Saxbury works with all parties involved in the serviced apartment and apart-hotel industry, giving us a thorough understanding across all facets of the sector. Saxbury consults on developments across the UK, acting as a trusted advisor to asset managers, developers, investors and private landlords.
From working closely with our clients over the years, we have identified the following key areas where we can provide our specialist support and know how:
Additional client benefits
Through past collaborations, we’ve worked with many different suppliers and consultants on a diverse range of projects. We like to provide our clients with the best possible team throughout the whole process and have therefore selected specific companies to partner with, that we believe are the best in class.
Where necessary, our clients may receive the additional benefits of our partner’s services, who can provide their expertise in the following fields:
Interior design and FF&E
For more information on our services or partnerships please contact the team.
Leasing & Operator Search
Saxbury advises investors and developers on pre-leasing serviced apartments and apart-hotels, unlocking the asset’s potential with a guarantee of stable income.
Securing the right serviced apartment or apart-hotel operator is an important decision. Whether the property is new or being refurbished to a high quality, timely appointment of the operator gives a developer additional confidence that the building will be a success. Saxbury has built robust relationships with many high-calibre operators, and over the years we have developed a detailed understanding of their brand requirements, this helps us to determine and select the most suitable operator for each project.
Acquisitions & Disposals
Saxbury represents owners and developers of commercial and residential properties at each stage of the transaction. We are constantly curating unique opportunities for investors to forward-fund projects and commit to ownership of leased or managed serviced apartment buildings.
We have a reputation for finding synergies between various parties and bringing them together to conclude deals that are mutually beneficial.
Whether you’re buying or looking to sell a property, our sector-specific experts draw upon their experience and connections within the industry to create tailor-made investment solutions.
Market & Feasibility Reports
Could serviced apartments provide a viable alternative use class for your development?
Saxbury provides bespoke reports for individual properties and proposed serviced apartment developments covering the commercial and residential sectors.
Our reports are designed to equip stakeholders with a level of comfort before embarking on a serviced apartment project, helping them to understand the risks, rewards, trading environment and other conditions of the serviced apartment market in their chosen area.
A typical report structure may include the following elements:
Detailed serviced apartment sector explanation
Forensic market analysis and comparisons, utilising:
—> Our own global serviced apartment operator database
—> AirBnB market analysis
—> Professional hotel market statistics
—> Residential lettings & sales market statistics
Feasibility / full appraisal of the proposed project will include:
—> Property valuation (GDV) when operated as serviced apartment use
—> Lease & management contract evaluation
—> Alternative uses
Serviced Apartment Finance
With the rapid evolution of the serviced apartment and apart-hotel sector in the UK, the finance market has traditionally struggled to keep up with the demands of this sector. The nature of this new type of asset class leaves it standing somewhere between a residential asset and a commercial hotel, making it difficult to determine which type of funding would best suit the project. With the demise of traditional high-street bank lending to property developers, a new breed of lender has emerged. These lenders are backed by private funding and are focussed on lending to experienced developers with sites in high profile locations. Over the years, Saxbury has built strong and trustworthy relationships with these lenders and consult regularly with clients on the best way to both finance and exit a project. We also assist them in concluding what style of funding best fits their profile and development over the period of their ownership.
We can help our clients achieve four types of funding, either individually or collectively:
Development finance enables the investor to fund the land at the outset with or without planning permission in place. This can often provide solid, bespoke funding to developers who have prime property sites in mind. Development funding is available with up to a 90% loan, enabling the client to maximise their own equity throughout the construction phase.
This type of lending can be used for buying or expanding property after the development phase, or for refinancing purposes. Once the development is complete and the operator has agreed a lease, we can then restructure the funding into a more traditional 15 to 20-year commercial loan up to 75% LTV with interest rates at sub 5%.
Mezzanine finance can be costly and difficult to secure. A developer must have a very good reputation in the industry, a proven track record, and a viable exit plan. We have access to several principal lenders with significant resources who can make quick decisions. By partnering with us, developers can reduce their equity, spread their risk and considerably enhance the percentage of return on their investment.
The continued strength of the serviced apartment market combined with low returns from bank deposits and traditional investments means there is a growing pool of equity looking to invest in growing this sector. We now have access to equity ranging from private high net worth individuals to pension funds and hedge funds. This gives us a unique opportunity to help our clients fund their projects by looking into options that have traditionally been inaccessible.