Project Office Building in Bristol UK with Potential to be Turned into a Hotel

Office Building in Bristol

Bristol, United Kingdom

Investment Details

  • Type

    Real Estate

  • Sector

    Commercial

  • Investment Stage

    Tenanted

  • Investment Target

    6,00M GBP

  • Investment Type

    100%

  • Investment Style

    Passive

  • Deal Size

    5 to 25 MUSD

  • Investment Start date

    2015-08-27

  • Yield

    13.00%

  • Built Up Area

    65000 SQF

  • Price per Area Unit

    92.3 GBP

  • Leverage Ratio

    0.00%

Basic Info

  • listing Name

    Office Building in Bristol

  • Founded Year

    2015

  • Brief

    Acquisition of the asset (building) in Bristol being carried out through Special Purpose Company and operated through a UK Operating Company by Alexa Investments on a lease.

  • Geographical Region

    Europe

Contact Info

  • Address

    Bristol, UK

  • City

    Bristol

  • Country

    United Kingdom

  • Phone Number

    +971557723318

  • Email

    b.tubaishat@ultrafrontier.com

  • Website

Description

Equity -

10% of the overall purchase price to be infused by the bid date of 10th September circa £600,000-700,000 - as non refundable deposit incase the bid is accepted. Subsequent to the bid being accepted, the rest of the equity will be required within 4 weeks for completion. 

Debt -

70% debt to be availed and interest to be serviced through the rent achieved as an office. In case, planning permission is achieved for a Hotel and subsequently work is carried out, an additional development loan to be availed from the bank and interest to be covered as part of the principal debt amount from where the interest will be deducted till the opening of the hotel.

As office -

Currently, the letting of the building to the Bristol City Council is achieving a total of £13/sq ft totaling to £800,000/annum as offices. The market is favorable as new developments are scarce and rents achieved in the area are as high as £28/sq ft. Alexa Investments will aim to achieve £15-18/sq ft at an average over 18 months on a realistic level including rent free periods given to blue chips to get the occupancy high and longer leases. The work to be carried out inside the office will be basic refurbishment and the high occupancy strategy will be implemented through local and national agents like Knight Frank/Savills/JLL to help attract the best corporate deals. At £18/sq ft, the rent achievable is 1.17 mil GBP. Best case scenario would be letting it out at an average of £25/sq ft which totals to 1.625 mil GBP.

 

As Hotel -

Currently let as offices to the Bristol City Council, the building will be vacated by them on 17th August 2016 allowing us to convert the building into a more lucrative asset. Eg. Hotel.

 

Discussions with well established international hotels brands have revealed significant interest from them for this location as it’s one their most important target areas for growth. One of the hotel groups has in principal agreed to give us a Franchise License to operate a 100 bed hotel including conference and meeting facilities on favorable terms. For that particular hotel brand, the numbers achievable are as follows - Revenue - 5.5 mil GBP. EBITDA - 2 - 2.5 mil GBP. Royal Bank of Scotland is keen on a refinance deal for this as soon as we achieve planning permission for a hotel.

 

The cost of development will be circa 6 mil GBP increasing to 8 mil GBP depending on the specification of the rooms, the requirement of the brand etc. The conversion will be completed by August 2017 subject to achieving planning by August 2016.

 

Location Map

Listing Staff

No Members Available

Listing Attachments