• “The firm plans to raise £6m through a private share placement and has already signed £42m development loan facility, money that will fund the first handful of sites Lloyd identifies.”
    – City A.M., Oliver Gill

Partnership

Holmes Investment Properties originated as a partnership between two well-known families, both experts in their respective fields. The Holmes and the Lloyds partnered to create a company that generates great value and strong returns through property investments in the growing sports and leisure market.

This original partnership has been used as a base to branch out to secure more leisure partners, as Holmes Investment Partners now finds land, then finances the purchase and development of sites creating purpose built, commercial venues for sports, leisure and entertainment. Current partners include Flip Out, the UK’s largest trampoline operator,  Team Sport go-karting, the biggest go-karting brand in the country and Omni Fight Club, a small but growing class-based kickboxing gym-style venue.

How it Works

HIP will find the land and put an option on it to purchase, subject to Planning agreement.

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Once planning is agreed, HIP will fund and purchase the land and fund the construction of the leisure venue.

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Our partners will then pay a rental yield to HIP.

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Background

The UK Leisure Market

In 2016, the UK experienced its 7th consecutive year of economic growth and consumer spending on leisure services saw a 7.8% rise. A typical household in the UK now spends around 22% of its weekly outgoings on leisure as consumers continue to prioritize experience-based products. [Family Expenditure Survey, 2014] As a result, the UK leisure industry has achieved a market valuation of over £4 billion and 4% growth rates are predicted year on year [Savills, 2017].

Given leisure market performance, it is perhaps unsurprising that investors demand for shares currently outstrips demand. Part of the appeal for investors is that leisure industry investments are one of the few real estate opportunities offering leases up to and exceeding 25 years.

HIP’s Premier Partnership:
David Lloyd with his adventure park concept

HIP intends to raise up to £6m in its first round in order to fund the expansion of our leisure partners, including our primary client, Mr David Lloyd. Proceeds will be used for working capital to buy sites and construct the buildings’ shells, which Mr Lloyd’s company, “David Lloyd’s Adventure Parks Ltd” will subsequently fit out. Borrowings pledged will cover 60% of the cost of the sites and 100% of the build costs.

“We believe that David Lloyd is the most successful sports venue entrepreneur in Europe, and he is now concentrating on building a unique, exciting business that people will flock to.”
– Martin Helme, HIP

HIP has established a 20 year contractual relationship with David Lloyd’s Adventure Parks Ltd that includes a mutual shareholding agreement. Together, we plan to deliver an initial 12 parks, to be built by 2021.The land purchase and build cost per site will be up to £5 million.

The aspiration is to fund and build 80 centres throughout the UK, with the option for further growth into the European market.

HIP will own long-term leases on all sites, with a minimum 25-year lease with a guaranteed yield for HIP with upwards-only reviews. Based on the preliminary illustrative financial model, HIP’s investment could generate a cumulative £50m in profit before tax after 5 years.

If you would like to know more about the partnership, the company or the investment opportunity in general, please contact HIP on: +44 (0) 203 709 7120.

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