Project for the construction of a hotel in the center of Canterbury.
The summary of the project: the debt financing with participation in the capital of the development project of the Hilton hotel in Canterbury, Great Britain.
There is a building permit.
The hotel room capacity: 131 rooms.
The total area of the property is more than 5,000 m².
According to the project, a retail unit will be located on the ground floor of the building, and there will be a luxury restaurant overlooking the Canterbury Cathedral will on the upper floor.
The volume of investments is 1,450,000 £.
The minimum volume of investment is 500,000 £.
Expected date of refund: 1 quarter of 2023.
The investment is a loan to the English project company that owns a land plot with the building permits received.
The profitability of the investor consists of two sources:
1. A loan of the project company at 15% per annum (with the first payment of accrued interest in January 2020 at the time of starting the hotel and the second payment — with the repayment of the loan amount in the 1st quarter of 2023)
2. Exit Fee in the amount of 49.9% of the project profit, but not less than 25% per annum until the date of repayment of the loan.
IRR: 18% per annum (after English taxes).
Exit from the project: after the completion of construction, the hotel will be sold to an institutional investor in the hotel real estate.
The tenant is the international hotel chain Hilton.
Location and nearby infrastructure
The property is located in the center of Canterbury, in 200 meters from one of the city's main attractions — Canterbury Cathedral (UNESCO World Heritage Site).
There are the largest shopping center in East Kent, two leading universities (University of Kent and Canterbury University of the Church of Christ) and transport highways not far from the hotel.
The population of Canterbury is 55 thousand people. A lot of cultural sites (the city itself is a UNESCO heritage site) attracts a large number of tourists (5 million guest nights in 2015).
There is a shortage of quality hotels in the city: there are about 17 small hotels in Canterbury, among which only one — Abode with 60 rooms — has four stars.