What makes Ashbrookes different, and why should you choose to invest?

When seeking investment into our development projects, we are regularly asked the following questions from investors and intrducers who are new to Ashbrookes. We hope that by producing this article, we can answer these querieis and more, to give you comfort before you decide to invest with us.

• Why is Ashbrookes different from other developers who issue loan notes?
• How does Ashbrookes service interest payments to investors?
• Does Ashbrookes have a contingency against failing property prices or another case such as COVID-19?
• How can Ashbrookes afford to pay such attractive returns and still make a profit?

Ashbrookes Group encompasses both the estate agency arm of the business, which is now 4 branches strong with another two in the pipeline, and the development company, which includes our own construction business.

Our estate agency business not only lets and manages properties for private landlords (circa 600 units), it also manages our own current portfolio of let properties (circa 120 units) and has the capacity and appetite to increase this volume, as and when each of our development projects completes. We are also expanding our footprint in the residential sales sector in the North-East, with our Yarm office outperforming our own sales targets within months. The profits generated throughout our estate agency services the interest paid to the investor. We do this as we see the long-term benefit of this investment by the estate agency branches in generating further profits from the completed developments over the long term.

Due to our presence and experience in Middlesborough, and now Sunderland, we are approached regularly by the relevant councils and property owners in these areas with property opportunities. Due to the scale of developments available, we are in a strong position to purchase such assets under market value, with support from planning departments in relation to the approvals that may be required. Our relationship with the Universities in the area gives us full transparency and insight into the shortage of accommodation and how we can best meet these requirements. After extensive research, we plan to replicate this model in Durham and Newcastle, and we are already in advanced negotiations to purchase estate agencies and potential student development sites in these areas to commence our journey in these Cities.

John Street, Sunderland

Our business model is primarily student accommodation, and to hold assets long term, therefore we do not feel the same effects of a downturn in property prices as a residential developer would suffer. There will always be a need for student accommodation in our focused areas, due to the strength and appeal of the local Universities. We are also expanding into the hospitality sector with our esteemed partner, Best Western. Deltic House is well underway and will provide 31 large, attractive rooms and be the first Best Western (BW) serviced apartment building in Europe, with an agreement that BW will purchase this asset in 3 years, once the hotel is up and running and producing a profit, at a well-enhanced value. This is a sector we have a keen interest in developing further.

On undertaking a development, which we would usually negotiate to purchase under market value, unlike most developers, our focus is not on the end developer’s profit margin. Whilst this is still important, because our exit strategy and long-term plan differ, we are more concerned about the long-term potential of the property to be managed and let by our estate agency, and therefore generating income. We plan to stabilise our assets over several years until the value increases substantially and a potential sale along with other developments in the portfolio to a large institution in 5-7 years. This is our plan for the majority of developments we undertake, and this is how we are able to offer a generous return to our investors who have the confidence to participate in our journey.

Our exit strategy is, therefore to refinance our developments on completion to repay investors, and is facilitated usually through a long-term lending facility we have with mainstream institutions like Lloyds Bank, with whom we have a long term track record of refinancing finished, let development projects to achieve up to a 75% LTV. We also invite our investors to reinvest in new projects should they wish to continue with Ashbrookes Group.

We have an open-door policy and welcome both investors and introducing agents to come and meet the team, view the projects and see the immense progress we have made in the last 12 months.

Arif Mushtaq, Ashbrookes Group CEO & Founder

To get in contact, register your interest or ask any further questions, please contact us via investors@ashbrookesgroup.co.uk