DONCASTER Accumulate Commercial SME Park

D O N C A S T E R

Accumulate CommercialSME Park

Canterbury Innovation Centre

University Road, Canterbury, Kent. CT2 7FG

Email: [email protected]

Tel: 01227 936 996

www.accumulatecapital.co.uk

Our latest venture is a fantastic commercial development finance opportunity that encompasses all of the main features we look for in our projects: it´s diverse, deliverable, profitable and will immensely benefit the local area.

Over the past 20 years, commercial property has consistently delivered higher returns than the FTSE 100, Cash ISA´s and UK gilts.

So when we discovered the option to develop a 6.30-acre commercial asset in the form of 79 starter units within the UK´s manufacturing and distribution hub, we jumped at the chance.

The demand for SME starter units in Doncaster vastly exceeds supply, and the units currently available are often neglected buildings offering poor quality amenities. Our project provides a viable solution to this issue by creating a sustainable long-term site for the next generation of employees, business owners and investors in our community.

We are eager to get the ball rolling and fortunately, we´re able to do this at a faster than usual pace. By investing in the project ourselves and partnering with investors we remove the need for a senior lender and the delays this can cause.

This means as an investor you have the opportunity to partner with us in this project from the outset with the advantages of a market-leading ROI of up to 22% over a short, 18-month term with our Asset Assured Accumulator (AAA) and first charge security.

The following document contains all of the necessary information needed to reach the next prosperous stage of your investment journey. However, if you want to see the development and ourselves in person, we are always available for meetings and site tours to answer any questions that you might have!

Best Regards, Paul Howells CEO, Accumulate

Message from the CEO

3ACCUMULATE COMMERCIAL SME PARK

Why Commercial?

Britain has been consistently moulded by its commercial sector ever since it became the first country to industrialise back in the 18th century. Since then, the United Kingdom has become the sixth-largest economy in the world thanks to its huge impact.

The commercial industry dominates the UK´s economy, with an estimated size of nearly £900billion contributing to around 80% of GDP.

Unlike residential property, the commercial property sector is generally characterised by longer term leases increasing landlord security. The stability of this sector in the last five years is evidenced by the average yield remaining stable at 5%.

Outside of residential property, comparison to the most commonly held asset classes by an investor being FTSE 100, Cash ISA´s and gilts shows that gilts and Cash ISA´s lag considerably behind which is brought into context when comparing the FTSE 100, the best performing of the three, to commercial property.

Between 2000 and 2018, the FTSE 100 returned 209% with commercial property returning 308%. Diversification is key with many investors in residential

property moving to the commercial sector because of tight buy-to-let regulations, increasing legislative changes and stamp duty fees.

In fact, Accumulate Capital surveyed 750 UK property investors and found that over a third (37%) are planning to sell one or more of their properties this year, with 72% believing that current measures are unfairly weighted against landlords.

Our thought-provoking research has already piqued the interest of The Financial Times and The Sunday Times with both titles including our collated results in their print and online editions. The results have already been referenced by 32 other property and investment platforms, together with a circulation of 679,000.

Our initial investment opportunity is for you to partner with us in the accumulation of funds for the construction of this project. Securing yourself industry-beating returns of up to 22% over an 18-month term with the chance to purchase any number of the starter units off-plan. This option enables you to continue receiving remunerations from this project long after our development is complete.

T H E B E S T P E R F O R M I N G A S S E T C L A S S I N T H E L A S T T W O D E C A D E S

5ACCUMULATE COMMERCIAL SME PARKInvestment Memorandum4


Accumulate Commercial SME Park

Doncaster is currently undergoing an extensive urban regeneration process; however, the availability of SME starter units within the area is vastly below the amount needed to suffice demand.

Doncaster SME Park will provide 79 high-quality, Grade A starter units offering low-cost options and flexible contracts for businesses requiring storage, workspace or the opportunity to expand. Each of the industrial pods will come with a range of internal designs to satisfy all potential tenants. With few, if any, alternatives in the area, Accumulate Commercial SME Park will no-doubt fill this gap in the market.

The final construction will deliver significant urban regeneration and employment opportunities from land that would otherwise remain unutilised. As well as the possible 344 end-user employees, additional short-term job creation will be achieved during the construction phases.

Therefore, the proposal is compliant with Policy C2 of the Core Strategy which directly supports growth and regeneration within Doncaster; as well as CS5 which aims to support Doncaster’s economy by encouraging

the retention of existing employment sites and looks to create 36,000 new jobs through the district’s employment land supply.

Doncaster SME Park is focusing on the strong demand for flexibility including shorter leases, smaller occupational spaces and will benefit a large, varied and granular workforce on Wheatley Hall Road where neighbours include Toolstation, Screwfix and Nationwide Vehicle Repairs.

The area is located just 3 miles from the town centre and is served by the A630 and Wheatley Hall Road, extending north through to Junction 4 of the M18 approximately 2 miles to the east.

Planning permission for the development was granted on 17th October 2019 and once construction starts, the build schedule is just 12 months. The land is currently undeveloped, but the proposed gross employment floor space for the outline application is 90,050 sq ft which will soon be transformed into 79 business units. The project has a GDV of £11.76million and a profit of £1.53million.

A C C U M U L AT E ´ S L AT E S T D E V E L O P M E N T F I N A N C E O P P O R T U N I T Y

A C C U M U L AT E C O M M E R C I A L S M E PA R K

The Opportunity

9ACCUMULATE COMMERCIAL SME PARK

T H E O P P O R T U N I T Y

Type Short term senior debt

Term 18 months

Coupon Frequency On redemption

Returns Up to 22%

Security First legal charge on asset

Exit strategy Off-plan commercial sales and refinance

As the developer, we have carried out meticulous due diligence checks to ensure the security of this project, this includes gaining the planning permission, valuation and financial aspects, all of which are available to investors.

C A P I TA L S TA C K A N D Y O U R S E C U R I T Y

RICS Valuation £1.7m

Investor Capital £1.02m 60% LTV

Accumulate Investment £365k Unsecured 21.5% LTV

Equity/GDV Buffer £315k 18.5% LTV

Investor Protection £680k 40% LTV

I N V E S T O R R E T U R N S

Investment Level Return

£15,000 to £50,000 16%

£60,000 to £90,000 19%

£100,000 to £250,000 22%

Accumulate Junior Debt:£365,000

Equity:£315,000

Short-term senior debt:£1,020,000

ManchesterPiccadilly

ManchesterAirport

Leeds

East Midlands Hub

Sheffield MidlandChesterfield

LondonEuston

BirminghamCurzon Street Birmingham Interchange

Old Oak Common

EAST COAST MA

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CO

AS

T

EN

IL

N

IA

M

Glasgow

Carstairs

Edinburgh

Darlington

Newcastle

Durham

CarlisleIN

LINE

Liverpool

York

Warrington

Crewe

Runcorn

Preston

Wigan

Lancaster

Oxenholme

Stafford

Penrith

Lockerbie

DONCASTERDoncasterAirport

About Doncaster

11ACCUMULATE COMMERCIAL SME PARK10 Investment Memorandum

A thriving manufacturing and logistics hub, Doncaster is the UK´s best connected location with excellent road, air, sea and rail infrastructure and just 88- minutes from Central London.

Road - The Northern town is surrounded by the UK´s substantial motorway network. Specifically, Doncaster is in optimum proximity to five of the country´s major roads including the M18, M1, A1, M62 and M180, making travel to anywhere in the UK hassle-free.

Air - Just 8 miles from the SME Park is Doncaster Sheffield Airport, the UK´s fastest-growing airport outside of

London. The airport is home to one of the UK´s largest aviation business parks and is one of few locations in the UK that is capable of hosting long-haul and freight plane services. The airport caters for over 1.25 million passengers each year and offers flights to over 55 destinations; also, the UK´s Aviation Minister recently announced plans to make significant improvements with a £10million development plan.

Sea: Further to the east, the Humber Ports are less than one hour away. The HumberPort partnership accounts for some of Europe´s biggest integrated shipping and logistics networks; it is also

Britain´s largest, multi-purpose port complex.

Rail: Doncaster Station sees over 100 trains pass through every day. The East Coast Main Line is one of Europe ´s most important rail routes, linking the capitals of England and Scotland while passing directly through Doncaster. London King´s Cross can be reached in 90 minutes, while York, Sheffield and Leeds are all within half an hour of travelling.

The High Speed 2 (HS2) is a planned high-speed railway in the United Kingdom, with leaked official

reports estimating the cost to be approximately £106 billion. The trains will link the north and the south of the UK, travelling between 21 destinations. The HS2 network´s spine is dedicated to a 225mph track, approximately double the speed of existing high-speed classic tracks. The construction of the new high-speed track includes two phases: phase 1 involves building from London to the West Midlands with the first services scheduled for 2028, and phase 2 refers to the construction between the West Midlands to Leeds and Manchester, estimated to be complete by 2035.

A T H R I V I N G M A N U FA C T U R I N G A N D L O G I S T I C S H U B

In the most recent edition of the Demos-PwC Good Growth for Cities Index, Doncaster was one of the top five cities showing an improvement in its score. This was driven by the large increases in new businesses and the skill level in young people.

The quarter four report for 2016/17 has shown:

• Investment into and within Doncaster was £90.5million.

• 894 full-time jobs were created with the support of Business Doncaster

• 1,175 new apprenticeships have been created since 2013

• 1,057 new homes have been built this year across the public and private sectors.

In addition, 70% of the council’s spend was with Doncaster companies ensuring the local economy benefited from council contracts.As well as these economic statistics considerably surpassing their targets, the report showed 93% of all service measures (41 out of 44) were up from 86% in the last quarter.

Two forward-thinking women are currently at the helm of Doncaster’s local authority: Chief executive Jo Miller and Mayor Ros Jones. Together they are working tirelessly to improve the town and have developed a Civic and Cultural Quarter with EU funding, including the refurbishment of Doncaster Market and a new library and museum. Two thirds of Doncaster´s population are of working age and recent reports show that Doncaster´s economy is performing well. In the council´s latest quarterly performance report, jobs and growth measures had exceeded their targets.

Doncaster’sEconomy

C O R P O R AT E G I A N T S I N D O N C A S T E R

It´s easy to understand why so many large national and international businesses and organisations are evident in Doncaster when the area´s progressive council, skilled workforce and beneficial connectivity are taken into consideration.

Doncaster is home to household names such as IKEA, BT, Next, Wabtec, Thales and Amazon. Jeff Bezos, CEO of Amazon and the wealthiest person in the world, opened his first logistics facility in Doncaster in 2010. Since then, Amazon has committed a total of £500million to three logistics and fulfilment facilities. The most recent of which is the £100million, 1.1 million sq ft site on Verdion´s 6 million sq ft iPort logistics site, a strategic rail freight interchange.

Amazon has said that: “some of the brightest and most inventive businesses in the country hail from Yorkshire and this is why Doncaster felt like a natural home.” This is supported by the company´s decision to run local Amazon Academy events, welcoming hundreds of small businesses and entrepreneurs to help them grow by embracing e-commerce.

Doncaster´s Core Strategy directly supports the area´s growth and urban renewal. Specifically, section CS5 aims to support the town´s economy by encouraging the retention of existing employment sites and is also looking to develop 36,000 new jobs through the district´s employment land supply.

Doncaster has received a high level of investment in recent years, and the area´s year-on-year figures have shown a healthy growth rate. Investment and employment opportunities are still being created and company interest is always increasing, as can be seen in the above example.



FrequentlyAskedQuestions

How do you select developments? We take a data-driven approach to property investment and are exceptionally selective when choosing investment opportunities with an average of just 1 in 20 potential projects meeting our strict commercial and financial criteria.

How often do you launch new projects? One new project per quarter.

What proportion of total project funding do Accumulate investors provide? Typically, 15-20 per cent of the total cost of development for mezzanine debt, 60-80% for senior debt with the remainder made up of our own investment and/or development equity.

Can I visit the site? Absolutely, we encourage all potential and existing investors to see the project before investing or after building has commenced. There will be opportunities to visit the site on an organised tour along with fellow investors. Please ask your dedicated consultant and we can make the arrangements.

What happens if the local property market declines? Accumulate cannot control the property market, however, we mitigate market risk in any development with a security buffer, in most cases of 20 per cent, with preferred returns and securitisation for the investor over and above the developer. Is there a referral programme?* Over 40 per cent of our new investors come from personal recommendations. We have a referral programme to remunerate introducers. To find out more please speak to your dedicated consultant.

investment and the assets within our portfolio.

However, your dedicated consultant is available during office hours to provide any information that is required.

Do I pay tax on my investment? Accumulate cannot provide tax advice. You should consult your independent financial advisor in your country of jurisdiction. However, investments from Accumulate are structured in a way whereas we are not obliged to retain withholding tax on interest of 20 per cent. Can I redeem my investment early? No, as an investor you commit to the project for the full duration.

Each Accumulate development is incorporated and managed as a standalone Special Purpose Vehicle (SPV), and as such investors have complete control over which development they want to invest in. What are the fees? There are no exchange, arrangement or administration fees associated with this investment. When can I expect a return on my investment? Investment returns are paid on the redemption of your original capital. How will I be updated on the progress of my investments? Accumulate provides direct comprehensive communication with investors, including ongoing reporting and updates on the status of your

How do I get started as an investor with Accumulate? To get started as an investor with Accumulate you’ll need to register an investor profile online at the Accumulate website: www.accumulatecapital.co.uk. From this profile, you’ll be able to manage the entire investment process and gain access to your completed investments, portfolio performance, ROI statements and redemption dates.

Who can invest? Any investor who has completed our self-declaration of being either a High Net Worth Individual (HNWI) or Sophisticated Investor (SI), who is not a citizen or resident of the United States of America and is over the age of 18.

What is the minimum investment? The minimum amount that can be invested is £15,000.

How do I fund my investment? All transactions are received via bank transfer from the specified investor. During the investment process, you will be prompted to add your bank account information manually for us to process your ROI and redemption. We are unable to accept credit/ debit cards.

What am I investing in? This investment is development debt structured via loan arrangement with specified returns and a fixed redemption date. The development itself is a commercial property development in Doncaster which will see the creation of 79 industrial units. Is it a fund? No, this is not a collectively managed investment.

*Direct family members are not applicable

* These are fully appraised figures. Development fees and marketing costs includes a secondary security buffer to protect both the developer and investors.

P R O J E C T G D V

Development GDV £11,767,500

RICS Valuation (Colliers) £1,700,000

Development Fees £7,305,514

Marketing and Sales Costs £235,350

Finance Costs £989,497

Total Development Cost £10,230,361

Target Development Profit £1,537,139

Project Analysis


Book a Site Tour

Making your money flourishLet your pension work for you – SIPP or SSAS If you have already taken control of your future financial security through a SIPP or SSAS pension, you have much more freedom and control in choosing how your pension is invested.

Commercial property investment offers SIPP and SSAS pension holders significant advantages.SSAS pension holders can benefit from fixed returns up to 22% through investment into our Asset Assured Accumulator (AAA) with first charge security.

Unlike residential property, commercial property can be bought by and held in both a SIPP and SSAS pension. Depending on you personal circumstances and pension pot, the property can be purchased solely by your pension or jointly with personal and/or company funds.

The property is then owned proportionally by your pension/company/you personally, as applicable to the percentage investment from each source on purchase. Rental income is paid proportionally to ownership with the advantage being rental income is paid into your SIPP or SSAS is tax-free!

Additionally, there would be no Capital Gains Tax (CGT) on the proportion of the property owned by your pension on sale.While we are not pension or tax experts and cannot provide advice, which you should always seek from a suitably qualified professional, we have taken advice to ensure the overall suitability of this opportunity.

For SIPP and SSAS pension holders, this is a very advantageous opportunity to securely invest in the UK´s best performing asset class in the last two decades, achieving both diversification and long-term return on investment.

Unit Purchase – Development Finance CombinationWhether you´re a private investor seeking diversification, a local company owner/entrepreneur or a savvy investor looking for long-term, secure and highly performing yield investments, you may be interested in the purchase of one or more units.

There are significant benefits to be obtained from combining your purchase with investment into our Asset Assured Accumulator (AAA). Subject to available allocation. Please contact us to arrange a conversation.

19ACCUMULATE COMMERCIAL SME PARK18 Investment Memorandum

Meet the Accumulate team at the site of our current development

Unlike some, we don´t hide from scrutiny and curiosity. In fact, we actively encourage it. We believe that the best way to get a good idea about us and make the correct judgements about our project is to see it in person. Nothing compares to the experience of being able to physically see a construction that you are involved in come to life. On a site tour, we explain the background, process and vision for our project in a thorough and informative conversation; here, you are more than welcome to ask any questions you might have. Although we provide extensive details in all of our updates and memorandums, being able to talk directly to the developers in front of the building is an unparalleled opportunity and an advantage that we are happy to offer.

Talk to your consultant or go to www.accumulatecapital.co.uk

Canterbury Innovation Centre

University Road, Canterbury, Kent. CT2 7FG

Email: [email protected]

Tel: 01227 936 996

www.accumulatecapital.co.uk

DONCASTER Accumulate Commercial SME Park

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