Hillside, Margate

A heavily distressed property acquired below market value and repositioned into a professionally managed block of ten flats. This project delivered substantial equity uplift and strong cash flow.

Investment Thesis

• Acquisition at a significant discount due to condition and management issues

• Large uplift through refurbishment and operational turnaround

• Strong rental demand driven by Margate’s regeneration

Key Facts

• Units: 10 flats

• Purchase Price: £485,000

• Bridging Loan: £365,000

• Refurbishment Cost: £50,000

• Total Project Cost: £535,000

• GDV: £1.2m

Value-Add Strategy

• Full internal refurbishment to modern standards

• Removal of anti-social use and re-tenanting with professional management

• Compliance, safety, and EPC improvements

Risk Management

• Bridging finance structured with clear refinance exit

• Refurbishment costs carefully budgeted and controlled

• Strong post-refurb valuation buffer

The completed scheme was refinanced at a conservative LTV, releasing £900,000. Capital was recycled into subsequent acquisitions while retaining long-term income.

Ongoing Performance

• Net Rental Income: £2,500 per month (£30,000 p.a.)

• Outcome: High cash flow + significant retained equity