As a property development and investment company, our experience has helped us perfect how to maximise returns by spotting the marginal gains which other property developers in London often miss.
Successfully transform property development opportunities into higher yields and margins on cost faster than many others in the industry. Our proven techniques allow us to achieve the maximum possible risk-adjusted return on all of our London property development projects.
-
Identify
properties with real potential -
Purchase
in Joint Ventures with equity investors -
Maximise
Value
through refurbishment and development -
Maximise
Efficiency
by pre-selling/letting properties and collecting payments in advance -
Realise a significant
Capital gain
and return capital to investors
Our process starts with the ability to discover opportunity. With our experienced team and intricate knowledge, our network enables us to filter through more than 1000 properties every month before selecting up to 25 potential London developments for detailed due diligence.
Our financial models are highly detailed which highlight our expected level of return and the potential risk involved – a cap we strictly adhere to.
WHAT WE LOOK FOR
- Areas of Inner, Greater & Commuter London undergoing significant improvements to transport, amenities and landscape.
- Properties within easy walking distance (usually less than 10 minutes) of rapid public transport routes into Central London.
- Properties others may have either overlooked or lacked the skills to fix, usually in need of refurbishment or development at exceptionally low prices.
Once an investor has agreed upon a project, we are able to move incredibly quickly which is what provides us with such a competitive edge over most property developers in London and why we are one of the UK’s fastest growing property development and investment companies.
Inspired purchase properties via dedicated SPV’s (Special Purpose Vehicles). The structure reflects the agreed profit share, with investor funds covering immediate upfront expenses such as the initial loan and building works.
As with most luxury London property developers, we tend to refinance our developments at preferential rates through traditional finance once the first few units are built or once detailed planning has been passed and substantial value has been added.
Investors are involved on a fixed return basis, which is normally between 10% – 25% p.a). We also joint venture with 3rd party property developers in London, allowing us to take on larger projects in addition to purchasing outright or provide funding for smaller projects.
HOW WE MINIMISE OUTLAY
- Buying properties that are worth more than we pay
- Phasing building works efficiently and completing them quickly
- Pre-selling/letting units with substantial advance payments
- Refinancing as soon as they are consented or completed and let
We have a respected track record of our ability to strip properties back at a high speed and re-build them in a uniquely efficient format. Space is created, home technologies are installed and the price per square foot inevitably increases to boost the resale value of the unit and interim rental yields.
We focus on properties with an existing residential element or that benefit from Permitted Development (PD) rights, simplifying planning permissions whilst applications are made to add more residential units.
We believe we are leaders amongst London property developers in turning projects around fast and to the very highest standards (small projects within a matter of months and large scale projects within 3 years owing to the intricacies of local planning requirements).
HOW WE IMPROVE A PROPERTY
- Strip the property back to the bare bricks & joists
- Strengthen structure and lay new flooring
- Install the latest specification insulation and sound-proofing
- Fit new electrics, plumbing and gas services
- Build new apartments, bathrooms, bedrooms and open-plan living spaces
- Plaster, paint and furnish the entire property to a high specification
We always structure our investments to be as tax efficient as possible, utilising tax breaks such as entrepreneurs’ relief.
Before we sell a completed development we rent it to optimise its profitability, using a unique model to achieve greater rental returns with a lower risk of vacancy, default or damage that many property developers in London experience.
HOW WE ACHIEVE HIGH YIELDS
- Finish properties to a very high standard
- Employ flexible pricing structures
- Offer discounts for advance payments (half yearly or yearly for example)
- Review pricing to constantly achieve the optimum balance of occupancy and price
- Promote properties in the right way to the right target market
- Deliver high levels of customer service 7 days a week
Different levels of risk offer varying returns, with margins normally on cost in excess of 25% for refurbishments, 35% for construction and 45% for planning.
Investors fund the deposit, purchase costs such as legal fees and stamp duty, and initial build and debt servicing costs. In return they receive a priority return (paid on a pro-rata basis as required) plus a share of the remaining profits – weighted in our favour if we are paying a higher priority return or if we are required to guarantee the debt package.
In the fixed return model the investor receives returns with the benefit of a second charge on the asset(s) we acquire for them. The fixed return varies depending on the level of risk. Full planning/development risk attracts a higher return than simple investment risk in income producing assets.
Investors with Inspired can expect to receive their initial investment plus final share of the profits within two to three years. We are often able to return a proportion of this much earlier, however, by completing and refinancing/selling of the property development in stages.
No investment of any nature can be guaranteed, but we can transparently state that we have consistently delivered exceptionally high returns to our investors and are able to provide personal/corporate guarantees to add security to our investments.
Our exceptionally exciting pipeline of projects includes both London and Greater London investment opportunities that many property developers in London would gladly add to their own portfolios.
HOW WE CATEGORISE RISK
- Refurbishment: the property is tired and needs to be brought up to date in order to achieve its optimum capital and rental value
- Construction: planning permission is in place but the building works need to be completed
- Planning: the property is either a vacant site or an obsolete building which needs a change of use or wholesale re-development and so requires planning permission