Prestigious Riverside Hotel InvestmentRoyal Arsenal Hotel, London

20% Below

Market Valuation

With Returns of

Over 20%

• Only£95,000• 20% lessthanCurrentValuationof£120,000• Only£40,000 Investment• 58% Non-StatusFinance• ReturnonInvestmentofupto20%

RoyalArsenalHotelformspartofRoyalArsenalRiversidedevelopment.LocatedinSouthEastLondonandoccupyingaprimepositionalongsidetheRiverThames.Thedevelopment,carriedoutbytheacclaimedBerkeleygroupisamixofresidential,commercialandleisurewhichbringsnewregenerationtoanalreadypopulararea.

Havingalreadywonmanyawardsandwithalargeproportionoftheschemecompleted,the76acresiteisoneofthemostexcitingdevelopmentsintheUKatthemoment.

Designedtocreateacompletecommunity,RoyalArsenalRiversidefusesmodernarchitecturewithGradeIandIIlistedbuildingstocontinuetheextensiveheritageofthesite.

1,700homeshavealreadybeensoldatRoyalArsenalRiversideandafurther3,700residentialunitsareplanned.ThelateststageoftheresidentialdevelopmentisWarehouseNo.1Street,asympatheticwarehouseconversion.

Royal Arsenal Riverside amenities in general will include;

• Greenopenspaces• Residents’gym• Young’spubanddining• SoontoopenTescoExpress• ThamesClipperonsitepier• Only300metrestoovergroundandDLRstations• 24hourconcierge• Museumwithcaféandbistro• Riversidewalks• ProposedforthcomingCrossrailstation• Streetcarcarshareclub• Children’splayarea• Healthandwellbeingstudio

Royal Arsenal Riverside

LocationWoolwichSouth East London SE18

WatfordEn�eld

Islington

Greenwich

Dartford

CroydonWoolwich ArsenalStation

Romford

Woolwich

Transport Links

By DLRTransportconnectionshavebeenfurtherenhancedsincethecompletionoftheWoolwichArsenalDLRextensionin2009,whichservesLondonCityAirport,CanaryWharfandBank.

By CrossrailRoyalArsenalwillbecomeoneofthekeystationsonLondon’svisionarynewCrossrailschemewhichshouldbefullyoperationalin2017andwilllinkMaidenheadinthewestwithShenfieldandAbbeyWoodintheeast.Usingthenewservice,journeysfromWoolwichtotheIsleofDogswilltakearoundeightminutes,whileHeathrowwillbelessthanonehouraway.

By RoadTheA206PlumsteadRoadrunsadjacenttoRoyalArsenalgivingdirectlinksviatheBlackwallTunnelnorthoftheThamesandtoCentralLondon.TheA205/208runssouthfromWoolwichprovidingaccesstotheA2andtheM25.

By RiverTheeastwardextensionoftheRiverlinecommuterserviceoperatestheThamesClippersfastferryservicefromRoyalArsenalPiertotheO2andCanaryWharfwithin23minutes.

• WoolwichislocatedintheboroughofGreenwich,South EastLondon.

• Woolwichisfamousforitshistoricalstanding,hometo theRoyalArtilleryandTheRoyalArsenal.TheRoyal Artillerymuseumdocumentswhichnowstandsin placeoftheArtillery,documentsover700yearsofhistory attractingthousandsofvisitorseveryyear.

• In2004amajorredevelopmentoftheRoyalArsenalsite revivedthelocalareaandstimulatedagrowthinthe localeconomyfollowingaprolongedstateofdeclinedue toseveralmajoremployersclosingdownfactories, includingtheRoyalArtilleryin1994.TheRoyalArsenal masterplanwillpromotethelocaleconomyevenfurther.

• TheRoyalArsenalsiteislessthan10milesfromCentral London,6.5milesfromCanaryWharfand2.5milesfrom LondonCityAirport.

• Designedtocreateacompletecommunity,RoyalArsenal RiversidefusesmodernarchitecturewithGradeIandII listedbuildingstocontinuetheextensiveheritageofthe site.

TheRoyalArsenalsiteisa76-acremixed-usedevelopmentinWoolwichintheSouthEastofLondon.Thedevelopment,beingdeliveredbyBerkeleyHomes,ismainlyresidential-led,with3,700residentialunitsplanned.Alsoproposed,are8,500squaremetresofofficedevelopments,5,200squaremetersofretail,3,600squaremetersofrestaurant,cafesandbars,aswellasleisurefacilitiesandopenspaces.Asof2011,1,700homeshavealreadybeencompleted,alongwithapub,museumandcafé.

RoyalArsenal,Woolwichisahighquality,residential-ledmixed-useurbandevelopmentmaximisingthepotentialofitsprominentcitylocationadjacenttotheRiverThames.MasterplannedbyrenownedarchitectsAllies&Morrison,thenewprojectblendsRoyalArsenal’sstunninghistoricarchitecturewithcontemporarystyletocreateasustainablevibrantnewcommunity.

Buoyedbyagrowinganddynamicinfrastructurecombinedwithexcellentintegratedtransportlinks,theriverfrontregenerationofthishistoricallandmarksitewillbethehubofawholenewLondonneighbourhood.

ThisexcitingschemeisacompleterevitalisationofaquarterofamileoftheRiverThamesandishometo4,500.Theextensivecommercialspace,supportedbyarangeofamenitiesincludingrestaurants,barsandleisurefacilities,willprovidetheperfectenvironmentforathrivingnewquarterwithinWoolwich.

The OpportunityThe Development

Thehotelopportunityformsanintegralpartofthisexcitingnewmixed-useschemeandwillbesurroundedbyavarietyofusesincludingrestaurants,barsandretailwhichwillformthelivelycentreofthisdevelopment.ThehotelwillbeideallysituatedontheA206benefitingfromsuperiortransportlinks,inparticulartheintegratedtransporthubservedbytheforthcomingCrossrailstation,whichwillprovideoutstandingaccessibilityforhotelguests.

Theproposed6,000sqmhotelhasthepotentialtoprovidearangeofamenitiesincludingfoodandbeverage,conference,meetingandleisurefacilitiescoupledwithon-sitecarparking.Thehotelplotwillaccommodateamid-markethotel.

Royal Arsenal HotelRoyal Arsenal Riverside

Londonhasbeenrankedthirdinaglobalhoteloccupancyleaguetablefor2010behindSydneyandSeoul.

TheUKcapitalachievedanoccupancyrateof82.1%,justaheadofHongKongandNewYork,areportbyDeloittehasrevealed.

ThecityreportedthehighestoccupancyinEuropeandmoveduptwoplacesintherankingsinthepastyear,postingrevenueperavailableroom(revpar)growthof11.7%inlocalcurrencytoyearendat£104.

HotelsinEuropestoletheshowinthetop20globalhotelperformancerankingsfor2010,accordingtotheanalysisbythebusinessadvisoryfirm.

Basedonthethreekeyperformanceindicatorsofoccupancy,ADRandrevpar,Europeancitiestook25outofapossible60places.

Deloitte’stourism,hospitalityandleisureglobalmanagingdirectorAlexKyriakidissaid:“AgainstabackgroundofasluggisheconomicrecoveryandausteritymeasuresintroducedacrossEurope,hotelperformancerecoveredrelativelywellduring2010,withrevparupjustshortof10%to€63.

London Hotels

RedefineInternationalHotelshasboughtfiveHolidayInnhotelsinLondonfor£103m

Thehotels,withatotalof616rooms,willbeoperatedbyRedefineInternationalHotelswhichhasHelderPereira,formerSouthernSunGroupMD,aschiefexecutive.

Commentingontheacquisition,PereirasaidtheLondonhotelmarketwasuniquecomparedwiththatintherestofEngland.

“LondonattractedthelargestnumberoftouristsinEurope.TheaveragehoteloccupancyrateinLondonoverthepastfiveyearshasconsistentlybeenabove80%.”

“Itisdifficulttogetapprovalfornewhotels.Banksarehesitanttofinancethem,whichisgoodnewsforexistinghotels.Theadvantageoftheseacquisitionsisthattheseenterpriseshavewell-establishedcashflows,andthepricesofhotelroomsarebasedondemandandsupply-theperfecteconomicmodel.”

ThehotelsaretheRoyalDocksHolidayInnExpress,theLimehouseHolidayInnExpress,theSouthwarkHolidayInnExpress,theParkRoyalHolidayInnExpressandtheBrentfordLockHolidayInn.

Theportfolio’saveragehistoricoccupancyrateisover88%,andthatofthefour-starBrentfordLockhotelwithits134roomsiscurrentlyabove85%.

http://www.redefinehotels.com/news/redefine-international-hotels-has-bought-five-holiday-inn-hotels-in-london-for-103-m/

Savills Report

“Althoughthisisstillsome€11belowtherevparachievedin2007,thisisgoodnewsfortheindustryandasreportedintheglobalrankings,thereweresomestarperformersinEurope.”

Kyriakidisadded:“Revpargrowthgainedmomentuminthecapitalduring2010andtheresultsweregooddespitethecurrenteconomicuncertaintyfacingtheUKeconomy.

“2011mayprovetobemorechallenging,however,asthecitystartstoseenewhotelsupplycomeonboardintherunuptothe2012LondonOlympicGames.”

MarvinRust,Deloitte’shospitalitymanagingpartner,said:“ThefutureforhotelsinEuropeoverthecomingyearremainsuncertainasanumberofcountriescontinueontheslowroadtorecoveryintermsofeconomicgrowth.

“Despitethis,therearemorethan124,000roomsacrossEuropecurrentlyinthepipelineaccordingtoSTRGlobal,andasLondongearsupforthe2012OlympicGamesitisnosurprisethatthecityhasthelargestnumberofroomsinthe‘construction’phase,withover6,000roomsinthepipeline.”

http://www.travelweekly.co.uk/Articles/2011/03/10/36435/london-ranked-third-for-hotel-occupancy.html

http://www.bpf.org.uk/en/files/reita/reita_org_documents/analysis/Savills_-_Hotel_Investment_Survey_February_2011.pdf

London ranked third for hotel occupancy

2011 forecast to see growth in overseas visitor numbers

• Overseasvisitornumbersfell1.9%in2010,however, therateofdeclineslowed.Forexample,Europeanvisitor numbersweredown1.1%asopposedtothe6.7% declinereportedthepreviousyear.

• IncontrastUSvisitornumberssawanotherdramatic declineof8.2%followingthe6.4%dropreportedin2009.

• Improvingglobaleconomicconditions,andthepositive touristboosttheRoyalWeddingisexpectedtohave, couldresultina4%increaseinvisitornumbersthisyear. TheLondonOlympicsin2012willseeanothergrowthin visitors,forecasttobeintheregionof7%.

• HolidayInnExpressRoyalArsenalwilloffer130rooms, arrangedover6floors.Thegroundfloorwilloffera restaurant,barandreceptionareas.

• Floors2to5providesforthemajorityofthehotel accommodation.Thestandardroomswillbedouble roomswithwetbar,workstation,stateoftheart multimediaandluxurybathroomsuites.

• ThehotelwillbemanagedandoperatedbyBDL MANAGEMENT,asaHolidayInnExpress.

• HolidayInnExpressisoneoftheworld’smostrecognised hotelbrandswithaglobalreputationforservice,comfort andvalue.ItisEurope’sfastestgrowingbrand.

• HolidayInnExpressisamidtierbrand,developed innewattractiveandefficientformat,andpartofthe InterContinentalHotelsGroup(IHG).HolidayInnExpress istheworld’slargesthotelbrandwithover1,700 worldwide.HolidayInnExpressfocusesonbusinessand leisuretravellersofferingdependability,friendlyservice andmodernattractivefacilitiesatexcellentvaluein convenientlocations.

• Thehotelwillbeoperatedundera20yearfranchise contractwithIHG.

• TheCompanyisseekingexpressionsofinterest, toparticipateintheproject,fromanycompetentand experiencedparty/partiesonthebasisofasyndicated investmentbasis.

Project Overview

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Floor Plan

AvailableUniteTypeA

Above:RoyalArsenalMasterplanwithRoyalArsenalHotelhighlightedinRed

AvailableUniteTypeB

TypicalFloorPlan

Site Plan

Key FinancialsKey Financials

Investment Example & Potential ReturnsRoyal Arsenal Hotel

The InvestmentRoyal Arsenal Hotel

2013 2014 2015 2016 2017

Adjusted Net Operating Income £985,553 £1,046,265 £1,176,477 £1,238,109 £1,284,566

Less Ground Rent £1000 per unit 130,000 130,000 130,000 130,000 130,000

Net Operating Income £855,553 £916,265 £1,046,477 £1,108,109 £1,154,566

Per Room Revenue

Standard Room £6,581 £7,048 £8,050 £8,524 £8,881

Yield 6.93% 7.42% 8.47% 8.97% 9.35%

ROI(excapitalappreciation) 16.45% 17.62% 20.12% 21.31% 22.20%

Double Room with En-suite £95,000 Valued at £120,000

Cash Investment £40,000

Balance NON-STATUS Finance £55,000

Interestat2.5%aboveBOEbaserate

over20years

Investment % Date

£40,000 42% 2011

Mortgage 58% 2013 (starts on completion)

• Depositof£40,000insuredwhile constructionunderway

• NetYieldstartingat12%andrisingto 18%inyearfive

• VATpaidbythedevelopersaving£19,000

• Financeinterestsetatonly2.5%above BankofEnglandbaserate

• Financeovera20yearterm

Purchase ProcessPurchase Process4 Simple Steps In Detail

Onceyourunithasbeenselected,youwillneedtocompleteareservationform,attachacopyofyourpassportandsendthesetotheappropriatesalesrepresentative.Onceyouhavedonethisyouwillneedtoarrangepaymentofthe£5,000deposit.

Onceyouhavepaidyourdepositthedeveloperslawyerswillsendyourchosenlawyeracontractpack,toenablethemtoraiseenquiriesaboutthedevelopmentonyourbehalf.

Thefirstinstalmentof£35,000willbemadeonexchangeofcontractswhichwilltakeplace4weeksfollowingtheissueofthecontractpacktoyourconveyancer.Atthisstageyouwillberequiredtosignandreturnyourcontracts.Ifyouareoverseas,alternativearrangementscanbemadebyappointingyoursolicitortoactasyourPowerofAttorney.

AfteryouhaveexchangedcontractsyouwillreceiveawelcomeletterfromtheDeveloperwhichwillexplainthefutureservicestheywillprovideandincludeallcontractdetails.

Yourfinalinstalmentof£55,000iscompletedthroughnon-statusfinancedueonthecompletionofthebuildingworksandagainyourconveyancerwillbegivennoticeofthis.

2 SolicitorInstructedLegalsandSalesPack

3 ExchangeofContractswithin28days,Paymentof£35,000

4 CompletionofBuilding,Q12013CommenceNon-Statusfinance

forthebalanceof£55,000

1 ReservationForm&Depositof£5,000

ScottFowleristhechosensolicitorsforthisprojectandprovidesacompleteall-roundlegalservicewithastrongfocusonclientsatisfaction.

ScottFowlerwasfoundedin1968andhasgrownsignificantlyoverthelastfewdecades.WithofficesinNorthamptonandCanaryWharf,ScottFowlerpridesitselfonprovidinganefficient,energeticandfriendlyservicetoeveryonewhousesourfirm.

Overthepast30yearsMoneyCorphavedevelopedfromabureaudechangeoperatortoaleadingproviderofforeignexchange,globalremittanceandfinancialriskmanagementsolutions.

Itscontinuedgrowthisduetoacommitmenttoprovidingtailoredandhighlycost-effectivesolutionstoallofitscustomersandthatiswhythousandsofbusinessesentrustustohelpthem.

FAQ

Is the hotel built?Thehotelconstructionstartsattheendof2011andwillbereadyQ12013

Am I buying freehold or leasehold?Leaseholdon125yearlease

Is there any restriction if I want to sell?No,youarefreetosellatanytime,thenewownercanchosetotakeoverthenon-statusfinance

Who operates the hotel?ThehotelismanagedandoperatedasBDLmanagementasHolidayInnExpress.Thehotelwillbeoperatedundera20yearfranchisecontract

How many rooms are there in the hotel?Thereare130roomsover6floors.Therewillalsobearestaurant,bar,conferenceroomsandreceptionarea.

Is the price fully inclusive of furniture?Yes,theroomsarefurnished.

Can I purchase this with my SIPP?YesyoucanpurchasewithyourSIPP

Can I purchase in a company name?Yesyouarefreetopurchaseinacompanyname

How will I receive my returns?Thefirstreturnsyouwillreceivewillbe6monthsafteropening,thenyoureceiveyourshareoftheNETprofitbiannually

Is my deposit protected?Your£40,000depositisprotectedbyaninsurancepolicywhilethehotelincontracted

Do I need to be approved for �nance?Nothefinanceisnon-status,availableforanypurchaserinanycountry

Is there a interest rate on the �nance?Theinterestrateissetat2.5%aboveBankofEnglandbaserateforthefulltermof20years

Do I need a solicitor to purchase?Yes,werecommendScottFowlertoactonyourbehalfinthispurchase,theyhavemuchexperienceinthistypeoftransaction

Do I pay VAT on the purchase?No,thedeveloperhasagreedtopayforeachpurchaser,saving£19,000