@sourceinvestments
Our Q1 2023 Highlights
We’re only just over three months into 2023 and delighted by how much has happened already with investments completing, a new opportunity and record rents.
The Barker Building, Northampton
This former shoe factory has been transformed into a boutique Buy-to-Let site that’s full of character. Many clients completed on their properties in Q1 (sold pre-let to Source Investments clients), with just a few more due in the coming days. With a strong appeal to the professional rental sector, all apartments found tenants in less than a week of marketing and have generated strong returns from day one.
Looking forward: We’ll be eagerly tracking performance over the coming years through our management arm, The Home Cloud.
Creating a hyperlocal community
The Forum, Gloucester
The Forum is a new investment opportunity providing an ‘invigorating and collaborative creative environment’ that launched this quarter, with selected units selling within a week.
It’s an ambitious £107m redevelopment of the city centre funded by the council, which we first identified as a site of interest in 2021. This 600,000 sq ft digital campus will feature 43 apartments; 5,000 sq m of retail space; over 125,000 sq ft of office space; a shared workspace club; an innovation hub for ‘digital and incubator businesses’; a 4-star hotel; 9,000 sq ft gym; restaurants; bars; and a new car park.
Looking forward: We believe the site has enormous potential for long term capital appreciation given the pricing agreed and our unique position within the new campus.
Setting new records
North Quay AST Rentals
Our initial intention for this investment opportunity in North Quay (Cornwall) was to rent out properties as Holiday Lets. It still is – though, as there are ongoing building works nearby, we decided to test the market and see what rents we could achieve.
Listing properties in The Yard as ASTs has successfully achieved gross rental yields of 6 – 6.5%, which is incredibly strong and leverages up to c.9-10% for clients who opted to purchase using a BTL mortgage. (By comparison, the average rental yield in Cornwall is only c.3.6% and just c.4.7% in the UK.)
This strong rental yield is due to buying in at a great entry point, whilst also securing a high-end product in an area in short supply. Tenants are therefore happy to pay a premium to live in good quality accommodation in a great location.
Looking forward: Source Investments clients were the first buyers to enter the scheme (in The Yard) and we had secured pricing at c.£400 p/sq ft in these early stages. A few units are still available to purchase here, listed at £696-£794 p/sq ft – a 74% to 98% uplift on price.
Our 2023 Annual Report
We’re delighted to share our latest annual report with you which was finalised in Q1.
Since Source began eight years ago, we’ve sourced seventeen new developments – six of which are in the last year alone. A key reason behind our success is down to working with like-minded clients, aligned with our belief in making considered decisions and sharing our investment ethos of taking the long-term view.
We do hope you’ll enjoy reading about the projects completed last year, and those planned for the near future.
Please click to download ‘Annual Report 2022’.
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