Stellar agrees to fund residential development in Suffolk

We are pleased to announce that we have agreed to fund the development of nine residential units in the village of Nayland, Suffolk. This investment will be managed on behalf of Stellar Growth Inheritance Tax (IHT) Service investors, with a general partnership created accordingly.

The property is currently a greenfield site which has been granted planning permission for nine new dwellings, all with off street parking.

The final development will comprise four detached four-bedroom houses, two detached three-bedroom houses, two semi-detached two bedroom houses and a detached two-bedroom bungalow.

Location

Nayland is a village situated on the border between Suffolk and Essex. The village has a range of amenities, including: a library, pharmacy, and a range of restaurants nearby. Colchester town centre is also just 6 miles away and has a vast array of amenities.

Area of Outstanding Natural Beauty (AONB)

Nayland is located within the area of Dedham Vale, which has been listed as an AONB since 1970. As well as being a selling point for potential buyers, being located within an AONB means that it is difficult to achieve planning permission in the area. This has meant that there is very limited competition in the vicinity and none within the village itself.

Transport

There is a bus stop directly opposite the site and regular bus services throughout the day provide good access to all surrounding towns.

The property is six miles away from Colchester station, which provides a direct train to London Liverpool Street in 60 minutes. This makes the area an attractive proposition for commuters.

Post COVID, Savills project that towns in rural locations within commuter zones will be in high demand. As people will wish to split their working week between their home and the office, areas that offer more living space as well as easy access to London will be in prime position.

The Developer

The developer for this project has developed and sold numerous successful schemes across London and the South East and has over 25 years’ experience in the sector.

We have an existing working relationship with the developer, having worked together recently on a 17-unit residential development that is close to conclusion. This development has performed very well, remaining on programme and on cost and is on course to achieve above target returns for investors.

Investment Strategy

The Partnership will purchase the freehold land and proceed to fund the construction of the units on a monthly basis through to completion. The Partnership will fund c.70% of the Property’s GDV.

This is a short-term investment spanning two years in total. This two-year period comprises a build-term of fifteen months and a sale term of nine months. We will be seeking to sell the units promptly without compromising on price to maximise the Partnership’s IRR.

Security

Stellar Growth IHT Service investors will be protected by a priority return which has been defined in the Partnership agreement and agreed with the developer. Further security is provided to Stellar investors by way of first legal charge on the site and ownership of the freehold land that underpins the site.

If you would like to find out more about the Stellar Growth IHT Service and the projects we invest in, click here to visit our webpage or email one of our experienced team at enquiries@stellar-am.com.

Written by David Stein and Jack Dobinson

Important Information

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 of Kendal House, 1 Conduit Street, London W1S 2XA is authorised and regulated by the Financial Conduct Authority.