Hotel & Entertainment Mall Project

Birmingham, United Kingdom

Project Overview

  • A stunning 200 meter leisure tower with rides, extreme activities, observation galleries, together with a 21st century Entertainment Centre incorporating immersive rides,  restaurants, cafés, sponsor areas, merchandising, and a 140 bed hotel;
  • A prominent 1.5 acre (6,070 sq m) site fronting the new City Park and adjacent to the future eastern concourse entrance to the High Speed Rail Terminus (HS2) link direct from London (forecast to open in 2026) has been identified, along with two other opportunities in the Bullring/Eastside area;
  • Detailed design and pre-planning consultation already undertaken and full support from senior politicians, planning authorities and third parties (e.g. CABE) for a site in Eastside.

Project Cost and Programme

  • Project Cost range (dependent on which site is pursued) GB£115m – £130m including construction and general contingency, land, agents introductory fees (excluding debt finance);
  • Indicative program (will vary dependent on site selection) – detailed planning application Q2 2018, construction period Q2 2019 – Q2 2021, open to public Q3 2021;
  • Tower constructed in the UK by qualified major contracting firm.

Financial Summary

  • Conservatively forecasting 1.2m visitors to the tower in Year 1;
  • Forecast Year 1 Gross Revenue of circa £35m and Operating Profit (after CapEx) of circa £20m;
  • Forecast (unleveraged) returns of 25% IRR and 4-5 years payback (from trading);
  • Funder would OWN the project SPV. The Project Manager would DELIVER and OPERATE the tower / base under a long term Management;
  • Contract including the payment of Annual Royalties;
  • Strong exit opportunities to trade players, private equity, sovereign weal funds and potentially IPO etc.
Hotel & Entertainment Mall Project

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