Park First Investment Options

Transcription

1 Park First Investment Options

2 Welcome to the Lifetime Leaseback Park First s objective is to ensure that its investors receive the best possible returns. Under the Lifetime Leaseback, Park First wants to offer you both the opportunity to enter into a Lifetime Lease for your car parking space(s) and to become a shareholder in a Park First business. The Lifetime Lease will mean that Park First will lease back your car parking space(s) for a period of 175 years. In recognition of the long term relationship created by the Lifetime Lease, Park First also wants investors to share in the success of its airport parking rental business. For this reason, investors who take up the Lifetime Lease will be granted shares in the Park First Management Company that will manage the airport car park where your lease is located and receive all rental income generated from it. Profits made by the Management Company will be available to be distributed to investors in their capacity as shareholders of the company paid as an annual dividend. Future returns paid to investors who take the Lifetime Leaseback will come from two separate income streams: A fixed annual yield of 2% produced from the Lifetime Lease. A variable annual dividend paid to Investor Shareholders from the profits of the Management Company. Park First believes that this is a very attractive offer producing two income streams per annum, which removes any uncertainty around the future use and management of your car parking space(s). The Management Company will take responsibility for all other service charge costings, which you would have otherwise had to pay under the old investment structure. Investors will still be liable for ground rent annual payments, but the amount of these payments will be fixed for the duration of the new lease. Your investment under the new Lifetime Lease is still fully transferable to your family and heirs and you can also resell your property at any time you choose with the benefit of the new Lifetime Lease still in place. 1

3 Key terms of the Lifetime Leaseback Under the Lifetime Lease, Park First will leaseback your car parking space(s) for the full period of your investment. This will involve replacing your original short term sub-lease with a new long-term Lifetime Leaseback from Park First for the remaining term of your investment. Your investment will be fully transferable to your family and heirs. You can also resell your property at any time you choose with the benefit of the new Lifetime Lease still in place. The Lifetime Lease means that you will not need to take any action to manage the use of your car parking space(s). You will simply receive a fixed rental income and Park First will take care of all other matters. If your original sub-lease has not expired, Park First will match its existing commitments to you for the payment of rent so that entering into the Lifetime Lease will not make any changes in this respect. If you would like to take up this offer please contact us at customerservices@parkfirst.com or call us directly on +44 (0) If we do not hear from you we will follow up with you shortly. THE KEY TERMS OF THE LIFETIME LEASE ARE: Park First will lease back (rent) your car parking space for the remaining term of your investment (a total of 175 years). The Lifetime Lease will replace your current short term sub-lease back. You can still keep the fixed rental income promised to you under your short term leaseback and benefit from further fixed returns produced by the lifetime leaseback. Park First will pay you a fixed annual yield of 2% under the new Lifetime Leaseback of your purchase price paid. In the initial period, the rent payable will match the commitment that Park First has to you under your existing sub-lease, if it is still in place, for the payment of guaranteed rent. For example, if Park First is committed under your existing lease to pay you rent of 8% or 10% per annum for another year, the new lease will match this commitment. Park First cannot break the Lifetime Leaseback and is committed to renting back your parking space for a total of 175 years. The period of the new lease back will depend on how long you have held your investment - for example, if you have already held your investment for 2 years, Park First s Lifetime Leaseback will continue for a further 173 years. The original buy back option within year 5 of your parking space ownership will remain in place if you move into the new Lifetime Leaseback. The new Lifetime Leaseback will be registered at the UK Land Registry or Registers of Scotland (ROS), giving you comfort and security. A variable annual dividend paid to Investor Shareholders from the profits of the Management Company. Park First - Lifetime Leaseback

4 Becoming a Park First shareholder In recognition of the long term relationship under the Lifetime Lease, Park First wants investors to share in Park First s business success through becoming shareholders in the management company that will operate the airport car park where your investment is located. For car parks in Gatwick, this will be Park First Gatwick Rentals Ltd and for car parks in Glasgow it will be Park First Glasgow Rentals Ltd. As a shareholder you will be entitled to share in any profits through annual dividend payments that the management companies make. There will be no cost to you for this. All investors who take up the Lifetime Lease will automatically be granted the shares without the need to take any action. The shares will entitle holders to receive dividends if they are declared by the directors of the company. The shares will be non-transferable, and will not entitle the holder to vote in general meetings or on resolutions of the company. If you wish to sell on your parking space, you will have to return your share to the company, which will issue a new share to the purchaser of the space (which will be subject to the same terms). All profits made by the management companies from the rental of the car parking spaces will be available for distribution as dividends to the investor shareholders. The costs of the management companies will include maintenance, security, the provision of on-site services such as buses etc, and the costs of sales such as commission payable to the sales agent marketing the spaces to end-users. Professional fees, VAT and business rates will also be paid by the management company where applicable. Another Park First company will be appointed as the exclusive sales agent, and will charge up to 15% of the rental price in commission. Each car parking space that an investor owns entitles them to one company share ownership in the management company that operates the airport car park in which the parking space is owned. OTHER BENEFITS Investor Shareholders will also be entitled to special preferential treatment in relation to Park First investment opportunities, for example Early investment release options and information to enable investor shareholders to choose and reserve parking spaces 30 days before they are released on sale to the general public. Discounts on selected new airport parking investments across the UK. Personal invitations to Park First shareholder VIP events across the world. The major investments that Park First has made in updating and improving the car park sites, the forecasted growth in air travel and the fact that it is unlikely because of planning restrictions that any new car parks will be built at its sites all mean that your investment is likely to perform strongly. Park First cannot of course provide any guarantees about these future matters. 3

5 The investment structure THE INVESTOR THE AIRPORT CAR PARK A B A A B B A B D C D % D C C D C THE INVESTMENT RETURNS THE MANAGEMENT COMPANY Park First - Lifetime Leaseback

6 How it works A. THE INVESTOR Investors from around the world understand the need for airport parking and enjoy investing in this lucrative commercial property. B. THE AIRPORT CAR PARK An investor purchases a car parking space serving a major UK airport and receives full property ownership confirmed with a title deed registered at the UK Land Registry or Registers of Scotland (ROS) in their name. C. THE MANAGEMENT COMPANY The airport parking management company is responsible for all operational aspects of the car park including collecting the rental income produced from end users. All sales and marketing of the airport car park is also an integral part of the management company s services. D. THE INVESTMENT RETURNS FIXED RETURN INCOME STREAM 1 All airport parking spaces benefit from a Lifetime Leaseback in place from the management company on completion, this generates a fixed return of 2% per annum. VARIABLE RETURN INCOME STREAM 2 Investors also receive a shareholding in the management company which entitles them to receive their share of any profits produced by the company through operating the airport car park. This income is paid as a dividend and varies depending on the company s performance. 5

7 Lifetime Leaseback examples EXAMPLE 1 Investor still under sub-lease contract. An investor is 18 months into his short term lease back (the original sub-lease). There are therefore 6 months left to run before the lease could be broken. Under the Lifetime Leaseback the investor is entitled to keep the rent already received for the next 6 months of the original sub-lease at the 8% rent rate. After that 6 month period, the Investor will be entitled to receive a dividend payment out of the available profits made by the Management Company. Dividends will be payable annually in arrears. Please note, the first 2,000 per annum of dividends received by a UK taxpayer is tax-free, overseas investors pay no UK tax on dividends of any amount. Please note that you will remain liable for the ground rent (fixed at 100 Glasgow and 150 Gatwick per annum) under the head lease, but you would not be liable for any other payments under the head lease. The Investor will receive a fixed annual yield of 2% payable annually in arrears for the next 173 years, taking the total period of the new Lifetime Leaseback to 175 years. EXAMPLE 2 Under the terms of the original sub-lease the investor will have received 2 years rental income at 8% per annum. Investor s original sub-lease has subsequently expired 1st May The new fixed annual yield will commence from the expiry date of your original sublease i.e. 1st May The Investor will be entitled to receive a dividend payment out of the available profits made by the Management Company. Dividends will be payable annually in arrears. Please note, the first 2,000 per annum of dividends received by a UK taxpayer is tax-free, overseas investors pay no UK tax on dividends of any amount. Please note that you will remain liable for the ground rent (fixed at 100 Glasgow and 150 Gatwick per annum) under the head lease, but you would not be liable for any other payments under the head lease. The Investor will receive a fixed annual yield of 2% payable annually in arrears for the next 173 years, taking the total period of the new Lifetime Leaseback to 175 years. Park First - Lifetime Leaseback

8 NOTES TO THE EXAMPLES Whilst the fixed yield is contractually guaranteed for the length of the new Lifetime Lease, the Management Company is dependent on the performance of the car parks to pay the rent. By law, the dividend payment can only be made out of distributable profits. Hence, there is no guaranteed amount offered. The costs of the management companies will include maintenance, security, the provision of on-site services such as buses etc, and the costs of sales such as commission payable to the sales agent marketing the spaces to endusers. Professional fees, VAT and business rates will also be paid by the management company where applicable. Another Park First company will be appointed as the exclusive sales agent, and will charge up to 15% of the rental price in commission. The shares will entitle holders to receive dividends if they are declared by the directors of the company. The shares will be non-transferable, and will not entitle the holder to vote in general meetings or on resolutions of the company. If you wish to sell on your parking space, you will have to return your share to the company, which will issue a new share to the purchaser of the space (which will be subject to the same terms). If the Management Company became insolvent, the rent and dividend would not be paid. The Investor would still own the capital asset (i.e. the parking space(s)) but this may have little or no value if a replacement tenant cannot be found. If a replacement tenant is found, the value of the space will depend on the terms that the investor is able to agree. The offer of the Lifetime Lease is made to you by [Park First entity] and the FCA has not verified the accuracy of any of the factual matters set out in this letter nor does it endorse the Lifetime Lease or any other Park First investment. As already stated, you should obtain independent advice on these matters should you consider this appropriate. Accepting either of the offers set out in this booklet is likely to affect any rights investors may have under the Financial Services and Markets Act 2000 arising from their initial investment. The Lifetime Lease is not a regulated financial product and the Park First group of companies are not authorised to provide regulated financial services. Investors in an unregulated investment provided by an unauthorised firm do not have recourse to the Financial Services Compensation Scheme or to the Financial Ombudsman Service. Further information is available on the FCA website: You should take whatever financial and/or legal advice you wish to assist you in making your decision. Please note, however, that Park First will not meet the costs of such advice. 7

9 Early buy-back and repayment Please respond to Park First as soon as possible if you wish to take up this option. You should contact us on + 44(0) or by to customerservices@parkfirst.com or by post to Park First Customer Services, Group First House, 12a Mead Way, Padiham, Lancashire BB12 7NG to let us know if you wish to take up this option. Under this option Park First will buy back your parking space and terminate your investment. This will involve you selling your airport parking space back to Park First. As a valued investor and client of Park First, we very much hope that you will continue your relationship with Park First for years to come and enter into the Lifetime Leaseback as described in this brochure. If not, however, the early buy-back will work as follows: Park First will have up to 12 months to pay you for the early buy-back; In order to manage the buy-back process, Park First will not make any repayment to you in the first 6 month period after completion. You will therefore receive your repayment after 6 months but before the expiry of 12 months after completion of your sale of the parking space back to Park First. The early buy-back will take place through a surrender of the ownership of your car parking space(s). Park First will be entitled to resell your space to a new investor; While Park First will have up to 12 months to pay for the early buy-back, we would complete this earlier if we have sold-on your space(s) to a buyer within the 12 months (subject to no repayment being made for an initial 6 month period). You will be repaid your original capital investment less all of the rental income that Park First has paid to you. If you accept this offer within 60 days, you will be entitled to interest on the amount of your net investment at the rate of 2% from the date on which you completed your Park First investment to the date of repayment. This offer is an alternative to the new Lifetime Leaseback offer if you enter into the Lifetime Leaseback, you cannot thereafter take up this offer. Provided you have not entered into the new Lifetime Leaseback, you can accept this offer more than 60 days after the date of this letter, but you would only be entitled to interest up to the last date on which it would have been payable if you had accepted the offer within 60 days (so you would only get interest for the period up to 12 months and 60 days after the date of this letter, or up to the date of repayment if that is earlier). If you exercise this option you will no longer own a car parking space and you will no longer have any entitlement to receive rental income or capital growth created. Park First - Lifetime Leaseback

10 Early buy-back examples EARLY BUY-BACK EXAMPLE FOR A 2 YEAR OWNERSHIP - GATWICK AIRPORT Purchase price of the parking space 25, Rental year 1 2, Rental year 2 2, Investment less rental income 21, Plus 2% interest to be paid to investor assuming repayment took place on 3rd anniversary of investment Total repayable 21, EARLY BUY-BACK EXAMPLE FOR A 2 YEAR OWNERSHIP - GLASGOW AIRPORT Purchase price of the parking space 20, Rental year 1 1, Rental year 2 1, Investment less rental income 16, Plus 2% interest to be paid to investor assuming repayment took place on 3rd anniversary of investment Total repayable 17, EARLY BUY-BACK EXAMPLE FOR A 4 YEAR OWNERSHIP - GLASGOW AIRPORT Purchase price of the parking space 20, Rental year 1 1, Rental year 2 1, Rental year 3 2, Rental year 4 2, Investment less rental income 12, Plus 2% interest to be paid to investor assuming repayment took place on the 4th anniversary of investment 1, Total repayable 13, NOTES TO EXAMPLES If the Park First company buying back your lease became insolvent before completion of the buy-back or before it paid you (which may take up to 12 months) you would be likely to receive less than the full amount due. If you do not accept this offer within 60 days of the date of this letter, you may not be entitled to interest for the whole period from investment to the date of repayment. Considering your options To help you consider your options, we enclose information on the recent performance of the airport car park you have invested in. Of course, future performance may differ from past performance. The offer of the early buy-back is made to you by Park First Gatwick Rentals Ltd and/or Park First Glasgow Rentals Ltd and the FCA has not verified the accuracy of any of the factual matters set out in this letter nor does it endorse the Lifetime Lease or any other Park First investment. As already stated, you should obtain independent advice on these matters should you consider this appropriate. Accepting either of the offers made in this letter is likely to affect any rights investors may have under the Financial Services and Markets Act 2000 arising from their initial investment. Please note that investors in an unregulated investment provided by an unauthorised firm do not have recourse to the Financial Services Compensation Scheme or the Financial Ombudsman Service. Further information is available on the FCA website: You should take whatever financial and/or legal advice you wish to assist you in making your decision. Please note, however, that Park First will not meet the costs of such advice. 9

11 2016/2017 Car park refurbishments Gatwick - new tarmac & fencing New luxury transfer coaches Installation of barriers and ANPR system Fully refurbished and open for business Luxury drop off area Luxury waiting room Transfer pick up point Reception lounge State of the art reception area Direct Parking Glasgow Airport 11

12 Responding to Park First Please respond to Park First s customer services team as soon as possible to let us know which option you prefer. You do not need to respond if you would like to take up the Lifetime Lease. If you do not tell us which option you prefer within the 28 days, we will assume you would like to enter into the Lifetime Leaseback and will treat you as though you had done so. This means we will terminate your current short-term sub-lease at the first opportunity and treat you as though you had entered into the new Lifetime Leaseback. It is in your interest to enter into the new Lifetime Leaseback formally so that you have a transferable Lifetime Lease and clearly enforceable rights. We will arrange for the new document to be sent to you at the earliest possibility. After the expiry of 28 days, our Customer Services Team will follow up with you to provide the necessary information and documents for the Lifetime Lease, unless you have chosen the buy-back option. The early buy-back offer will expire 6 months from the date of this letter. However, Park First will, of course, treat investors fairly and will deal appropriately with any investors who fail to respond to this letter. Nevertheless, if you do wish to take up the buy-back option, it is in your interests to respond as soon as possible. Glasgow PARK N FLY PARKFAST SwiftPark If you have any queries please customerservices@parkfirst.com Or call us directly on: +44 (0) Web: Head Office Address: Park First Gatwick Rentals Ltd and/or Park First Glasgow Rentals Ltd Group First House Mead Way, Padiham Lancashire, BB12 7NG United Kingdom Park First - Lifetime Leaseback

13