PROPERTY TRANSACTION DEVELOPMENT SUMMARY & JV PROPOSAL Unicorn Hotel Brackley Profit on GDV 28.4% DEVELOPMENT OF LOW ENERGY AND ZERO CARBON BUILDINGS SINCE 2011
HOTEL UNICORN BRACKLEY pr PROPERTY DETAILS Proposal for Panni Sohanpaul: The first thing to do is repackage and remarket a new story with a new name based on research of the existing building so that a new lease of life commences. This is fundamental and it depends on how Panni wants to be written in or out of the story. Marketing: The historical background of the lease with TCI (Brackley) Ltd and the closing of the nursing home has left poor perception around the hotel and the owner with the local community. The only way to mitigate this and ongoing poor perception is to drip feed over time an alternative story around the difficulties the current owner had. The story would be along the lines of the following: “The owner leased to the buildings to local people after he got planning permission in 2018 and a change of use to a C1 for a 29 bed hotel. Unfortunately, he had to close the hotel because it was being used for immoral purposes and subsequently has had to refurbish all the internal rooms in order to recover his losses and reopen. Now, he has decided to go on step further so that Brackley can have something to be proud about. He has engaged London hotel specialists and developers who have come up with a 50 plus hotel scheme that will demolish the two newer buildings and replace them with traditional style architecture to fit in with the local historic architecture of Brackley. This hotel will have conferencing facilities with food and beverage and will be capable of serving the local business community and will provide a great asset to the Town.” There will be some CGIs to go with the articles. Interviews will be conducted and managed with the following media outlets: Northamptonshire Telepgraph Brackley and Towcester Advertiser Banbury Guardian The Buckinghamshire Herald Northampton Chronicle and Echo This should be done every so often with a different angle to keep public opinion going in your and the developments favour. Cost: Editorial and interviews - £6000 ex VAT CGIs- £ 2000 ex VAT Specialists In Adding value PROPERTY DETAILS Unicorn Hotel Brackley
Proposals: A. Sale of Freehold At £2,200,000: Free and unimpeded freehold, subject to planning, taking income on serviced accommodation while planning is executed. The head of terms would need to be signed ASAP and solicitors instructed. There will be potential issues over the current leases and any liens on the freehold. Planning risk would carried out by the purchasing company and investors. The seed capital required from our investors £180,000 for planning costs. B. Joint Venture Agreement: Panni Sohanpaul stays in the venture as a JV partner but funds the planning on a reduced budget at cost and this would be £90,000 ex VAT . This would be paid interest and increased equity on completion or on the flip. Please see attached figures. There would need to be a formal JV Agreement stating the responsibilities of the parties. In principle It would be as follows: Fenit Holdings Ltd will carry out all instructions in planning, investor finance, senior debt, marketing and sales on the development and will take a Project management fee paid by the developing company and allowed for in the figures Panni Sohanpaul will fund the planning at cost, while getting income from the Serviced Accommodation during planning and subject to full development will put the land as security into the development vehicle. Please see the figures overleaf: pr Specialists In Adding value LOCATION DETAILS Panni SohanPaul's Return: £ 1,595,484.09 Planning Investment £ 90,000 £ 279,017 Land £ 2,200,000.00 £ 4,074,500.66
pr Specialists In Adding Value Revenue Totals 32,224 ft2 886,160 14,769,333 14,769,333 Costs: Total Land Net -2,200,000 Gross -2,286,945 Total Construction 35,475 ft2 -6,166,826 Total Fees -861,663 Total Other Costs -500,000 Finance -668,299 -668,299 GROSS DEVELOPMENT COSTS (GDC) -10,598,133 PROFIT ON COST 39.36% NET PROFIT 4,171,200 PROFIT ON GDV 28.24% NPV @ 10% 3,635,602 Development Yield 5.76% Last sale Feb / 2023 Profit Erosion (Months) 33 IRR 106.01% Max capital employed ######### Profit on capital 39.91% Investor Inputs Payable: Interest Payable 15% Input: 25%-£ 2,649,533 Month 1 3.50%-£ 92,734 -£ 40,291 Month 18 -£ 2,556,800 -£ 161,164 Investor Receipts Payable: Equity : Interest: Total: Principal 1: Month 1 £ 92,734 £ 145,992 3.5% £ 40,291 £ 279,017 Principal 2: Month 18 £ 2,556,800 £ 834,240 20% £ 161,164 £ 3,552,203 Investor ROI: Principal 1: 0ver 36 Months 100% Principal 2: 0ver 36 Months 69% SPV Company Remaining Profit: 76.5% £ 3,190,968 £ 1,595,484 Panni SohanPaul's share: £ 1,595,484.09 Planning Investment £ 279,017 Land £ 2,200,000.00 £ 4,074,500.66
PRO PE RT pr Specialists In Adding value Residual Valuation: Land Brackley 10.7639 Area m2 Total Area Ft 29 761 22061 Revenues/Gross Development Value Cost of Development Construction Costs per room 72,000 Number of Rooms 60 No of Rooms 60 AARR 115 Cost Contingency 10% Occupancy 70% Professional Fees 10.00% Room Revenue 1,762,950.00 Total Cost 5,184,000 NOP: % of T/0 80% Cost per Room 86,400 Room NOP 1,410,360 Interest on Cost @ 14.00% Other Revenue: Period of Interest (years) 1 F&B(@ % room T/O 40% 564,144.00 Interest 725,760 NOP F&B:% of T/O 65% Additional NOP 366,693.60 Developers Profit 20.00% Developers Profit 1,181,952 Total NOP 2,341,198 Total Development Costs 7,091,712 Capital Value Residual Site Value - 2,363,904 NOP 2,341,198 Value per room - 39,398 YP @ 6.0% 39,019,960 Offer Value - 1,181,952 Mutiplier 6.25 14,632,485.00 Residual Profit - 1,181,952 CV on M 14,632,485.00 CV Per room 243,875
pr Specialists In Adding value Location: Site is in the Centre of Brackley 10 minutes from the M40 and 25 minutes from the M1.
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A: 25 Chevalier Grove Crownhill Milton Keynes MK8 0EJ T: 01908 470131 M: 07770 943510 E: mike@4absoluteholdings.com W: www.4absoluteholdings.com W: www.4absoluteholdings.com Unicorn Hotel Brackley Profit on GDV 28.4% DEVELOPMENT OF LOW ENERGY AND ZERO CARBON BUILDINGS SINCE 2011 Fenit Holdings Limited T: +44 7770 943 510 E: mike.donovan@fenitholdings.com W: www.fenitholdings.com