Chateau de Saint Dau, Figeac,46100 Mid Pyrenees, SW France
Over the past 14 years I have had the opportunity to review the prospects for the Château de Saint Dau many many times.
The numbers on the cost and revenue side of the business plan have changed as time goes by with increased experience identifying more competitive contractors and with careful investment bringing the property to a score of 8.5/10 with booking.com in 2016 and increased revenues in consequence.
What has never changed is the very evident need for more capital to bring the Chateau estate to viability and profitability. What has never changed is the very positive outcome from a relatively modest investment.
The business plan completed in 2016 and currently being updated shows a minimum return on investment (ROI) of 10.5 % and an optimum of 14%.; the difference relates to the level of investment available to bring the property to a 4.5 star positioning.
I am sufficiently confident in the business plan projections to commit to being available to bring the figures to fruition over a three year period ; that stated there is absolutely no obligation to engage me to oversee the development phase , it is merely an option for you to consider.
The updated and revised business plan will be available on May 25th 2017; it will be based on acquisition of the Chateau estate at Euros 850,000 and additional investment between Euros 1.5 and 3.0 million . ( minimum and optimum respectively)
In the interim I am available to answer any and all questions relating to the Chateau , it’s environment, existing clientele and it’s future potential under your ownership.
Tony Botsman, DDA, MBA, email@example.com
There is huge potential for development at Chateau de Saint Dau and the current owners are keen to invite investment. Our objective for the development at Chateau de Saint Dau is to create a centre of excellence with health and fitness facilities, fine cuisine and cookery teaching facilities, and a centre for the performing arts. We feel that Chateau de Saint Dau, offers an exceptional investment that includes the wonderful benefits of Château ownership.
Château ownership and investment potential are not normally found in the same location, normally Chateau ownership is plagued with the complications of heritage and administration requirements related to French property ownership; normally it is difficult if not impossible to realise a commercial return. At Chateau de Saint Dau we offer all the benefits of ownership with a positive return on investment.
The Chateau de Saint Dau is an estate of 21 Hectares ( 50 acres ) with immediate proximity to the vibrant town of Figeac in the SW of France (Midi Pyrenees region). Perhaps the best endorsement of the region is that it is the choice of discerning French families who move here from all over France.
The estate includes the Chateau building with 2000 plus years of history going back to Roman occupation in 64 BC; a modest Roman arch in the foundations of the Chateau attest to a humble beginning as part of a Roman oppidum or military camp. Springs in the hill above the Chateau and a commanding view of the Cele river valley explain the choice for this location.
dd certainty, substance and precision to what is intended here. Studies will include archeological, engineering and architectural as well as accurate simulations and artistic impressions of what will be created. Precise costings and quotations will add certainty and precision to what will be achieved to deliver a return on investment, all costings and revenue projections will be cross checked by expert accountants and a full dossier of information will be available to intending investors by Spring 2017 at latest.
The 60,000 referred to above will be raised by subscription of 20 lots of E3000 or 40 lots ofE 1500 or any combination thereof until the full amount is realised.
Those subscribing these amounts will receive:-
Two weeks accommodation for four people in one of the two luxury cottages already existing (E3000 subscription)
One weeks accommodation for four people (E 1500 subscription)
A luxury pack on arrival with the best of the regional produce from Foie gras to Champagne , artisanal chocolates and preserves made on the estate .
Earliest access to the investment dossier,( E30,000 worth of detailed documentation10x E3,000 or 20x E1500) but only if requested and with no obligation whatsoever to continue any involvement.
First right of refusal on the opportunity to be one of the new twenty investor/ owners ( but again with no obligation whatsoever , limited to the first twenty subscribers expressing interest in investment)).
Tickets to any of the regional cultural/ musical/ artistic events coinciding with a stay in either of the cottages.
‘Access all areas’on the site and unlimited time to discuss the project with the existing owner gerant and / or other experts associated with the project.
A complete list of the documents making up the dossier is included as appendix (i)
35 suites comprising master suites of 65m2 and junior suites of 45m2, suites created to a 4.5 star standard and including 2 bathrooms spa, ensuite for master and one spa bathroom for junior suites. All suites with a bar and kitchenette plus living/ dining space, TV surround sound Wi Fi etc..
Highly secure underground parking for 20 vehicles with access to private cellar and storage space for owner investors.
Spa facility with infra red sauna, solarium and Jacuzzi plus massage facilities.
Wellness centre with gym and beauty facilities.
A plunge pool and Finnish hot tub plus a 25 m pool for more serious swimmers with a waterfall and beach side facility for children.
Communal space for up to 250 people in a theatre format, subdividible into more intimate seminar spaces for groups of 20 to 50. Equipped with theatre lighting and top quality sound systems plus lighting appropriate to function as an art gallery.
Outdoor terrace, café and bar facilities plus lawn areas for up to 400 people for public events such as weddings , two separate outdoor structures for musical and live performances (lawn and existing terrace areas)
A practice golf range plus simulation facilities (subject to demand.)
Everyone reading this note will understand very well that all too often there is no connection between the two. In this case the numbers that follow are the result of a sometimes difficult evolution over more than ten years; the numbers have been revisited and re done more than a dozen times to arrive at a set of figures that represents the best possible connection between development on this domain and actual market demand.
Three key factors mean the figures put forward are deliverable:- The market demand for rentals for this property has now been tested over four seasons with 2016 providing evidence of solid demand at increased prices ; seasonal bookings have for the first time begun in April and continued through August and September. Occupancy rates have increased from 56% four years ago to a remarkable 93% this season. The Aerospace cluster that drives the local and regional economy is booming thanks to multi billion euro contracts with both EADS ( Airbus) and Boeing Seattle. The multiplier effect is very much in evidence; a new three star hotel near the Chateau is an important reference point and benchmark for four star development here. The region of the Midi Pyrenees is the fastest growing in tourism numbers in all of France which of course remains the most visited country in the world, 80 million visitors is around 10 million more than the population and year on year increases have never reversed .
No less than twenty five of the major attractions outside Paris Versailles are to be found in this region. The three options set out below are all based on providing a unique experience which combines the heritage of more than 2000 years with all possible hospitality facilities to a four star+ standard. Option 1 is focused on the main Chateau building plus the two guardian towers, a pool and hot tub, spa, infra red sauna and Jacuzzi. Total investment to fund this option is just E2.5 million including acquisition cost of E850,000.
Five investors at E.5m each or ten at E.25m each will see a return in the second year after development of 10.24% Option 2 is focused on redevelopment of an existing grange complex of 500m2 into 8 studio units each with balconies and access to a very attractive terrace space. Much in demand communal space for cultural events plus seminars and conferences plus underground parking with access to wine cellars is included in option 2 budgets.
Total investment including acquisition is E4 million thus five investors at E.8m , 10 at E.4m or 15 at E.266 will see returns of 14% in the second year after development. Option 3 adds the first new buildings for which for which preliminary / in principle approval is already in place; Four deluxe two bedroom , two bathroom studios, cover another segment of market demand at a higher price point.
This option is scalable according to demand with 2 hectares of constructible land available for up to 3000m2 of additional built space or some 30 units at 100 m2. Returns are slightly less than option two as we are not leveraging the costs of existing built space. Total investment is E4.6 million thus 10 investors at E.46m or 15 at E.306m will see returns of 12.6 % in the second year after development.
In the table below , A= acquisition cost of E850,000 (acceptable to existing owners and more than fair for new owner/ investors) I= Incremental investment after acquisition, R= revenue based on the added capacity, C= costs of operation and E = earnings before tax, depreciation any interest and amortization thus EBITDA. In all cases figures are worst case and subject to final quotes as part of a feasibility study for which seed funding of E35,000 is sought.