THIRD PROPERTY SALE: 31% TOTAL RETURN ACHIEVED

Following the successful sale of two of our investment properties on the open market (you can read more about these below), we are pleased to report that we have now completed the sale of the third investment property.

Heathlands Way, Hounslow, TW4 was sold for £322,500, a 29% increase on the initial purchase price and a 13% premium to its trading price on the Resale Market.

For investors who bought shares when the property first launched on our platform in February 2015, this represents a 31% total return (capital gain, plus dividend income) after fees and costs.

Of the three properties we have sold, Heathlands Way, Hounslow had the latest tenancy end date. After the tenants vacated on 28 September 2018, the property was made ready for sale and we accepted an offer in December for £322,500.

Market conditions had worsened in the time between making the recommendation to sell and putting the property on the market. As a result we are very pleased to have achieved this sale price, which is in line with the valuation we received in March 2018. As I’ve said before, it is the good properties that can still sell in weaker market conditions, and this sale was down to quality of property selection.”

Robert Weaver, Chief Investment Officer

The below table outlines the key metrics achieved on sale:

Property capital returns Initial purchase price – in June 2015 £250,000 29% gain on initial purchase price
Latest valuation – as of March 2018 £325,000
Final sale price – agreed December 2018 £322,500
Returns for clients Initial purchase price (including costs) £262,000 19% capital return after all fees and costs
Final proceeds of the sale (after tax and professional fees) £312,654
Total return (including dividends paid) £343,268 31%

How have the other properties progressed?

Flat 6 Oldham House, Ilford was sold for a 43% total return. You can read more about the sales process here.

12 Kings Highway, Plumstead was sold for a 27% total return. You can read more about the sales process here.

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