be part of the renaissance
TRANSCRIPT
B O U T I Q U E H O T E L + B A R & R E S T A U R A N T
Be part of the
Renaissance
A true partnership built upon trust, honesty, integrity and quality.
Living Brick are a highly experienced property development company dedicated to procuring and developing investment properties with a core principal of a high yielding asset that will effect excellent capital appreciation. The Living Brick offering has arisen from the need to help new or experienced investors in property who want to establish and build a property portfolio with better than average growth potential. Living Brick look to develop long-term relationships with their clients so that they can maximise their return on investment. The relationship with investors is a true partnership built upon trust, honesty, integrity and quality.
Contents
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A sought after location
the proposal
About us
The Development
The Baltic Triangle Liverpool
The Rooms
Floorplans
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Frequently Asked Questions
Partners
28Bar & Restaurant
Known as Liverpool’s 'Creative Quarter', The Baltic, Liverpool 1 is home to digital and creative businesses, independent shops, cafes and bars. This makes The Baltic one of Liverpool’s quirkiest districts to explore.
The Baltic Triangle is the latest location in Liverpool to see astonishing redevelopment, attracting £100 million worth of investment.
A sought after location
The hotel sector continues to see year-on-year growth in revenues and expansion of capacity. A report from the city council illustrates how the hotel sector has enjoyed huge growth since Liverpool celebrated being European Capital of Culture a decade ago.
Occupancy levels and profit-per-room (revpar) are all rising despite their being almost double the number of hotel rooms in the city than there were in 2008. October 2017 saw the highest ever weekend average revpar peak at £104.63.
The figures reflect the rise in value of the Liverpool city region visitor economy which is now estimated to be worth around £4.3bn a year.
From a developer/investor perspective, Liverpool is set to enjoy growth in the hotel sector for some time to come with room occupancy set to increase into the foreseeable future with more capacity required year on year.
Source: Tourist Board Records
Liverpool's growing hotel sectorMore than 2m hotel rooms were booked in Liverpool in 2017.
2013 2014 2015 2016
Occupancy % 71.2% 75.5% 76.1% 77.8%
ADR £57.09 £61.13 £63.47 £68.74
REVPAR £41.00 £46.30 £48.41 £52.17
Rooms Sold 2,566,093 2,960,096 3,139,601 3,410,010
• Average occupancy 77.5% (down from 77.6% in Jan-Oct 2015)
• Weekend occupancy 89.1% (up from 88.9% in Jan- Oct 2015)
• Weekday occupancy 75.8% (down from 75.9% in Jan- Oct 2015)
• Average Room Rate £72.19 (up from £69.88 in Jan- Oct 2015)
• Average RevPar £56.16 (up from £54.35 in Jan- Oct 2015
• Weekend Average RevPar £81.93 (up from £78.18 in Jan- Oct 2015)
Liverpool City Region Hotel Stats 2016
Invested in hotels£26.5m
New hotels2
New aparthotels opened2
New bedrooms created216
Serviced apartments159
(up from 1,489,192 = 11.9% more than Jan-Oct 2015)
Rooms sold (Jan-Oct)1,665,768
The Baltic is located just off Parliament Street, one of Liverpool’s oldest and historically rich boulevards. It’s also very close to the city’s popular leisure destinations such as The Royal Albert Dock, Echo Arena and Liverpool ONE. Public transport is extremely accessible with bus and train stations in close proximity.
The combination of attractions, city centre retail, nightlife and culture, as well as the proximity to the universities just add to the appeal of this extremely convenient location. This area is particularly attractive to young professionals, creatives and students as well as tourist visitors looking for the most up-and-coming area in which to enjoy their visit to the city.
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THE CONCEPT
THE DESIGN BRIEF
INCEPTION TO REALITY
MANAGEMENT
The Baltic Hotel will sit within a beautiful turn of the century building at the most visible juncture to Liverpool’s newly emerging creative hub. Our preferred architects KDP have been tasked to retain the stunning pilaster entrance and crittal windows aligned to a contemporary rooftop extension. The main arterial route and open aspect will afford the hotel maximum exposure and footfall in a fabulous location.
The Baltic Hotel will feature four elegant rooms styles (CRASH, SNUG, ROOMY, GRANDE). The Crash being 18 square metres, perfectly formed with a cosmopolitan feel perfect for those budget short or solo stays without compromising comfort. The Snug at 27 square metres has a dual aspect, cleverly designed with open plan roll top bath for the indulgent stay the extra space affords an extended stay, why not. The Roomy at 26 square meters uses its linear proportions ingeniously with a separate convertible lounge area complete with sliding door and exclusive Italian designed wall bed, sleeps four, ideal for small families, works for two couples. The Grande at 32 square meters large open plan living area comprising two Clei beds, for groups visiting the city or large families the convertible space is elegant without compromise, perfect for longer stays.
We will continue to utilise our existing team of KDP Architects and Taurus Construction to realise the project. KDP are a highly experienced, respected practice in Liverpool that have a wealth of experience with period conversions, we are currently engaged with Graham Powell on two projects, one existing. Taurus Construction are a dynamic joinery based contractor with an assiduous attention to professional design, fit and finish. They are currently undertaking a grade two listed conversion of 18 one and two bedroom apartments for Living Brick as our main contractor. We anticipate a start date in Q3 of 2018 with a twelve month construction period to turnkey.
Living Brick are looking to retain complete control of the hotel as well as the bar & restaurant within its own portfolio, this allows overall responsibility for the management of the business and the trajectory / reputation of the brand moving forward. We have an experienced management team in place upon completion tasked with propelling the brand forward whilst maximising profits, our remit is to convey an affordable, boutique experience in the heart of the city.
Our proposal is to develop the Baltic Triangle's first boutique hotel, comprising of 36 eccentrically designed, uniquely flexible stay spaces. The ground floor will feature a meeting/socialising space, bar and restaurant with a more intimate eating area in the basement. Wolf & Lamb are our chosen partner for the ground floor, with a Michelin standard chef and a current style their ambience driven attention to detail affords a perfect fit.
leading the way
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The Baltic Triangle at the southern edge of Liverpool City Centre bustles with art, music and a plethora of creative businesses. Home to the unique Jamaica Street - lined with an eclectic mix of independent stores, coffee houses and restaurants – as well as a variety of creative and digital businesses. The area is quickly becoming a magnet to those looking to relax, drink and dine in a different kind of cosmopolitan setting.
The Baltic Triangle
The creative heart of Liverpool
Liverpool Echo Arena and Convention Centre
Royal Albert Dock
Liverpool ONE
Chinatown
Anglican Cathedral
Metropolitan Cathedral
University of Liverpool
Cains Brewery Village
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explore the city
drink eat
sleep
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About the development
• Central location overlooking the historic river to the west with Liverpool ONE shopping complex to the north.
• A boutique development of 36 rooms carefully designed to enable an exit strategy for investors.
• Bar & restaurant to the ground floor managed by Wolf & Lamb.
• Generous floor-plans taking advantage of the original building’s finer features and combining these with high quality modern amenities.
• Living Brick are looking to retain complete control of the hotel as well as the bar & restaurant within its own portfolio.
• Communal areas enlivened with a bold, raw, urban design to encapsulate the building’s warehouse lineage whilst appealing to the modern city visitor.
BAR & RESTAURANT
CENTRAL LOCATION
Rooms with a ground floor bar & restaurant
Reservation Fee
Assured NET yield for years 6-10
Price per square foot
Assured NET Yield for years 1-5
36 £5,000
11%
£275
10%
Benefits to purchaser
LUXURY SPECIFICATION
SMART TECH
CONNECTIVITY
INNOVATIVE DESIGNS
Developer buyback for years 3-10
115%36 Boutique Rooms with Bar &
Restaurant
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The Rooms
“The intent of the design is to take advantage of the buildings architecture, maximising space and bringing a sense of Urban Luxe to the Baltic Quarter. Using materials including copper, brass, marble and polished concrete mixed with velvets, neon and bold pattern.
This luxury boutique hotel will be an eclectic mix of subtle opulence with a nod to vintage years. With influences from the design capitals of London, Paris and Amsterdam - The Baltic Hotel will be a spectacular boutique option in Liverpool with its avant-garde design and attention to detail.”
Gemma Tate Lea Sloane
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crash
snug
grandE
roomy
Priced at £79,75010 Year hands off investment structure
Price Per square foot £275.00
Number of apartments 6
ROI for years 1-5 10% NET
ROI for years 5 + 11% NET
There is an exit strategy built into the contracts at an uplift 110% of the purchase price at any point from year 3 of the initial investment
10 year financial simulation based on a £79,750
Years 1-5 £7,975 per annum
Years 5 + £8,772.50 per annum
Buyback option from year 3 £87,725
Total NET Income over 10 years £91,712.50
Assured ROI % over 10 years 115%
Annualised ROI 11.5%
Financial breakdown and purchasing process
Route One
Reservation fee £5,000
Exchange funds required 25% of purchase price (minus reservation fee)
3 months post exchange 25% of purchase price (minus reservation fee)
Completion funds required Remaining 50% (minus reservation fee)
This route would enable your ROI to commence from the completion date.
Route Two
Reservation fee £5,000
Exchange funds required 100% of purchase price (minus reservation fee)
This route would enable your ROI to commence from the date contracts are exchanged.
Priced at £93,50010 Year hands off investment structure
Price Per square foot £271.80
Number of apartments 6
ROI for years 1-5 10% NET
ROI for years 5 + 11% NET
There is an exit strategy built into the contracts at an uplift 110% of the purchase price at any point from year 3 of the initial investment
10 year financial simulation based on a £93,500
Years 1-5 £9,350 per annum
Years 5 + £10,285 per annum
Buyback option from year 3 £102,850
Total NET Income over 10 years £107,525
Assured ROI % over 10 years 115%
Annualised ROI 11.5%
Financial breakdown and purchasing process
Route One
Reservation fee £5,000
Exchange funds required 25% of purchase price (minus reservation fee)
3 months post exchange 25% of purchase price (minus reservation fee)
Completion funds required Remaining 50% (minus reservation fee)
This route would enable your ROI to commence from the completion date.
Route Two
Reservation fee £5,000
Exchange funds required 100% of purchase price (minus reservation fee)
This route would enable your ROI to commence from the date contracts are exchanged.
Priced at £75,62510 Year hands off investment structure
Price Per square foot £270.00
Number of apartments 18
ROI for years 1-5 10% NET
ROI for years 5 + 11% NET
There is an exit strategy built into the contracts at an uplift 110% of the purchase price at any point from year 3 of the initial investment
10 year financial simulation based on a £75,625
Years 1-5 £7,562.50 per annum
Years 5 + £8,318.75 per annum
Buyback option from year 3 £83,187.50
Total NET Income over 10 years £86,968.75
Assured ROI % over 10 years 115%
Annualised ROI 11.5%
Financial breakdown and purchasing process
Route One
Reservation fee £5,000
Exchange funds required 25% of purchase price (minus reservation fee)
3 months post exchange 25% of purchase price (minus reservation fee)
Completion funds required Remaining 50% (minus reservation fee)
This route would enable your ROI to commence from the completion date.
Route Two
Reservation fee £5,000
Exchange funds required 100% of purchase price (minus reservation fee)
This route would enable your ROI to commence from the date contracts are exchanged.
Priced at £53,50010 Year hands off investment structure
Price Per square foot £275.77
Number of apartments 6
ROI for years 1-5 10% NET
ROI for years 5 + 11% NET
There is an exit strategy built into the contracts at an uplift 110% of the purchase price at any point from year 3 of the initial investment
10 year financial simulation based on a £53,500
Years 1-5 £5,350 per annum
Years 5 + £5,885 per annum
Buyback option from year 3 £58,850
Total NET Income over 10 years £61,525
Assured ROI % over 10 years 115%
Annualised ROI 11.5%
Financial breakdown and purchasing process
Route One
Reservation fee £5,000
Exchange funds required 25% of purchase price (minus reservation fee)
3 months post exchange 25% of purchase price (minus reservation fee)
Completion funds required 50% of purchase price (minus reservation fee)
This route would enable your ROI to commence from the completion date.
Route Two
Reservation fee £5,000
Exchange funds required 100% of purchase price (minus reservation fee)
This route would enable your ROI to commence from the date contracts are exchanged.
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Bold, raw, urban design to encapsulate the building’s warehouse lineage whilst appealing to the modern city visitor. The fixtures and fittings of The Baltic Hotel have been selected on the basis of quality and longevity.
urban staycation
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Floorplans
Proposed Cross Section Proposed Floors 1-6
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Room Floorplans
Proposed Crash Floor Plan Proposed Snug Floor Plan Proposed Roomy Floor Plan Proposed Grande Floor Plan
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Bar & Restaurant Floorplans
Proposed Basement Floor Plan Proposed Ground Floor Plan
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Bar & Restaurant
The Baltic Bar / Wolf & LambOur bar & restaurant will bring a fresh, fusion driven approach to drinking and dining in Liverpool. A world class restaurant atmosphere, ambience and setting will take the very best of the warehouse setting and mix this with clean, modern fixtures and fittings to create a place to relax and enjoy everything good about eating out or a drink with friends.
The kitchen will be open so the clientele (and the public) can see what goes on behind the scenes in a busy, world class eatery. The brick and wood fabric of the building will be complemented by stainless steel appliances and pristine work surfaces – spoiled only by the freshest ingredients being fused together into dishes from around the world.
The bar will be home to a seating area for 60 people with the restaurant having covers for 50 people. The aim is to make this THE place to eat in Liverpool city region with long waiting lists and even longer queues.
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WHAT ARE THE TIMESCALES? The development is set to begin in Q3 of 2018 with an estimated project timeline of twelve months to practical completion, this will include the sensitive restoration of the existing building with an additional, contemporary, three floors to be added. The hotel will be fully operational within the specified timeframe as will the Wolf & Lamb bar and grill.
WHO ARE THE CONSTRUCTION PARTNERS? All of the professions engaged on the project have a historical working relationship with Living Brick Ltd. In terms of the design element we are working with Graham Powell of KDP Architects, structural engineering is provided by Kevin Lockley of PKL, Marc Murray of Taurus Construction will project manage the scheme and provide monthly construction updates. As a hands-on developer we are totally invested in our schemes; our relationship to investors invites an opportunity to liaise directly if required, be this with an arranged site visit or pre arranged meeting.
WHAT ARE THE INVESTMENT OPTIONS AND THE EXPECTED RETURNS? The investment provides two payment options, in both cases you reserve your desired unit with a £5,000 reservation fee. Option 1 is to purchase a unit in its entirety at 100% with the 10% yield, paid quarterly in arrears, from exchange. Option 2 is to deposit 25% on exchange with a further 25% payable 3 months later and the final balance to be paid on completion - the 10% yield payment will then be paid quarterly in arrears on completion.
WHAT SECURITY DO I HAVE? As an investor you will own the title deed to your specific unit, this will be registered in your name at the Land Registry. On practical completion you will be given a first legal charge over the building, Living Brick Ltd will retain both the freehold interest and the long leasehold interest in the ground and lower ground floor commercial space. As an owner operator, Living Brick will be invested in the operational management of the hotel as well as the commercial element of the building.
WHO ARE THE LAWYERS FOR THIS SCHEME? Living Brick Ltd will retain David Hayhurst of 174 Law to act on our behalf given our historical relationship and his expansive knowledge in structuring previous similar sales. We will advise buyers to retain Ruth McCarthy of JMW Solicitors, given the complexity of this specific purchase process and her expertise in this field. Whilst buyers may have a preference for their own legal advisor(s), the difficulties of large numbers of lawyers acting on behalf of buyers elongates the process and cost. JMW Solicitors acting on behalf of buyers is merely a suggestion, given our previous experience and a desire to expedite matters.
WHAT ARE THE BENEFITS OF GETTING INVOLVED? No stamp duty is payable on purchase, the same applies to ongoing commitments such as management charge or ground rents which you would associate with more traditional residential investments. As an ‘armchair investor’, your yield is paid quarterly in arrears net at 10% pa. The ROI is not based on the occupancy level of your suite but on the hotel as a complete entity providing a secure quarterly return.
IS THERE ANY INDICATION ABOUT THE EXPECTED OCCUPANCY LEVELS? Liverpool city centre has been experiencing unparalleled levels of tourism over the last decade culminating in our highest occupancy levels to date. We currently have less than fifteen hotels described as “boutique” with demand consistently outstripping supply. We have designed a unique concept which will provide flexible accommodation in a vibrant, atmospheric setting within the most coveted location in the city. We are currently in talks with a range of partners who are eagerly anticipating the opening of the hotel including Liverpool City Council.
WHY SHOULD THIS PROPOSAL BE OF INTEREST TO ME? This will be the first boutique hotel in Liverpool’s Baltic Triangle, the single most talked about area in the city at the moment. Unique in design within a beautiful historic building, its elegant facade will discreetly house an eclectic, visually stimulating urban retreat. A meeting hub by day to service guests and visitors will meld into a Michelin level eatery by night with an atmospheric basement for privacy.
We are invested, now it’s your turn...
Frequently Asked Questions
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Cityscape Investments works with new and experienced property investors, developers and estate agents to achieve more efficient and effective value in the property market.
Suite 8, Church House, Hanover Street, Liverpool L1 3DN T. +44 (0)151 701 0212 E. [email protected] www.cityscapeuk.com
Kdp Architects are an award winning, enthusiastic team that work towards reflecting the identity of a community through architecture.
13 Seymour Terrace, Seymour Street, Liverpool L3 5PE
T. +44 (0)151 709 1777 E. [email protected] www.kdparchitects.com
KCI Building Services is a mechanical and electrical engineering company. From basic installation works through to complete project design and consultancy.
Unit 130, Appin Road, Argyle Industrial Estate, Birkenhead, Wirral CH41 9HH
T. +44 (0)151 647 7694 E. [email protected] www.kci-bsl.co.uk
partners
Citrus Electrical are an electrical contractor covering Liverpool and the surrounding areas. They have been serving clients in the area for over 3 years.
Brookbridge Garage, Liverpool Road, Prescot L34 1NL
T. +44 (0)333 355 4899E. [email protected]
PKL provide building consultancy and engineering services to its clients. It has established an excellent reputation for both innovation and reliability.
PKL Partners Limited, Cotton House, Old Hall Street, Liverpool L3 9TX
T. +44 1942 722087 E. [email protected] www.pkl-uk.com
174 Law Solicitors are a forward thinking legal services provider driven by getting the most effective solution for all their clients.
68 Whetstone Lane, Birkenhead, Wirral CH41 2TG
T. +44 (0)151 647 7372 E. [email protected] www.174law.co.uk
Taurus Construction (NW) Limited are a construction company working on projects ranging from new build houses and apartments to domestic and commercial extensions and renovations.
C/O Lonsdale & Marsh 7th Floor, Cotton House, Liverpool L3 9TX
T. +44 (0)7725 304077 E. [email protected] www.taurusconstructionnw.com
House of Sloane is a luxury interiors brand with a modern take on classic glamour. Specialising in bespoke pieces of furniture hand built in England and commercial interior design.
10 Stadium Court, Stadium Road, Bromborough, Wirral CH62 3RP
T. +44 (0)151 305 0196 E. [email protected] www.houseofsloane.co.uk
JMW Solicitors are a full-service law firm, providing cost-effective legal services and advice for individuals and businesses to the highest standard.
1 Byrom Place, Manchester M3 3HG
T. 0345 872 6666 E. [email protected] www.jmw.co.uk
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DISCLAIMER & NOTICE The material contained within this document has been prepared for information purposes only by Living Brick Limited. Information contained herein is not to be relied upon as a basis of any contract or commitment. The information is not to be construed as an offer, invitation or solicitation to invest and opinions expressed are subject to change without prior notice. Information contained herein is believed to be correct, but cannot be guaranteed. In case of queries or doubt you should consult an independent investment adviser. No personal recommendation is being made to you and the past is not necessarily a guide to the future. All images used are for illustrative purposes only.
www.livingbrick.co.uk