Who are we?
We are Peninsular Holdings Limited – a SME Property Development company based in South West England. We specialise in identifying and purchasing tired or redundant commercial property and converting it into multiple “High End” Residential Apartments for profitable sale.
What are we doing?
We are have purchased a 30 bedroom Hotel in the South West of England and plan to convert the site into Multiple Residential Apartments via the demolition of the existing building and the undertaking of a new build on the site to modern standards. The project will create between 14 and 16 Residential Apartments, each of 2 x Double Bedrooms, possibly with the inclusion of 3 x Double Bedroom Penthouse Suites. The project is being undertaken within the Umbrella of a wholly owned subsidiary company of Peninsular Holding which trades under the name of Peninsular Developments Limited.
What are the project details?
For the 14 Apartment option and subject to the eventual design that is submitted by our Architects to the Local Authority for Planning Approval, the total cost of the project will be in the region of £3.4 million with the sales value (GDV) of the project being in the region of £4.3 million. The Profit on Costs will be in the region of 27.2%.
For the 16 Apartment option and subject to the eventual design that is submitted by our Architects to the Local Authority for Planning Approval the cost of the project will be in the region of £3.9 million with the sales value (GDV) of the project being in the region of £5.1 million. In this case, the Profit on Cost will be in the region of 31.2%.
Who are the Architects?
We have appointed the Bailey Partnership (Plymouth) as our Construction and Project Consultants. They have a full range of “In House” professional skills i.e. Architects, Quantity Surveyors, Building Regulation Consultants, Town Planning Engineers etc. who will undertake and manage the entire project on our behalf. We maintain a close overview of the project via weekly meetings with the Bailey Partnership both “On Site” and in the Offices of the Bailey Partnership.
What do we seek?
We are inviting JV Investors to invest in the project. They will become Shareholders in Peninsular Developments Limited at £1,000 per Share. The “Spread” of invested funds received from our JV Partners thus far is in the range of £20,000 to £100,000 per investor but there is no limit to the amount that each investor may invest with us subject to the limit of the total funds that the project will cost to undertake. The JV Investors will take a legal second charge on the property and will be allocated 50% of the project profits pro-rata to their Shareholding.
How do we determine that the project will be profitable?
When we identify a property that is of initial interest to us, we undertake a robust four stage programme of due diligence to determine the financial viability of the project. If, at any one of the four stages of the due diligence, the financial calculations indicate the project will not achieve a Profit on Costs that is in excess of 25% we walk away from the property and continue with our searches for suitable property.
What financing do we seek?
The financing of the project will be sourced from a mixture of our own funds plus Joint Venture Investors (for which they will be allocated 50% of the profits pro-rata to their Shareholding) plus Development Finance from specialist Development Finance companies. However, we prefer to raise funds from Joint Venture investors because this will reduce the amount of unproductive interest we have to pay for Development Finance from a Development Finance Company and as a consequence will increase the amount of profit to share with our Joint Venture investors
What Regulatory Control do we require?
We work within, and strictly adhere to, the regulations and guidelines that the UK Financial Conduct Authority (FCA) apply to such investors i.e. FCA 13/3.
Who ensures that we adhere to the FCA regulatory controls?
Our Lawyer undertakes the appropriate checks with the potential investors to ensure that the JV Investor satisfies the FCA13/3 regulations. This relates to their need to be either “High Net Worth Individuals” or “Sophisticated Investors”. Our Lawyer also undertakes the necessary Anti-Money Laundering (AML) checks.
How are the JV Investors funds transferred?
In the event that the potential Investor satisfies the FCA and AML checks, our Lawyer invites the potential Investor to transmit to our Lawyers company the funds that the investor wishes to invest. These should be sent directly to the Law Firm within which our Lawyer operates. The funds are placed in a protected Escrow Account in the investors name by our Lawyer. We DO NOT handle the funds, and we have no need to handle the funds. The investor can recall his or her funds without deduction at any time up until the moment of Exchange of Contracts with the Vendor of the property that we are buying. At that time, our Lawyer contacts the investor and confirms that the funds are about to be used for the purpose of Exchange of Contracts. At that moment the Investor confirms his or her wish to withdraw or continue with the investment. That latter decision is irrevocable.
Governance, transparency & clarity?
As a matter of good Governance, we issue a Monthly Project Report to each JV Investor. This updates the Investor on the progress of the project during the previous month. We also issue a Quarterly set of Management Accounts to each Investor to ensure that transparency and clarity is maintained. These Accounts are prepared and issued externally by an independent firm of Chartered Accountants thus ensuring independence of financial reporting.
What happens at the completion of the project?
Upon completion of the project i.e. the sale of the Apartments, the JV Investor receives the return of his or her original Investment Capital plus their share of the allocation of the 50% of the profits which are paid as a Dividend. These funds are paid into a Bank Account of the JV Investors choice. For the security of the Investor funds, all payments are made via an external and independent firm of Chartered Accountants with a detailed Audit trail of transactions being made.
Where to now?
The overview is of necessity very short with high level detail. In the event that you are interested in learning more about our current project, please e-mail us at:-
and include your name, e-mail address, and telephone number together with details of when it will be convenient for us to call you for a non obligatory discussion.
During our discussion with you we will expand on the detail that is given in this short description of who and what we are.
We will subsequently send you a full and detailed project report which give comprehensive information about the project including its location.
In the event that you are resident in the UK we would eventually prefer to meet you – entirely without obligation – to explain the project further and to answer any questions that you may have. It is important to us that you are comfortable with the project and our objectives for both ourselves and our JV Investors.