Property Development in London

At Kategora we are capable of offering a complete advisory service, from searching for the right property, through to the completion of a fully project managed refurbishment service, ultimately adding value to your property. Always ensuring the highest standards are met, without costing the earth, to get the property ready for sale or let.

The structure of the project is tailored in the most appropriate way for each client, to achieve the best result in terms of time, cost and finished product. Clients are safe in the knowledge that our approach is fully transparent, as they are offered a fixed design fee and open-book construction costs.

Our clients achieve on average a 40% on Return on capital employed (ROCE) from the moment the property is purchased until it is sold after been refurbished it takes on average 6 to 8 months time.

  The whole process is separated in three different phases:

- Property Search: We will advise you on the property search, so that you only choose the properties to be refurbished with the biggest potential in London´s best areas.

- Project Management: Our experienced team will advise on the feasibility of the project  and with a comprehensive design and management service, coordinating and overseeing the design and construction of the client’s project from concept through to completion.

- Property sale or rent: Once all the refurbishment works have been made we will be able to sell it on the market or rent it out and manage it for you.

Below you can see an example of a property that was acquired in Q3 2011, in Fulham Broadway the property is a 3 bedrooms (converted to 4), 2 bathrooms 1562 sq.ft/147 sq. m and it needed to be completely refurbished. After all the refurbishment works it was sold in January 2012.

PURCHASE PRICE £800,000
Costs Finance
Mortgage @ 60% £480,000
Balance deposit £320,000
Stamp duty @ 4% £32,000
Survey £500
Legal fees – Solicitor £1,500
TOTAL PURCHASE COSTS £354,000  
REFURBISHMENT COSTS
Equipment/Materials £100,000
Project Management (builders, arquitects etc.) £20,000
TOTAL REFURBISHMENT COSTS £120,000
Mortgage interest 6 months £14,400
TOTAL CONTRIBUTION/INVESTMENT £488,400

 

INCOME
Income from Sale of Property £1,200,000
Repayment of Mortgage £480,000
Agency fees @2% of selling price £24,000
Legal fees – Solicitor £900
Net Income from Sale £695,100
Minus Total Investment £488,400
NET PROFIT £206,700
Return On Capital Employed (ROCE) 42%