Andrew Reeves Property Ventures 1 - 5 PLC
FInancial Information
The Directors have carefully examined the Companies' prospects
and, on the basis of the principal assumptions set out below,
they have prepared the following illustrative financial projections
for a typical Company for the first fully invested year.
These have been based on the Directors' perception of the
market place and illustrate the potential level of profitability
should their estimates prove to be correct. The illustrative
financial projections have been made after due and careful
enquiry by the Directors. Nevertheless, there is no guarantee
that they will be achieved.
The illustrative financial projections set out below are
not, and are not intended to be, a forecast and should not
be relied on as a forecast by Investors. Results actually
achieved may differ markedly from the illustrative financial
projections. Attention is drawn to the risk
factors, which should be carefully considered in conjunction
with these projections.
General Assumptions:-
The principal assumptions made by the Directors in preparing
the illustrative financial projections are:
Percentage of fund raised applied to medium-term property
purchases: 75%
Percentage of fund raised applied to short-term property
purchases: 25%
Growth in values of properties purchased by the Companies:
6% per annum
Growth in rental values of the medium-term properties:
3% per annum
Initial interest rate of 5.5549% on conventional Buy-to-Let
mortgage borrowing, and of 7.04% on shorter-term loans for
the purchase of properties for refurbishment and resale
Rental Yield of 7.25% on the medium-term property acquisitions
Running Costs of 34% of the gross rental income
Rental voids of two weeks per annum for each of the medium-term
property acquisitions
Refurbishment costs as a percentage of purchase prices:
28% for short-term properties, 7% for the medium term properties
Administration costs as a percentage of shareholders'
funds raised: 2% initially rising annually in line with
the Retail Price Index
No serious interruptions to the business arising from
circumstances outside the Companies' control.
To obtain a copy of the ARPV Offer Document, click
here.
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