The Sandpiper Hotel (Chesterfield) is the 16th and latest hotel investment opportunity in the Shepherd Cox portfolio. Shepherd Cox are proud to offer a rare opportunity to generate a secure 5-year fixed return via the purchase of a hotel room asset in this hotel which currently boasts 46 bedrooms but is being revamped and extended to offer 63 En-Suite Bedrooms.
Leasehold owners of the hotel rooms shall benefit from a fixed income stream equal to 8% net of their purchase price. Income will be paid monthly in arrears as a net figure, no additional costs or fees shall be placed on the leaseholders. The ownership model has been engineered to provide a clear exit strategy at the end of year 5 via a developer buy back equal to 110% of the original purchase price.
INVESTMENT HIGHLIGHTS • From £;60,000 per room • 8% net rental return per annum • 110% buyback at the end of year 5 - Income paid monthly • Hands-off investment • Zero ownership fees • Successful branded business with established customer base • Successful business with established customer base • Adjacent to the new Peak Resort • Refurbished rooms
Since 1975 the 3-star Sandpiper Hotel has been proud to look after all its guests with unrivalled levels of service and satisfaction. The hotels popularity is boosted by its convenient location being only a short drive from the historic market town of Chesterfield and the vibrant city of Sheffield.
F A Q’S
Is the hotel open Yes, the hotel is trading and operational as listed on the Sandpiper Hotel website. You can also view the hotel via the numerous internet hotel booking sites.
Am I buying a Freehold or Leasehold You are buying a 125 year leasehold, with the room being registered in your name at the UK Land Registry.
Is the rent return and buyback guaranteed Yes, the rent returns and buyback are contractually guaranteed.
Is the sale handled by a solicitor Yes, we have an experienced nominated solicitor in place who will advise and act for you throughout your purchase.
Can I resell my hotel room Yes, you can sell at any given time.
Can I rent my hotel room out myself No, your room is leased back to the hotel management company who control the day to day activities
Are there any additional costs to the Investment The only additional cost involved will be the buyer solicitor fees.
Can I view the properties Yes, we can arrange for you to visit the hotel.
What are my returns All units receive the same level of return which is equal to 8% of the purchase price. Please see the table earlier in this brochure under Financial Analysis.
Is there a due diligence pack available Yes, a full due diligence pack will be made available upon reservation which includes details on the purchase contracts, management agreement and land registry title.
How do I reserve a Unit All units are subject to availability, if you would like to reserve a unit we require a reservation deposit of £;2,500 along with a signed reservation agreement which we will forward to you.
1. On legal completion of the purchase the documents to be signed are: The Main Lease (125 years) Sub Lease (7 years) Call Option Put Option Pre-emption Agreement
2. The Main Lease is for 125 years and details the investor’s legal ownership of their unit(s) which is registered at The UK Land Registry.
3. The Sub-Lease is for a period of 7 years and provides the investor with an 8% net return per annum on the purchase price in the form of rental income.
4. The Put Option provides that at the end of year 5 the investor can serve notice on the developer to buy the unit(s) back for an amount equal to the original purchase price plus a 10% capital uplift (110%).
5. The Call Option provides that the developer can serve notice on the investor to buy the unit(s) back from them at any time during the first 5 years for an amount equal to the original purchase price plus a 10% capital uplift (110%). Note: The Put Option relates to the investor and the Call Option relates to the developer.
6. The parties enter into a Pre-emption Agreement which means that the developer has the first option (first refusal) over any sale of the unit(s) within the development.