HIP Plc is looking to acquire sites through SPVs which will be held via HIP Plc’s subsidiaries under ‘option to purchase’ agreements, subject to planning permission. The Company’s focus is on easy-to-reach, out of town sites, with the focus being on sites with a £1 million – £2 million valuation. The total acquisition and development costs are expected to range between £5.5 million and £8.75 million, depending on specification.
The Company will utilise debt to supplement investment up to 80% of acquisition and build costs and, once completed, sites will be leased to partners on 25-year agreements, providing long-term cash flow generation.
HIP Plc operates a flexible investment and expansion strategy in order to maximise and capitalise on opportunities as and when they arise in the evolving market, so as to ensure value and returns to Shareholders.
The UK leisure market was valued at £117bn by Deloitte in 2017, which accounts for 7.4% of GDP and has grown 5% annually since 2010. Today, leisure is attracting one and a half times more discretionary spend than retail…