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Hotbed

the direct route to alternative investments

Completed investments

Premier Inn, Camberley
Premier Inn, Camberley

In June 2011, Hotbed completed a £3.4 million forward commitment to purchase a newly constructed Premier Inn Hotel in Camberley, Surrey.

The total purchase price of the property was £6.7 million reflecting a net initial yield of 6.18%.
Premier Inn’s excellent covenant strength and an inflation-linked lease represents a good quality, low risk and long term income investment, at a time when real returns on most cash savings accounts are being rapidly eroded.

This acquisition represents our third hotel investment in the last twelve months, as the post-credit crunch shake-up in the hotels sectors continues to create high quality investment opportunities.

  • Amount invested: £3.4 million
  • Completion date: June 2011
Enviroparks Logo
Enviroparks

In May 2011, Hotbed completed a £2.25m investment in Enviroparks, a company that will build a series of processing plants that generate energy from waste products.

Enviroparks’ model hinges on integrating proven cutting-edge recycling and energy production technologies, including gasification and anaerobic digestion technology. The way Enviroparks brings these technologies together on one site means they will be able to process more waste more efficiently and generate more useful energy output than other providers.

Planning permission has already been granted for the business’s first facility on a 20 acre site on the Hirwaun Industrial Estate in South Wales. The site will be capable of processing up to 240,000 tonnes of waste p.a. A pipeline of other potential sites has also already been identified.

  • Amount invested: £2.25m
  • Completion date: April 2011
Tonbridge
Wharf House, Tonbridge, Kent

In early 2011, Investor Members provided £1.8m for the acquisition of a freehold office building in Tonbridge, Kent.

The agreed purchase price of £2,760,000 reflects a net initial yield of 7.07%. The property is let in its entirety to the West Kent Primary Care Trust on a 15-and-a-half-year, full repairing and insuring lease, from 2nd July 2010, at an initial rent of £206,985 per annum (£15.00 psf), subject to five-yearly, upward-only rent reviews.

The strategy is to hold the property for five years, until after the first rent review. During this period, Hotbed will seek to convert 3,000 square feet of currently unutilised and unrentalised space within the property, creating usable office space, thereby increasing the income generated by this asset.

  • Amount invested: £1.8m
  • Completion date: March 2011