New Capital Link is introducing an exciting joint venture opportunity with Ashbrookes Inspired Limited to facilitate the purchase and development of Assembly Rooms in Middlesbrough into student accommodation. This 20-bedroom project spread over two floors is ready to commence.
As the investment introducer, we want to provide an overview of the key details:
- Joint Venture Options:
- Option 1 (Income): Invest £1.5 million and receive a first legal charge. Target 24% return on capital employed (ROCE) at the end of the 12-month term.
- Option 2 (Growth): Invest £650,000 and receive a second legal charge behind senior debt and a personal guarantee. Target 29% ROCE at the end of the 12-month term.
- Security: Option 1 provides a first legal charge. Option 2 provides a second legal charge behind senior debt and a personal guarantee.
- Term: 12 months (with potential 3-month extension)
- Launch Date: May 2024
The Project
The project involves purchasing a existing commercial building in central Middlesbrough and converting it into a mixed-use commercial and student accommodation block under permitted development rights. Key project details:
- Purchase Price: £592,500
- Development Costs: £1,027,500
- Expected GDV: £2,287,622
- Proposed Start: May 2024
- Proposed Completion: May 2025
- Target Yield: 11%
The Location
The property is located at 438-444 Linthorpe Road in the affluent Linthorpe town center of Middlesbrough. It is surrounded by shops, restaurants, medical facilities and is on a major bus route just a 12-minute walk from Teesside University, making it an ideal location for student accommodation.
The Company
Ashbrookes Inspired Limited was incorporated in July 2022 by its sole director Mohammed Arif Mushtaq to develop commercial projects in Middlesbrough. Key highlights about the company:
- Part of the larger Ashbrookes Group with a proven track record providing over 570 student rooms
- One of the largest private student accommodation developers in Middlesbrough
- Significant pipeline of future development projects with £32m+ GDV
- End-to-end capabilities from sourcing property to design, construction and management
Why Middlesbrough?
Ashbrookes has an in-depth knowledge of the Middlesbrough market after years of providing successful student accommodation projects. With Teesside University’s ongoing expansion and investments, student demand is expected to remain strong, presenting an attractive investment opportunity.
Middlesbrough itself has been recognized as a top European location for business investment and ranked highly in the Financial Times’ European Cities and Regions of the Future report for foreign direct investment strategy.
How to Apply
The process for applying to participate in this joint venture opportunity is as follows:
- Register interest with New Capital Link
- Review the detailed brochure
- Submit application, ID and proof of address for AML checks
- Sign NDA and discuss project/joint venture agreement
- Review draft joint venture agreement (seek legal advice)
- Sign agreement and transfer investment funds
- Receive executed copy of agreement
We are pleased to introduce this unique investment opportunity to participate in an attractive student accommodation development project in Middlesbrough through a joint venture with an experienced local developer. Please contact us to discuss further or initiate the application process.
