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Hotbed

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Exits

NHS Outreach Facility

In March 2010, in only two days, Investor Members raised £1.7million to forward-fund the purchase of a new NHS Outreach Facility in Northamptonshire. Only a few months later, in July 2010, members exchanged contracts with a purchaser for £5million, representing a 4.96% net initial yield.

Investor Members who participated received approximately £18,300 for an outlay of £11,000. This is a return on equity of approximately 66.4% and equates to a 125.5% IRR net of all costs, which hugely exceeds the upside scenario outlined in the original Blueprint.

The facility is nearly 18,000 sq ft and includes clinical assessment rooms, an operating theatre and x-ray facilities, as well as audiology and orthopist rooms. Located amongst the rapidly-growing conurbations of Corby, Wellingborough, Kettering, and Northampton, the NHS anticipates a minimum catchment of 40,000 people using the new facility.

  • Sale Date: July 2010
The Hoxton Hotel

In March 2008, Hotbed investors more than tripled their original investment in the company that owns The Hoxton Hotel, an innovative ‘upmarket budget’ hotel concept established by Pret a Manger founder, Sinclair Beecham.

Hotbed Investor Members invested £1.55million in the venture in 2004 alongside Bridges Community Ventures, management and other private investors, in a deal worth a total of £18.4m.

Members who chose to sell their stake via a share buy-back, achieved an internal rate of return (IRR) of over 55%, or 3.33 times their original investment.

This exceeds Hotbed’s original forecast of an IRR of up to 26% for an exit after four years. The timing of the deal also enabled private investors to take advantage of Capital Gains Tax Taper Relief, prior to its abolition.

The investment was used to fund the building of the 205-bedroom, six-storey hotel in London’s trendy Shoreditch, which opened in 2006. The Hoxton Hotel provides luxury accommodation at an affordable price. Located on the edge of the City, it is aimed at the business market, as well as weekend leisure customers.

The unique concept has proved such a success that The Hoxton Hotel now enjoys enviably high occupancy rates of over 90%. Last year it was named......

'3rd best budget hotel in the world'

by the Sunday Times Travel magazine.

www.hoxtonhotels.com

  • Sale Date: March 2008
Piazza Courtyard

In October 2007, Hotbed, on behalf of our Investor Members, sold Piazza Courtyard, a parade of retail units on London’s South Bank, for £7.9m generating a 54.7% return on investment in less than two years.

We sold the property, which was acquired in November 2007 for £5.9m, to Capita Life & Pensions Regulated Services Limited providing our members with a cash return of c£77,000 for each £50,000 invested, representing an IRR of 26.5% p.a.

Piazza Courtyard is located next to the London Eye and comprises nine retail units in two blocks and is fully let to tenants which include Yo! Sushi and Starbucks.

  • Sale Date: October 2007