HEDDERWICK PUB BOND - TRANCHE ONE
£1,870,000 Target Raise
Bond closing date 05 May 2017 (or earlier).
Asset Backed YES
Estimated loan to value 53%
Capital is at risk and returns are not guaranteed. This is a 12 month bond and is not readily realisable.
This is an opportunity to invest in a pub trading company which owns two large freehold properties, and earn a fixed rate of up to 6.25% over 12 months.
The first of the two properties, Banyers House, is a large, attractive, Grade II listed property situated in the affluent market town of Royston. The property has been extensively refurbished and converted into a pub restaurant which benefits from a dedicated car park, 90-seat restaurant, extensive bar area and nine modern and luxurious bedrooms.
Banyers House began trading on 2 December 2016, is already performing ahead of budget (as at 5th February 2017) and is expected to generate sales in excess of £1 million in its first year*.
The second site is a 17th century, Grade II listed building in the market town of Olney. Planning permission is being sought to convert the site into a similarly high quality pub restaurant which will cater for approximately 90 covers and is expected to generate sales of £1.4 million in its first year of trading*.
We have used independent valuations to calculate the 53% LTV noted above, valuing Olney on a ‘Bricks and mortar basis’, and Banyers House on an ‘Equipped to operate’ basis, despite Banyers having been open for three months and trading ahead of expectations in its first quarter.
Both sites have been designed by the multiple award winning Oakman Inns and Restaurants who will also oversee and support the trade.
(Please see http://www.banyershouse.co.uk/bh-tour for a 360-degree tour of the site)
*Please note, past performance is not an indicator of future performance, and there is no guarantee that forecasts will be achieved.
Hedderwick Limited is a UK Limited pub restaurant company which, with support from funds managed by Downing LLP, has purchased two freehold sites. The company has extensively refurbished and successfully launched one site as a high-quality pub restaurant and is seeking planning permission to convert the second site into a similarly high-quality venue.
Hedderwick is delighted to have appointed Oakman Inns and Restaurants to design and provide operational support and oversight to both sites. Oakman has a proven track record of creating attractive venues that provide great service, high-quality food and beverage and engage with their local and wider communities’ sustainability efforts. Oakman is a multi-award-winning operator with 18 trading pub restaurants located across the Midlands and the Home Counties and was recently voted the eighth best company to work for in the UK by The Sunday Times.
As a Bondholder, you’ll also receive a loyalty card that entitles you to 20% off your food order at any of Oakman Inns’ UK pub restaurants (subject to conditions).
Peter Borg-Neal, Founder and CEO of Oakman Inns and Director of Hedderwick Ltd says,
“Both Royston and Olney really capture the ethos that a good pub should be part of a community. It’s a privilege to be able to bring a new lease of life to beautiful buildings at the heart of these market towns, creating local jobs along the way“.