Funding presentation
Transcript: Rapidly growing property developer www.barnettdevelopments.com Who we are Who we are Developments QS QS FD Growth QS QS FD QS FD Number of Projects 1 2 2-3 4-6 6 (3 large 3 small) £30M QS £30M: Develop-ments £30M Equity funding for projects £8M - float £22M - terms pre-agreed Example finance of £70M project Example finance of £70M project Site purchase (£22M) Development cost (£30M) Estimated GDV: £70M £100M: Lifestyle villages Lifestyle villages £100M Concept We will create a network of top quality lifestyle villages for healthy and active recent retirees (i.e. 55-70). Residents will enjoy the highest standard of service, which we’re calling ‘cruise ship living on land’. We will acquire existing assets currently trading as golf resort hotels and convert them to lifestyle villages. Once converted and full the asset will in effect be a hotel with guaranteed 100% occupancy all year round, vastly increasing profitability and value. Our ideal asset is a minimum 4* golf resort hotel, with detached lodges on site, in a rural area but within 10 miles of a major city and within 30 miles of an international airport. Cruise ship living, on land Why golf resorts? Acquire for a fraction of the build cost Easy to convert to LSV Trained staff & amenities already in situ Beautiful, spacious grounds Huge potential for expansion Why golf resorts? Market Lots of people 11.6 million over 65s in the UK.* Projected: 18.7 million by 2045.* Lots of money Currently, there are more than 670,000 retirees with assets of over £1M.** Lots of growth potential In the UK, 0.5% of over-65s live in retirement villages.*** In USA/Aus/SA/NZ, 5% do.*** Potentially the UK retirement village market could grow from 0.5% to 5% of over-65s (58k to 580k). *Office for National Statistics, Overview of UK Population: March 2017 **Office for National Statistics *** BBC News http://www.bbc.co.uk/news/health-27208531 Market Example customers Both retire at 62. Assets: house (€1.2M), investments (capitalisation €300k). Pension income (private + state): €41k (Tom), €31k (Hattie). Sell their house, pass on €750k to their children, add €150k to their investment pot. €300k remainder buys a lifetime interest in a LSV lodge. Their income pays their €400/wk pp service charge. On their death/exit to full time care, their lodge interest is redeemed by the LSV Co., with their €300k passing back to them / their estate. Tom & Hattie £100M: the first stage What we'll do with it - acquire and convert six golf resorts to establish the model £100M: the first stage Worked example: Blarney 168 acre site Hotel with 64 bedrooms 56 2 bedroom lodges 18 hole golf course 2 storey clubhouse Bar (30 seats) Restaurant (110 covers, full kitchen facilities) Conference facilities (60- and 200-person suites, 3 meeting rooms) Health club & spa (5 treatment rooms, 20m pool, sauna, steam room, jacuzzi, gym) Worked example: Blarney £15M 5% debenture capital & 30% equity stake Blarney LSV Co. £8M Site Purchase £2M Marketing £16M Revenue from sale of lodges £5M Build care homes £5M Build 100 new suites £15M Repaid debenture loan £130M Year 5 value (30% = £39M) £4M Acquire lodges and remodel Year 5-6 The future Phase 1: £100M, 6 villages, prove model Phase 2: £400M, 24 more villages, expanding into Europe Phase 3: £2.5Bn Phase 4: USA The future Group Structure Construction management Contracts & marketing QS NB NB FC 33% Hotel Guru 20 Portland Sq. Portland 88 Portland View 2017 LB Construction management Contracts & marketing QS NB NB FC 33% Hotel Guru Watergate Bay Portland 88 SPV 4 2017/18 LB £30M SPV 5 Coyle Place Construction management Contracts & marketing QS NB NB FC 33% Hotel Guru Watergate Bay Portland 88 SPV 4 2017/18 SPV 5 Barnett Group 50% 33% FD NB Finance FD 33% 50% Coyle Place LSV 1 GM LSV 2 GM LSVs Barnett Group Construction management Finance Contracts & marketing QS 50% 33% 50% 33% FD FD NB NB FD 33% Hotel Guru SPV 4 SPV 5 2017/18 Watergate Bay Portland 88 First tranche of LSV funding Coyle Place LSV 1 GM LSV 2 GM LSV 3 GM LSV 4 GM LSVs Barnett Group Construction management Finance Contracts & marketing QS 50% 33% 50% 33% FD FD NB NB FD 33% Hotel Guru Hackney-Wick Sion Hill SPV 6 2019 Watergate Bay Portland 88 LSV 6 GM LSV 5 GM Coyle Place LSV 1 GM LSV 2 GM LSV 6 GM LSV 3 GM LSV 5 GM LSV 4 GM LSVs Barnett Group Construction management Finance Contracts & marketing QS 50% 33% 50% 33% FD FD NB NB FD 33% Hotel Guru SPV 1 SPV 2 SPV 3 SPV 4 SPV 5 SPV 6 2021 Phase 2: £400M? 24 more LSVs
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