Law firm advising young property entrepreneur on buy-and-build portfolio
The real estate team at Pannone Corporate is helping a young entrepreneur who bought his first property as a teenager build a multimillion-pound portfolio.
Jonathan Fogerty, 25, co-founder of Manchester-based City United Properties along with his business partner Louis Alexander, 18months ago.
The Pannone Corporate team, led by associate partner Gareth Birch, has advised on the acquisitions and refinancing arrangements on the portfolio which now has 20 residential properties worth almost £2m.
City United Properties plans to double this in the next 12 months.
Jonathan said after leaving school he developed an interest in property from a young age. He saved up for a deposit and, at only 19, bought a two-bedroom house in North Manchester.
After renovating the property and achieving a 30% uplift in its value, Jonathan re-mortgaged and invested in further properties.
Armed with a small portfolio, Jonathan decided to quit his job and focus on his property business full time. He teamed-up up with Louis Alexander, founder of Social Money, to form City United Properties.
The company focuses its model around purchasing distressed properties, renovating them to a high specification, then rent them out.
Its portfolio includes two-, three- and four-bedroom houses in Greater Manchester, West Yorkshire and Lancashire, averaging yields of 12% and above.
Jonathan said: “Our business model is fairly simple. All properties are bought for cash and below market value, once refurbished we refinance the properties taking out 75% of the value and use the proceeds to buy more.
“We have two teams of building contractors who work for us full time and all of our properties are renovated to a high spec with quality fixtures and fittings. At any one time we have offers out on around 10 properties and in the next 12 months we hope to double the size of our portfolio.”
Jonathan added that the company is also mulling a move into investing in properties of ‘multiple occupancy’ including student accommodation.
“There is a lot of uncertainty around at present and to a degree our plans will be dictated by the market. That said, our business model is very robust, and we are well-placed to capitalise on any opportunities that may arise to further develop our portfolio.”
Rosie Korcz, a solicitor on the team working with Jonathan on a day-to-day basis, said: “The team at City United Properties are very entrepreneurial and have ambitious expansion plans for the company. At only 25, Jonathan has built up an impressive portfolio, and we are very excited to be working with him and the team to further develop the business.”
Jonathan added: “The team at Pannone are a crucial cog in the machine for City United Properties, they handle all our purchases and refinancing in a professional and swift, yet no-nonsense way.”
