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© Copyright TREDIC Corporation 2018
irish
birr capital
limited
A TREDIC Corporation project SPV
The Birr Castle Retreat and Spa
Securing and persevering the Birr Estate for the next generation
A corporate stakeholder introduction to the Birr Castle Estate
and the Birr Castle Retreat and Spa project.
Q4 2018
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C O R P O R A T I O N
TREDIC Corporation Tel: +44 (0) 208 849 5646
Fax: +44 (0) 208 899 6001
Building 3, Chiswick Park, 566 Chiswick High Road, Chiswick, Email: info@trediccorporation.com
London W4 5YA, United Kingdom. Web: www.trediccorporation.com www.trediccorporation.com
© Copyright TREDIC Corporation 2018
irish
Oxmantown Settlement Trust
Birr Scientific and Heritage Foundation
birr capital
limited
Hello, and welcome to our presentation. I warmly welcome our Stakeholder Groups, and I look forward to presenting our
vision for the future of the Birr Castle Estate to you in this information memorandum.
Birr, like so many other magnificent country estates in the U.K. and Ireland, proves extremely expensive to preserve, to
maintain and to run on day to day basis. Successful efforts have been made to date to ensure revenue is being generated
through the estate to cover our basic cash flow requirements. To date, increasing annual visitors to the estate, a thriving
museum and science centre, the development of the LOFAR Programme within the grounds, a retail shop with growing
sales, and one of the most successful food and beverage offerings in Birr are all testament to the progress that continues to
be made.
But are we going far enough? And can we go further? Are we seeking to survive, and to maintain, or are we seeking to grow
and to thrive? Are we seeking to look backwards and capitalise on our past, or dare we seek to look forward and capitalise on our future potential? Do we
want to be seen as the historic heart of science and discovery in Ireland, or do we want to be seen as the present and future of science and discovery in
Ireland?
We can choose to stagnate, we can choose to maintain the status quo and slowly evolve, or we can choose to take decisive action right now through a
concerted team effort to generate the capital to we require to not only preserve the historic buildings and wider public and private realm, but to create a real
future for the estate that can be cherished and protected by the family, and enjoyed and celebrated by the local community, the people of Ireland, and our
increasing number of international visitors.
Our family has a long history and tradition within the local community but also with science, astronomy, discovery and botany. These facets maintain the
basis from which we must progress. The world class team that we have assembled led our joint venture development and financing partner TREDIC
Corporation from London, aims to capture the very essence of these traditions and to drive the estate forward not only monetarily, but culturally, scientifically
and with great vision for a long term sustainable future at its very heart.
At the heart of our strategy is the development of a luxury spa hotel and ‘retreat’ but it would be a fundamental mistake to simply view this as just another
luxury hotel offering a range of spa treatments. It is far more than that. It is a destination development and the centrepiece of a far wider long term
sustainable development strategy that we wish to deploy throughout the estate, both in the short term and over the years to come. It is an establishment
that captures the very essence of what Birr is about. Health, wellness, a sense of mind, body and spirit. Irish Culture, Irish Heritage, Irish Cuisine and
traditional Irish fair. A veritable Eden in the centre of Ireland.
Walking through the gates at Birr one gets a sense of going back in time, of relaxation, tranquillity and genuine peace of mind. Attributes that cannot be
created, cannot be purchased and cannot be forged in new build developments, yet we have them in natural abundance at Birr. One cannot put a price
or value on this. Our development will integrate and pay homage to its natural surroundings and the history and heritage of the estate. The rarity of such a
project is its ability to naturally sell itself through its surroundings, its history and culture and its inherent botanical beauty.
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The Birr Castle Retreat and Spa will therefore be a destination resort for all. A retreat, complete with a world class health and wellness facility, the very best
mixture of F&B and with accommodation that will be split between a diverse mix of bedrooms and villas in different styles & themes, under a carefully crafted
phasing strategy and with a density and massing sensitive to the estate, its history, surroundings and the local planning conditions. Under the present
strategy, we have 76 bedrooms and 30 villas, but this may change slightly as we progress into the architecture design phase.
We use the word ‘destination’ rather deliberately and rather aptly and it is the destination nature of the retreat that is key to the success of this development
and to the long term financial security of the wider estate. A destination development by its very nature is a development that attracts visitors, guests and
consumers from a wide market. The market study contained within this memorandum demonstrates the insatiable appetite for health and wellness, the
fastest growing market sector within global hospitality by far, in a location just a short two hour drive from all the major conurbations in Ireland, from Dublin
Airport and from a City in Dublin that is fastly on the rise in terms of its global commercial standing.
But what is our differentiating factor? What will make the proposed Birr Castle Retreat and Spa development a true destination, what will make it unique,
what will make it a successful destination and a financially viable destination? The answer lies in the nature of the development strategy, the asset class, the
breakdown of use, attraction, facility and its quality of management and operation. Most importantly, it lies in the nature of the anchor tenant, the hotel itself,
complimented by the long term development and investment strategy for the wider estate.
In this memorandum and presentation, we talk about the Retreat and Spa as the anchor of wider destination development; but we also talk about the future
of the estate, the potential for organic growth over a number of years.
Two years ago, we received a funding offer from a Forbes global top 50 Billionaire from the USA. We declined. We went ready for such investment and we
weren’t able to concede freehold ownership of the development land. The last 24 months post this offer have seen us strategize an investor offering that
permits my family, in joint venture partnership with TREDIC Corporation, to both raise the capital necessary to progress and to keep control of the project on
a long term leasehold interest from the Trust that oversees and has ultimate responsibility for all lands and buildings at Birr; and this is where we stand today,
ready to proceed with a turnkey development strategy that stands to full scrutiny.
Under our relationship with current developer and financier TREDIC Corporation from London we have found a company uniquely positioned to understand
the financial and technical execution of the project strategy and development as well as the requirements of the Estate, the Trust and the Family. They
are a partner that only requires a 125-year institutional grade lease in order to proceed and not a partner that requires freehold ownership. TREDIC have
financed the project to date and they are a partner that will further commit ground rent payments to the Trust, throughout the life of the project something
hugely important to the management cash flow of the wider estate. TREDIC fundamentally understand what we as a family need and are empathetic to the
requirements of the Trust. Not only have they invested heavily to date, but they have been willing to do so on terms in keeping with our history and tradition,
and it is this trait that we shall seek in our future financing partners also.
We look forward to representing our thoughts and strategies to you in this memorandum, explaining the unique benefits to the estate, the risk management
tools that will be deployed to protect the trust and the financing plan we have in place to bring the project to life, as well as the unique financial benefits for
the Trust and the Birr Scientific and Heritage Foundation.
Lord Oxmantown
Laurence Patrick Parsons
Director & Equity Partner - Irish Birr Capital Ltd
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© Copyright TREDIC Corporation 2018
Contents
Page
1. Introduction to the Birr Castle Estate 5
2. The Project & Proposed Development 9
3. The Location 20
4. The Current Status & Next Steps 24
5. The Business Case 27
6. Financing Strategy and Financial Analysis 30
7. The Market 37
8. The Developer 58
9. The Operators 61
10. The Executive Team Board 66
11. The Estate’s Future Potential 82
12. Conclusions 84
13. Contact page 86
14. Appendix 88
C O R P O R A T I O N
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1.0 Introduction to the Birr Castle Estate
C O R P O R A T I O N
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Please visit:
www.birrcastle.com
1.0 Birr Castle Introduction:
Birr Castle (Irish: Caisleán Bhiorra) is a large castle and 1,000 Hct estate telescope station IE613 was constructed in the grounds of the castle
in the town of Birr in County Offaly and County Tipperary, Ireland. It is the as the westernmost station in the LOFAR network. In 2018, The I-Lofar
home of Mr. Brendan Parsons the 07th Earl of Rosse, and his son Mr. telescope, observed for the first time a billion-year-old red-dwarf, flare
Patrick Parsons (Lord Oxmantown) the future 08th Earl of Rosse. star called CN Leo, almost 75 trillion kilometres away, continuing the
scientific heritage of Birr into the next generation.
The castle grounds are also home to Ireland’s Historic Science Centre,
a museum of Ireland’s historic scientists and their contributions to Unlike so many Irish Castles that today have been converted into
astronomy, as well as one of the largest public botanical gardens in commercial hotels or tourist attractions, Birr Castle is still lived in by the
Europe with over 100,000 visitors per year. There has been a castle on original family and they have been here for nearly 400 years. Instead
the site since the year 1170, with the current castle commissioned in the of converting the castle, the family plan to embark upon an ambitious
year 1620 by Sir Laurence Parsons. project to develop the Birr Castle Retreat and Spa within the grounds,
under the Leadership of Lord Oxmantown and his development and
Today Birr is full of history, elegance and timeless wonder, with strong financing partners TREDIC Corporation.
ties to Science, Botany and the Orient; and in 2017 the LOFAR radio-
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The retreat and spa will see the development of a circa 106 key hotel,
resort and spa (a world class health and wellness centre) on the site,
complete with the very best F&B; to be split between roughly 76
bedrooms with 30 villas in different styles & themes. The Estate has an
eminent domain of about 130 acres (the immediate area surrounding
the castle) and a further 1,000 Hct of surrounding lands.
The retreat is to be developed on a 10 acre site under a 125 year lease
within the eminent domain, and at present commercial proposals are
underway to establish the viability of a potential Interactive Planetarium,
Auditorium, Science and Education Centre that will compliment and
capitalise on Birr’s existing scientific and astronomy heritage as well
as the LOFAR radio-telescope station.
Additionally, the longer term plan includes for various associated
uses being developed around the wider estate such as outdoor
pursuits, a culinary school, a shoot, and relationships with Birr golf,
a “mind, body and spirit” centre, potential agri-tourism, treehouses
and possibly senior living facilities. All subject to feasibility analysis
and Trustee approval. A further exploration of such is explained in the
section entitled “The estates future potential”.
Please visit:
www.birrcastle.com
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www.birrcastle.com
Please visit:
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2.0 The Project & Proposed Development
C O R P O R A T I O N
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2.0 The Project & Proposed Development
The Birr Castle Retreat and Spa will be a destination and a whisky bar. The spa will also hold an informal casual
development. A retreat complete with a world class health dining option. The hotel will have conferencing and banqueting
and wellness facility, the very best mixture of F&B (food and facilities, capable of hosting corporate events and weddings.
beverage) and with accommodation that will be split between The spa and health and wellness centre will include for pools,
a proposed 76 bedrooms with 30 villas in different styles & treatment rooms, an F&B offering, consultation rooms, a
themes, under a carefully crafted phasing strategy and with gymnasium with cardio & weights, an exercise class room and
a density and massing sensitive to the estate, its history, a ‘mind, body & spirit’ centre.
surroundings and the local planning conditions. The strategy
has been formed through a combination of market and The developer and joint venture partner is TREDIC Corporation
feasibility studies, expert advice from our preferred operating from London, responsible for both the financing and
partners, the requirements of our proposed industry partners development strategy. TREDIC will form a domestic special
such as American Express and Relais et Chateaux, advice purpose vehicle (SPV) within Ireland, or will utilise the existing
from Tourism Ireland, the Planning Authorities, the business Irish Birr Capital Ltd that has already been formed to develop
model as set by our financing and development partners and a the project through. This SPV is held under a shareholding of
consistency of market feedback from a wealth of international 75% Parsons Family, 25% TREDIC Corporation. TREDIC will
sectorial experts that have visited the estate over the past 24- develop under a a 125 institutional grade lease, effectively a
36 months. virtual freehold, in order to successfully execute the financing
for project. The indicative development appraisal that TREDIC
The hotel mix will include a combination of standard deluxe are working from (contained herewith) shows a Gross
rooms, typically 40 sq.m. Junior suites, typically 60 sq.m. and Development Cost of circa 56m Euros, based on standard
master suites, typically 80 sq.; in addition to the villas that will debt equity model of financing, roughly 500,000 Euros per key
serve as the executive suites. The hotel will have a reception, of investment. In reality, this number is inflated as it includes
a lounge, a library, a games room, a children’s room, an for financing costs which under the current funding strategy
executive lounge in keeping with American Express Platinum is not required. The appraisal model under such a debt/equity
and for our executive guests, a selection of food beverage that still needs to be completed however and is presented here for
will include formal dining, informal dining (Irish Bar and Lounge) the viewing of the Trustees.
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The choice of Birr Castle for a such a destination Whilst the immediate development is to be a 5* retreat and
development is highly competitive for a number of key spa hotel, it is proposed this will be the anchor tenant of a
reasons: destination development strategy, one that will capitalise
on the already existing infrastructure presided over by the
1. It is in the very heart of Ireland and close proximity to Birr Scientific and Heritage Foundation, as well to utilise the
most major urban conurbations within Ireland, most natural landscape and unique selling features of Birr to explore
within a two hour drive. opportunities around the wider estate. The current status
section below elaborates more on the progress made to date
2. Excellent access from Dublin International Airport for the and though process behind the initial strategy. It is forecasted
international visitor. that an additional 10m Euros will be required in addition to the
3. It combines an iconic, state of the art Spa Retreat, hotel budget to finance and develop all associated uses such
which offers not only a world-competing Spa experience as a planetarium, science and education centre.
with a beautiful boutique hotel, which is not only the
accommodation experience for the Spa offer but also
a superbly located hotel base, for the Global Wellness
segment, from which to explore and visit the historic and
romantic places that have also influenced their choice of
Ireland, as their holiday destination.
4. A beautiful Demesne to accommodate the Spa Retreat,
comprising Castle, Lakes and Gardens.
5. A fascinating history and heritage.
6. Still the seat of the original Parsons family, who have
been at Birr Castle for 4 centuries.
7. Well-liked by our key industry and operating partners
who will drive the occupancy.
8. Commercially, the investor developer is willing to
commit capital, invest and share in the responsibility
for the success of the project in this location. In fact,
it is specifically because of the location that TREDIC
Corporation have decided to commit to the project.
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Masterplan 18
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1. Castle 9. Show garden, seed sales 17. PARKING (carports)
2. Electrical power station (historic water mill) 10. Resort entrance, coach area, valet parking 18. Small electrical power plants
3. Historic ice storage (new development) 11. IRISH CELTIC GARDEN AREA 19. Solar power panels on roof of the carports
4. Telescope 12. SCIENCE GARDEN AREA 20. Solar power panels on roof of the garden hotel
5. Meditation, education, small congresses 13. NATURAL GARDEN HOTEL 21. Geothermal technology
6. Fishing 14. WELLNESS SPA & HEALTHNESS CENTER 22. Bio mass green power station
7. Lord Brendan Parsons wonderful botanic stories 15. ORANGERIE, BAKERY, IRISH PUB, MUSIC 23. Stables
8. Canoe, paddle boarding, water bicycles 16. CHINESE GARDEN AREA 24. Horse training parcours
12Development Plot
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Entrance Area and Irish / Celtic Garden Science Garden
Chinese Garden Garden Hotel
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Architectural Renderings
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Architectural Renderings
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Architectural Renderings
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Architectural Renderings
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Architectural Renderings
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3.0 The Location
C O R P O R A T I O N
20Castle
Location - Birr Estate
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Location - Development
Development
Birr
22Location - Birr Castle
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4.0 The Current Status & Next Steps
C O R P O R A T I O N
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4.0 The Current Status
& Next Steps
The Trustees of the Birr Estate have been aware of our plans development plan we may choose to embark upon.
to develop the Retreat and Spa for a number of years now, One of the primary objectives we set ourselves in 2018 was to
but especially gaining significant momentum this year in establish how we might fully capitalise on Birr’s Scientific and
2018. Indeed the Trustees have had ongoing dialogue with Astronomy heritage through the development of further such
a select number of our strategic consultants and advisers science and education facilities within the estate, to capitalise
whilst we hone and perfect the outcomes necessary to ensure on the already existing infrastructure presided over by the
our collective success. We have been working extremely Birr Scientific and Heritage Foundation, as well to utilise the
closely with our development and financing partners TREDIC natural landscape and unique selling features of Birr to explore
Corporation and visiting and meeting with the owners of similar opportunities around the wider estate.
such private estates right across the U.K. as well as meeting
owners and managers of the leading heath, wellness and spa To this end we have had continuous ongoing dialogue with
retreats aright across Europe, the USA, Middle East and Asia. NASA, the European Space Agency, the world’s leading
Our collective market intelligence is second to none and our observatories, the world’s leading expert of interactive
global relationships truly cemented. planetarium’s, experts from the worlds media and
entertainment, television production, science and technology
We have observed, listened to and taken advice from those education (both commercial and within the Irish education
who have successfully trodden the path of this exciting system), the world’s leading auditorium experts, the promoters
journey we now embark upon at Birr. Additionally we have of TED Talks, Discovery Channel, National Geographic,
been speaking to, liaising with, canvassing opinion from and experts in the fields of culinary science and culinary schools,
soliciting proposals from experts from right around the world wedding strategy, merchandising and branding, alternative and
across a diverse array of relevant sectors, including travelling holistic medicines, outdoor pursuits experts and specialists
internationally regularly to meet with them and inviting most with significant private estate management expertise, experts
of them to Birr to tour the estate, meet the family, visit the in ‘preservation commercialisation’, the development and
Science Centre, the LOFAR programme and to get a sense management of tree house tourism, agri-tourism, health
of just what is achievable at Birr. Not just in terms of the tourism, time share and club pool tourism, golf tourism, food
immediate destination retreat and spa development, but also & beverage tourism as well as meetings and site visits with
in terms of the wider estate and any potential longer term experts in distillery, whisky production, manufacture and sales.
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The list continues into a stakeholder network the likes of
which even we couldn’t have imagined or hoped for at the
start of this incredibly exciting journey. No stone has been The next steps include for:
left unturned globally in our pursuit of visionary excellence
and the building of the necessary commercial and financial 1. Finalising the terms of a 125 year institutional grade
relationships that will be needed to make Birr the pre-eminent lease, which is expected in November / December
health and wellness hotel, and destination development in 2018.
Ireland, and eventually Europe. Dare we say it, potentially the
world? With the team we have put in place, the expertise, 2. Contractually committing to the lease.
track record, background and history of successful delivery 3. Finalising the operator strategy for both the Hotel and
right across the hotel, hospitality, health and wellness sectors, Spa.
our ability to successful execute the right product is now in as 4. Execution of stage two financing and strategy (design
strong a professional hands as it ever will be. & permitting), anticipated to be complete by summer
2020.
In summary, our progress to date includes 5 years’ worth
of research and strategic relationship building across a 5. Execution of stage three financing and strategy
vast stakeholder network. It includes the selection of our (construction & build), anticipated to be complete
core team, the perfecting of a business model for finance summer 2022.
execution, the selection of industry partners to drive the 6. Soft opening summer 2022.
core occupancy, average daily rates (ADR’s) and revenue
7. Hard opening winter 2022.
per available room (RevPar) within the hotel and spa, and
the selection of our development and delivery team. It also
includes for design and planning consultation, relationship
building for support at both the national and local level as well
as with Tourism Ireland. We are now in the strongest possible
position now to proceed.
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5.0 The Business Case
C O R P O R A T I O N
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5.0 The Business Case
The following objectives have been set by the developer 10. To modernise and bring Birr into the 21st Century
TREDIC Corporation to underpin their entire business case: through education, market appeal, technology, public
relations and the engagement of youth.
1. To create a financially viable and stable asset with long 11. To revitalise and recapture Birr’s past through careful
term revenue generation and return for its investors. development and market engagement strategies with
2. To further commercialise the Birr Estate with the express the objective of making Birr a powerful domestic and
aim of creating a long term sustainable strategy for international force within the scientific community once
financial security and return through the creation of more.
a destination development, anchored by a 5* retreat
and spa, and supported by a further mix of asset class We don’t just want Birr to be seen as the historic heart of
development sensitive to the history and heritage of the science and discovery in Ireland, but as the present and future
Birr Estate. of science and discovery in Ireland. With the success of the
3. Financial security for the Trust that presides over the land existing Museum, the LOFAR programme, and the year on
and buildings on the estate year increase in tourism numbers coming through the Estate,
we are already well on our way.
4. Financial security for the Birr Scientific and Heritage
Foundation. How then does the development strategy generate the
5. Financial security for the Parsons family, present and necessary financial returns to achieve the developer’s
future, and for generations to come. objectives? The answer lies in the nature of the development
strategy, the asset class, the breakdown of use, attraction,
6. The long term preservation of the Castle, the Eminent
facility and its quality of management and operation. Most
Domain, the Botanical Gardens and the Wider Estate.
importantly, it lies in the nature of the anchor tenant, the hotel
7. To further develop and bring the Birr Castle brand to a itself, complimented by the long term strategy for the wider
wider audience, both domestically and internationally. estate.
8. To significantly increase visitor numbers and average
spend rates within the Estate.
9. To capitalise on the success of the Birr Science Museum
and the LOFAR programme, through further promotion
and synergistic development.
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The anchor tenant is the 5* retreat and spa. It generates
revenues from the following sources, the specific amounts
of which per annum are forecasted in the following financial
analysis section:
1. Room sales
2. Food & Beverage sales
3. MICE – Meetings, Incentives, Conference, Exhibitions
4. Spa sales
5. Leisure external sales
6. Weddings
7. Media Birr concession – Estate tourism charge
The strategy for the wider estate, the funding and operational
strategy, the timeframes for execution, and the favoured
locations for any potential future development are to be
determined and will be done so in close consultation with the
Trustee’s. Whilst consultation is underway with architects to
look at master planning options, it is envisaged a mixture of
uses entirely complementary to both the retreat and spa, as
well as Birr’s scientific heritage would be fitting.
This may include for such options as diverse as outdoor
pursuits, a shoot and golf; through to a planetarium and
a science education and media centre. Proposals and
professional consultations are already underway to evaluate
our options for such a potential mixed use development, but
these are conceptual and explorative in nature only at this
stage with indicative budget estimates at circa 10m Euros.
We feel however it makes sense to undertake commercial
objectives.
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6.0 Financing Strategy & Financial Analysis
C O R P O R A T I O N
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6.0 Financing Strategy
& Financial Analysis
The project has a four stage financing process:
Stage one: Seed finance
Stage two: Design and permitting
Stage three: Construction and build
Stage four: Refinancing
We examine each stage here in turn:
Stage one: Seed finance
The project is presently at stage one of financing or the ‘seed’
finance stage. This stage has largely been self-funded by the
Parsons Family in conjunction with financing and development
partner TREDIC Corporation.
Estimated capital contribution: 1,500,000 Euros
This capital has been spent to date on research, developing a
global stakeholder network, market studies, feasibility analysis,
architectural concept analysis, business planning and financial
modelling, corporate expenses such as travel & entrainment
and marketing and design work.
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Stage two: Design and permitting
The next stage of project financing is design and permitting. Secondary Drawdown (at six months)
The funding for this stage will be strategized and arranged by Design Architects €250,000
TREDIC Corporation through a short-term bridge loan facility Project Management €120,000
against a high coupon rate and the security of a convertible Legal €25,000
debenture (debt to equity in case of default) This money is Misc. professional practices €50,000
now required immediately and terms can be provided to all Landscaping & Site Preparation €100,000
interested parties: Marketing & Communications €35,000
Estimated capital contribution: 2,500,000 Euros Sub Total: €580,000 Euros
+Finance Agency & Arrangement Fee
The breakdown and use of the design and permitting budget
is estimated to be as follows, which is anticipated will be Contingency (at 12 months)
drawn down and committed over an 18 month permitting Contingency €265,000
period: Estate 125 year lease €125,000
Priority Drawdown (immediate post lease signing) Sub Total: €290,000 Euros
Design Architects €600,000 (phased between 1&2) +Finance Agency & Arrangement Fee
Misc. professional practices €75,000 (phased between 1&2)
Project Management €120,000 (phased between 1&2) Total €2,340,000 Euros
Marketing & Communications €65,000 (phased between 1&2) Finance Agency & Arrangement Fee - €160,000
Estate Master planning €75,000
Spa Design & Consultation €135,000
Planning, Submissions & Surveys €225,000
Legal €100,000
Collateral lease €75,000
Sub Total: €1,470,000 Euros
+Finance Agency & Arrangement Fee
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Stage three: Construction and build
The construction and build programme will commence post 2. Investor Immigration Programme (IIP): A more innovative
design and permitting and satisfactory conclusion of achieving and commercially attractive financing strategy may include
planning permission and building permits. It is anticipated that the selling of IPP (Investor Immigration Programme) which
the construction and build programme will last 24 months, is essentially selling citizenship, largely (if not entirely) to
with a hard opening after 30 months. Chinese Citizens in exchange for 1,000,000 Euros each.
The Irish Government sanctions such schemes for real
Estimated capital contribution for hotel: *48,000,000 Euros estate projects that fit certain criteria, for example senior
*This figure excludes 8,000,000 financing costs (which at present is not living (where the is a shortage of funding at present)
required under current financing strategy, but is written into the financing and (in the case of Birr) tourist projects that create jobs
strategy and development appraisal for banking contingency purposes) and attract high spending foreign tourists to Ireland. To
successfully plan any potential future strategy for IIP sales,
Estimated capital contribution for associated development: TREDIC Corporation have brought forward their law firm
*10,000,000 Euros Bloomsbury Law from Mayfair in London. Bloomsbury
is the largest Chinese law firm in the U.K. and they have
There are a number of financing strategies available to the
negotiated a deal with TREDIC to assist the project and
project including standard debt and equity and a private
promote the IIP sales in China – please see the letter of
placement loan.
support in the appendix.
To date, TREDIC Corporation have arranged for two
The most likely outcome is for the projects equity to be
contingency financing strategies:
financed by IIP and the projects debt to be funded either
through local Irish banks, or through a bond issue in London.
1. A bond: TREDIC have the option to use a listed real
TREDIC Corporation will be taking full responsibility for the
estate & infrastructure exchange (the EIX) to list a project
execution and repayment strategy. Alternatively, a long term
specific bond issue in the Financial City of London against
private loan with a once year grace period and rolled up
a fixed market driven coupon (or interest rate). This will be
coupon of circa 5% will also considered against the security of
commensurate to banking debt, but will far quicker, easier
a convertible debenture.
and on better terms than those that will be secured through
a standard banking construction loan.
33© Copyright TREDIC Corporation 2018
Stage four: Refinancing
It is premature at this stage to be discussing refinancing, but
TREDIC Corporation plan to refinance the project with cheaper
capital post asset stabilisation which is likely to be in year
four of operation. This will be refinanced through a secondary
long term bond issue, bank financing, or secondary IIP sales.
All options are available and TREDIC will choose the most
competitive finance at the appropriate time given the financial
health of the project at the time.
Over page we show the development appraisal and budget for
the hotel element of the development and the hotel forecast
for the benefit of studying the draft financial analysis and
performance against both the construction and subsequent
operation. The development appraisal is drafted under a
standard debt / equity model of funding. This is for valuation
and banking purposes only as we are unlikely to utilise this
method of project finance. The budget for the development
however remains the same.
At present, the retreat and spa forecast is showing a stabilised
year 3 EBITDA (earnings before interest, tax, depreciation and
amortisation) of just over 6,000,000m Euros. This is highly
competitive and circa twice what we would require to be
achieving financial stability on the asset, leaving us a strong
margin of error in performance to be considered successful.
34© Copyright TREDIC Corporation 2018
Initial
Initial
Analytics
Initial
Analytics
Analytics
(abbreviated)
(abbreviated)
(abbreviated)
Preliminary
Preliminary
Preliminary
Development
Development
Development
Appraisal
Appraisal
Appraisal
[equity/debt
[equity/debt
[equity/debt
model]
model]
model]
& DCF
& DCF
&valn.
DCF
valn.
valn.
Birr
Birr
Castle
Birr
Castle
Castle
Hotel
Hotel
Hotel
&&Spa,
Spa,
& Spa,
RoIRoIRoI
v.02
v.02
ed.04
v.02
ed.04
ed.04
STRICTLY
STRICTLY
STRICTLY
CONFIDENTIAL
CONFIDENTIAL
CONFIDENTIAL
accommodation
accommodation
accommodation keyskeyskeys sqftsqft
NSAsqft
NSA NSA sqftsqft
GIAsqft
GIA GIA net/gross
net/gross
net/gross sqftsqft
GEAsqft
GEA GEA finance
finance
finance
costs
costscosts at yr3
at yr3
at yr3 50%50% 50%GDCGDCGDC 40%40% 40%
GDVGDVGDV
hotel
hotel
hotel 76 76 76 48,300
48,300
48,300 blended
blended
blended
borrowing
borrowing
borrowing
rateraterate 6.00%
6.00%
6.00%
hotel
hotel
distribution
hotel
distribution
distribution 20%20% 20% 30,000
30,000
30,000 initial
initial
equity
initial
equity
equity
requirement
requirement
requirement 5% 5% 5%
delivery
delivery
delivery
costs
costscosts 2,297,831
2,297,831
2,297,831 0.0833
0.0833
0.0833
cottages
cottages
cottages 24 24 24 20,000
20,000
20,000 IIP IIP
requirement
requirement
IIP requirement 45%45% 45%
delivery
delivery
delivery
costs
costscosts 21,768,922
21,768,922
21,768,922 24 24 24 2,611,226
2,611,226
2,611,226
0.0833
0.0833
0.0833
spaspa
building
spa
building
building 40,000
40,000
40,000 debtdebt
land
debt
land
& land
development
& development
& development
finance
finance
finance 50%50% 50%
delivery
delivery
delivery
costs
costscosts 24,187,691
24,187,691
24,187,691 24 24 mths
24 mths
(5/6
mths
(5/6
period)
(5/6 period) 2,901,362
period) 2,901,362
2,901,362
0.0833
0.0833
0.0833
138,300
138,300
138,300 45,956,613
45,956,613
45,956,613
landscaping
landscaping
landscaping 160,000
160,000
160,000 total
total
interest
total
interest
interest
costs
costscosts 5,512,588
5,512,588
5,512,588
5,512,588
5,512,588
5,512,588
funding
funding
funding
arrangement
arrangement
arrangement
feesfeesfees 1.00%
1.00%
1.00%
debt
debtdebt 241,877
241,877
241,877
development
development
development
value
valuevalue funding
funding
funding
arrangement
arrangement
arrangement
feesfeesfees 2.00%
2.00%
2.00%
equity
equity
equity 919,132
919,132
919,132
hotel
hotel
&hotel
spa
& spa
& spa
NOI,
NOI,
stabilised
NOI,
stabilised
stabilised
yr3 yr3 yr3 36,516
36,516
36,516
€ EUR/key
€ EUR/key
€ EUR/key3,651,598
3,651,598
3,651,598
€ EUR
€ EUR
ERV
€ EUR
ERV ERV ≈ 90%
≈ 90%
LEV
≈ 90%
LEV LEV 60,859,964
60,859,964
60,859,964 funding
funding
funding
exitexit
fees
exit
feesfees 1.00%
1.00%
1.00% 595,992
595,992
595,992
6.006.00
% 6.00
% GIY
GIY % GIY 16.67
16.67
YP
16.67
YP YP funding
funding
funding
costs
costscosts saysay say 750,000
750,000
750,000
2,265,124
2,265,124
2,265,124
gross
gross
development
gross
development
developmentvalue
valuevalue GDV
GDVGDV60,859,964
60,859,964
60,859,964 total
total
finance
total
finance
finance
costs
costs
costs 8,019,589
8,019,589
8,019,589
7,777,712
7,777,712
7,777,712
fees
fees
onfees
on
investment
investment
on investment
exitexit
saleexit
salesale 1.25%
1.25%
1.25% 760,750
760,750
760,750
sales
sales
&sales
marketing
& marketing
& marketing
budget
budget
budget saysay say 250,000
250,000
250,000
1,010,750
1,010,750
1,010,750 total
total
delivery
total
delivery
delivery
cost
costcost
(inc.
(inc.
finance
(inc.
finance
finance
costs)
costs)
costs) GDC
GDCGDC56,394,971
56,394,971
56,394,971
7,777,712
7,777,712
7,777,712
interim
interim
interim
property
property
property
management
management
management saysay say 0 0 0
holding
holding
holding
costs
costscosts saysay say 250,000
250,000
250,000 profit
profit
after
profit
after
finance
after
finance
finance
costs
costs
costs
(at (at
PC)PC)
(at PC) 3,204,243
3,204,243
3,204,243
void/rent
void/rent
void/rent
freefree
allowances
free
allowances
allowances 0 months
0 months
0 months saysay say 0 0 250,000
0250,000
250,000
total
total
sales
total
sales
&sales
void
& void
&
costs
void
costscosts 2.07%
2.07%
2.07% 1,260,750
1,260,750
1,260,750
1,260,750
1,260,750
1,260,750 development
development
development
profit
profit
profit
(at (at
PC)PC)
(at PC) landland
acquired
land
acquired
acquired
at EUR
at EUR
at EUR 5,000,000
5,000,000
5,000,000
profit
profit
onprofit
cost
on cost
on costexc.exc.
finance
exc.
finance
finance 23.2%
23.2%
23.2%
23.20%
23.20%
23.20%
netnet
development
net
development
development
value
value
value
(exc(exc
sales
(exc
sales
& sales
land
& land
taxes)
& land
taxes)
taxes) NDV
NDVNDV59,599,214
59,599,214
59,599,214 inc.inc.
finance
finance
inc. finance 5.7%
5.7%5.7%
5.68%
5.68%
5.68%
land
land
residual
land
residual
residual
(acquisition
(acquisition
(acquisition
value)
value)
value) profit
profit
onprofit
NDV/sale
on NDV/sale
on NDV/saleexc.exc.
finance
exc.
finance
finance 18.8%
18.8%
18.8%
18.83%
18.83%
18.83%
land
landland 5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000 inc.inc.
finance
finance
inc. finance 5.4%
5.4%5.4%
5.38%
5.38%
5.38%
building/site
building/site
building/site
survey
survey
survey saysay say 50,000
50,000
50,000
legal
legal
costs
legal
costscosts 0.25%
0.25%0.25% 12,500
12,500
12,500
valuation
valuation
valuation
feefee fee 0.15%
0.15%0.15% 7,500
7,5007,500 returns
returns
returns (at (at
yr 3yrestabilised)
(at
3 estabilised)
yr 3 estabilised) total
total
equity
total
equity
contribution
equity
contribution
contribution 2,297,831
2,297,831
2,297,831
agent
agent
&agent
referral
& referral
& referral
feesfeesfees 3.00%
3.00%
offmarket,
3.00%
offmarket,
offmarket,
direct
direct
referral
direct
referral
referral 150,000
150,000
150,000 totaltotal
profit
total
profitprofit 3,204,243
3,204,243
3,204,243
land/transfer
land/transfer
land/transfer
taxes
taxestaxes 1.00%
1.00%
SPV
1.00%
SPV
arrangements
arrangements
SPV arrangements saysay say 50,000
50,000
50,000
270,000
270,000
270,000 20%20%
split
20%
split
equity/development,
split
equity/development,
equity/development,
ungeared
ungeared
ungeared
return
return
return splitsplit
equity
split
equityequity 640,849
640,849
640,849
total
total
purchase
total
purchase
purchase
costs
costscosts 4.40%
4.40%4.40% 5,270,000
5,270,000
5,270,000
5,270,000
5,270,000
5,270,000 inc.finance
inc.finance
inc.finance
costs
costscosts splitsplit
developer
split
developer
developer 2,563,395
2,563,395
2,563,395
36 36
months
months
36 months total
total
return
total
return
toreturn
equity
to equity
to equity 2,938,679
2,938,679
2,938,679
construction
construction
construction
costs
costscosts
BCISBCIS
Elemental
BCIS
Elemental
Elemental
4th.Ed
4th.Ed
(NRM)
4th.Ed (NRM) 0 %0scheme
(NRM) % 0scheme
% scheme
builtbuiltbuilt total
total
IRRtotal
IRR
return
return
IRRto return
equity
to equity
to equity 27.9%
27.9%
27.9%
pre-contract
pre-contract
pre-contract
verification
verification
verification
& facilitating
& facilitating
& facilitating
works
works
works saysay say 100,000
100,000
100,000
superstructures/substructure
superstructures/substructure
superstructures/substructure 125125€/sqft
125
€/sqft
GEA
€/sqft
GEA GEA 1,345
1,345
€/sqm
1,345
€/sqm
€/sqm 17,287,500
17,287,500
17,287,500
amenity
amenity
amenity
structures
structures
structures 55 55
€/sqft
€/sqft
55GEA
€/sqft
GEA GEA 592592
€/sqm
592
€/sqm
€/sqm 0 0 0
finishes/fit
finishes/fit
finishes/fit
outout
hotel
out
hotelrooms
hotel
roomsrooms 60,000
60,000
60,000
€/key
€/key€/key €/sqm
€/sqm
€/sqm 6,000,000
6,000,000
6,000,000
finishes/fit
finishes/fit
finishes/fit
outout
hotel
out
hotelFOH/BOH
hotel
FOH/BOH
FOH/BOH 150 150
€/sqft
150
€/sqft
GIA
€/sqft
GIA GIA 1,614
1,614
€/sqm
1,614
€/sqm
€/sqm 0 0 0
finishes/fit
finishes/fit
finishes/fit
outout
condo/resi
out
condo/resi
condo/resi 40 40
€/sqft
€/sqft
40GIA
€/sqft
GIA GIA 430430
€/sqm
430
€/sqm
€/sqm 0 0 0 valuation,
valuation,
valuation,
HOTEL
HOTEL
HOTEL
FF&EFF&Espa
FF&E
spa spa 100100€/sqft
100
€/sqft
GIA
€/sqft
GIA GIA 1,076
1,076
€/sqm
1,076
€/sqm
€/sqm 4,000,000
4,000,000
4,000,000 from occupation
from occupation
from occupation
; excludes
; excludes
; excludes
capital
capital
sales
capital
salessales from yr4
from yr4
establishment
from establishment
yr4 establishment
; excludes
; excludes
; excludes
capital
capital
sales
capital
salessales
infrastructure/utilities
infrastructure/utilities
infrastructure/utilities 12 12
€/sqft
€/sqft
12GEA
€/sqft
GEA GEA 129129
€/sqm
129
€/sqm
€/sqm 1,659,600
1,659,600
1,659,600 termterm
years
term
yearsyears8 8 8 project
project
yr
project
0-10
yr 0-10
yr 0-10 termterm
years
term
yearsyears
10 10 10 project
project
yr
project
4-13
yr 4-13
yr 4-13
amenities/ext
amenities/ext
amenities/ext
landscaping
landscaping
landscaping 5 €/sqft
5 €/sqft
5GEA
€/sqft
GEA GEA 54 54
€/sqm
€/sqm
54 €/sqm 800,000
800,000
800,000
29,847,100
29,847,100
29,847,100 discount
discount
discount
% % %5 5 5 discount
discount
discount
% % 5% 5 5
professional
professional
professional
feesfees fees
construction
construction
construction 11.00%
11.00%
11.00% 3,283,181
3,283,181
3,283,181 terminal
terminal
terminal
capcap
% cap
%6.006.00
% 6.00 terminal
terminal
terminal
capcap
% 5.00
cap
% 5.00
% 5.00
warranties
warranties
warranties
& insurance
& insurance
& insurance saysay say 500,000
500,000
500,000 inflation
inflation
inflation
% % %2 2 2 inflation
inflation
inflation
% % 2% 2 2
statutory
statutory
statutory
feesfees
& fees
costs
& costs
& construction
costs
construction
construction €/sqft
€/sqft
GIA
€/sqft
GIA GIA 0.60%
0.60%
0.60% 179,083
179,083
179,083 NOINOI
yearNOI
year
10,year
10,
€ €10,
3,745,440
€3,745,440
3,745,440 NOINOI
yearNOI
year
13,year
13,
€ 3,974,691
€13,3,974,691
€ 3,974,691
design
design
design
riskrisk
contingency
risk
contingency
contingency 1.00%
1.00%
1.00% 298,471
298,471
298,471 yearyearyear NOINOI
discount
discount
NOI discount
factor
factor
factor DCFDCF DCF yearyearyear NOINOI NOI
discount
discount
discount
factor
factor
factor DCFDCF DCF
construction
construction
construction
riskrisk
contingency
risk
contingency
contingency
excl.excl.
feesexcl.
fees fees 4.00%
4.00%
4.00% 1,193,884
1,193,884
1,193,884
5,454,619
5,454,619
5,454,619 1 1 1 0 0 0 0.9524 0.9524
0.9524 0 0 0 4 4 4 2,800,000
2,800,000
2,800,000 0.9524
0.9524
0.9524 2,666,720
2,666,720
2,666,720
total
total
construction
total
construction
construction
costs
costscosts 255255 255
€/sqft
€/sqft
GEA
€/sqft
GEA GEA 35,301,719
35,301,719
35,301,719
35,301,719
35,301,719
35,301,719 2 2 2 0 0 0 0.9070 0.9070
0.9070 0 0 0 5 5 5 2,800,000
2,800,000
2,800,000 0.9070
0.9070
0.9070 2,539,600
2,539,600
2,539,600
3 3 3 0 0 0 0.8638 0.8638
0.8638 0 0 0 6 6 6 3,600,000
3,600,000
3,600,000 0.8638
0.8638
0.8638 3,109,680
3,109,680
3,109,680
ancillary
ancillary
ancillary
costs
costs costs 4 4 4 2,800,0002,800,000
2,800,000 0.82270.8227
0.8227 2,303,560
2,303,560
2,303,560 7 7 7 3,672,000
3,672,000
3,672,000 0.8227
0.8227
0.8227 3,020,954
3,020,954
3,020,954
decennial
decennial
decennial
liability
liability
liability
insurance
insurance
insurance 5.00%
5.00%
5.00% 1,765,086
1,765,086
1,765,086 5 5 5 2,800,0002,800,000
2,800,000 0.78350.7835
0.7835 2,193,800
2,193,800
2,193,800 8 8 8 3,745,440
3,745,440
3,745,440 0.7835
0.7835
0.7835 2,934,552
2,934,552
2,934,552
void
void
costs
void
costscosts saysay say 200,000
200,000
200,000 6 6 6 3,600,0003,600,000
3,600,000 0.74620.7462
0.7462 2,686,320
2,686,320
2,686,320 9 9 9 3,820,349
3,820,349
3,820,349 0.7462
0.7462
0.7462 2,850,744
2,850,744
2,850,744
development
development
development
management
management
management 4.50%
4.50%
4.50% saysay say 1,588,577
1,588,577
1,588,577 7 7 7 3,672,0003,672,000
3,672,000 0.71070.7107
0.7107 2,609,690
2,609,690
2,609,690 10 10 10 3,896,756
3,896,756
3,896,756 0.7107
0.7107
0.7107 2,769,424
2,769,424
2,769,424
ctp/entitlement
ctp/entitlement
ctp/entitlementprofessional
professional
professional
feesfees
& fees
charges
& charges
& charges saysay say 2,000,000
2,000,000
2,000,000 8 8 8 3,745,4403,745,440
3,745,440 0.67630.6763
0.6763 2,533,041
2,533,041
2,533,041 11 11 11 3,974,691
3,974,691
3,974,691 0.6763
0.6763
0.6763 2,688,083
2,688,083
2,688,083
planning/entitlement
planning/entitlement
planning/entitlement obligations/impact
obligations/impact
obligations/impact
feesfeesfees saysay say 250,000
250,000
250,000 9 9 9 3,820,3493,820,349
3,820,349 0.64460.6446
0.6446 2,462,597
2,462,597
2,462,597 12 12 12 4,054,185
4,054,185
4,054,185 0.6446
0.6446
0.6446 2,613,327
2,613,327
2,613,327
SOESOE
contribution
SOE
contribution
contribution saysay say 250,000
250,000
250,000 10 10 10 3,896,756
3,896,756
3,896,756 13 13 13 4,135,268
4,135,268
4,135,268
hotel
hotel
opening
hotel
opening
opening
costscosts
contribution
costs
contribution
contribution saysay say 1,000,000
1,000,000
1,000,000 68,842,685
68,842,685
68,842,685 0.61390.6139
0.6139 46,558,308
46,558,308
46,558,308 86,840,636
86,840,636
86,840,636 0.6139
0.6139
0.6139 53,311,467
53,311,467
53,311,467
working
working
working
capital
capitalcapital
contribution
contribution
contribution saysay say 500,000
500,000
500,000 93,177,230
93,177,230
93,177,230 61,347,316
61,347,316
61,347,316 123,339,325
123,339,325
123,339,325 78,504,553
78,504,553
78,504,553
third
third
party
third
party
rights
party
rights
&rights
easements
& easements
& easements saysay say 250,000
250,000
250,000 93,000,000
93,000,000
93,000,000 total totaltotal 61,000,000
61,000,000
61,000,000 123,000,000
123,000,000
123,000,000 total
totaltotal 79,000,000
79,000,000
79,000,000
total
total
ancillary
total
ancillary
ancillary
costs
costs costs 7,803,663
7,803,663
7,803,663
7,803,663
7,803,663
7,803,663
total
total
development
total
development
development
costs
costs
costs
(exc.
(exc.
sales
(exc.
sales
costs,
sales
costs,
finance
costs,
finance
finance
costs)
costs)
costs) 312312 312
€/sqft
€/sqft
GEA
€/sqft
GEA GEA 43,105,382
43,105,382
43,105,382
total
total
delivery
total
delivery
delivery
costs
costscosts
(exc.
(exc.
sales
(exc.
sales
costs,
sales
costs,
finance
costs,
finance
finance
costs)
costs)
costs) 350350 350
€/sqft
€/sqft
GEA
€/sqft
GEA GEA 48,375,382
48,375,382
48,375,382
development
development
development
profit
profit
before
profit
before
before
finance
finance
finance
costs
costs
costs 11,223,832
11,223,832
11,223,832
[all [all
figures
figures
[allinfigures
USD]
in USD]
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& assumptions]
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[no [no
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all units/month]
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all units/month]
all units/month]
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35© Copyright TREDIC Corporation 2018
HOTEL PROJECTED CASHFLOW DAY ONE
Property: BIRR CASTLE (106 ROOMS)
YEAR Year 1 Year 2 Year 3 Year 4 Year 5
PROPERTY DETAILS
Number of Bedrooms 106 106 106 106 106
Number of Rooms Available 38,690 38,690 38,690 38,690 38,690
Number of Occupied Rooms 27,470 28,244 28,631 29,018 29,018
Occupancy 71.0% 73.0% 74.0% 75.0% 75.0%
Average Room Rate €350.10 €393.98 €434.04 €449.43 €460.67
RevPar (Revenue per Available Room) €248.57 €287.61 €321.19 €337.07 €345.50
€ 000's % € 000's % € 000's % € 000's % € 000's %
REVENUES
Rooms 9,617.2 77.1% 11,127.6 76.3% 12,426.8 76.3% 13,041.3 75.5% 13,367.4 75.5%
Food & Beverage 2,717.5 21.8% 3,313.6 22.7% 3,694.4 22.7% 4,072.9 23.6% 4,174.8 23.6%
Room Hire 2.5 0.0% 5.1 0.0% 7.9 0.0% 8.1 0.0% 8.3 0.0%
Leisure 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0%
Other 137.3 1.1% 144.7 1.0% 150.4 0.9% 156.2 0.9% 160.1 0.9%
TOTAL REVENUE 12,474.5 100.0% 14,591.0 100.0% 16,279.4 100.0% 17,278.6 100.0% 17,710.6 100.0%
DEPARTMENTAL EXPENSES
Rooms 2,668.1 27.7% 2,899.3 26.1% 3,097.9 24.9% 3,215.5 24.7% 3,290.6 24.6%
Food & Beverage 2,441.6 89.8% 2,835.7 85.6% 3,100.2 83.9% 3,388.4 83.2% 3,463.7 83.0%
Room Hire 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0%
Leisure 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0%
Other 68.7 50.0% 72.4 50.0% 75.2 50.0% 78.1 50.0% 80.1 50.0%
TOTAL DEPARTMENTAL COSTS 5,178.4 41.5% 5,807.4 39.8% 6,273.3 38.5% 6,682.1 38.7% 6,834.4 38.6%
GROSS OPERATING INCOME 7,296.1 58.5% 8,783.7 60.2% 10,006.1 61.5% 10,596.5 61.3% 10,876.2 61.4%
UNDISTRIBUTED OPERATING EXPENSES
Admin & General 934.0 7.5% 977.4 6.7% 1,016.6 6.2% 1,047.3 6.1% 1,070.9 6.0%
Sales & Marketing 400.8 3.2% 404.9 2.8% 414.1 2.5% 423.6 2.5% 433.3 2.4%
Property Operations & Maintenance (POM) 333.4 2.7% 404.7 2.8% 453.5 2.8% 463.6 2.7% 474.0 2.7%
Utilities 368.9 3.0% 385.9 2.6% 403.6 2.5% 422.1 2.4% 441.5 2.5%
Base Management Fee 311.9 2.5% 364.8 2.5% 407.0 2.5% 432.0 2.5% 442.8 2.5%
Other 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0%
TOTAL UNDISTRIBUTED EXPENSES 2,349.1 18.8% 2,537.6 17.4% 2,694.9 16.6% 2,788.6 16.1% 2,862.5 16.2%
GROSS OPERATING PROFIT (GOP) 4,947.0 39.7% 6,246.0 42.8% 7,311.3 44.9% 7,807.9 45.2% 8,013.7 45.2%
FIXED COSTS
Insurance 110.0 0.9% 112.8 0.8% 115.6 0.7% 118.5 0.7% 121.4 0.7%
Property Tax 249.5 2.0% 291.8 2.0% 325.6 2.0% 345.6 2.0% 354.2 2.0%
Franchise Fee 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0%
Management Incentive Fee 148.4 1.2% 187.4 1.3% 219.3 1.3% 234.2 1.4% 240.4 1.4%
FFE Reserve 124.7 1.0% 291.8 2.0% 488.4 3.0% 518.4 3.0% 531.3 3.0%
Other 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0% 0.0 0.0%
TOTAL FIXED COSTS 632.6 5.1% 883.8 6.1% 1,148.9 7.1% 1,216.6 7.0% 1,247.4 7.0%
EBITDA 4,314.3 34.6% 5,362.3 36.8% 6,162.4 37.9% 6,591.3 38.1% 6,766.3 38.2%
36© Copyright TREDIC Corporation 2018
irish
birr capital
limited
7.0 The Market (Global Health & Wellness)
C O R P O R A T I O N
37© Copyright TREDIC Corporation 2018
7.0 Global Wellness Market
The global wellness sectors now represent a $3.7 trillion economy.
The wellness economy now represents more than 5% of global economic output and is almost half the size of all global
health expenditures, which reached $7.6 trillion in 2014. From 2013-2015, the wellness economy grew by 10.6%, while the
global economy shrank by -3.6% in U.S. dollar terms.
Global wellness market overview:
• The global wellness industry grew 10.6% from 2013-2015: from a $3.36 trillion to $3.72 trillion market.
• Global wellness tourism revenues grew from $494.1 billion in 2013 to $563.2 billion in 2015 – or 14%. A growth rate more than twice as fast as overall
tourism expenditures (6.9%).
• World travelers made 691 million wellness trips in 2015, 104.4 million more than in 2013.
• The global spa market grew from $94 billion in 2013 to $98.6 billion in 2015.
• World spa locations jumped from 105,591 in 2013 to 121,595 in 2015. Since 2013, the spa industry added 16,000 spas, more than 230,000 workers (to
reach 2.1 million), and $3.5 billion in revenue.
•
Global Wellness Economy Highlights (2015)
The number of global thermal/mineral springs properties grew from 26,847 in 2013 to 27,507 in 2015. These businesses earned $51 billion in 2015, up 2%
(from $50 billion) from 2013.
• Spa wellness
The global workplace Industry
industry grew 6.4% from 2013-2015, from $40.7 billion to $43.3 billion.
• The global wellness realofestate
Number market(7%
Spas: 121,595 was onefrom
CAGR of the fastest-growing wellness sectors from 2013-2015: growing 19% from $100 billion to $118.6 billion.
2013-2015)
Spa Revenues: $77.6 billion (2% CAGR from 2013-2015)
Spa Employment: 2,150,147 (6% CAGR from 2013-2015) Global
Global Wellness
Wellness Economy
Economy Highlights
Highlights (2015)
(2015)
Spa Industry
Wellness Tourism Spa Industry
Number of Spas: 121,595 (7% CAGR from 2013-2015)
Number of Wellness Trips: 691.0 million (9% CAGR from 2013-2015) Number of Spas: 121,595 (7% CAGR from 2013-2015)
Spa Revenues: $77.6 billion (2% CAGR from 2013-2015)
Wellness Tourism Expenditures: $563.2 billion (7% CAGR from 2013-2015) Spa Revenues: $77.6 billion (2% CAGR from 2013-2015)
Spa Employment: 2,150,147 (6% CAGR from 2013-2015)
Spa Employment: 2,150,147 (6% CAGR from 2013-2015)
Thermal/Mineral Springs Wellness Tourism
Wellness Tourism
Number of Thermal/Mineral Springs Establishment: 27,507 (1% CAGR from 2013-2015) Number of Wellness Trips: 691.0 million (9% CAGR from 2013-2015)
Number of Wellness Trips: 691.0 million (9% CAGR from 2013-2015)
Thermal/Mineral Springs Estab. Revenues: $50.0 billion (1% CAGR from 2013-2015) Wellness Tourism Expenditures: $563.2 billion (7% CAGR from 2013-2015)
Wellness Tourism Expenditures: $563.2 billion (7% CAGR from 2013-2015)
38 Thermal/Mineral Springs Establishment Employment: 1,386,092You can also read
