Property Development and
Investment

Breathing new life into character buildings to deliver the highest quality serviced accommodation.

About St David Group

St David is a property development and investment group based in the United Kingdom. We focus on serviced accommodation in the UK, principally the aparthotel sector in the North West of England.

Our operation was set up in Hong Kong in 1992 to offer UK properties to investors based there. In 1997 we set up a UK acquisition and development office and our own in-house property management arm.

Our service has always been tailored to suit the needs of offshore investors, who look for secure property investments with attractive income streams. Although we relocated our head office to the UK in 2014, most of our clients are based offshore.

Our comprehensive service covers all aspects of investing in the aparthotel and serviced accommodation sectors and we provide the following opportunities:

Fixed interest loan notes which provide all the funds for our development projects and we do not use any bank or other such debt. This means we are able to offer our investors full security of their funds through a first charge over the assets of the ring-fenced SPV borrower. 

Acquire and develop aparthotel properties. We handle all aspects of the process, from identifying an appropriate site through to undertaking the refurbishment and arranging the sale, or provide an ongoing management service, of the completed property.

Acquire and hold completed projects that we have developed. This can include an outright sale with us providing an ongoing management service for an agreed period of time or a longer-term joint venture agreement, with us providing the management service.

Message from our Managing Director, Mr. Tony Davies

When we set out in 1992 we wanted to establish long-term relationships with our clients based on mutual trust and integrity. We have learnt over many years that the best way to develop these is to ’Deliver the promise’.

In every aspect of our operation we don’t focus on exceeding expectations as this can lead to taking unnecessary risks. We adopt a risk-adverse approach and focus on delivering what was promised. Nothing more, nothing less. It’s a recipe for long term success that benefits everyone involved.

The serviced accommodation and aparthotel sectors offer some wonderful opportunities for our clients and us to enjoy attractive and secure investment returns. With the continued support of our clients, and the team of committed people we have, we expect that to be the case for many years to come.

The Aparthotel Sector

The aparthotel sector is experiencing growing demand, as both business and leisure travellers seek an alternative to full service hotels.

Most reputable aparthotel operators offer a fully equipped self-contained apartment, usually with remote check-in and limited on-site facilities. They vary in size from studios to three bedroom units and as to be expected, their quality varies fromlow grade through to the deluxe units of the international brands.

There are now around 27,000 aparthotel units in the UK, with annual growth in supply running at just over 5% p.a. Approximately 40% of the new product coming to the market is being operated under a multi-outlet brand name. Demand is rapidly outgrowing supply and the sector currently enjoys an occupancy rate of over 70%. With lower operating costs, its profitability outperforms the general full service hotel sector.

Our Properties

We have been developing properties for over twenty years, including large multi-unit apartment blocks through to executive homes, and we have a wealth of experience in the sector.

We focused our serviced accommodation activities on the co-living sector for a number of years and more recently on the aparthotel sector, where investor returns and yields are more attractive.

To minimise the risks for our fixed interest and project managed clients, we limit the size of the developments we undertake to between six and twenty units per site.

Our properties are positioned at the upper end of the sector. They are conveniently located and are typically established character properties that comprise studio and one-bedroom units. We reconfigure and totally refurbish our properties to offer quality self-contained serviced accommodation.

The refurbishments we undertake are always extensive—we don’t believe in simply adding a coat of paint. Our properties are stripped back to brickwork and installed with new kitchens, en-suites etc. We know that carrying out comprehensive, quality refurbishments is the key to lower ongoing maintenance, resulting in higher net rental yields.

We believe in creating a ‘home away from home, with a warm welcome ’ for our guests. Importantly, our units contain everything needed for our guests to enjoy their stay with us, including a fully automated, state of the art self check-in system, fully equipped kitchen units, flat screen TVs, comfortable beds etc.

Having developed the properties, we then manage them internally and do not use outside letting & management agents. We have learnt over the years that having an in-house management operation gives us greater control over quality standards and operating costs.

Investment Opportunities

Fixed Interest

To fund the acquisition and refurbishment of our projects we raise capital from our clients in the form of secured loans. We do not use bank or other similar forms of debt that have priority of over our clients’ security.

We take on the development risk and our clients receive a fixed interest rate regardless of the performance of the project.

  • Investment Period – Two to five years
  • Interest Rate – 10% p.a. (for offshore investors – 8% p.a. after UK withholding tax has been paid)
  • Investment – £100,000 to £2.5m, depending on the project

Our fixed interest opportunities are only available to certified high net worth individuals and sophisticated investors, as defined in the jurisdictions in which they reside.

Project Managed

For those clients who wish to maximise their investment return, we offer project managed development opportunities.

We source suitable properties and carry out extensive due diligence to ensure they meet the agreed criteria. The client then acquires the property and we undertake the development and ongoing management for an agreed fee. As the owner of the property, our clients are responsible for all costs associated with the project.

At the conclusion of the refurbishment, our clients can either sell the property or hold it as a medium term rental income stream (with us as the operator/manager) with an expected yield of over 10% p.a.

These projects are ideal for those clients seeking an enhanced return or want a more ‘hand on’ role in the development process.

Information About Opportunities

A certified high net worth individual

If you meet condition A or B below, you may choose to be classified as a high net worth individual for the purposes of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2024.

In the last financial year, did you have either:

  1. An annual income of £100,000 or more? Income does NOT include any one-off pension withdrawals.
  2. Net assets of £250,000 or more? Net assets do NOT include: your home (primary residence), any loan secured on it or any equity released from it; your pension (or any pension withdrawals) or any rights under insurance contracts. Net assets are total assets minus any debts you owe.

 

A certified sophisticated investor

If you meet condition A, B, C or D below, you may choose to be classified as a self-certified sophisticated investor for the purposes of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2024.

Have you either:

  1. Worked in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises, in the last two years?
  2. Been the director of a company with an annual turnover of at least £1 million, in the last two years?
  3. Made two or more investments in an unlisted company, in the last two years?
  4. Been a member of a network or syndicate of business angels for more than six months, and are still a member?

 

I understand that by electing to self-certify as a high net worth individual or sophisticated investor, this means:

  1. I can receive financial promotions where the contents may not comply with rules made by the Financial Conduct Authority (FCA).
  2. I can expect no protection from the FCA, the Financial Ombudsman Service or the Financial Services Compensation Scheme.
  3. I am aware that it is open to me to seek advice from someone who specialises in advising on investments.
  4. I accept that I could lose all of the money I invest.