Royal Arsenal Hotel, London - pommierinvestments.co.ukProperties\Brochures... · in the global...
Transcript of Royal Arsenal Hotel, London - pommierinvestments.co.ukProperties\Brochures... · in the global...
Prestigious Riverside Hotel InvestmentRoyal Arsenal Hotel, London
20% Below
Market Valuation
With Returns of
Over 20%
• Only£95,000• 20% lessthanCurrentValuationof£120,000• Only£40,000 Investment• 58% Non-StatusFinance• ReturnonInvestmentofupto20%
RoyalArsenalHotelformspartofRoyalArsenalRiversidedevelopment.LocatedinSouthEastLondonandoccupyingaprimepositionalongsidetheRiverThames.Thedevelopment,carriedoutbytheacclaimedBerkeleygroupisamixofresidential,commercialandleisurewhichbringsnewregenerationtoanalreadypopulararea.
Havingalreadywonmanyawardsandwithalargeproportionoftheschemecompleted,the76acresiteisoneofthemostexcitingdevelopmentsintheUKatthemoment.
Designedtocreateacompletecommunity,RoyalArsenalRiversidefusesmodernarchitecturewithGradeIandIIlistedbuildingstocontinuetheextensiveheritageofthesite.
1,700homeshavealreadybeensoldatRoyalArsenalRiversideandafurther3,700residentialunitsareplanned.ThelateststageoftheresidentialdevelopmentisWarehouseNo.1Street,asympatheticwarehouseconversion.
Royal Arsenal Riverside amenities in general will include;
• Greenopenspaces• Residents’gym• Young’spubanddining• SoontoopenTescoExpress• ThamesClipperonsitepier• Only300metrestoovergroundandDLRstations• 24hourconcierge• Museumwithcaféandbistro• Riversidewalks• ProposedforthcomingCrossrailstation• Streetcarcarshareclub• Children’splayarea• Healthandwellbeingstudio
Royal Arsenal Riverside
LocationWoolwichSouth East London SE18
WatfordEn�eld
Islington
Greenwich
Dartford
CroydonWoolwich ArsenalStation
Romford
Woolwich
Transport Links
By DLRTransportconnectionshavebeenfurtherenhancedsincethecompletionoftheWoolwichArsenalDLRextensionin2009,whichservesLondonCityAirport,CanaryWharfandBank.
By CrossrailRoyalArsenalwillbecomeoneofthekeystationsonLondon’svisionarynewCrossrailschemewhichshouldbefullyoperationalin2017andwilllinkMaidenheadinthewestwithShenfieldandAbbeyWoodintheeast.Usingthenewservice,journeysfromWoolwichtotheIsleofDogswilltakearoundeightminutes,whileHeathrowwillbelessthanonehouraway.
By RoadTheA206PlumsteadRoadrunsadjacenttoRoyalArsenalgivingdirectlinksviatheBlackwallTunnelnorthoftheThamesandtoCentralLondon.TheA205/208runssouthfromWoolwichprovidingaccesstotheA2andtheM25.
By RiverTheeastwardextensionoftheRiverlinecommuterserviceoperatestheThamesClippersfastferryservicefromRoyalArsenalPiertotheO2andCanaryWharfwithin23minutes.
• WoolwichislocatedintheboroughofGreenwich,South EastLondon.
• Woolwichisfamousforitshistoricalstanding,hometo theRoyalArtilleryandTheRoyalArsenal.TheRoyal Artillerymuseumdocumentswhichnowstandsin placeoftheArtillery,documentsover700yearsofhistory attractingthousandsofvisitorseveryyear.
• In2004amajorredevelopmentoftheRoyalArsenalsite revivedthelocalareaandstimulatedagrowthinthe localeconomyfollowingaprolongedstateofdeclinedue toseveralmajoremployersclosingdownfactories, includingtheRoyalArtilleryin1994.TheRoyalArsenal masterplanwillpromotethelocaleconomyevenfurther.
• TheRoyalArsenalsiteislessthan10milesfromCentral London,6.5milesfromCanaryWharfand2.5milesfrom LondonCityAirport.
• Designedtocreateacompletecommunity,RoyalArsenal RiversidefusesmodernarchitecturewithGradeIandII listedbuildingstocontinuetheextensiveheritageofthe site.
TheRoyalArsenalsiteisa76-acremixed-usedevelopmentinWoolwichintheSouthEastofLondon.Thedevelopment,beingdeliveredbyBerkeleyHomes,ismainlyresidential-led,with3,700residentialunitsplanned.Alsoproposed,are8,500squaremetresofofficedevelopments,5,200squaremetersofretail,3,600squaremetersofrestaurant,cafesandbars,aswellasleisurefacilitiesandopenspaces.Asof2011,1,700homeshavealreadybeencompleted,alongwithapub,museumandcafé.
RoyalArsenal,Woolwichisahighquality,residential-ledmixed-useurbandevelopmentmaximisingthepotentialofitsprominentcitylocationadjacenttotheRiverThames.MasterplannedbyrenownedarchitectsAllies&Morrison,thenewprojectblendsRoyalArsenal’sstunninghistoricarchitecturewithcontemporarystyletocreateasustainablevibrantnewcommunity.
Buoyedbyagrowinganddynamicinfrastructurecombinedwithexcellentintegratedtransportlinks,theriverfrontregenerationofthishistoricallandmarksitewillbethehubofawholenewLondonneighbourhood.
ThisexcitingschemeisacompleterevitalisationofaquarterofamileoftheRiverThamesandishometo4,500.Theextensivecommercialspace,supportedbyarangeofamenitiesincludingrestaurants,barsandleisurefacilities,willprovidetheperfectenvironmentforathrivingnewquarterwithinWoolwich.
The OpportunityThe Development
Thehotelopportunityformsanintegralpartofthisexcitingnewmixed-useschemeandwillbesurroundedbyavarietyofusesincludingrestaurants,barsandretailwhichwillformthelivelycentreofthisdevelopment.ThehotelwillbeideallysituatedontheA206benefitingfromsuperiortransportlinks,inparticulartheintegratedtransporthubservedbytheforthcomingCrossrailstation,whichwillprovideoutstandingaccessibilityforhotelguests.
Theproposed6,000sqmhotelhasthepotentialtoprovidearangeofamenitiesincludingfoodandbeverage,conference,meetingandleisurefacilitiescoupledwithon-sitecarparking.Thehotelplotwillaccommodateamid-markethotel.
Royal Arsenal HotelRoyal Arsenal Riverside
Londonhasbeenrankedthirdinaglobalhoteloccupancyleaguetablefor2010behindSydneyandSeoul.
TheUKcapitalachievedanoccupancyrateof82.1%,justaheadofHongKongandNewYork,areportbyDeloittehasrevealed.
ThecityreportedthehighestoccupancyinEuropeandmoveduptwoplacesintherankingsinthepastyear,postingrevenueperavailableroom(revpar)growthof11.7%inlocalcurrencytoyearendat£104.
HotelsinEuropestoletheshowinthetop20globalhotelperformancerankingsfor2010,accordingtotheanalysisbythebusinessadvisoryfirm.
Basedonthethreekeyperformanceindicatorsofoccupancy,ADRandrevpar,Europeancitiestook25outofapossible60places.
Deloitte’stourism,hospitalityandleisureglobalmanagingdirectorAlexKyriakidissaid:“AgainstabackgroundofasluggisheconomicrecoveryandausteritymeasuresintroducedacrossEurope,hotelperformancerecoveredrelativelywellduring2010,withrevparupjustshortof10%to€63.
London Hotels
RedefineInternationalHotelshasboughtfiveHolidayInnhotelsinLondonfor£103m
Thehotels,withatotalof616rooms,willbeoperatedbyRedefineInternationalHotelswhichhasHelderPereira,formerSouthernSunGroupMD,aschiefexecutive.
Commentingontheacquisition,PereirasaidtheLondonhotelmarketwasuniquecomparedwiththatintherestofEngland.
“LondonattractedthelargestnumberoftouristsinEurope.TheaveragehoteloccupancyrateinLondonoverthepastfiveyearshasconsistentlybeenabove80%.”
“Itisdifficulttogetapprovalfornewhotels.Banksarehesitanttofinancethem,whichisgoodnewsforexistinghotels.Theadvantageoftheseacquisitionsisthattheseenterpriseshavewell-establishedcashflows,andthepricesofhotelroomsarebasedondemandandsupply-theperfecteconomicmodel.”
ThehotelsaretheRoyalDocksHolidayInnExpress,theLimehouseHolidayInnExpress,theSouthwarkHolidayInnExpress,theParkRoyalHolidayInnExpressandtheBrentfordLockHolidayInn.
Theportfolio’saveragehistoricoccupancyrateisover88%,andthatofthefour-starBrentfordLockhotelwithits134roomsiscurrentlyabove85%.
http://www.redefinehotels.com/news/redefine-international-hotels-has-bought-five-holiday-inn-hotels-in-london-for-103-m/
Savills Report
“Althoughthisisstillsome€11belowtherevparachievedin2007,thisisgoodnewsfortheindustryandasreportedintheglobalrankings,thereweresomestarperformersinEurope.”
Kyriakidisadded:“Revpargrowthgainedmomentuminthecapitalduring2010andtheresultsweregooddespitethecurrenteconomicuncertaintyfacingtheUKeconomy.
“2011mayprovetobemorechallenging,however,asthecitystartstoseenewhotelsupplycomeonboardintherunuptothe2012LondonOlympicGames.”
MarvinRust,Deloitte’shospitalitymanagingpartner,said:“ThefutureforhotelsinEuropeoverthecomingyearremainsuncertainasanumberofcountriescontinueontheslowroadtorecoveryintermsofeconomicgrowth.
“Despitethis,therearemorethan124,000roomsacrossEuropecurrentlyinthepipelineaccordingtoSTRGlobal,andasLondongearsupforthe2012OlympicGamesitisnosurprisethatthecityhasthelargestnumberofroomsinthe‘construction’phase,withover6,000roomsinthepipeline.”
http://www.travelweekly.co.uk/Articles/2011/03/10/36435/london-ranked-third-for-hotel-occupancy.html
http://www.bpf.org.uk/en/files/reita/reita_org_documents/analysis/Savills_-_Hotel_Investment_Survey_February_2011.pdf
London ranked third for hotel occupancy
2011 forecast to see growth in overseas visitor numbers
• Overseasvisitornumbersfell1.9%in2010,however, therateofdeclineslowed.Forexample,Europeanvisitor numbersweredown1.1%asopposedtothe6.7% declinereportedthepreviousyear.
• IncontrastUSvisitornumberssawanotherdramatic declineof8.2%followingthe6.4%dropreportedin2009.
• Improvingglobaleconomicconditions,andthepositive touristboosttheRoyalWeddingisexpectedtohave, couldresultina4%increaseinvisitornumbersthisyear. TheLondonOlympicsin2012willseeanothergrowthin visitors,forecasttobeintheregionof7%.
• HolidayInnExpressRoyalArsenalwilloffer130rooms, arrangedover6floors.Thegroundfloorwilloffera restaurant,barandreceptionareas.
• Floors2to5providesforthemajorityofthehotel accommodation.Thestandardroomswillbedouble roomswithwetbar,workstation,stateoftheart multimediaandluxurybathroomsuites.
• ThehotelwillbemanagedandoperatedbyBDL MANAGEMENT,asaHolidayInnExpress.
• HolidayInnExpressisoneoftheworld’smostrecognised hotelbrandswithaglobalreputationforservice,comfort andvalue.ItisEurope’sfastestgrowingbrand.
• HolidayInnExpressisamidtierbrand,developed innewattractiveandefficientformat,andpartofthe InterContinentalHotelsGroup(IHG).HolidayInnExpress istheworld’slargesthotelbrandwithover1,700 worldwide.HolidayInnExpressfocusesonbusinessand leisuretravellersofferingdependability,friendlyservice andmodernattractivefacilitiesatexcellentvaluein convenientlocations.
• Thehotelwillbeoperatedundera20yearfranchise contractwithIHG.
• TheCompanyisseekingexpressionsofinterest, toparticipateintheproject,fromanycompetentand experiencedparty/partiesonthebasisofasyndicated investmentbasis.
Project Overview
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700
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4255
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adjoining room
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700
adjoining room
4255
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accessible room
825 e�ective clear opening
adjoining room
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825 e�ective clear opening
2650
2400
accessible room
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Floor Plan
AvailableUniteTypeA
Above:RoyalArsenalMasterplanwithRoyalArsenalHotelhighlightedinRed
AvailableUniteTypeB
TypicalFloorPlan
Site Plan
Key FinancialsKey Financials
Investment Example & Potential ReturnsRoyal Arsenal Hotel
The InvestmentRoyal Arsenal Hotel
2013 2014 2015 2016 2017
Adjusted Net Operating Income £985,553 £1,046,265 £1,176,477 £1,238,109 £1,284,566
Less Ground Rent £1000 per unit 130,000 130,000 130,000 130,000 130,000
Net Operating Income £855,553 £916,265 £1,046,477 £1,108,109 £1,154,566
Per Room Revenue
Standard Room £6,581 £7,048 £8,050 £8,524 £8,881
Yield 6.93% 7.42% 8.47% 8.97% 9.35%
ROI(excapitalappreciation) 16.45% 17.62% 20.12% 21.31% 22.20%
Double Room with En-suite £95,000 Valued at £120,000
Cash Investment £40,000
Balance NON-STATUS Finance £55,000
Interestat2.5%aboveBOEbaserate
over20years
Investment % Date
£40,000 42% 2011
Mortgage 58% 2013 (starts on completion)
• Depositof£40,000insuredwhile constructionunderway
• NetYieldstartingat12%andrisingto 18%inyearfive
• VATpaidbythedevelopersaving£19,000
• Financeinterestsetatonly2.5%above BankofEnglandbaserate
• Financeovera20yearterm
Purchase ProcessPurchase Process4 Simple Steps In Detail
Onceyourunithasbeenselected,youwillneedtocompleteareservationform,attachacopyofyourpassportandsendthesetotheappropriatesalesrepresentative.Onceyouhavedonethisyouwillneedtoarrangepaymentofthe£5,000deposit.
Onceyouhavepaidyourdepositthedeveloperslawyerswillsendyourchosenlawyeracontractpack,toenablethemtoraiseenquiriesaboutthedevelopmentonyourbehalf.
Thefirstinstalmentof£35,000willbemadeonexchangeofcontractswhichwilltakeplace4weeksfollowingtheissueofthecontractpacktoyourconveyancer.Atthisstageyouwillberequiredtosignandreturnyourcontracts.Ifyouareoverseas,alternativearrangementscanbemadebyappointingyoursolicitortoactasyourPowerofAttorney.
AfteryouhaveexchangedcontractsyouwillreceiveawelcomeletterfromtheDeveloperwhichwillexplainthefutureservicestheywillprovideandincludeallcontractdetails.
Yourfinalinstalmentof£55,000iscompletedthroughnon-statusfinancedueonthecompletionofthebuildingworksandagainyourconveyancerwillbegivennoticeofthis.
2 SolicitorInstructedLegalsandSalesPack
3 ExchangeofContractswithin28days,Paymentof£35,000
4 CompletionofBuilding,Q12013CommenceNon-Statusfinance
forthebalanceof£55,000
1 ReservationForm&Depositof£5,000
ScottFowleristhechosensolicitorsforthisprojectandprovidesacompleteall-roundlegalservicewithastrongfocusonclientsatisfaction.
ScottFowlerwasfoundedin1968andhasgrownsignificantlyoverthelastfewdecades.WithofficesinNorthamptonandCanaryWharf,ScottFowlerpridesitselfonprovidinganefficient,energeticandfriendlyservicetoeveryonewhousesourfirm.
Overthepast30yearsMoneyCorphavedevelopedfromabureaudechangeoperatortoaleadingproviderofforeignexchange,globalremittanceandfinancialriskmanagementsolutions.
Itscontinuedgrowthisduetoacommitmenttoprovidingtailoredandhighlycost-effectivesolutionstoallofitscustomersandthatiswhythousandsofbusinessesentrustustohelpthem.
FAQ
Is the hotel built?Thehotelconstructionstartsattheendof2011andwillbereadyQ12013
Am I buying freehold or leasehold?Leaseholdon125yearlease
Is there any restriction if I want to sell?No,youarefreetosellatanytime,thenewownercanchosetotakeoverthenon-statusfinance
Who operates the hotel?ThehotelismanagedandoperatedasBDLmanagementasHolidayInnExpress.Thehotelwillbeoperatedundera20yearfranchisecontract
How many rooms are there in the hotel?Thereare130roomsover6floors.Therewillalsobearestaurant,bar,conferenceroomsandreceptionarea.
Is the price fully inclusive of furniture?Yes,theroomsarefurnished.
Can I purchase this with my SIPP?YesyoucanpurchasewithyourSIPP
Can I purchase in a company name?Yesyouarefreetopurchaseinacompanyname
How will I receive my returns?Thefirstreturnsyouwillreceivewillbe6monthsafteropening,thenyoureceiveyourshareoftheNETprofitbiannually
Is my deposit protected?Your£40,000depositisprotectedbyaninsurancepolicywhilethehotelincontracted
Do I need to be approved for �nance?Nothefinanceisnon-status,availableforanypurchaserinanycountry
Is there a interest rate on the �nance?Theinterestrateissetat2.5%aboveBankofEnglandbaserateforthefulltermof20years
Do I need a solicitor to purchase?Yes,werecommendScottFowlertoactonyourbehalfinthispurchase,theyhavemuchexperienceinthistypeoftransaction
Do I pay VAT on the purchase?No,thedeveloperhasagreedtopayforeachpurchaser,saving£19,000