INVESTMENT OPPORTUNITY

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1 INVESTMENT OPPORTUNITY REGENT HOUSE, BARNSTAPLE, DEVON PERMITTED DEVELOPMENT RIGHTS RESIDENTIAL DEVELOPMENT 31 APARTMENTS 32.7% ROI OVER 12 MONTHS

2 TABLE OF CONTENTS THE OPPORTUNITY DEVELOPMENT INITIATIVES REGENT HOUSE LOCATION DEVELOPMENT PLANNING STATUS MARKET COMPARABLES FINANCIAL APPRAISAL SNAPSHOT SENSITIVITY ANALYSIS FCA INVESTMENT STRUCTURE DELIVERED PROJECTS 2

3 REGENT HOUSE BARNSTAPLE, DEVON, UK 3

4 Barnstaple is part of a Devon economy that is worth over 20 billion, the largest in the South West region. It has grown by 67% over the last decade which is significantly faster than the UK average of 53%. THE OPPORTUNITY At 76.8%, the employment rate also sits higher than the national average and 46% of its workforce are educated to a degree level. Other highlights of the county s economy include: Large Skilled Workforce over a third of the population are educated to degree standard or above, rising to 43% in parts. High Employment Rates 76.8%, higher than the UK average of 71.1%. Tourism is a key component of the North Devon economy. It attracts approximately six million visitors each year and 2.1 billion of spending. Large companies in North Devon include: TDK-Lambda a global leader in the development and manufacture of power supplies and converters Forest Fuels a specialist wood fuel supplier and consultant to small and medium scale heat boilers. Research and Development Capability the South West has soared ahead of other parts of the UK in this field, while Devon has among the highest number of granted patents in the region. Respected Region for Higher Education a large proportion of academic research from the three leading universities is rated as world leading or internationally excellent. Innovation and Entrepreneurship Devon s business survival rate is over 5% above the national average and the number of patents granted per capita is three times the UK average. Strong Transport Links one of the UK s fastest growing airports and rapid transport links make Devon an excellent gateway to national and international destinations Low Overheads labour costs in Devon are highly competitive, rents and rates for office space, retail premises and factories are also significantly lower. Outstanding Quality of Life consistently ranked the best place to live in the UK. Mole Energy at the forefront of new developments in the renewable energy sector Actavis one of the world s leading players in the development, manufacture and sale of first-class generic pharmaceuticals. Perrigo a leading global healthcare supplier that develops, manufactures and distributes over-the-counter (OTC) and prescription pharmaceuticals and nutritional products Mole Valley Farmers one of a few true co-operatives in the UK s agricultural supply industry, with a turnover of more than 130m Babcock the UK s leading engineering support services organisation, with revenue of over 3.2bn in 2013 J & S Marine delivers robust and cost-effective solutions to customers requirements across all military markets, in civil maritime markets and the offshore energy business. Our forecasts show an ROI of 32.7% annualised 4

DEVELOPMENT INITIATIVES Property prices in North Devon have nearly quadrupled between 1995 and 2014 (ONS), while the Average property price in the South West as a whole has now reached 219,781 5.

5 DEVELOPMENT INITIATIVES Property prices in North Devon have nearly quadrupled between 1995 and 2014 (ONS), while the Average property price in the South West as a whole has now reached 219, % annual growth (National Building Society). South West property prices are set to increase by 39.7% between 2016 and 2019 (BNP Paribas Real Estate). This is faster than any other region of The UK, including London. The area in and around Barnstaple has experienced significant levels of investment since the turn of the decade. The Heart of the South West Growth Deal was signed in late 2014, securing 195.5m of government funding. Predictions are that it will create up to 22,000 new jobs and generate up to 260m in private investment between 2015 and Highlights of the proposed projects include the provision of super fast broadband coverage across the region and improvements to local motorway links. Devon s hospitality sector is already starting to see the benefits of the new South Devon Link Road a three-year construction project that opened in December These improvements have made large areas of the county more accessible to tourists, with similar investment on the North Devon Link Road planned over the next few years. Research by Lloyds TSB has also shown that property prices in Areas of Outstanding National Beauty increase faster than other areas. This reflects the quality of life benefits associated with living in some of the UK s most coveted beauty spots, providing buyers with healthy capital growth potential. 5

INVESTMENT OPPORTUNITY - REGENT HOUSE, BARNSTAPLE REGENT HOUSE LOCATION Regent House is located within a 20 minute drive froms some of the most iconic British

With close links to the UK motorway network, Barnstaple benefits from a steady flow of both tourists and working professionals looking to purchase their next home.

6 INVESTMENT OPPORTUNITY - REGENT HOUSE, BARNSTAPLE REGENT HOUSE LOCATION Regent House is located within a 20 minute drive froms some of the most iconic British beaches, as well as market leading industry. With close links to the UK motorway network, Barnstaple benefits from a steady flow of both tourists and working professionals looking to purchase their next home. Barnstaple itself is a beautiful town, mirroring the natural wonder of Exmoor National Park. With period buildings, plenty of shops and much to do and see, it is easy to see why this town is one of the largest in the area, and importantly, why this area is seeing such vast growth. 6 7

INVESTMENT OPPORTUNITY - REGENT HOUSE, BARNSTAPLE DEVELOPMENT PLANNING STATUS Internal floor plan of our development The below document states 28 units to be built, our appraisal is stating 31.

changing unit sizes and forming 31 One and Two bedroom units. - Change the roof skylight and glass colour. - Change of use from commercial to retail on the ground floor of the building.

7 INVESTMENT OPPORTUNITY - REGENT HOUSE, BARNSTAPLE DEVELOPMENT PLANNING STATUS Internal floor plan of our development The below document states 28 units to be built, our appraisal is stating 31. We have a new planning application to be submitted for the following: Under Permitted Developments Rights, the below is a governmental law, allowing these changes: - Re-distribution of space, changing unit sizes and forming 31 One and Two bedroom units. - Change the roof skylight and glass colour. - Change of use from commercial to retail on the ground floor of the building. Your Ref: JT/EF/BRS.6640 Our Ref: Please ask for: Mr. M. Brown Tel: planning@northdevon.gov.uk Date: 13 October 2017 PEGASUS PLANNING GROUP LTD FAO TIM TARZEY / ELIZABETH FOWLER EQUINOX NORTH ALMONDSBURY GREAT PARK ROAD BRISTOL BS32 4QL Town & Country Planning Act 1990 Town & Country Planning (General Permitted Development) Order 1995 (as amended) Dear Sir or Madam PRIOR APPROVAL FOR PROPOSED CHANGE OF USE OF FIRST, SECOND AND THIRD FLOORS FROM B1(A) (OFFICES) TO CLASS C3 (DWELLINGHOUSES (28 NUMBER)) AT 1ST 2ND & 3RD FLOOR REGENT HOUSE QUEEN STREET BARNSTAPLE 8 9

8 MARKET COMPARABLES Below you will find local market comparables. These are based upon the sale price our trusted agent partner has forecast. Project Name Project Address Project Cost Number Of Rooms Project Go Live The Pollards Goodleigh Langarron Park Manor Park Town Farm Nelson Road Pail Park Great Field Yarnscombe The Pollards, Barnstaple, EX32 Goodleigh Road, Barnstaple, EX32 Langarron Park, Barnstaple, EX32 Manor Park, Sticklepath, Barnstaple, EX31 Town Farm Court, Brauton, EX33 Nelson Road, Westward Ho!, Bideford, EX39 Pail Park,Knowle, Braunton, EX33 Great Field Gardens, Braunton, EX33 Yarnscombe, Barnstaple, EX31 209, th October , th September , th May , th April , th September , st September , th October , th September , th July

9 FINANCIAL APPRAISAL SNAPSHOT The full financial appraisal is available upon request. SALES Sales GDV 5,788,000 Selling Costs 173,640 Net Sales 5,614,360 COSTS Build Costs 2,401,272 Finance 323,115 Total Costs 5,061,060 PROFIT Net Profit 851,200 Investor s Profit Share 553,300 Coyne Group Profit Share 297,900 Ungeared IRR 25.8% Geared IRR 36.5% Annual ROI 32.7% FUNDING Equity 1,694,303 Loan & Interest Rolled Up 3,068,800 Total Funding 4,763,112 Loan to Cost 64% 11

10 PROJECT SENSITIVITY ANALYSIS The investor return sensitivity analysis is calculated on a percentage variance on the net sales price achieved and the duration of the project and thus total cost. As an example, if the project overran by 2 months and we achieved a 5% lower sales price than expected, the investor will still achieve a return of 21.34%. Conversely, if the project completed early by 2 months and we achieved a 5% greater sales price than expected, the investor will achieve an enhanced return of 43.90%. DURATION NET SALES PRICE SAFETY MARGIN %* % Months Variance % 33.13% 43.90% % % 32.7% 43.43% % % 32.11% 42.88% % N.B. The returns are calculated on projections of sales price and costs that are for illustrative purposes only and not guaranteed. *SAFETY MARGIN AGAINST THE ANTICIPATED SALE PRICE TO BREAK EVEN ON THE PROJECT 12

FCA APPROVED STRUCTURE Investor SPV New Company OWNERSHIP Development Management Appointment Model Property Sale Roles & Responsibilities of Coyne Wealth SPV Property Sale Profit share Agreement 1ST

11 FCA APPROVED STRUCTURE Investor SPV New Company OWNERSHIP Development Management Appointment Model Property Sale Roles & Responsibilities of Coyne Wealth SPV Property Sale Profit share Agreement 1ST CHARGE JCT Work Contract Bank WEALTH Programme Budget Build Standard Health & Safety Risk Management BUILD Your investment with Coyne Group will follow this structure. You re money is sent directly to the project specific SPV through Brickowner, which are held in Escrow at Barclays Bank. The independent accountant will confirm reciept of your funds. Once we have completed raising investment for the project, the project will be handed over to our construction team for the build out to commence. 13

DELIVERED PROJECTS Below you ll find a selection of our most recent projects, including key figures.

Lordswood Road Harborne, Birmingham Montpellier Teignmouth Roseleigh Bristol The Punchbowl Birmingham Project Costs 992,413 Project Costs 3,042,106 Projected Costs

432,587 Projected Net Profit 1,135,719 Net Profit 455,489 Projected Net Profit 339,000 Investor Profit 219,559 Projected Profit 567,860 Investor Profit 289,568

0% ROI % +44.0% ROI % 69% OTHER INVESTMENT OPPORTUNITIES More information on our investment sectors & the required amount of equity and senior debt can be found below.

12 DELIVERED PROJECTS Below you ll find a selection of our most recent projects, including key figures. The list below illustrates both complete projects and projects in-progress. Lordswood Road Harborne, Birmingham Montpellier Teignmouth Roseleigh Bristol The Punchbowl Birmingham Project Costs 992,413 Project Costs 3,042,106 Projected Costs 1,504,027 Project Costs 471,000 Development Value 1,425,000 Development Value 4,100,000 Development Value 2,200,000 Development Value 800,000 Projected Net Profit 432,587 Projected Net Profit 1,135,719 Net Profit 455,489 Projected Net Profit 339,000 Investor Profit 219,559 Projected Profit 567,860 Investor Profit 289,568 Investor Profit 170,000 Investment Period 18 months Investment Period 36 months Investment Period 18 months Investment Period 12 months ROI % +42.9% ROI % 66.0% ROI % +44.0% ROI % 69% OTHER INVESTMENT OPPORTUNITIES More information on our investment sectors & the required amount of equity and senior debt can be found below. Investment Sectors Student Residential Retirement Developments Equity Requirement ( ) Senior Debt Requirement ( ) Westward Ho! 1,200,700 3,510,000 Proportion of Total Equity Required across Investment Sectors 3,670,100 Proportion of Total Senior 12,202,067 Debt Required across Investment Trowbridge 539, ,619 Barnstaple 1,480,000 3,440,000 14

13 The Wise Way To Invest In Property High Trees Cadbury Camp Lane Clapton In Gordano Bristol BS20 7SA

North Devon Area Profile. Produced for Devon County Council

North Devon Area Profile. Produced for Devon County Council North Devon Area Profile Produced for Devon County Council February 2014 1 TABLE OF CONTENTS NORTH DEVON IN SUMMARY... 3 1 INTRODUCTION... 4 2 THE NORTH DEVON LABOUR MARKET... 6 3 CURRENT ECONOMIC PERFORMANCE...