Dear Potential Investor

 

Champneys is delighted to be in partnership with Mr Martin Needham on this spectacular development planned in the hills above Marbella, minutes from the Mediterranean Sea.

 

Champneys Marbella is a long term spa commitment for the Champneys Group, entering into arrangements that allow for a 20 year lease operation of the Spa within the Champneys Marbella complex.

 

Within the Spa we aim to provide an idyllic spa retreat replicating the standards of service and facilities of our UK operations.  Champneys Marbella represents to the board of Champneys a unique lifestyle opportunity and an investment opportunity for Champneys’ clientele.  Champneys is, in itself, looking to purchase twelve apartments as it wishes to demonstrate its belief in the resort and can see the financial opportunities such an investment will bring.

 

In offering apartment and penthouse investors the prospect of entering the Champneys letting pool, we aim to market Champneys breaks to Champneys customers with Marbella being positioned as a fifth resort for the group.  Although one cannot guarantee returns on such a venture, Champneys Resorts enjoy a high level of occupancy and demand is high for such a luxury setting and facilities in the Mediterranean. 

 

The Champneys Rental Pool investment documentation attached is intended to provide investors with a guide to how the Champneys Rental Pool will operate and the investment model of Champneys Marbella Apartments and Penthouses.

 

Thank you for considering Champneys Marbella as both a positive lifestyle choice and as an investment opportunity.

 

Yours sincerely

 

Ray Payne

Managing Director

CHAMPNEYS MARBELLA RENTAL POOL 

The smooth running of the Champneys Marbella Rental Pool will be ensured by the following provisions.

 

In order to maintain consistently high standards of operation for both Champneys and Investors, apartments and penthouses can only be rented through the Champneys Rental Pool. Champneys will offer accommodation with Champneys Spa Packages.

 

There are two separate pools to cover different pricing levels.

 

Champneys Penthouse Rental Pool

Champneys Apartment Rental Pool

 

In order to participate in the Champneys Rental Pool for any given year, investors will submit the months that they wish to put their property into the rental pool for that year before the month of September of the previous year.

 

Upon submitting their months, investors sign a Rental Pool Agreement which ties apartments into the Champneys Rental Pool for the months they have chosen for the following year. Once the Agreement has been signed for the months designated, the months are then fixed, aiding the requirements of taking advanced bookings for accommodation and spa packages.

 

This system will  provide Champneys with sufficient advanced knowledge of accommodation availability for planning and booking and investors with year on year flexibility regarding the degree to which they choose to participate in the Champneys Rental Pool.

 

Rental Income Percentages : Model

 

At the end of each month, rental pool participants who have had their apartment in the pool for that month will receive a Statement of Occupancy.

 

Monies earned through the rental pool being transferred quarterly.

 

Rental pool income will be calculated on monthly Statements of Occupancy in the following proportions

 

To the Investor, 50% of rental pool income for the month. 

 

Although we do not guarantee rental incomes, the business model below is intended as a guide.

 

An apartment or penthouse owner occupies his apartment for six weeks a year leaving 323 days for the Champneys Rental Pool.

 

The median between low and high taking into account seasonality for an average daily apartment let is 500 Euros.

 

During this period assuming we achieve an average occupancy of 65%.

 

500 x 323 x 65%  i.e. 104,975 Euros

 

50% to the investor = 52,487 Euros or approximately 7.9% on your total investment.

 

Equally assuming an average occupancy of 55%

 

50% to the investor = 48,450 Euros or 6.8 %

 

 

Using the same structure the penthouse produces the following figures

 

The median penthouse rental price per night taking into account seasonality  600 Euros

 

600 x 323 x 65%  i.e. 125,970 Euros.

 

50% for the Investor i.e 62,985 Euros again approximately 8.1 % on total investment.

 

Equally assuming an average occupancy of 55%

 

50% to the Investor 53,295Euros or 6.9%.

 

 

This business model is intended as a guide only and percentages will fluctuate depending upon occupancy levels and rental rates.