London Property Ventures

creates beautiful, affordable

starter homes for young

professionals in up and

coming areas of London.

LPV’s track record shows Returns on Equity

exceeding 50% per annum.

PROJECTS

LPV builds new homes in up and coming areas all over London

LPV's current portfolio consists of:

sites

units

Purchase price

£16.8m

The current portfolio capital structure is:

Equity capital deployed

£12.3m

Loan capital deployed

£18.3m

LPV's current portfolio targets compromise:

Profit*

£5.1m

Return on Equity*

41%

GDV*

£41.9m

Completed Projects

Under Development

ABOUT

LPV creates beautiful homes for first-time buyers.

We help them get their first step on the ladder by bringing elegantly-designed homes that are eligible for Help to Buy to an otherwise under-nourished and unaffordable market.

Help to Buy supports first-time buyer purchases by offering up to 40% loans against a 5% deposit.

Through this scheme, first-time buyers are afforded a new and premium product alongside the peace of mind of the full support of a 10-year structural warranty.

Our methodologies and processes deliver exceptional returns:

PLANNING ARBITRAGE

Gaining planning permission for development significantly increases a site’s value.

Converting commercial to residential use can double the value of the commercial premises.

DEVELOPMENT

RETURNS

We acquire buildings that can be extended.

We convert buildings for £82-117/square foot and we complete New Build for £175-200/square foot.

We sell our
end product in a range of £450-£1,000/square foot.

MARKET

KNOWLEDGE

We use meticulous research to identify areas with stable or rising prices and that are easy walking-distance from underground or over ground stations.

We carefully research sell-on prices in the areas before purchasing a building.

BUY BELOW

MARKET PRICE

We purchase from a network of off-market brokers,
or at auction where listings, information and viewings are only available 3 weeks before the sale.

Approximately 1,000 lots per month come up for auction.

LPM has the capacity to sift this data, visit sites and analyse returns on interesting lots.

LPV’s Returns Criteria are stringent: we target 20% annualised RoE if no planning permission is granted, and 50%+ if planning permission is granted.

The first LPV company has already fully returned investors’ capital, with the more-than-100% profit reinvested into new projects.

LPM has achieved outstanding growth since January 2016

LPV Growth from Inception

PROPERTY INVESTMENT

Why invest in property in London?

London and South East England suffers from a structural housing shortage.

240,000 new homes are required each year to meet current demand levels 1.

Only 140,000 new homes are currently being built per year 1.

Q3 2017 new home registrations declined by 9% 2 – so the shortage is getting more extreme.

London’s population is forecast to increase 17% by 2030, from 8.8m to 10.3m 3

Despite Brexit, the structural shortage remains and is worsening. Demand significantly exceeds supply.

Sources:
1 Financial Times, 4 May 2017
2 National House Building Council, 26 October 2017
3 Office for National Statistics

LPV entities are managed by London Property Mgt Ltd. (LPM)

LPM target returns exceeding 18% per annum,

and has achieved annualized returns exceeding 50%

LPM’s Strategy is to capitalise on mis-priced assets due to:

Illiquid markets

Over-discounted risk

Overlooked value-enhancement opportunities

The Directors of LPM are all investors in the five LPV closed-end investment companies.

Best-in-class investment management: an example

An example of LPM’s best-in-class investment management:
October 2017, actively assessing the auction market in search of several new projects for our investment company LPV250

Best-in-class Investment Process leads to Best-in-class Returns on Equity

PROPERTY INVESTMENT

Why invest in property in London?

London and South East England suffers from a structural housing shortage.

240,000 new homes are required each year to meet current demand levels 1.

In 2019, only 174,000 new homes were built 2.

Nationally, new home registrations declined 9% in Q3 2019. In London, new home registrations declined 14% in Q3 2019 3– so the shortage is getting more extreme.

London’s population forecast to increase 17% by 2030, from 8.8m to 10.3m4

Despite Brexit, the structural shortage remains, and is worsening.

Demand significantly exceeds supply.

Sources:
1 Financial Times, 4 May 2017
2 UK Government, year to 30 June 2019, 3 October 2019.

3 NHBC, 24 October 2019.

4 Office for National Statistics.

LPV entities are managed by London Property Mgt Ltd, an Opportunistic Active Real Estate Private Equity Company.

LPM’s Strategy is to capitalise on mispriced assets due to:

Illiquid markets

Over-discounted risk

Overlooked value-enhancement opportunities

The Directors of LPM are all investors in all the LPV investment companies. We have our own money in every development we manage.

Best-in-class investment management: an example

An example of LPM’s best-in-class investment management:
March 2019, actively assessing the auction market in search of a new project for one of our investment partners