Regional Capitals

Own a stake in desirable homes across Manchester, Leeds and Birmingham

Manchester, Leeds and Birmingham are vibrant, growing cities where residential property offers a blend of attractive rental yield and strong prospects for long-term increases in property values.

Leeds, Manchester and Birmigham property

These centres of the Northern Powerhouse offer an outstanding quality of life, enjoy excellent transport links, and are set to further benefit from significant government investment in infrastructure, science, innovation, culture and tourism.

The fund allows you to gain exposure to a portfolio of expertly-chosen properties across these cities, and has been popular with those looking to own a stake in their city, as well as those looking to diversify by investing further away from home. The Regional Capitals fund has delivered annualised returns of 8.9% to investors since launch.

Properties

Photo Address Value Net yield Beds/Baths Status
Greek St, Leeds £285,000 4.5% 2 bed, 2 bath Acquired Oct 2016
The Grand, Manchester £220,000 4.0% 2 bed, 1 bath Acquired Nov 2016
Park Place, Leeds £225,000 3.9% 2 bed, 2 bath Acquired Mar 2017
The Riverside (1), Manchester £237,500 4.5% 3 bed, 2 bath Acquired Apr 2017
Brindley House (1), Birmingham £262,500 4.6% 2 bed, 1 bath Acquired Nov 2016
Brindley House (2), Birmingham £257,500 4.9% 2 bed, 1 bath Acquired Jan 2017
Velocity North, Leeds £165,000 4.2% 2 bed, 2 bath Acquired Feb 2017
Brindley House (3), Birmingham £262,500 4.0% 2 bed, 1 bath Acquired Mar 2017
Hill Quays (1), Manchester £240,000 3.4% 2 bed, 2 bath Acquired May 2017
Hill Quays (2), Manchester £230,000 4.5% 3 bed, 2 bath Acquired May 2017
The Mews, Manchester £231,000 3.0% 2 bed, 2 bath Acquired April 2017
The Riverside (2), Manchester £237,500 4.4% 3 bed, 2 bath Acquired Apr 2017
Velocity East, Leeds £165,000 3.8% 2 bed, 2 bath Acquired May 2017
Galbraith House, Birmingham £310,000 3.1% 2 bed, 2 bath Acquired Jul 2017
Sapphire Heights, Birmingham £146,000 3.8% 1 bed, 1 bath Acquired Jun 2017
Sparrow Wharfe, Leeds £118,500 3.9% 1 bed, 1 bath Acquired May 2017
Blue, Leeds £185,000 4.0% 2 bed, 2 bath Acquired Nov 2017
Portland Place, Leeds £204,000 3.5% 2 bed, 2 bath Acquired Oct 2017
Rotunda, Birmingham £239,400 3.8% 2 bed, 2 bath Acquired Sep 2017
Metropolitan House (2), Birmingham £165,000 4.0% 1 bed, 1 bath Acquired Dec 2017
Metropolitan House (1), Birmingham £135,000 3.9% 1 bed, 1 bath DD
The Riverside (3), Manchester £227,500 4.2% 3 bed, 2 bath DD

The market

With growing professional populations and sizeable student bodies, Birmingham, Leeds and Manchester are desirable places to live — meaning strong prospective growth in both rents and capital values.

 

Despite local variations in character, these cities make a natural group, with similar growth drivers and past investment performance. Across the first half of 2017 market conditions in Birmingham, Leeds and Manchester remained healthy, with average prices growing 6.1%, 4.8% and 4.7% (source: Hometrack) respectively in those 6 months, alongside returns from rental income.

Though our Regional Capitals fund allows an investor to benefit from diversified exposure, when selecting properties for the fund we pay close attention to how each market is performing, and their differences and the local rental dynamics and acquisition opportunities.

Manchester

Manchester is a rental-driven market, with two thirds of the city centre population renting their homes, and rents having increased 7% (Source: JLL) on average in 2016. New build activity is growing, in particular around the BBC’s Media City in Salford. Manchester is currently top of JLL Residential Research’s prospects for capital growth over the next five years.

Leeds

Occupancy rates for rented housing in Leeds are very high at almost 97%, and 80% of the city centre population is aged between 15 and 34. In recognition of Leeds’ advantages, major employers are moving in, with Sky and Google recently having set up offices in the Dock area. JLL forecast growth in rental income and capital values at 22.6% and 21.6% respectively from 2017-2021, suggesting attractive yields may persist in the medium term.

Birmingham

Birmingham is the top choice for people moving out of London according to ONS migration data, and is also one of the youngest cities in Europe, with under 25’s accounting for nearly 40% of the population. JLL forecasts house price growth of 21.7% between 2017-2021, complemented by a 17.6% forecast growth in rents.

Investors should note that projections and past performance are never a perfect predictor of future performance.

Our approach

The Bricklane.com Regional Capitals Fund invests in attractive homes across Leeds, Manchester and Birmingham. In order to deliver the best return for you as an investor, it targets properties that appeal to a wide range of tenants, and which exhibit strong rental and sales demand.

 

Specifically, we target properties which meet our yield, quality and historical performance criteria, within walking distance of the centre, typically priced between £120k and £400k.

Our approach combines quantitative, proprietary data analytics with in depth market knowledge and insight, all overseen by an advisory team with over 100 years combined experience in the property industry.

We believe that individually selected mainstream properties provide the best chance of outperformance in normal market conditions and of resilience during any periods of volatility.

Bricklane.com’s management team are all personally invested in each of the funds we operate. This means that our own money goes into each of the properties we buy - ensuring our incentives are aligned with all our customers.

A better deal for tenants

Once properties have been purchased we are focused on managing them effectively and efficiently. This is not simply about keeping properties occupied: we understand the importance of the tenants feeling at home, and believe that happy tenants generate the best returns for our investors. We have partnered with Touchstone, a leading property manager, to ensure that tenants get a great experience and that the costs deducted from rental income are kept to a minimum.

Performance

Bricklane.com investments earn returns through rental income, as well as property value changes. Properties are independently valued every month.

8.7%

First-year performance

(Sep ‘16 - Sep ‘17)

8.3%

Annualised performance to date since launch*

3.4%

Net rental income

*As of 14/12/17

Past performance and forecasts are not reliable indicators of future performance. Net yields represent an estimated 5-year average rental yield, net of property costs, fees and taxes. Actual yield performance may be higher or lower. Tax rules apply and may change in future.

Fund performance shown net of Bricklane.com’s annual management fee, but gross of transaction fee. Bricklane.com’s standard transaction fee is 2%.

Over the course of a three year investment, the standard transaction fee would have an annualised impact of c. -0.7%. The full transaction fee is charged investment - these figures are shown for illustrative purposes only. Impact would be lower for longer-term investments, and higher for shorter term ones.

Our advantage

Using sophisticated data analytics the team at Bricklane.com evaluates all properties coming onto the market in our target areas, every day.

We are able to rapidly filter hundreds of listings to identify what we believe to be the top fraction of eligible properties, before conducting detailed due-diligence to confirm valuation, quality and fit with our broader portfolio. Our ability to identify, assess and offer on attractive properties rapidly is central to producing superior and sustainable returns for our funds.

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All our properties are valued independently every month by Allsop LLP, a leading consultancy to the residential property industry, to give you the reassurance you that the performance of your investment is verified by industry experts.

Our strategy is shaped in conjunction with leading experts from the real estate industry, with over 100 years of experience and tens of billions of pounds worth of transactions under their belts. Learn more

About town

Leeds, Manchester, and Birmingham all share strong local economies, a vibrant cultural scene, and real sense of community and identity — making them attractive places to live, visit, or study in


How to invest

Register with us, and complete the sign up process (this takes about 5 minutes).

After signup, you can choose whether you want to invest in just London, just Regional Capitals, or split your investment equally.

You can make further investments in either City, or adjust your monthly contributions, whenever you like, from within your Bricklane.com Dashboard.

How to choose your city on Bricklane.com
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Valuations

The value of your investments is based on an independent valuation of the portfolio as a whole by Allsop LLP. Individual property valuations are estimates and given for informational purposes only.

Investment objective and policy information

The fund's investment objective and policy is stated in its Prospectus and is also outlined below.

Investment objective

The investment objective of the Company is to provide Shareholders with regular and sustainable long term dividends coupled with the potential for capital appreciation over the medium to long term.

Investment policy

The Company intends to meet its investment objective by purchasing and then letting, to the extent not already let, a portfolio of residential properties in key locations within UK cities (excluding London), where the Directors believe the income and value potential is greatest.

 

Consistent with its investment objective, it will aim to identify properties which are expected to achieve rental yields and long-term house price growth at an average or above average level for the region. In researching properties and the associated risk, the Investment Adviser will consider factors such as location, property type, demand indicators, and physical and environmental factors.

The Company will acquire both houses and flats, which will be both new build and existing properties. Where appropriate, discounts will be sought on purchases that mitigate or eliminate the transactional costs of investment or provide an element of additional performance.

The Company will maintain a let Investment Portfolio, but it will not aim to reflect the UK housing market at large, including geographic mix. The Company will specifically avoid exposure to prime property, London and rural areas. Attention will also be given to maintain appropriate diversification and a prudent spread of risk at all times.

Initially the Company intends to focus investment in Birmingham, Leeds and Manchester. However the Company reserves the right to invest elsewhere in opportunities that align with its investment objective.

Properties will generally be let on an assured shorthold tenancy (“AST”) basis. Where opportunities arise and fit with the Company’s investment objective, units may be let on a ‘part sale, part rent’ basis, or let to specialist operators for use as serviced apartments, or units obtained from residential developers on a sale and leaseback basis.

Properties subject to non-AST leases will be managed to ensure that the Company is not unduly exposed to counterparty or liquidity risk.

Capital at risk

The value of your investment can go down as well as up. If you want to sell shares, there is no guarantee that you will be able to find a buyer for your shares within a reasonable timeframe at a price that is acceptable to you. The REITs invest in residential property, which are not highly liquid assets. Rental yields and dividends may be lower than estimated.

Tax rules and allowances depend on individual circumstances and may change in the future. If you are unsure about whether investment is right for you, you should seek independent advice before investing, including tax advice.