An innovation in Property Development Investment
At Texmoore, we gather together expert in each field, from construction engineers, to developers and finally funding partners, to pursue high quality opportunities offering excellent prospects for safe, reliable and profitable return.
We pool together funding from a range of sources, focussing primarily on our own cash reserves which are then topped up with contributions from institutions.
Texmoore rigorously scrutinises and assesses each development opportunity, and our rejection rate is as high as 90% for projects that do not meet our high requirements for potential profit margin and safety. This gives our long standing funding stakeholders huge peace of mind because they know our interests are aligned in securing long term growth for the company, and pursuing only the most attractive proposals.
Time frames are typically estimated between 18 months and 3 years.
Texmoore’s approach differs from a basic loan, partnership or crowdfunding model in a number of ways:
- As a company with proficiency in specific sectors of real estate, we conduct the thorough due diligence on your behalf, including full cost projections, scenario planning and sensitivity analysis. We consider comparative projects on the market and use our experience to pursue only the best opportunities.
- At Texmoore, the vast majority of a project’s funding come directly from us. We use our accumulated profits to finance developments and our interests are fundamentally aligned with those of our funders. We underwrite every project, offering director’s guarantee, to ensure all financial and investment prerequisites are met.
- Each stakeholders is assigned to a Client Relations Manager who is always available to answer questions and guide you throughout your time with us.
- Our in-house portfolio management iteam conducts appraisals throughout the entire life cycle of each development. They regularly visit sites, and analyse key variables of cost, time and quality against planned forecasts. They help to keep things on track and are a third eye over the projects as they progress.
- Transparency and clarity provided to investors on every aspect of the investment process and on each stage of every property development.
- Texmoore is a full member of a number of professional bodies in the UK which have the highest ethical standards. We spend a large amount of time to report to them. Our accreditation include full membership of the National Landlord’s Association, Residential Landlord’s Association, UK Government’s Deposit Guarantee Scheme and UK Social Housing Ombudsman.
Picking only the Right Property Development Opportunities
We are totally focussed on only pursuing the investment opportunities that meet our stringent filtering, planning and viability analysis and pass through the selection process getting ultimate approval from our investment boards.
This process begins with our Development Team finding new and exciting possible projects. Our team members regularly meet and chat with industry insiders about potential opportunities. When we are presented with an interesting concept or proposal, we produce a brief 50-70 page document outlining the key features which is then sent on to our partners in property acquisition, surveying, valuation, construction and finance and operations. They review the presentation from their own perspectives, and it is further refined and developed. Details are added and the analysts begin to construct some basic project management and finance models to understand the likely risk factors, probabilities and make initial profit estimates.
If we are considering a joint venture, our team conducts a thorough assessment of the developer’s track record and ability to deliver the specific project they have presented to us. We meet the development team, visit the project site and other completed projects, and assess the developer’s overall operations, background and experience. An initial stage of due diligence on the project itself also examines the business plan as well as the location, target market and saleability.
Our current investment strategy covers a range of project types, but mostly focuses on our key strengths; HMOs within social housing and student accommodation along with more typical commercial and residential housing. We have expanded our focus of Greater London right the way across the United Kingdom and we are well positioned to take advantage of small pockets of all around the country. We are typically not involved in luxury developments and choose to concentrate on delivering affordable, ethical housing, which benefits from huge demand and quick sales.
If the Origination Team is satisfied with the information gathered, the opportunity is presented to our first Investment Committee, made up of the company’s senior management team who have decades of combined property development experience.
Effective Due Diligence
If the opportunity passes review by the first Investment Committee, full due diligence begins.
Typically, we spend about one full month reviewing and analysing every aspect of the project in detail. This includes:
- Assessment of all risk factors relating to the construction;
- Full assessment of project costs.
- Full review by a registered quantity surveyor.
- Detailed scrutiny of the planning permission granted and full assessment by our legal team.
- Evaluation of the marketing environment, the target audience, demand and supply factors relevant in the local area, comparable properties. We assess and understand the required product positioning and market segment that we are building the property for. This can extend to a macro and industry forecast.
- The project’s financing arrangements and documentation;
- All existing legal documentation;
- The sensitivity of the project to unexpected changes in gross development value (GDV) or timescales; and
- experience, track record and financial and operational stability of any joint venture partners or contractors.
Our senior management team must be completely satisfied with each component of the project and sales plan. At this point, it will be passed to the second Investment Committee who will make the decision on whether to proceed with the project and give it the green flag. Only between 2-5% of proposals make it to this stage and they continue to scrutinised throughout the life cycle of the project.
Once the opportunity is approved by our final Investment Committee, our analysts’ research is summarised and presented to the management team that will oversee the project throughout its life cycle. Our aim is to ensure that the key team members have all the information they need to carry out their roles.
Those who choose to be part of our journey at Texmoore can choose from a number of attractive possibilities. We are as flexible as possible to stakeholders because we want everyone to choose the right option for them and enjoy their experience with us. Therefore, we are as adaptable at the outset as possible.
Our projects are funded predominantly by ourselves but incorporate third party funding which is generally from large financial institutions such as banks. Our opportunities for funders continuously evolve in response to the prevailing market conditions and we are at the forefront of offering innovative structures to suit everyone.
The Funding Structure
Typically, over half of the total development cost is provided by ourselves, with funds taken from accumulated project profits and cash reserves. The remaining 50% is usually then provided by a senior debt provider such as a bank or specialist property lender. There is no pecking order to the funding, everybody is on an equal footing with all loans secured as first legal change over the entire assets of the company.
Monitoring all Property Investment Projects
Once the project is underway, our portfolio managers closely monitor the development, they regularly visit sites and analyse key parameters every step of the way until the final unit is occupied by a tenant or sold.
Our teams speak daily to the contractors and development teams, we review finance structures regularly and monitor construction progress, whilst assessing the sales strategy to ensure we have positioned the product exactly right. All this information is compiled into regular reports which are shared with the senior management team.
Always Putting the Interests of Stakeholders First
By reading our website content, you can clearly observe our energy and passion for what we do. However, it is also clear how our stakeholders are at the front of our minds throughout. Our comprehensive end-to-end approach both untangles the complexities of property development investment, and provides a unique level of assurance for everyone involved.
We help our funding partners every step of the way, from laying out the investment opportunities simply by the start, explaining our model and why it has been so successful, and in answering any questions throughout the process.
This all means that we have investors interests at heart. Our business model provides clients with the reassurance that we only pursue investment opportunities that we firmly and demonstrably believe in, delivered via an investor-focused approach that concentrates on helping you transform your investment potential into real returns.