Company Description
Investment update as of 31 October 2022This property has a net cash surplus of £9,595.Dividend payments for this property are currently suspended. Net income that is earned during the suspension period will accumulate to strengthen the property’s financial position.---Investment update as of 29 July 2022This property has a net cash surplus of £14,551.The property’s mortgage is subject to a variable rate of interest based on the bank's base rate plus a bank margin, see the property detail section below. The bank’s base rate has increased to 1.25% p.a., from 0.1% p.a. since December 2021. The significant increase in the interest rate has reduced the net income produced by this property. The property’s dividend has been determined based on performance forecasts, taking the increased interest into account. As you may already be aware, new legislation will soon be introduced which will require all rented properties in England to have an EPC (Energy Performance Certificate) rating of C or above. Improvement works will need to be carried out for those properties with lower ratings by 2025 for new tenancies or by 2028 for all properties. Good news, all the units in this block already meet the minimum requirements so no remedial works will be required as a result of the change in legislation.---5 year anniversary update as of 29 June 2022The block listing phase of the 5-year anniversary process has concluded as all shares were purchased by investors. As a result, the property will remain on the platform.We will rerun the 5-year anniversary process on 1 June 2023, with a new valuation, giving shareholders another opportunity to exit at the fair market value of the property.The property will recommence trading on the Resale Market after 3 working days on Monday, 4 July.---5 year anniversary update as of 15 June 2022Shareholders have voted to sell 30% of shares, with a value of £182,557. This amount is now available for investment to all clients through a block listing until Wednesday 29 June, 11am.Woodland Way is currently paying a dividend yield of 4.1% based on its fair market valuation, making it among our highest yielding residential properties.Having purchased the block for £1,234,000, the property is now valued independently on a vacant possession basis, at £1,380,000, a 5.3% premium on the block investment value of £1,310,000. The fair market value of the block listing is based on the independent surveyor’s block investment value of £1,310,000, in line with the property’s long standing basis of valuation.At the block listing share price, investors have the potential for tax-free capital gains within the SPV of up to 11%.Investments in block listings where less than 50% of shareholders voted to sell are eligible for the same cash rebates offered on Resale Market trading (see here for details):
4% cash rebate on investment amounts between £10,000 - £20,000 5% cash rebate on investment amounts between £20,001 - £50,0006% cash rebate on investment amounts between £50,001 - £250,000
The block listing represents an opportunity to invest in a property without paying a transaction fee, or purchase costs such as stamp duty land tax or legal fees. Investors in the block listing will pay 61.07p pence per share plus 0.5% stamp duty reserve tax. If the block listing fully funds, Property Partner will re-run the full 5-year anniversary process on 1 June 2023, another opportunity to exit at fair market value.
Property Acquisition Date purchased 20/04/2017 Purchase price £ 1,234,000 Total purchase costs £ 124,200 Gross acquisition cost £ 1,358,200 Mortgage initial 678,700 Initial equity invested £ 679,500 Initial share price (pence) 67.95
5 year anniversary fair market value 5-year anniversary date 01/06/2022 Vacant possession value £ 1,380,000 Property value (investment value) £ 1,310,000 Change in property value since purchase % 6.2% Estimated sale costs £ 36,240 Presale work provision 4,000 Number of units sold - Gross cost of units sold - Taxable capital gain £ -84,440 Corporation tax payable on sale £ - Estimated final SPV cash balance post sale £* 19,619 Net capital gain after tax £ -68,821 Mortgage today 678,700 Fair Market share valuation £ 610,679 Fair market share price for block listing (pence) 61.07 Net capital return after tax (on cost of acquisition) -10.1%
5 year total return Dividends paid to date £ 99,279 Dividend return on purchase cost 14.6% 5 year total return at fair market value 4.5%
Ongoing dividend Current dividend p.a. £ 25,000 Dividend yield on fair market value % 4.1% Dividend yield on new listing share price % 3.7%
---5 year anniversary update as of 1 June 2022Shareholders now have the opportunity to elect to hold or sell their full shareholding at the fair market value of 61.07p per share. Voting closes 11am Wednesday, 15 June.To learn more about the 5-year anniversary process, click here.There are compelling reasons for shareholders to vote to hold shares in this property, rather than voting to sell in current market conditions:Woodland Way is currently paying a dividend yield of 4.1% based on its fair market valuation, making it among our highest yielding residential properties.Having purchased the block for £1,234,000, the property is now valued independently on a vacant possession basis, at £1,380,000, a 5.3% premium on the block investment value of £1,310,000. The block investment value reflects the lower price an investor would pay for the whole block in a single transaction, which recognises the time and effort it will take to sell all the flats individually.The fair market value of 61.07p per share is based on the independent surveyor’s block investment value of £1,310,000, in line with the property’s long standing basis of valuation (See “5 year anniversary fair market value” table below).Those shares elected for sale by shareholders will be offered in a block listing at the fair market value for 14 days. If the block listing is fully funded by Property Partner investors, shareholders who voted to sell their holding will exit at the discounted investment value, with a capital loss of -10.1% on the purchase price, not benefiting from the premium achievable by selling flats individually.Should investors vote to hold, we will consider potential future opportunities for individual unit sales at full vacant value, to realise the premium on the block investment value and maximise returns. UK residential has proven credentials as a strong performing, long term investment. House prices are forecast to continue increasing over the next five years, supported by high demand for good quality housing and limited supply.If the 5-year anniversary process does not result in the property being sold now, Property Partner will re-run the full process on 1 June 2023, another opportunity to exit at fair market value.
Original purchase price67.95pFair market value61.07pTotal return implied (including dividends)+4.5%Shareholder vote concludes11am Wednesday, 15 June.
If the property remains on platform, Resale Market trading will recommence on 4 July meaning shareholders can exit at any time. If the property is to be sold, trading will remain suspended until the sale completes and the exit process has completed. As with all property transactions, there can be no guarantee over how long the sales process may take to complete. Click here to cast your vote.
Property Acquisition Date purchased 20/04/2017 Purchase price £ 1,234,000 Total purchase costs £ 124,200 Gross acquisition cost £ 1,358,200 Mortgage initial 678,700 Initial equity invested £ 679,500 Initial share price (pence) 67.95
5 year anniversary fair market value 5-year anniversary date 01/06/2022 Vacant possession value £ 1,380,000 Property value (investment value) £ 1,310,000 Change in property value since purchase % 6.2% Estimated sale costs £ 36,240 Presale work provision 4,000 Number of units sold - Gross cost of units sold - Taxable capital gain £ -84,440 Corporation tax payable on sale £ - Estimated final SPV cash balance post sale £* 19,619 Net capital gain after tax £ -68,821 Mortgage today 678,700 Fair Market share valuation £ 610,679 Fair market share price for block listing (pence) 61.07 Net capital return after tax (on cost of acquisition) -10.1%
5 year total return Dividends paid to date £ 99,279 Dividend return on purchase cost 14.6% 5 year total return at fair market value 4.5%
Ongoing dividend Current dividend p.a. £ 25,000 Dividend yield on fair market value % 4.1% Dividend yield on new listing share price % 3.7%
---Investment update as of 31 March 2022This property has been revalued to £1,282,500, a 3.8% increase.This property has a net cash surplus of £19,619.---Investment update as of 17 December 2021This property has a net cash surplus of £18,019.From 5 January 2022, the property's dividend yield will increase from 3.99% to 4.29% due to a reduction in AUM fee.---Investment update as of 30 September 2021This property has a net cash surplus of £18,624.From 5 October 2021, the property's dividend yield will increase from 3.55% to 3.95% due to strong operating performance.---Investment update as of 30 June 2021This property has a net cash surplus of £18,127.---Investment update as of 31 March 2021The property value has not changed as a result of the latest valuation.This property has a net cash surplus of £14,280, representing 1.2% of the property's latest valuation.From 6 April 2021, the property's dividend yield will increase from 2.8% to 3.5% due to a strong operating performance.---Investment update as of 18 December 2020From 5 January 2021, the property will pay a dividend yield of 2.75% p.a. based on its latest valuation.The property has a cash surplus and is forecast to deliver an operating profit, enabling the dividend to be declared.Following the conclusion of a 6 month mortgage payment holiday, the rolled up interest is set to be repaid and interest payments have resumed.---Investment update as of 30 September 2020Dividend payments for this property are currently suspended. Net income that is earned during the suspension period will accumulate to strengthen the property’s financial position.This property has a net cash surplus of £20,822 at 31 August 2020, representing 1.7% of the property's latest valuation.This property's net cash surplus is modest; given the ongoing Covid-19 crisis, the property will be reviewed each quarter to determine when it can return to paying a dividend.Following the conclusion of a 6 month mortgage holiday, interest payments are set to resume. The mortgage lender has asked that the unpaid interest is repaid before dividend payments recommence.---Dividend update at 29 May 2020Due to COVID-19 crisis, dividend payments are suspended until 30 September 2020. Read more here.Net income that is earned during the suspension period will accumulate within each property’s bank balance, for the benefit of that property’s capital reserves and that property’s investors.A further update will be provided on 31 July 2020.---Dividend update as of 30 March 2020Due to COVID-19 crisis, dividend payments for April, May and June 2020 are suspended on all property investments. Read more here.This decision will be reviewed in June and a further announcement will be made on 30 June 2020.Net income that is earned in the next 3 months will accumulate within each property’s bank balance, for the benefit of that property’s capital reserves and that property’s investors.---Dividend update as of 15 July 2019:Property Partner regularly reviews each investment on our platform to ensure that its balance sheet is robust, to safeguard investors’ interests and maximise long term performance. From 5 August 2019, the annual dividend on this property will rise from £26,096 to £27,728, resulting in an increase in the annual dividend yield from 4.07% of current valuation to 4.32%.The property has performed well in terms of the level of rent achieved and operating costs staying within budget. As a result a surplus over and above required provisions has built up within the SPV and the dividend can be increasedFor further information on all dividend adjustments please see our blog here
---Dividend update as of 7 January 2019:Operating costs are below our forecasts on this property, resulting in greater than expected rental profit. As a result, the annual dividend will increase to £22,256, representing a rise in the dividend yield from 3.74% of latest share value to 3.99%. The first dividend payment at the new level will be on 05-02-2019. For further information on all dividend adjustments please see our blog here
---Investors paid 67.95p per share in the New Listing for this property, and it became available on the Resale market April 20th 2017.Woodland Way is comprised of 2 modern four-bedroom townhouses in South London between Mitcham and Tooting, with a strong yield for a London location. Built to a high-specification, these properties also benefit from their proximity to Tooting Overground (0.4 miles) and Tooting Broadway Underground (0.9 miles) stations – which run direct services to Central London in under 25 minutes. The surrounding area is well-established in London’s Zone 3, and has become a high demand location for London’s professionals. Furthermore, the northern boroughs of Wandsworth and Lambeth have higher average house prices, which should support southward value migration into the area.View a short video from our Director of Property on why this is a great investment.In addition to their easy commuting distance to Central London, these properties are 1.1 miles from St. George’s Hospital, one of the country’s principal teaching hospitals and a major local employer. A significant number of the 8,500 working staff are based at the main Tooting site, and have a high propensity to rent in the local area – supporting rental and capital valuesBy purchasing the properties at their investment value as opposed to their break-up value, investors will benefit from a higher net dividend yield than would be achieved by purchasing individual unitsYou can read more about our Director of Property and wider property team here.
