A NEW ERA IN HOTEL LIVING

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Gladys Flynn
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1 A NEW ERA IN HOTEL LIVING 1

2 MENU Click on titles below to go to a section 1 8 MANAGEMENT 2 INVESTMENT 9 PURCHASE PROCESS 3 FINANCIAL ANALYSIS 10 LEGAL INFORMATION 4 WHY? 11 INVESTORS SERVICES 5 WHY INVEST IN AN APARTHOTEL? 12 FAQS 6 WHY INVEST IN AN APARTHOTEL IN GREAT YARMOUTH? 13 FLOORPLANS 7 LOCATION 14 CONTACT US 2

3 An aparthotel investment with full management that pays an 10% annual return for 10 years with an assured exit. Assured Returns 10% per year for 10 years Hands-Free Investment Fully managed hotel room investment Immediate Returns - Start Earning Today 5% per year on funds held during refurbishment Defined Exit Strategy 110% resale from year 5 or 120% buyback in year 10 High Demand A high demand locally for short and medium term guests Don t Miss Out Last few units, invest from 55,000 3

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INVESTMENT The ownership model for this investment is simple. Invest in a studio that rewards you with regular payments, directly to your bank account, each quarter.

5 INVESTMENT The ownership model for this investment is simple. Invest in a studio that rewards you with regular payments, directly to your bank account, each quarter. An assured return on investment of 10% per year for ten years. At year 5 you will have the option of an assisted resale, which will provide you with a 10% uplift on the purchase price paid, or you can continue to receive your regular income for a further 5 years. How A Resale Works The developer will assist you in selling your unit to a network of investors for 110% of its original value. If, in the unlikely event the unit remains unsold after 12 months, you will receive an extra 2% income. This means your annual income will rise from 10% to 12% (payable quarterly in arrears) until the unit is sold. This provides peace of mind the developer will continue to work on your behalf to achieve a sale. At year ten the investor or the developer can trigger the guaranteed buyback or negotiate a new five-year contract. How A Guaranteed Buyback Works Halfway through year nine the developer will ask investors if they want to extend for another five years or trigger the buyback. If the investor wishes to stay in after ten years, the developer will extend the agreement for a further five years and negotiate the terms at the time. If the investor wants to trigger the buyback option, the developer will ensure that the investor gets 120% of the price initially paid, on the tenth anniversary of the ownership. If the developer wants to trigger the buyback, the investor will also receive 120% of the price initially paid, on the tenth anniversary of the ownership. 5

6 FINANCIAL ANALYSIS Option 1 - Over 5 Years Initial Investment 55,000 Quarterly Income 1,375 Annual Return 5,500 Total 5-Year Income 27,500 Assisted Resale Uplift (10%) 4,999 Total Return 88,000 Option 2 - Over 10 Years Initial Investment 55,000 Quarterly Income 1,375 Annual Return 5,500 Total 10-Year Income 55,000 Buyback Uplift (20%) 11,000 Total Return 121,000 Cumulative Annual Returns 100,000 80,000 60,000 40,000 20,

Comparables We have tested the local market and found that a studio at The Midland Aparthotel would rent for a conservative estimate of 48 per night.

7 Comparables We have tested the local market and found that a studio at The Midland Aparthotel would rent for a conservative estimate of 48 per night. There is a shortage of good quality studio apartments in Great Yarmouth s locations within walking distance of the beach and town centre. How The Return On This Investment Is Calculated Cost Of Studio 55,000 Projected Gross Annual Return (at 70% occupancy) 12,264 Annual NET Return 10% 5,500 The Midland Aparthotel is projected to achieve a 70% occupancy rate in the first year and rise to 85% over three years. With room rates set from 48 per night the Midland Aparthotel only needs to achieve 31% occupancy per year to cover investors assured returns. 7

and decommissioning INVESTMENT 46 billion to be

and infrastructure with Great Yarmouth at the

seaside town in Norfolk with excellent quality of

upgrading roads in the East of England HIGH DEMAND

8 WHY GREAT YARMOUTH? INDUSTRY It s a hub for the North Sea oil industry and decommissioning INVESTMENT 46 billion to be spent on decommissioning North Sea oil platforms and infrastructure with Great Yarmouth at the forefront LOCATION Great Yarmouth is a famous UK seaside town in Norfolk with excellent quality of life INFRASTRUCTURE 2 billion to be spent on upgrading roads in the East of England HIGH DEMAND Average property prices in Great Yarmouth 173,000 creating demand for more flexible accommodation 8

125 Million To Be Spent On Great Yarmouth Industry Over 10 Years Great Yarmouth has been transformed in recent decades from a seaside town into a hub for the North Sea Oil industry and green energy.

9 125 Million To Be Spent On Great Yarmouth Industry Over 10 Years Great Yarmouth has been transformed in recent decades from a seaside town into a hub for the North Sea Oil industry and green energy. The town is set to develop further as it becomes an important centre for decommissioning activity in the North Sea. This sector alone is set to be worth more than 125 million in the next 10 years, according to the local council. Spending on North Sea decommissioning is already hitting record levels with 46 billion forecast to be spent up to 2040 and Great Yarmouth will be at the forefront of this activity. This will bring a significant boost to the local economy and attract many other businesses, both directly and indirectly, supplying the needs of a growing industry and local population. Great Yarmouth In The 21 st Century Major transport projects are already planned, including the upgrading of roads between Peterborough and Great Yarmouth. This will form a key part of the 2 billion set to be spent in upgrading roads in the East of England between 2015 and Property prices in Great Yarmouth average 173,000, which is close to the UK average house price of 185,000 (Source: Land Registry, September 2015). Contractors and temporary workers are unlikely to want or be able to invest in property, simply for the purpose of working in the town. The Midland Aparthotel provides the solution. Flexible accommodation at affordable prices for those living and working in Great Yarmouth. Ideal for guests staying only breifly or living in the town on a temporary basis. We are making the biggest investment in roads in a generation. The 2 billion investment in the East of England between 2015 and 2021 will significantly improve journeys and help create jobs. - Andrew Jones - Roads Minister

10 WHY INVEST IN AN APARTHOTEL? Unlike traditional hotels, aparthotels give guests the option of staying longer in serviced apartments. While the UK hotel industry as a whole is seeing significant growth, the relatively new aparthotel market is still in its infancy in the UK but growing fast. (Source: Savills) Demand for this type of accommodation is already seeing returns higher than for traditional hotels. According to a recent report from respected real estate firm Savills, there is little sign of growth slowing down in the aparthotel market; the market is currently rising at 5.5% per year higher than hotels and almost double the operating profits made by hotels. Aparthotels are currently big business in America, where the concept has been very successful. New York, for example, has 5.2 aparthotel units per 1,000 business visitors, compared to just 1.2 in London. There is likely to be significant demand for aparthotels which offer a cheaper alternative to renting property short term from private landlords in areas of high population and employment growth. Aparthotels offer the flexibility of shortterm accommodation as well as providing an affordable place to stay. 5.5% RISE IN UK APARTHOTEL MARKET

11 WHY INVEST IN AN APARTHOTEL IN? One of the major benefits of living in an aparthotel is flexibility. Demand for property is high in Great Yarmouth, particularly for studio and one-bedroom apartments required by young professionals and contractors. With the number of offshore workers and contractors living in the area set to rise significantly in the coming years, as a result of decommissioning of North Sea oil facilities, aparthotels offer a more flexible alternative to renting in the private sector. Unlike a typical buy-to-let property, this investment will be fully managed and carries zero ownership fees so theres are no running costs for you to pay. The investment will be a straightforward purchase, with assured returns on your investment each month Living in an aparthotel means there are no hidden charges to pay. People staying in aparthotels are not subject to tenancy agreements and there is the added advantage of living as part of a community while enjoying your own space. 11

The location offers a pleasant setting from which to explore Great Yarmouth s shops, theatres

12 LOCATION The Midland Aparthotel is located just 50 metres from Great Yarmouth s famous Regent Road and its stunning ceiling of lights, and just 100 metres from the beach front. The location offers a pleasant setting from which to explore Great Yarmouth s shops, theatres and restaurants or maybe enjoy a cocktail or two before taking a stroll across the expansive beachfront. 12

MANAGEMENT The Midland Aparthotel room investment comes complete with full management. The hotel will continue to be managed by staff responsible for managing the existing hotel.

13 MANAGEMENT The Midland Aparthotel room investment comes complete with full management. The hotel will continue to be managed by staff responsible for managing the existing hotel. The current hotel manager will have been in the position for 10 years by 2016, earning several outstanding reviews for customer service in the process. This means that investors can benefit from continuity and the reassurance that having experienced managers will provide. We have just got back after staying at the Midland hotel and I must say that we had a pleasant stay; all the staff were really helpful and very pleasant. The food was really good and plenty of it!the hotel was near all the shops and the beach so not far to walk.i would certainly stay there again and would like to thank all the staff for a pleasant stay. Have just returned from a weekend at the Midland. Have to say the service we had from Paul and the team was superb, food was really good and always a choice and served well, great location for all the shops and nightlife; we would definitely return and wish them all the best for the future, was made to feel very welcome from the moment we arrived. Diane V - Norwich, United Kingdom Trip Advisor Alan B - Bedford, United Kingdom Trip Advisor 13

14 PURCHASE PROCESS The purchase process for a room at The Midland Aparthotel is simple and straightforward. 1. Reservation Deposit of 2, Balance On Completion (Within 28 Days Of Reservation) 14

15 INVESTOR SERVICES To help you complete your investment successfully, we recommend the use of a qualified legal professional experienced in dealing with hotel investment opportunities. The panel of solicitors below have reported on the title to the Development and are familiar with the transactional documents. This enables them to deal efficiently with investors enquiries and ensure that the transaction proceeds quickly and smoothly to exchange of contracts. Kingsley David Solicitors Limited Shelton House 4 High Street Woburn Sands Milton Keynes MK17 8SD United Kingdom Contact: Marc Lansdell LL.B, Soc.LC Tel: +44 (0) marclansdell@kingsleydavid.com Web: Maxwell Alves Solicitors 75 Farringdon Road London EC1M 3JY United Kingdom Contact: Daniel Cheung Tel: +44 (0) daniel.cheung@maxwellalves.com Web: PLEASE NOTE: It is not mandatory to use the listed panel of lawyers. Investors are free to use their own lawyers if they have experience in this sector. 15

16 LEGAL INFORMATION 1. On legal completion of the purchase the documents to be signed are: Purchase Agreement The Main Lease (125 years) Sub Lease (10 years) Call Option Put Option Pre-emption Agreement 2. The Main Lease is for 125 years and details the investor s legal ownership of their unit(s) which is registered at the UK Land Registry. 3. The Sub Lease is for a period of 10 years and provides the investor with an 10% net return per year on the purchase price in the form of rental income. 4. The Sub Lease provides the investor with a 110% resale from year 5. Which means the developer will assist the investor with the sale of the unit(s) to a network of other investors for 110% of its original value. If the unit remains unsold after 12 months, the developer will suffer a penalty, as such, the investor will receive an extra 2% in annual income until the unit(s) is sold. 5. The Put Option provides that, at 9 years and 6 months, the investor can serve notice on the developer to buy the unit(s) back for an amount equal to the original purchase plus an additional 20% capital uplift (120%). 6. The Call Option provides that, at 9 years and 6 months, the developer can serve notice on the investor to buy the unit(s) back for an amount equal to the original purchase plus an additional 20% capital uplift (120%). Note: The Put Option relates to the investor and the Call Option relates to the Developer. 7. The parties enter into a Pre-emption Agreement, which means that the developer has the first option (first refusal) over any sale of the unit(s) within the development % of the purchase price (less the deposit) is payable on completion of contracts. 16

17 FAQS Q. Is it a new build or a refurbished development? It is a refurbished development. Following a 300,000 restoration, the existing hotel will be renovated and reinvented as an aparthotel, consisting of 28 studio apartments furnished to a high standard. Q. What stage is the refurbishment at the moment and when will it be completed? The existing hotel will close in Q The refurbishment is set to start in Q and is due to be complete in the Q2 of Q. What happens if there is a delay? Investors will continue getting the 5% return on their money until the development is complete. The developer will issue regular updates with photos to show how they are progressing. Q. Is the reservation deposit refundable? The reservation deposit is non-refundable. Q. What happens if my apartment is empty? You will continue to receive your 10% annual return, regardless of whether the room is occupied or empty. Q. When will I be paid my returns? You will be paid quarterly in arrears. Q. What is 110% resale from year 5 and how does it work? The developer will assist you in selling your unit to a network of investors for 110% of its original value. If, in the unlikely event the unit remains unsold after 12 months, you will receive an extra 2% income. This means your annual income will rise from 10% to 12% (payable quarterly in arrears) until the unit is sold. This provides peace of mind the developer will continue to work on your behalf to achieve a sale. Q. What is the 120% guaranteed buyback in year 10 and how does it work? Halfway through year nine the developer will ask investors if they want to extend for another five years or trigger the buyback. If the investor wishes to stay in after ten years, the developer will extend the agreement for a further five years and negotiate terms at the time. If the investor wants to trigger the buyback option, the developer will ensure that investor gets 120% of the price initially paid, on the tenth anniversary of the ownership. 17

18 Q. Am I investing in a Freehold or Leasehold? Q. Are the rooms furnished? You will be investing in a leasehold property with a 125-year lease. Your legal ownership of the unit(s) will be registered at the UK Land Registry. Q. Is my purchase handled by a solicitor? To help you complete your investment successfully, we recommend the use of a qualified legal professional who is experienced in dealing with hotel investment opportunities. We can introduce you to law firms which can assist you with your investment. Alternatively, you can choose your own solicitor. Q. Who will be managing The Midland Aparthotel? The aparthotel will continue to be managed by staff responsible for managing the existing hotel. Q. Can I manage the apartment myself? No, because these are not typical residential apartments, but an aparthotel. Q. How do I reserve a unit? Yes, every apartment comes fully furnished. Q. Who is responsible for maintaining and repairing my unit? All maintenance and repairs will be will be the responsibility of the management company. Q. Who pays the utility bills? Neither the investor not the tenant is responsible for paying utility bills; all expenses are covered by the management company. Q. Can I live in the apartment myself? No. Q. Are there any parking facilities at The Midland Aparthotel? 8 parking spaces, chargeable on a first-come, first-served basis. There are plenty of other parking options in the nearby area as well. The purchase process for a room at the Midland Aparthotel is simple and straightforward. All you need to pay is a reservation deposit of 2,000. The balance is payable on completion, within 28 days of reservation. 18

19 GROUND FLOOR Below, you will find detailed floor plans showing how The Midland Aparthotel will be modernised and transformed into an aparthotel. 19

20 GROUND FLOOR 20

21 FIRST FLOOR 21

22 FIRST FLOOR 22

23 SECOND FLOOR 23

24 SECOND FLOOR 24

25 CONTACT US 25

26 DISCLAIMER Details enclosed in this brochure are correct at time of publishing and are subject to change. Details herein do not form part of any contract. Images depicting properties, artists impressions or computer generated images are enclosed for reference only, and do not form part of any contract. Images are copyright of their respective owners. We recommend all buyers seek their own legal and tax advice prior to making any purchase. 26

A Guide To Student Property Investments (0)

A Guide To Student Property Investments + 44 (0) 1708 922 222 info@sterlingwoodrow.co.uk www.sterlingwoodrow.com 1 Contents 3 Introduction 4 Facts & Figures 6 The Returns 8 Locations and Properties 10