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2020: A Year in
Accumulate
www.accumulatecapital.co.uk
The Year in Review First Quarter
Be known to many, 2020 has been quite the unforgettable year. Consisting of both
challenges and highlights, living through a pandemic has certainly been a humbling Project Progress
experience for many. Heading into 2021 we felt a sense of nostalgia towards this past year
and so decided to share with you a structured reflection of the progress made towards Riverside Place
our various development projects, the occurrence of key news and events and how this
altered business at Accumulate Capital this year. The year started with a sense of optimism as we completed
on our investment raise of £1.2 million for Riverside Place,
the highly-anticipated new-build in Kingston-upon-Thames.
Purchased in 2019 for just over £4 million, Riverside Place
originally consisted of vacant A1 retail units on the ground
floor with an unused office space above. However, with such
high demand for residential property within this affluent area
and no further new-build planned until 2023, we decided to
seize this opportunity with our construction partner, Store
House London. Investors were offered up to 15% returns
over a 12-month term with a charge over the asset. The
many locational advantages of the area such as the ease of
journey with multiple transportation links for commuters;
door-step proximity to shops, bars and restaurants and the
proximity to Central London resulted in a targeted GDV of
£12 million and a projected profit of £2 million. Our faith in
the prosperity of this project was fronted by our decision
to commit £1 million of our own funds into Riverside Place
without the security of a charge on the property.
View the live construction feed
In line with the above, the setting up of our live construction
feed for Riverside Place enabled us to provide the rare and
spectacular opportunity to watch development every step
of the way. We have installed a webcam which is delivering
live feed images now and throughout the project’s duration,
giving our investors and those interested in our company’s
developments an exceptional insight into the process of our
latest build.
News and Events
The onset of the pandemic For example, house prices have been rising at their fastest
rate in 18-months as the average price of a home climbed
Amidst the excitement of our development project 2.3% year-on-year in February.
progress, the month of March marked the beginning
of an entirely unforeseen and unprecedented period of Movement to a digitalised workplace
our history. News of a coronavirus with high infection
rate and fatal capabilities began to infiltrate the public The second thematic change in the first quarter of this
conscience in October 2019, but for many the realisation year was the sudden shift towards an online working
of the ensuing pandemic did not take root until March environment. The government-imposed restrictions
23rd in a televised public address. Prime Minister, Boris created a new work from home era. There was a need to
Johnson, urged all to ‘stay home’ with the exception of rise to the infrastructural pressure of providing potential
very limited purposes and as we know this set-in motion investors with the same level of involvement in our
a series of national restrictions that we came to know as projects as a few weeks before. In other ways, this shift
lockdown. merely catalysed a movement that had been gaining
momentum for years, with many companies, ourselves
However, in spite of this news, we were pleased to included, already working on a digital platform. If
see that investor confidence had not been shaken too anything, lockdown enhanced the value of the systems we
considerably. We experienced a 43% increase in enquiries had already built to engage with consumers.
made by prudent investors, many recognised the onset of
national lockdown as a unique occurrence and sought out Rather fortuitously, construction was not delayed or
profitable opportunities. The volatility of the investment affected by the first lockdown and we were able to
market may have upset the balance for many shares and continue as scheduled. The main challenge during this
equities purchases, though whilst this area of the market period was our inability to visit the construction sites
began to decline, we saw a direct increase in housing and see their progression first-hand. However, we
market valuations and development finance. Considering countered this by hosting virtual tours and ensuring their
the climate in the first quarter of this year we put the accessibility for all, both existing and potential investors.
continued strength of development finance investments Once we began to conduct virtual tours, we saw another
to our meticulous due diligence processes to ensure the increase in demand as our consumers found these site
projects we choose will remain resilient in their value. tours highly valuable and advantageous due to the vast
amount of exclusive information we share here. From
Sentiment throughout the first quarter of 2020 was this point, we decided to make this mitigation attempt a
very much looking to avoid an economic crash of the permanent feature to ensure our clients still receive these
likes experienced in 2007-8, it could be argued that the benefits. We also started to offer one-to-one presentation
uncertainty surrounding Brexit posed similar challenges. sessions where clients could book a time slot to speak
What became apparent was no matter the economic to one of our senior team members face-to-face. The
climate, there will always be those who seek opportunities discussion included detailed explanations of our due
to profit, as such large scale, multi-million deals were still diligence, the build process, the property’s future use and
landing across our desks. The golden rule of investment also gave investors the opportunity to ask any questions
was maintained, the higher the risk the greater the return they might have had.
and this is why often the deals that arise from volatile
periods are the most lucrative.
Accumulate in the Press We were proud to see that our Luxurious Magazine, 7,729 advances in the market captured monthly unique views: Over a third the attention of some of the UK’s of UK Property Investors Plan to Sell biggest media brands. Our success properties in 2020 within the property development finance sector had been reflected Entirely Property, 5,000 monthly through investor satisfaction and it unique views: Accumulate Capital was fantastic to be recognised for reveals over a third of UK property this by respectable titles in print, investors are looking to sell online and television. A survey we properties in 2020 conducted in the first quarter of the year asked 750 UK property Entirely London, 5,000 monthly investors and landlords, with unique views: Accumulate Capital multiple properties in their portfolio, reveals over a third of UK property about their experience with buy-to- investors are looking to sell let regulations, tax and legislative properties in 2020 changes and whether they have considered alternative avenues for Specialist Finance Introducer, property investment. Our thought- 4,000 monthly unique views: provoking research piqued the Accumulate Capital: Over a third interest of The Financial Times and of property investors plan to sell The Sunday Times with both titles properties featuring our collated results in their print and online editions. We were Mortgage Introducer, 19,900 pleased to see this continue as the monthly unique views: Accumulate following platforms subsequently Capital: Over a third of property showcased our research to their investors plan to sell properties readers:
Second Quarter
The wheels of Accumulate Capital continued to turn apace. pledging improvements with dedicated funding into brand
Projects were offered to us as usual, our product team new strategies that focus on culture, employment and the
continued to evaluate those of interest and negotiate with economy.
vendors on due diligence and the cleared developments
proceeded. Cheyne Walk introduced
This project will see the creation of 13 ultra-luxury
Project Progress apartments on this most famous of London streets.
Currently, the 5-storey building is split between residential
Riverside Place flats with a mix of commercial and retail space on the
ground floor. We already have planning permission to create
The building is clearly divided into two distinct sections. the new units by demolishing the rear of the building, while
A grade two listed Victorian frontage and a 1980’s, former maintaining the historic façade. The basement level will be
commercial block to the rear which forms the bulk of extended, and a steel frame structure will form the new,
the property. Anyone who has looked at the live camera spacious apartments that are in such high demand from
displayed on our website will know that this three-storey buyers across the world looking for a Chelsea address in
rear section has now been demolished down to its first- London.
floor footplate and the lift shaft overrun has been dug. In
the background the usual final revisions have been made
to the plans and the Metsec designs have been sent for
manufacture.
The demolition phase of the work at Riverside Place is now
complete, the roof and two floors at the rear of the building
which makes up the majority of the site have now been
removed. Demolition work like this in such close proximity
to other buildings needs to be meticulously planned and Watch Jamie Chapman discuss the
executed. Bishop’s Hall which leads from Thames Street Cheyne Walk project
to the river is well used by the public and so all necessary
health and safety precautions must be adhered to. This work Play Video >
has also been carried out during the Covid-19 pandemic, the
demolition crew were themselves working under strict social
distancing rules, finishing the job on time and within budget.
Doncaster receives media attention
Doncaster has long been considered the UK’s manufacturing
and distribution hub. However, the recent funding
developments within the area have caused its community,
economy and reputation to skyrocket. Further funding This is an investment worthy of premier league status.
into Doncaster’s railway and airport have been confirmed, Cheyne Walk is a mecca for the world’s mega-rich and even
improving the town’s interconnectivity to the rest of the in these early stages we had already received multiple
UK and the world. The commercial sector has also received enquiries about end units from Hong Kong, Beijing, Dubai,
a vast amount of funding from household names such as Moscow and New York. This was your opportunity to invest
IKEA, BT, Next, Wabtec, Thales and the jewel in the crown, a alongside us in a stunning development with a forecasted
£500 million investment from Jeff Bezos, the world’s richest minimum profit of £2.7 million and secure a fixed advance
man and founder of Amazon. The local council are also return on your investment.
News and Events
Accumulate is nominated for prestigious reward Watch and discover exactly why we are so excited about
Cheyne Walk Residences, and how it has already attracted
It was fantastic to see Accumulate Capital was nominated investors and end-unit buyers from around the world.
for a prestigious global finance award by international
magazine CFI (Capital Finance International). To be Housing market reported vast increase in demand
recognised by the readers and staff from CFI as a
candidate for the ‘Best Property Finance Innovator UK’ The release of figures from HM Revenue & Customs in
was a huge accolade. Previous winners of CFI awards this quarter showed a 16% improvement in property
include JP Morgan, Barclays, Deutsche Bank, GE Capital, sales as 48,450 homes changed hands in May: the month
IBM and BNP Paribas. We were honoured by this and that the Government ended the nine-week lockdown
from this recommendation by the awards committee for estate agents. Aligning figures were also published
we have taken every measure since to ensure that we from Rightmove, revealing record levels of interest as
continue to operate in line with this prestigious affiliation. well as home sellers bumping up asking prices despite
the coronavirus crash at this point of the year. The data
The key criteria for the financial innovation awards came as upmarket estate agent Knight Frank said it had
programme are demonstrated excellence in: value its best-ever week, with buyers flooding back to pricey
creation for shareholders and all other stakeholders; country properties after the lockdown property freeze.
implemented innovation; improved user experience; The website said it had recorded its busiest ever ten days
efficiency and cost effectiveness; market leadership and in May and June, which it said reflected two months of
incorporation and use of new technology. pent-up demand. As London emerged from lockdown,
tens of thousands of new homes were rushed through
Cheyne walk features on SKY TV planning with the aim to increase house sales, boost
the housing market and revive the UK economy. And
A definite highlight of the second quarter was when despite unprecedented disruption to the UK’s housing
our newly introduced Cheyne Walk project featured on market, more than 22,000 new homes in London have
Property TV, the UK’s only TV channel dedicated to the been given the green light. Even though chaos struck
housing sector. Broadcast on Sky channel 192, it provides planning departments when lockdown was imposed, the
viewers with an extensive platform that showcases number of new homes approved from January to May
a daily dose of property entertainment, information, by local authorities is on a par with the first five months
and education. Sky’s 13-million-plus subscribers were of last year, say experts Molior. After a strong start to
given a sneak peek into our latest project, gaining the year, 4,618 homes received planning permission in
insider information and exclusive development details April and May. According to new data, more tenants are
directly from Jamie Chapman, Cheyne Walk Residences beginning to move properties within the UK rental market
constructor and the CEO of Store House London. once again as applications rose by 45%. The Goodlord’s
Lettings Activity Tracker collated data between 12th April
The Property TV team visited our prestigious site in and 7th May. The research showed that new tenancy
Chelsea, London and spoke to Jamie Chapman about the applications “rose by 45% and completed tenancies by
development build process, future use, coronavirus, end 22%”.
unit sales and everything in between.
Third Quarter
Approaching the end of the third quarter our CEO, Paul Doncaster received local government backing
Howells, decided to directly address some of the questions,
most common concerns and queries we had from investors
at our site tours about how the construction sector and
wider property market were coping with COVID-19. In these
times of clickbait news and confusing media messaging,
many were finding it increasingly difficult to navigate
the facts and discover what would directly affect them
as investors. Accumulate has the advantage of being View the fly-through
video of Doncaster
insiders within Britain’s most lucrative investment sectors Enterprise Park
which allows us to keep you informed of what’s going
on at ground level. At a time when transparency is more
important than ever, we hope that sharing our knowledge
will allow you to make the very best investment decisions
going forward.
Project progress
Cheyne Walk receives massive institutional investment Our Doncaster SME park continued to capture attention
as a valuable investment opportunity, as demand
Our Cheyne Walk project had already been of significant for e-commerce was predicted to increase storage
interest to investors, yet this month marked a few facility demand in the area. In line with this, Wizz Air’s
milestone achievements for the development process. announcement of their intention to expand their airline
service to include a freight terminal in Doncaster further
Accumulate secured significant senior debt, significantly captured the attention of potential investors.
reducing the project’s risk analysis. Subsequently,
the project’s ROI was adapted to reflect the new and The COVID-19 pandemic has had a significant impact
significantly reduced risk levels attached to an investment on airlines due to travel restrictions and a large scale
in this project. Simply, the higher the risk attached to an slump in demand amongst travellers. Airlines Ryanair
investment, the bigger the ROI will be. The risk levels and Easyjet significantly cut their flight services in this
plummeted as a result of the team acquiring almost quarter, significantly adding to the unemployment figures
80% of costs from institutional investors. Along with our and the rising economic decline. In spite of this, Wizz
Development Partner, Accumulate secured £10,800,000 Air announced their plans to expand its UK footprint by
in institutional investment in this quarter, representing opening a second base with seven new routes in the North
a massive 78% of the total project cost. The greater the of England at Doncaster Sheffield Airport.
proportion of investment that is secured the lower the
risk associated with the project. Prior to involvement, Managing Director of Wizz Air UK, commented on their
participating banks have undertaken the most stringent of anticipation for this move and further confirmed the
due diligence to ensure that their significant investment is widespread regeneration taking place locally, providing
well-placed. After various feasibility studies they decided more local business and leisure passengers with easy
to make a significant commitment towards taking it to access to international travel. The move certainly marks
completion. The net effect was an overall reduction of ROI another step towards transforming Doncaster into a
2% and limited availability for allocations at the higher commercial hub, in which our Enterprise Park will play a
rate. A further endorsement for our Cheyne venture came significant part.
in the form of the securing of significant senior debt at a
time when the world’s economy was spiralling into decline.
The confidence the banks have placed in our Cheyne Walk
project with their £10.8m investment clearly illustrated the
robust nature of this project.
News and Events
Temporary holiday on Stamp Duty Tax is announced: of the UK’s total emissions. Without proper insulation
and a sustainable heating system, it is not likely that
In a bid to boost a housing market still in shock from the government will meet its climate change targets in
the COVID-19 property freeze, Chancellor Sunak recently time for the hosting of the next global climate change
announced a measure that could save the average conference.
homebuyer over £2,000. Stamp duty land tax (SDLT),
often known simply as stamp duty, will be cancelled on The government pledged £9.2 billion to improving the
all property purchases up to £500,000. Stamp duty is energy efficiency of homes, schools and hospitals in its
payable on the purchase of a property – typically within election manifesto last year, however this was omitted
two weeks of completion – and is charged in ‘slices’ based from the Budget. It was unclear where the government
upon the property price. A 2% charge applies to the slice stood on the issue of a nationwide home insulation
of property between £125,000 and £250,000, so with the programme, though we hoped that it would become
average home in England selling at £247,000, existing apparent in the near future.
homeowners buying their next home could potentially
save around £2,440 each. Covid-19 and its impact on the construction industry
As was the outcome in 2008, Sunak hoped that this In the third quarter our development projects were
would provide a much-needed market bolster following fortunate to not have experienced any significant delays
predictions that house prices would tumble and cause to construction, nevertheless we felt it was worth
market stagnation this year. The stamp duty holiday was considering the long-term impacts that the pandemic
to take effect until the 31st of March 2021. may have on the construction sector, in readiness for
conceiving strategies to mitigate these.
From this news we predicted an increase in conveyancing
transactions, as the holiday would encourage a buyers’ The response from industry bodies was impressive, both
market and simultaneously invoke many to sell their the Civil Engineering Contractors Association (CECA) and
properties on this basis. Build UK offered extensive professional assistance as
they positioned themselves as the conduit between the
Government urged to insulate all homes to create jobs, construction industry and Westminster, HMRC, investors
tackle climate change and save lives and banks.
A broad coalition of NGOs called on the UK Prime In terms of our own reaction, we took immediate action
Minister to launch a nationwide programme to insulate to implement the necessary health measures crucial
energy-wasting homes to reduce carbon emissions and to responding to a global health crisis of this kind. This
create jobs. In an open letter, 15 organisations, including included organising teams into smaller groups to improve
the National Housing Federation, Citizens Advice, UK social distancing, providing extensive hygiene facilities
Health Alliance on Climate Change, National Energy on-site and cancelling or moving meetings online.
Action and Greenpeace UK, demanded a transformative
investment in the insulation and heating of the UK’s However, the chronic imbalance between supply and
housing and buildings to revive the economy, while demand in the UK’s housing stock persists. As predictions
tackling long-standing environmental and social crises for rising demand for new housing continued to increase
linked to poorly insulated housing. and the spread of coronavirus provided a significant
threat to this sector, concern was expressed for the
Homes were estimated to be responsible for one-fifth shorter term impacts. Though from the resilience we
News and Events
have experienced thus far, we remained optimistic UK property market enjoys mini boom
that construction on our development projects would
continue and the industry would endure to the end of this The UK property market has enjoyed a mini boom
pandemic; an optimism we continue to share. since reopening after the lockdown, estate agents were
conducting in-person house viewings again and buyers
Benefits of the Stamp Duty Holiday materialise were able to move home once more. All UK governments
have also temporarily cut stamp duty; buyers could
A month on from when the stamp duty holiday took effect potentially save up to £15,000 in tax if they move home
and vast improvements had already been seen regarding before April 2021. Provisional data from HM Revenue and
the housing market conditions, working favourably for Customs (HMRC) evidenced 70,710 property sales went
our Cheyne Walk project. According to insights at this through in July, up 14.5% on June’s figures. Rightmove’s
time, from those who harbour expertise in London’s ultra- housing price index predicted a 1.7% month-on-month
prime property market, it was widely acknowledged that rise in prices, while Halifax (also based on lending)
London’s housing market was set to flourish and emerge reported a 1.6% increase.
from the pandemic pricing slump.
Mid-range buyers in more expensive parts of England
Despite transaction activity in London’s high-end housing are likely to be the biggest beneficiaries of the stamp
market dropping dramatically across April, May and duty cut, with savings of £10,000 on a £400,000 property
June, the Coutts London Prime Property Index provided and £15,000 on a £500,000 property encouraging more
a distinct ray of hope for a turnaround through Q3 and moves. In the short term, this could theoretically make
Q4 of 2020. This followed the devaluation of the pound, a house prices rise, especially on properties in sought-after
factor which provided lucrative opportunities for overseas areas within commuting distance of major cities.
buyers.
Data from Rightmove evidenced a high demand
With the location of our project in the middle of the continuing into the last quarter of the year. Enquiries
Capital’s prime property market, the stamp duty tax via the website rose 90% in the first week of September
increasing demand to impressive levels and a favourable compared with the same week the previous year and
trading market for overseas buyers, our Cheyne Walk sales agreed were up by 55%.
project greatly benefitted from these changes.
With the encouraging responses to the holiday on stamp
duty tax, we continued to see the housing sector rise to
the occasion as more and more optimistic predictions and
supportive indicators were released.
Accumulate adapts to the new normal – all onsite staff
tested for Covid-19
One of the most effective ways of keeping our operation
running effectively, was with testing. Due to the extent
of the new regulations and our experience of operating
Riverside Place: July 2020 Riverside Place: September 2020
News and Events
during the last lockdown, we decided to have a wide- reporting unaffordable rents, poor living conditions
spread test carried out for every onsite worker. We and the risk of eviction. When the Covid-19 pandemic
were delighted that every test was returned with a struck, mortgage holders and landlords with buy-to-let
negative result. In those areas where it is impossible to portfolios were offered payment holidays, but tenants had
enforce social distancing, testing is key to ensuring that to rely on these being passed on. Few housing experts
Accumulate can keep moving. predict that rents will fall by much, even if the pandemic
eventually prompts a slump in house prices. Although,
One of the hardest measures to enforce at both ends of the volatility of the rent market and the constant changes
the market is a two-metre distance between workers, to regulations in this area did not make for an attractive
particularly on a busy construction site. However, investment opportunity at this time.
construction workers were already legally required
to wear personal protective equipment and as such Autumn budget scrapped for 2020
ensuring the safety of workers in closer proximity was
an infrastructure already in place within this sector. Our Following a comment made from a Treasury spokesperson
onsite staff already wore helmets, gloves, goggles, masks, on the 23rd of February, the Treasury scrapped plans for
coverings on their arms, safety boots and shin pads. an Autumn Budget on the 23rd of September this year
Another mitigating strategy we used was organising the due to the ongoing coronavirus pandemic. This decision
staggering of groups to reduce the number of workers on- came as a confirmation that the government wanted
site at the same time. to focus their attention on the immediate needs of the
economy, rather than outline long-term goals.
Short term prospects for BTL
Our CEO Paul Howells commented that the decision
Many investor landlords have felt the pinch of taxation in to scrap the budget came as no surprise. “It would
recent years and now they are dealing with a pandemic have been difficult for the chancellor to announce tax
and all of its ramifications for the private rented sector changes in the autumn which are aimed at recouping
(PRS). One of the most unexpected consequences of the the costs of the pandemic, whilst the country is still in
pandemic is that markets are reacting in very different the grip of a second wave,” he said. “What we need
ways, house prices are experiencing a “mini-boom”, from the chancellor now is a promise that there will not
whereas opportunities for profit on BTL investments have be overnight tax changes announced in the autumn, or
been left with very little room for manoeuvre. Polling for reforms which put additional burden on individuals and
housing charity Shelter estimated 226,785 are now in businesses.”
arrears despite having been up to date in March, out of
a total of 442,403. Shelter also warned that the winding Accumulate continue to capture attention
down of the government’s furlough scheme could leave
people even more exposed to eviction if they lose Accumulate continues to capture attention in the press,
their jobs. The charity’s chief executive Polly Neate said towards the end of this quarter research and commentary
thousands of renters were at risk of homelessness unless from our CEO, Paul Howells, was featured in a Yahoo
the government changed the law on evictions. Finance article. Have a read, click this link.
Earlier research has shown that renters on average
spend 41% of their income on housing costs, which is
clearly unsustainable if rents increase. In total about
8.5 million people rent privately in England, with manyFourth Quarter
As we hit the last quarter of 2020, Accumulate was the early new year. The quantity surveying element of
proud to have maintained its market position despite the development neared completion as final sign off was
the unprecedented circumstances. With some welcome anticipated on the senior funding. SJG Projects Limited
highlights such as the extension of the Furlough payment undertook cost control and value engineering exercises
scheme until March 2021, and the distribution and with our Project Manager. The next step commenced
development of multiple Covid-19 vaccines, the final with procurement selections for sub-contractors for
quarter of 2020 provided hope. works as necessary, producing tender documentation
for sub-contract packages, including the rigorous checks
Project progress for compliance and advice on suitability levels. We were
able to introduce our team of specialists, who committed
Margate receives creditable recognition & Palm Bay themselves to ensuring the project deliverance matches the
progressed ahead of schedule expectations of its eager market anticipators. Guaranteeing
the successful conclusion of a ‘design led’ property
Recently named ‘one of the best places to live in the development, is a priority. We were pleased to confirm
country’, Margate has some spectacular period properties the under construction process of this project as all are
on the market, at a far more affordable price than London. eager to witness this classic Victorian- fronted, luxuriously
It’s become a haven for creative types, and has several contemporary apartment complex take physical form.
great independent shops and restaurants. As with many
other coastal towns, Margate is scheduled for serious Doncaster SME received approval and moves into next
regeneration which is likely to push prices up considerably. stage of progression
According to rankings published recently in The Times,
Margate is considered to be the third trendiest place in the Detailed planning approval was confirmed and the sought-
UK - beating the likes of Bristol and London. after high-quality storage units of Doncaster Enterprise
Park entered their next stage in the development project
Works at our Palm Bay development progressed ahead process. The appointment documents for the professional
of schedule entering the fourth quarter, with all rooms team were agreed and the project solicitor awaited
plastered and mist-coated. First fixes had been completed, confirmation for the final signing to take place. The
which includes constructing walls, floors and ceilings and development team had not encountered any significant
inserting cables for electrical supply and pipes for water delays or restrictions as all involved remained extremely
supply. Underfloor heating has been laid, screeds are down vigilant with consistently checking government guidelines
and consumer units are now being installed. Installation to ensure full compliance.
on kitchens commenced across the ground floor, windows
were fitted throughout and the render work to external The established market gap in this area is evidenced by the
walls also commenced. The roof is secure and once the sheer volume of enquiries for the project, in spite of the
windows are installed at the end of this quarter, the site onset of the traditional seasonal property lull. Doncaster
will be fully watertight. Palm Bay has attracted significant Enterprise Park is already benefiting from this demand with
buyer interest and entering into the final quarter of 2020, strong interest resulting in early reservations for purchase
four of the apartments were under offer, with a further few expected to reach 15% of the site within the early new year.
following at full asking price. Perfectly in time with when construction and proactive
marketing campaigns for the sale and lease of the units are
Cheyne Walk entered next stages of development due to start.
After an extensive period of thorough planning and Insight into how data drives Accumulate’s project selection
preparation, development of the 13 ultra-luxury apartments
complex overlooking the waterfront of the Thames in Many of our investors ask about how we source our
Chelsea is anticipated to enter construction stages within development projects, mainly because it helps theirFourth Quarter
own due diligence when considering a new Accumulate For many, the most exciting stage of involvement with a
opportunity. In our commitment to transparency, we development project is the moment when construction
explained our decision-making process using Cheyne Walk truly captures and breathes life into the extensive
as an example of how our data-driven site acquisition planning, preparation and conceptual vision of a project.
works. Riverside Place’s live feed and time-lapse provide a
spectacular level of personal engagement. One which will
Cheyne Walk was very much an under-the-counter (UTC) be available throughout the project’s duration, giving our
opportunity that was presented to Accumulate in December investors, those interested in our company’s developments
2019 with a price tag of £10.5 million. On paper, any and potential buyers an exceptional insight into the
property in the Royal Borough of Kensington and Chelsea development process. As the most highly anticipated
is an exciting proposition, but its viability must still be residential development in Kingston-upon-Thames, we are
assessed. Regardless of the time sensitive nature of this providing the rare and spectacular opportunity to watch its
offer, it was important to complete our usual extensive construction every step of the way.
due diligence process before committing our involvement.
This includes: site address (including postcode); access
assessment and arrangements; site logistics assessment;
deeds and title information; ownership (including
boundaries and possible disputes); central and local
government planned works within the vicinity of the site;
possible compulsory purchase orders; part wall appraisals
and surveys; existing licences; restricted covenants;
building regulations approvals; car parking licences and
agreements.
After completing this process, we felt that Cheyne Walk
was overpriced and on that basis had stepped back from
the opportunity. However, six months later we were View the Riverside Place
approached again. After further negotiations, we were to Timelapse Video
delighted to agree on a purchase price at £3m less which
we felt reflective of market conditions.
Especially with this years’ climate, we have strengthened
our commitment to ensuring our projects’ success and
integrity through completing our extensive due diligence
process. As with all of our projects, Accumulate continues
to maintain the prestige of the Cheyne Walk property by
retaining its impressive façade.
Watch Riverside Place truly take shape
Riverside Place began to take shape at a stunning pace
as all involved worked to complete this highly anticipated
contemporary build, we were excited to release a short
video compiling a vast amount of construction progress
on this project. In a single minute, witness months’ worth
of development as this stunning new build takes form.News and Events Doncaster’s potential ascertained: the inextricable link between e-commerce growth and logistics demand The movement favouring e-commerce, although catalysed by the circumstance surrounding the pandemic, has been steadily gaining traction for years. There are currently 45.36 million e-commerce users in the UK, with an additional 4.06 million users expected to be shopping online by 2021. In 2020 e-commerce sales will account for an astounding 27.5% of total retail sales and approach one-third by 2024. The world has certainly experienced infrastructural pressure this past year as the closing of non-essential businesses placed significant emphasis on the efficacy of online shopping. Whilst e-commerce has been steadily increasing regardless, it is now embraced in a way which has vastly extended the marketplace. This new- found emphasis on e-commerce has certainly placed the spotlight on one particular UK town: Doncaster. It’s affirmed status as a significant economic feeder and key player of the UK’s Northern Powerhouse, alongside its locational advantages, have certainly proved this theory of inextricability between a growing demand for online shopping and the logistic requirements to deliver. With many recognising its superior locational advantages and vitality for meeting logistics demand in the region. Acute shortages of quality warehouse space have been recognised as one of the biggest market challenges, speaking of the established market shortage, the Associate Director of CBRE’s Industrial team was quoted saying, “The industrial market remains resilient in Yorkshire despite the challenges faced by the pandemic. In fact, Yorkshire will represent around 30% of all the UK logistics take-up this year, as the region remains so attractive to occupiers.” The region is only set to gain more popularity as we move into the contemporary era of e-commerce. The sheer size of Yorkshire, its ever-increasing market share and its economic resilience prime the region to achieve its potential as the centre of commercial logistics.
News and Events
The first and highly anticipated COVID-19 An assessment of the housing market as
Vaccination is announced the year came to a close
The arrival of the highly anticipated Despite turbulence to the economy in 2020,
Covid-19 vaccination provided a morale activity has risen in the past few months
boost for all as in the final quarter of 2020, as house price increases in London and
one vaccine was authorised and distributed Yorkshire & The Humber indicate a thriving
imminently with another close to follow. market. According to research accumulated
by Nationwide, house prices rose by 0.9%
According to Bloomberg, the publication in September in a fairly even spread with
of the positive preliminary results for the the previously mentioned areas increasing
Pfizer and BioNTech vaccine caused a surge by as much as 3% in the third quarter of
in share value and an increase in company 2020. This strong price growth has been
trading. The effect was felt globally as driven by high levels of competition and
more than £1.36 trillion was added to the market activity. In fact, 76% of Surveyors
value of the MSCI All Country World Index. in a recent RICS survey report a vast
A global trend which was reflected in our increase in new buyer enquiries, with a
own statistics as a noticeable increase further 69% reporting an increasing level
in trading took place shortly after the of instructions. The release of the OTS
positive news towards the end of the final recommendation to double the rates of
quarter of 2020. The revitalisation of the capital gains tax could bolster further
economy created a positive chain effect activity in the property market in the short-
as currency was lifted significantly for the term, especially seen as these changes are
first time since Brexit. Sterling currency not likely to take effect until the second half
strengthened almost immediately as there of 2021.
was a global increase in appetite for risk
upon the positive news of progress in While the property market indicators
Pfizer ́s vaccination trials. As word spread remained strong, there was still an
the UK stock market received a much- underlying notion of uncertainty as to
needed boost, the pound was raised by how long these levels of prosperity and
0.5%, versus the US dollar, ten minutes economic recovery would last into 2021.
after the announcement went public. According to Hometrack the first quarter
A welcome increase as the nation still of 2021 is set to record a property uplift,
grapples with the challenges presented by with 100,000 additional sales expected to
the Brexit agreement deadline of the 31st complete before the end of the stamp duty
of December 2020. The UK’s commitment deadline. Market analysis continued to look
to the Oxford AstraZeneca vaccine meant positive as UK house price growth rose
its approval and distribution was likely to +3.5%, the highest for almost 3 years.
to occur in the first quarter of 2021, Though demand has dipped slightly to
another welcome piece of news as the below pre-Covid levels, likely a reflection
new coronavirus variant strain began to of the latest lockdown, it still remains 34%
increase the spreading of the virus. higher than last year.2021 Accumulate continues to move forward Looking back on our year at Accumulate Capital it is fair to say that while 2020 has presented challenges, it has also brought many unique opportunities for prosperity. As the year has progressed it has become increasingly evident that we are living through an unprecedented era. However, nine months after the initial lockdown announcement, we are seeing a return to and even an increase to pre-Covid levels. Despite an initial reduction to loan to value (LTV) ratio levels from institutional lenders on the high street, our main ‘go to lenders’ have returned to the previous LTV levels that we experienced pre-pandemic. In relation to private investment the demand vastly increased in the fourth quarter due in part to the volatility of the stock markets and a desire for fixed income opportunities. As 2020 came to an end we look forward to the many positive changes to come as distribution of the vaccines in the new year begins to make society safe again. The continued prosperity from investment in development finance, in spite of the economic challenges of this year, really does show its credibility as the wisest way to capitalise on the property market. As a company we are looking forward to the delivery of our Kingston-Upon- Thames scheme, Riverside Place, by the start of the second quarter in 2021; the commencement of our redevelopment project in Chelsea, Cheyne Walk and continued construction on our SME Park in Doncaster which has recently received government endorsement. On a final note for this reflection, the team at Accumulate extend their gratitude to you – our investors. It is your confidence in our ability to consistently produce high-value development finance opportunities that has driven our efforts to deliver and improve. We will continue to do so and look forward to maintaining and creating more opportunities for prosperity throughout 2021.
Canterbury Innovation Centre
University Road, Canterbury, Kent. CT2 7FG
Email: info@accumulatecapital.co.uk
Tel: 01227 936 996
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