PROJECTED CASHFLOW £32,163 PA
ROI: 62% (AFTER REFINANCE)
PRIME LOCATION
COMMERCIAL CONVERSION
FAST COMPLETION NEEDED
REGENERATION ZONE
Fabrik Property Group Matt Harper-Penman
www.fabrikpropertygroup.com M: 07813435267 T: 01253 291881
68 Topping Street, Blackpool FY1 3AQ E: [email protected]
50-52 Topping Street, Blackpool, FY1 1JD
MARKET VALUATION: £600,000 - £650,000 (AFTER REFURBISHMENT)
PURCHASE PRICE: £210,000
REFURBISHMENT: £240,000
PROJECT MANAGEMENT £28,800 (10% + VAT OF REFURBISHMENT)
STAMP DUTY £1,000
LEGALS £4,000 (SEPARATION OF TITLES)
FINANCE COSTS £40,580
TOTAL COST £524,380
DEPOSIT TO RESERVE: £10,000 (DEDUCTIBLE FROM PURCHASE)
S.A GROSS INCOME: £129,210
COMMERCIAL GROSS INCOME £16,000
TOTAL GROSS INCOME £145,210 Gross Yield: 27.69%
PROJECTED NET CASHFLOW £32,163 PA | £2,680 PCM ROI: 62%
NEEDED FOR BRIDGE PURCHASE c£230,000 (incl Refurb)
NEEDED FOR CASH PURCHASE c£525,000 (incl Refurb)
In the Blackpool Town Centre, this unit consists of, 1 x 1 Bedroom Apartment, 5 x 2 bed Apartment
and Two large commercial units.
Front Elavation Street Scene
Fabrik Property Group Matt Harper-Penman
www.fabrikpropertygroup.com M: 07813435267 T: 01253 291881
68 Topping Street, Blackpool FY1 3AQ E: [email protected]
Internals
Rear Elevation with Parking
Fabrik Property Group Matt Harper-Penman
www.fabrikpropertygroup.com M: 07813435267 T: 01253 291881
68 Topping Street, Blackpool FY1 3AQ E: [email protected]
Map View
Aerial Satelite View
Fabrik Property Group Matt Harper-Penman
www.fabrikpropertygroup.com M: 07813435267 T: 01253 291881
68 Topping Street, Blackpool FY1 3AQ E: [email protected]
Deal Background
The property has been secured by Fabrik from a developer that has recently got plans approved to
develop the site into 6 residential dwellings and 2 commercial units, 8 units in total.
The developer bought the property at Auction without planning which was a huge risk for them due
to the property residing in a conversation area which is notorious for planning to be refused. If
planning were to be refused on the property the developer would have been near on guaranteed to
have lost money. Fortunately, now the building has planning this presents a fantastic development
opportunity.
This risk taken allowed the developer to buy the property for relatively low price and now has
added real significant value to the site, boasting an end Gross Development Value of £600,000 -
£650,000. Leaving the now purchase price of £210,000 to represent true below market value.
This building now presents its self as a perfect example of a commercial conversion. The property
has planning permission for minimum 1 x 1-bedroom apartment, 5 x 2-bedroom apartments and 2
x commercial units.
The apartments will fit national room size standards and 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
Aerial Satelite View
Fabrik Property Group Matt Harper-Penman
www.fabrikpropertygroup.com M: 07813435267 T: 01253 291881
68 Topping Street, Blackpool FY1 3AQ E: [email protected]
Primary Strategy: Serviced Accommodation
The block is in ideal location for Blackpool tourism located close to the promenade and short walk
from all the major attractions. The property is in the heart of the town amid the local council
regeneration plan valued at in excess of £100m, with 6 car parking spaces on site and an overspill
public car park directly behind the building which accommodates for all guests.
A major £300m investment has been announced not far from the site, which will generate more
demand for a serviced accommodation strategy.
1 x S.A Flats @ £90 per night £19,710 per annum (60% Occupancy)
5 X S.A Flats @ £100 per night £109,500 per annum (60% Occupancy)
Total SA Income £129,210
2 x commercial Units @ £134.61 per week £16,000 per annum
Total Gross Income £145,210 per annum (60% Occupancy)
Less:
70% Monthly S.A operational costs £90,447 per annum
10% Commercial Management costs £1,600 per annum
Mortgage £21,000 per annum
Circa Net Cashflow £32,163 per annum
Circa Net Cashflow £2,680 per month
Return On Investment 62%
Fabrik Property Group Matt Harper-Penman
www.fabrikpropertygroup.com M: 07813435267 T: 01253 291881
68 Topping Street, Blackpool FY1 3AQ E: [email protected]
Finance Breakdown (figures are a guide only)
Purchase £210,000 : Deposit £63,000 / Bridge £147,000 + £150,000 (Refurb) = 300k
Bridge Costs:
Arrangement fee 2% £2,940
Valuation £1,000
Bridge Legals £1,000
Interest 12 months @ 1% £35,640 (£297,000 x 1% x 12 months)
Total Cost £40,580
Fabrik Property Group Matt Harper-Penman
www.fabrikpropertygroup.com M: 07813435267 T: 01253 291881
68 Topping Street, Blackpool FY1 3AQ E: [email protected]
RICS Valuation
Fabrik Property Group Matt Harper-Penman
www.fabrikpropertygroup.com M: 07813435267 T: 01253 291881
68 Topping Street, Blackpool FY1 3AQ E: [email protected]
-The North Pier
-Main Nightclub Area
-50 – 52 Topping Street
-Blackpool North Train Station
-New Tram Tracks under construction
-New Budget Hotel under construction
There are many reasons why 50 – 52 Topping Street is in a fantastic place for Serviced
Accommodation. Above are the key factors as to why:
- The North Pier. The property is only a short 5-minute walk from the Blackpool Promenade,
specifically The North Pier.
- The Main Nightclub Area. Just before you hit The North Pier, you come across Blackpool’s best
area for nightlife, with its biggest, most popular bars and clubs.
- Running adjacent to the Topping Street property are new tram tracks undergoing construction.
The purpose of these additional tracks is to link the current tram to the Blackpool North train
station. This will also make travel from the property to the promenade and nightlife area even
easier.
Fabrik Property Group Matt Harper-Penman
www.fabrikpropertygroup.com M: 07813435267 T: 01253 291881
68 Topping Street, Blackpool FY1 3AQ E: [email protected]
Blackpool North Train Station. Just around the corner from the property is the train station for the
North of Blackpool. With this being such a convenient distance from the property, it’s another
reason for it to be more of an enticing stay, as there is easy access to Blackpool nationally by rail.
- There is also a new Holiday Inn Budget Hotel under construction about 100 meters from 50 –
52 Topping Street. With a huge development like this underway in the area, it’s only a good
sign that the area is in popular demand and is a great place to have accommodation for
holidaymakers.
This is a like-for-like comparison for the proposed opportunity. This is a Fabrik operated asset, which is located only a few doors
down. This building contains 3 x 1 bed apartments and 3 x 2 bed apartments. These apartments operate well above our minimum
conservative rate. Due to its location, we are seeing well over £100 per night on average across 12 months. Which we can
foresee being very achievable in the proposed project due to its similarity.
Fabrik Property Group Matt Harper-Penman
www.fabrikpropertygroup.com M: 07813435267 T: 01253 291881
68 Topping Street, Blackpool FY1 3AQ E: [email protected]
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.
Occupancy for Serviced Accommodation Described
The way we get to our net income before expenses figure is by multiplying the number of units by
£90 - £100 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 70 % - 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 - £100 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 70% away. These costs include management, Booking.com fees (15%) and operating
costs such as maintenance, linen companies, cleaners, utilities (Gas, electric, council tax, water,
WIFI). Net profit is inclusive of VAT.
VAT
Please note there is VAT charged on the income after the SPV hits the £85,000 VAT threshold. This
has been included in your Net total cashflow.
Fabrik Property Group Matt Harper-Penman
www.fabrikpropertygroup.com M: 07813435267 T: 01253 291881
68 Topping Street, Blackpool FY1 3AQ E: [email protected]
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 whichever is the higher
Fabrik Property Group Matt Harper-Penman
www.fabrikpropertygroup.com M: 07813435267 T: 01253 291881
68 Topping Street, Blackpool FY1 3AQ E: [email protected]
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
Fabrik Property Group Matt Harper-Penman
www.fabrikpropertygroup.com M: 07813435267 T: 01253 291881
68 Topping Street, Blackpool FY1 3AQ E: [email protected]
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.
Fabrik Property Group Matt Harper-Penman
www.fabrikpropertygroup.com M: 07813435267 T: 01253 291881
68 Topping Street, Blackpool FY1 3AQ E: [email protected]
Blackpool Pleasure beach attracts thousands to the area every single year. Perfect for
Families
Sandcastle waterpark another great attraction for families
Fabrik Property Group Matt Harper-Penman
www.fabrikpropertygroup.com M: 07813435267 T: 01253 291881
68 Topping Street, Blackpool FY1 3AQ E: [email protected]
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
Fabrik Property Group Matt Harper-Penman
www.fabrikpropertygroup.com M: 07813435267 T: 01253 291881
68 Topping Street, Blackpool FY1 3AQ E: [email protected]
£300m Chariots of the Gods Development in the centre of Blackpool
Blackpool Central State of the Art Development
Fabrik Property Group Matt Harper-Penman
www.fabrikpropertygroup.com M: 07813435267 T: 01253 291881
68 Topping Street, Blackpool FY1 3AQ E: [email protected]
The UK’s first Flying Theatre Attraction
9 year Development which will be implemented in 3 phases starting in 2020