prime location sea views commercial conversion … · 68 topping street, blackpool fy1 3aq e:...

TOTAL INCOME: £95,030

ROI: 40.83%

PRIME LOCATION SEA VIEWS

COMMERCIAL CONVERSION

Fabrik Property Group Matt Harper-Penman www.fabrikpropertygroup.com M: 07813435267 T: 01253 291881 68 Topping Street, Blackpool FY1 3AQ E: [email protected]

3-5 Clifton Street, Blackpool, FY1 1JD

MARKET VALUATION: £480,000 (AFTER REFURBISHMENT) PURCHASE PRICE: £190,000 REFURBISHMENT: £190,000 PROJECT MANAGEMENT £22,800 (10%+VAT OF REFURBISHMENT) STAMP DUTY £800 LEGALS £1,500 TOTAL COSTS £405,100 DEPOSIT TO RESERVE: £10,000 (DEDUCTIBLE FROM PURCHASE) S.A GROSS INCOME: £81,030 COMMERCIAL GROSS INCOME £14,000 TOTAL INCOME £95,030 GROSS YIELD: 23.46%

PROJECTED NET CASHFLOW £28,212 PA | £2,351 PCM ROI: 40.83% In the Blackpool Town Centre, this unit consists of 3 x 2 Bedroom Apartments, 1 x 3 Bedroom Apartment and a large commercial unit.

Front Elavation Street Scene


Commercial Unit

1st Floor Offices


2nd Floor Offices

Sea Views


Map View

Aerial Satelite View


Deal Background The property has been secured by Fabrik after a long negotiation which has lasted over two years. The property has previously been used as a bank and with the decline in recent years over physical banking branches this property has fallen victim to be surplus to requirements. This building now presents it’s self as a perfect example of a commercial conversion. The property has office use class to the upper floors and we have obtained planning permission for 3 x 2 bedroom apartments and 1 x 3 bedroom apartments. In total 4 aparments.. The apartments will fit national room size standards and will be in excess of 70m2, all with side sea views. To the ground floor there is ample room to create two nice spaced retail commercial units. Located in the heart of the town center amongst the Blackpool Tower, Bars and Clubs and directly opposite the site where premier Inn have just invested 9 million pounds in their new flagship hotel. (Pictured below)

NEW PREMIER INN SITE


1st Strategy: Serviced Accomdation

The block is in ideal location for Blackpool tourism located close to the promenade and short walk from all the major attractions. There is a large car park a 2 minute walk from the property for ample parking for Guests. A major attraction is set to be announced immantley taken by a large blue chip enterprise, close by the property which will genrate more demand for a serviced accomodation strategy. 3 x 2 Bed S.A Flats @ £90 per night £59,130 per annum (60% Occupancy) 1 x 3 Bed S.A Flats @ £100 per night £21,900 per annum (60% Occupancy) 1 x commercial Units £14,000 per annum Total Gross Income £95,030 per annum (60% Occupancy) Less: 60% Monthly S.A operational costs £48,618 per annum 10% Lease Costs £1,400 per annum Mortgage £16,800 per annum Circa Net Cashflow £28,212 per annum Circa Net Cashflow £2,351 per month ROI 40.83%

Satelite View Zoomed In


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Serviced Accommodation Described

Serviced accommodation is a short term stay strategy. You may have noticed air bnb and booking.com offering you the chance to stay in people’s houses or apartments, fully furnished as if it were a home. This trend has been a big opportunity for property investors as you can achieve up to 5 x gross and sometimes more in income than a residential unit. The down side is the intense management needed to operate the units. Fabrik Management company has the ability to offer this as a service to landlords and its own internal companies. It charges 13.5% management fee, which across the market is considered a fair fee for the work. Fabrik management has all of the needed systems in place including-cleaners, a line manager to manage bookings, maintenance, daily call center and an emergency out of hour numbers to call. We are currently live on over 40 portals. The team go to regular training on the subject to stay ahead of the market. In addition to this we have brought in an experienced serviced accomedation manager in Franco Bellusci who has 24 months experience managing these properties.

Occupancy for Serviced Accommodation Described

The way we get to our net income before expenses figure is by multiplying the number of units by £80 then multiplying again by 365 days and then multiplying by 60%. This gives us our 60% occupancy figure. We feel, and other professionals feel 60% occupancy is a very safe number to apply. Our accommodation is far better than that currently on the market, so we should be pushing for 80%, of course this would make the profit far higher, but we like to think worst case and ensure we are happy with that first. Also £90 a night is considered safe.

Costs Described for Serviced Accommodation

From the 60% income we are expected to receive on the serviced accommodation units we would then take 40% away no VAT is applicable. If VAT is applicable then another 20% needs to be added to account for this cost. These costs include management, Booking.com fees (15%) and operating costs such as maintenance, linen companies, cleaners, utilities (Gas, electric, council tax, water, WIFI).

Costs Described for Residential

From the residential income figure, we take 20% for costs. Costs for the residential include management (10%), maintenance and voids (10%).


VAT

Please note there is VAT charged on the income after the SPV hits the £85,000 VAT threshold. There are mitigation strategies to tackle this.

Booking.com

Booking.com are the leading booking portal with 80%+ market share. They charge 15% for the use of their platform. Convincing guests to book direct for a 5% discount is a way we combat this fee. We encourage wherever possible to book direct and re-marklet the database with offers. Once Fabrik has better brand exposure net incomes will definitely increase.

Our Calculations for Serviced Accomodation We have kept a detailed record of our bookings, we are more than happy to show these on request.

Management and Build This opportunity is offered on a complete turn key basis with the build being managed by our in house contracts manager. The contracts manager oversees the main contractor by having a contract between the client and contractor and keepingdrawsproviding regular liaison on the build side, providing weekly photo and video updates. The project is handled right through to hand over to our management company which will operate the letting strategy of your choice. If you wish to use this project management service then we offer it at 10% + VAT of the refurbishment value or £2,000 + VAT whichever is the higher


Fair Haven Lake – popular attraction for tourists and Locals

Lytham Festival is held every summer on Lytham green, attracting thousands of tourists.. Night prices will be up on these dates


Royal Lytham golf course is situated within close proximity to the property and there is regularly professional golf championships played on this course which attracts golf fans from around the world.

BAE Systems Warton is a corporate employer just outside of Lytham (5 min car drive) this is a corporate outfit we will approach for longer term stays.


Blackpool Pleasure beach attracts thousands to the area every single year. Perfect for Families

Sandcastle waterpark another great attraction for families


Regeneration and Investment Into Blackpool Blackpool is a perfect location to invest in both residential and commercial property. It is an unsaturated improving market filled with opportunity for investment and great return on that investment. The town has a population of circa 150,000 and the demand for rental residential property is very high.

There are hundreds of millions of pounds in investment presently being made in Blackpool with regeneration schemes throughout the town, breathing new life into areas with the creation of new leisure sites, hotels and restaurants. Large hotel chains such as Premier Inn, and Hilton are building brand new state of the art hotels on the sea-fronted

promenade. Hilton in particular have invested £30 million in their new 130 bedroom hotel, which is set to transform the street scene on the south shore coast line.

Another massive boost to the Blackpool economy is the fracking site that commenced operations in the summer of 2017 and which has brought in excess of 15,000 jobs to Blackpool and Lancashire.There has never been a better time than now to invest in Blackpool.

• Hampton by Hilton to open in Blackpool 2018 - Part of £31Million regeneration project

• Leisure Giant Whitbread proposed £10 Million Pound Premier Inn Hotel Approved

• Cuadrilla Natural gas from UK shale creating thousands of jobs

• Persimmon Homes - Coastal Dunes Development

• Kensingtons

• Redwood Point Blackpool landmark development

Resource Links https://www.blackpool.gov.uk/News/2018/September/100m-regeneration-of-Blackpool-town-centre-confirmed.aspx https://www.itv.com/news/granada/2018-12-07/blackpools-300m-masterplan-to-be-revealed/ https://www.businesscloud.co.uk/news/300m-blackpool-scheme-to-feature-vr-experience


£300m Chariots of the Gods Development in the centre of Blackpool

Blackpool Central State of the Art Development


The UK’s first Flying Theatre Attraction

9 year Development which will be implemented in 3 phases starting in 2020

prime location sea views commercial conversion … · 68 topping street, blackpool fy1 3aq e:...

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