How It Works


As a property development and investment company, our experience has helped us source from niche market that many property developers missed in the UK.

We successfully transform property development opportunities into higher yields and margins on cost faster than many others in the industry. Our proven techniques allow us to achieve the maximum possible risk-adjusted return on all of our UK property development projects.


IDENTIFY

Identify properties with real potential


ACQUIRE

Acquire in Joint Ventures with equity investors


DESIGN

Design & build through refurbishment and development


EFFICIENCY

Efficiency by pre-selling and collecting payments in advance


FIRST STEP: IDENTIFY

Our process starts with the ability to discover opportunity. With our experienced team and intricate knowledge, our network enables us to filter through more than 100 properties every month before selecting up to 10 potential UK developments for detailed due diligence.

Our financial models are highly detailed which highlight our expected level of return and the potential risk involved.

WHAT WE LOOK FOR

  • Areas of Greater and Commuter London, Manchester, Liverpool, Southampton and Birmingham undergoing significant improvements to transport, amenities and landscape
  • Properties within easy walking distance (usually less than 10 minutes) of rapid public transport routes
  • Properties others may have either overlooked or lacked the skills to fix, usually in need of refurbishment or development at exceptionally low prices


SECOND STEP: FINANCE AND PURCHASE

Once an investor has agreed upon a project, we are able to move incredibly quickly.

Tenergy Group via dedicated SPV’s (Special Purpose Vehicles). The structure reflects the agreed profit share, with investor funds covering immediate upfront expenses such as the initial loan and building works.

As with most UK property developers, we tend to refinance our developments at preferential rates through traditional finance once the first few units are built or once detailed planning has been passed and substantial value has been added.

Investors are involved on a fixed return basis, which is normally between 8% – 15% basis

Our financial models are highly detailed which highlight our expected level of return and the potential risk involved – a cap we strictly adhere to.

HOW WE MINIMISE OUTLAY

  • Buying properties that are worth more than we pay
  • Phasing building works efficiently and completing them quickly
  • Pre-selling/letting units with substantial advance payments
  • Refinancing as soon as they are consented or completed and let


THIRD STEP: DESIGN AND BUILD

We have a respected track record of our ability to strip properties back at a high speed and re-build them in a uniquely efficient format. Space is created, home technologies are installed and the price per square foot inevitably increases to boost the resale value of the unit and interim rental yields.

We focus on properties with an existing residential element or that benefit from Permitted Development (PD) rights, simplifying planning permissions whilst applications are made to add more residential units.

HOW WE IMPROVE A PROPERTY

  • Strip the property back to the bare bricks and joists
  • Strengthen structure and lay new flooring
  • Install the latest specification insulation and sound-proofing
  • Fit new electrics, plumbing and gas services
  • Plaster, paint and furnish the entire property to a high specification


FOURTH STEP: MAXIMISE EFFICIENCY

We always structure our investments to be as tax efficient as possible, utilising tax breaks such as entrepreneurs’ relief.

Before we sell a completed development we rent it to optimise its profitability, using a unique model to achieve greater rental returns with a lower risk of vacancy.

HOW WE ACHIEVE HIGH YIELDS

  • Finish properties to a very high standard
  • Employ flexible pricing structures
  • Offer discounts for advance payments (half yearly or yearly for example)
  • Review pricing to constantly achieve the optimum balance of occupancy and price
  • Promote properties in the right way to the right target market
  • Deliver high levels of customer service seven days a week

Defined by service and expertise.