Brick by Brick: Highcliffe, Dorset

A look back at a completed project in Highcliffe, Dorset.

Traditionally, our aim has always been to finance high quality family housing in sought after regional locations. However, we do in special circumstances invest into apartment schemes, particularly where the location and demand for the product is unquestionable. A perfect example of this is showcased through our 13-unit apartment scheme with sea views in Highcliffe, Dorset. This was funded by BRIP 3 in partnership with established developer Hurst & Hurst Estates, which completed  March 2023. 

The Location.

Highcliffe is a small coastal town, on the picturesque Solent coastline with exceptional views of the Isle of Wight and the iconic Needles. The New Forest National Park is four miles north, Christchurch is 4 miles to the west and Bournemouth is 10 miles further beyond that.  

Highcliffe is the most easterly parish in Dorset and sits within the jurisdiction of Bournemouth, Christchurch, and Poole (BCP) Council. Highcliffe predominantly consists of recently constructed housing with a high street that runs parallel to the sea. Highcliffe itself is known primarily for the 1830’s Grade I listed castle, Highcliffe Castle. 

The Site.

The land of 0.24-acres (0.97 hectare) was occupied by two detached dwellings running parallel to Highcliffe cliffs to the south.   

The site has uninterrupted sea views and overlooks Highcliffe Beach, separated only by public open space and sand dunes. The beach itself is a two-minute walk away and has direct access via a gently sloping path. Due to its unique position, future development is not possible in front of this scheme which adds to its appeal. 

The Specification.

A total of 13 apartments were constructed across two blocks. This comprised 12 two-bedroom units and 1 three-bedroom penthouse, along with 15 unallocated parking spaces with electric vehicle charging points.   

The units were built in a contemporary style with glass elevations to the south, emphasising the sea views. All units benefitted from open plan living and kitchen areas opening out to large balconies and all had spacious double bedrooms, with the master bedrooms being en-suite.   

The homes were completed to a high specification throughout featuring marble entrance hallways, contemporary kitchens, high-end appliances, granite worktops and Herringbone style hardwood flooring with underfloor heating. . 

All units came with a 10-year new build warranty and a final Energy Efficiency Rating of ‘B’ was achieved for the properties. BRIP now targets a minimum EPC rating of ‘A’ on all future projects where possible.

The Build.

The site was acquired in March 2021 with the build programme starting within the same month. Despite navigating through the challenging Covid-19 pandemic, the project reached practical completion by January 2023 opposed to the forecasted July 2022, albeit the build was still completed on budget to a very high standard.  

The Sales.

Before the build had commenced, the developer received very high levels of enquiries from potential buyers.  When the apartments were released to the market in July 2021 nine of the 13 apartments were reserved immediately. By practical completion, 12 of the apartments had sold with last remaining unit sold just one month later. Overall, sales values achieved were circa 9% above the forecast budget. 

The Returns.

This project exceeded expectations for both Hurst & Hurst Estates and BRIP 3 investors. The project delivered a 1.55x equity multiple to investors in 24 months against the budgeted forecast of 1.37x equity multiple in 30 months. These returns are net of all fees and costs.  

This is underpinned by the site’s exceptional location and high specification, backed by a well-established local developer. For these reasons, BRIP will continue to finance projects and partnerships alike - the right product in the right place with the right developer. 

Barwood Residential Investment Platform (BRIP) is only suitable for Professional Investors or Retail Investors who qualify as one of the following: Elective Professionals, Certified High Net Worth Investors, Certified Sophisticated Investors or Self-Certified Sophisticated Investors.  Where past performance and historic data are quoted in this document, these should not be taken as a reliable indication of future results or performance. Investors should be aware that, should they decide to invest in the Barwood Residential Investment Platform, their capital is at risk and they may therefore lost some or all of the amount invested.