West Yorkshire Care Home

Transcription

1 West Yorkshire Care Home

2 Investment Opportunity 10% NET Yield 10 Year Rental Assurance Defined Exit Strategy Care home rooms for 79,950 10% NET yield (During Leaseback, the developer contractually undertakes to pay the ground rent) 12.3%+ annualised net return* 10 year rental assurance 6% interest on deposit Defined exit strategy Fully managed by specialist care home operator Beaufort Hall Residential Care Ground works commenced Completion August 2015 Leasehold tenure 125-year lease Income paid quarterly in arrears Conveyancing fees VAT + disbursements *based upon a 7-year term & an executed buy back

3 Projected Returns 5 Year Term 5 Year Term Purchase Price 79,950 Interest Accrued on Deposited Funds Annual Net Rental Income 7,995 Annual Net Return % 10% Net Rental Income 5 Years 39,975 Developer Buy Back 87,945 Profit on Exit 7,995 Total Income 48,869 Annualised Net Income 9,774 Annualised Net Return % 12.23% The current provision allocated by the Metropolitan Borough of Calderdale allows for care to be charged at 653 per week per resident Interest accrued is based upon an April 2015 exchange of contracts Please Note This example is for illustration purposes only; the projections for the income, occupancy levels, room rates and management charges are not guaranteed and are subject to change. Colordarcy Investment Limited accept no responsibility for any changes or inaccuracy with these figures; they are provided in good faith as a general guide and based on what we believe to be correct but do not form part of any offer or solicitation.

4 Projected Returns 7 Year Term 7 Year Term Purchase Price 79,950 Interest Accrued on Deposited Funds Annual Net Rental Income 7,995 Annual Net Return % 10% Net Rental Income 7 Years 55,965 Developer Buy Back 91,943 Profit on Exit 11,993 Total Income 68,857 Annualised Net Income 9,837 Annualised Net Return % 12.30% The current provision allocated by the Metropolitan Borough of Calderdale allows for care to be charged at 653 per week per resident Interest accrued is based upon an April 2015 exchange of contracts Please Note This example is for illustration purposes only; the projections for the income, occupancy levels, room rates and management charges are not guaranteed and are subject to change. Colordarcy Investment Limited accept no responsibility for any changes or inaccuracy with these figures; they are provided in good faith as a general guide and based on what we believe to be correct but do not form part of any offer or solicitation.

5 Exit Strategy Investor Option The investor has the option to sell their unit back to the developer for 100% of the purchase price 5-years from completion - there is no expiry on this option The developer is contractually obliged to re-purchase the unit within 12-months of the notice being issued by the investor The investor will be liable for a 500 administration charge and legal fees Developer Option The exit is based on the resale of the entire building to an institutional or corporate investor Institutional investors typically buy an asset with a proven track record The developer will have a call option written into the purchase contract stipulating that the unit has to be sold under these circumstances: Between years 3 and 5, the unit must be sold if a 10% uplift can be achieved Between years 7 and 10, the unit must be sold if a 15% uplift can be achieved Dependent on the date of the sale, a proportion of the ground rent may be payable. Please Note This example is for illustration purposes only; the projections for the income, occupancy levels, room rates and management charges are not guaranteed and are subject to change. Colordarcy Investment Limited accept no responsibility for any changes or inaccuracy with these figures; they are provided in good faith as a general guide and based on what we believe to be correct but do not form part of any offer or solicitation.

6 Property Specification 65 suites Reception areas Flexible social areas Large kitchen Dining areas Hairdressers Convenience store Quiet rooms Drop in day-care facility Manager s office Decking & lawn areas

7 Floor Plans Lower Ground Floor

8 Floor Plans Upper Ground Floor

9 Floor Plans First Floor

10 Floor Plans Second Floor

11 Location West Yorkshire Care Home, Calderdale, West Yorkshire, HX2 7HA West Yorkshire Care Home

12 Construction These images were taken at the construction site for Calderdale House in March 2015 showing the initial ground work taking place.

13 Construction These images were taken at the construction site for Calderdale House in February 2015 showing the initial ground work taking place. The mill that used to stand on the Calderdale House site

14 Comparable Property CARE HOME MAXIMUM NO. OF EN-SUITE OCCUPANCY DISTANCE FROM OCCUPANCY ROOMS (%) CALDERDALE HOUSE Woodfield Grange Nursing Home % 0.6 miles Eagle Care Home 33 3 (Shared Rooms with En-Suite) 100% 1.3 miles Ingwood Nursing Care Home % 0.6 miles Norton House % 1.1 miles Asquith Hall % 13 miles NOTE: Local care home sizes are much smaller in terms of size and occupancy. The nearest comparable care home to Calderdale House is located 13 miles away.

15 Care Home Market There are approximate 42,581 people over the age of 65 within a 10-mile radius of the home There is 1 nursing home bed to every 4.5 people within a 5-mile radius The Office of National Statistics predicts that persons over 85 years in the UK will triple from 1.8 million in 2008 to 7 million by 2081 Current levels of care and nursing homes are at 24,000 and it is calculated that in order to meet this demand this number would need to double in the next 25 years Based on the assumption that 40% of over 85 year olds will require nursing care over the next 20 years the additional demand for care and nursing home rooms is calculated at 800,000 rooms Overall the number of people aged 65 and over is predicted to rise by two thirds by 2081 according to National Statistics reaching 15.8 million; at that time more than one in five will be at the age of 65 or over

16 The Developer Elements Construction The principals of Elements Construction have a wealth of experience in construction and build management of a variety of large and diverse build projects, including: Appleton Point Student Studio Apartments Bradford White Lion Brow 22 apartments Hollins Hall 17 luxury houses Grappenhall 24 luxury apartments Degamwy Quay Marina Wales 42 bespoke homes and 5 luxury apartments Norwich Cathedral Visitors Centre Aviemore Scotland 8 x 5000 sq ft holiday homes VW Group Lindale Cumbria showroom, offices and building Lambourne Conference Centre

17 The Care Provider Beaufort Hall Residential Care Ltd. Beaufort Hall Residential Care Ltd has a wealth of experience in the running of care homes across the south of England and Wales. They operate a number of care homes with specialist dementia and high dependency facilities, providing an excellent standard of care. Across various locations, including their flagship care home, Beaufort Hall received the highest possible rating awarded by the independent care home regulator, the Care Quality Commission, in 2014.

18 Purchase Process RESERVATION reservation form completed & 5,000 non-refundable reservation fee paid and deducted from the deposit SOLICITORS INSTRUCTED solicitors instructed, legal pack sent out & anti-money laundering process completed EXCHANGE OF CONTRACTS 50% of purchase price paid to solicitors & contracts exchanged within 30 days of reservation 3 MONTHS POST EXCHANGE 25% of purchase price paid to solicitors 3 months after contracts have been exchanged LEGAL COMPLETION 25% balance is paid to the solicitor, the purchase completed & title deeds registered with the UK Land Registry

19 Disclaimer 1. This information is made available to the addressee subject to our terms and conditions. A copy of this information is made available to you for your personal use and must not be given, shared or communicated with any other person except for your own professional advisors for the sole purpose of obtaining their advice. 2. We endeavour to provide accurate, up to date and complete information but makes no warranties or representations as to the accuracy, reliability or completeness or otherwise of the information contained herein. We assume no responsibility or liability for any omissions or errors contained in the information. 3. We act as an agent for the developer and as such accepts no liability to the Purchaser. Further and in any event, if notwithstanding this provision liability is established against us, then it is agreed that the total maximum amount of such liability is limited to and shall not under any circumstances exceed the amount of the above reservation fee. 4. Purchasers are required to conduct their own due diligence and make their own judgement on the property being offered. Purchasers must verify the information and any speculative information offered by us. Purchasers are strongly recommended to perform their own financial and legal assessment of any opportunity prior to making any commitment to participate. 5. We do not provide or offer an opinion as to whether a particular property is appropriate for a particular individual and owes no duty of care to the Purchaser. 6. We only offer an opinion on the opportunity in general terms and in relation to the market as a whole. We are not able to comment or give opinions on the strength or validity of any bond or insurance policy and Purchasers are strongly recommended to perform their own diligence and seek legal opinion. 7. We do not accept any responsibility for amendments to or changes in rates of taxation, introduction of new taxes, changes to existing legislation or the introduction of new legislation or any matters relating to the final contractual arrangements for any purchase. 8. Where rental assurances or guarantees are offered as part of the purchase, the developer will contract directly with the purchaser to assure the rental income at the specified rate and for the specified duration, but this is not supported by an insurance policy, bond or bank, unless specified, nor is this warranted by us. 9. Descriptions of Property, Homes, Buildings, Locations or Development Particulars, Specifications and Pictures and Artists Impressions of any property, home, building, location or development are given in good faith and believed to be correct, but they do not form part of any offer or solicitation and are intended only as a general guide. We do not control the building or development of any project. 10. You acknowledge that developers reserve the right to alter plans, designs and specifications at any time without prior notice. We therefore will not be responsible for such changes. 11. All descriptions are intended only as a general guide and are not to be relied upon by you or any other interested parties as a statement or representation of fact and you should satisfy yourself by inspection or otherwise. 12. We have endeavoured to provide the highest quality information, backed up by substantial experience and proven evidence from the marketplace. However, individual interpretation of information may vary, and individual circumstances, skills, abilities, knowledge and attitude play an important part in achieving a particular outcome. In addition, the future behaviour of the property market may not follow past experience, either, internationally, nationally or locally. For this reason Colordarcy Investment Ltd does not warrant, guarantee or promise that you will make a profit from any property transaction entered into, whether as a result of acting on information contained within this document or otherwise. As with any purchase, this may make a loss.