Partnership achieving an IRR of 8.5% for Stellar Growth IHT Service investors, exceeding the service’s target of 5%.
The Partnership acquired the site in Q4 2018 and proceeded to fund the construction of the units. The site was selected for its excellent location on the edge of the village of Great Oakley, Essex.
The 17 dwellings consisted of 8 three-bedroom semi-detached houses, 3 four-bedroom detached houses and 6 three-bedroom detached bungalows. All units were built with dedicated parking and private gardens and a number of the units were built with garages.
With construction having commenced in Q4 2018, the development was not immune to the disruption caused by the pandemic in 2020 which contributed to a short delay to the programme of two months. In spite of this delay, the development successfully remained on budget over the course of the construction period. Practical completion took place in January 2021.
The frequent lockdown periods experienced during the height of the pandemic also resulted in the sale of the final two bungalows being delayed. The primary target purchaser for bungalows are typically in the age range that had been categorised as most vulnerable to the virus which made viewings difficult to arrange. These issues were experienced across the local market.
Nayland Development Partnership
The success of Great Oakley Development Partnership and the strong relationship that has been established with Raer Group throughout the project prompted us to embark upon another joint venture with the same team.
In Q4 2020, we agreed to fund the development of nine houses, comprising 6 detached houses, 2 semi-detached houses and a detached bungalow, in the village of Nayland, situated on the border between Suffolk and Essex.
Nayland is a highly sought-after location in an area of outstanding natural beauty (AONB) which still offers strong transport links. The site is 15 minutes from Colchester station which provides services into London in under an hour. As the development is in an AONB, there is very limited competition in the vicinity as planning permission is rarely granted in such areas.
The trust we have in the developer coupled with the strength of the location that Nayland offers is such that our outlook for this development is very positive. This is a prognosis that has been supported by strong off-plan sales interest.
Construction commenced in April 2021. To date, the development is on schedule and within budget. Practical completion is anticipated in April 2022. We have budgeted for a 6-month sales period. Given the off-plan interest, early indications suggest that this is achievable and could be exceeded.
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Stellar Asset Management Limited does not offer investment or tax advice or make recommendations regarding investments. Prospective investors should ensure that they read the brochure and fully understand the risk factors before making any investment decision. The value of investments and the income from them may fall as well as rise and is not guaranteed. No assurance or guarantee is given that any targeted returns will be achieved. Forecasts of potential future results are not a reliable indicator of actual future results.
Stellar Asset Management Limited
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is authorised and regulated by the Financial Conduct Authority.