West London pub EIS

Only £600,000 available

Ducalian Capital Ltd (“Ducalian”), a venture capital firm set up to invest in operational real estate with a particular focus on pubs, is seeking to raise £5.75 million to acquire and refurbish a freehold pub in a prime West London location. 

Ducalian has raised over £4 million of investor capital so far and is in the process of securing debt of £750,000 to fund the refurbishment.

The remainder is exclusive to Wealth Club and is likely to be filled quickly - only £600,000 remaining as at 7 November 2017. Shares are expected to be allotted on 21 November.

Highlights

  • Wealth Club exclusive deal
  • Asset backed: prime London location freehold 
  • EIS Advance Assurance received
  • Buoyant leisure market from tourists and staycations
  • Target returns of 2x money invested which the management expects to beat (returns are not guaranteed)
  • Proven and professional team 
  • Exit targeted for year 4 to 5 
  • Shares allotment expected on 21 November
  • Minimum investment – £10,000

West London pub asset-backed EISThe opportunity

For the last decade 210 Chiswick High Road has been successfully trading as Carvosso's At 210, an upmarket eating house and wine bar in a prominent position in Chiswick, West London, with heavy footfall surrounded by shops, restaurants, and bars just a short walk from tube stations. 

The vendor wishes to retire and Ducalian has agreed terms off market to buy the freehold for £3.75 million with vacant possession. This creates a rare opportunity to acquire a substantial high-quality freehold asset in a great location. EIS advance assurance has been received and contracts were exchanged on 30 July 2017. The purchase completed on 22 September 2017.

This will be the sixth EIS pub acquired and redeveloped by Ducalian. 

Joining Ducalian to manage the acquisition and design the new menu and format is Henry Harris, a leading British chef. Formerly he has had a successful career at leading restaurants Bibendum, Harvey Nichols Fifth Floor restaurant and Racine. Mr Harris has also consulted for Soho House Group and the Groucho Club. He works with Ducalian on their other pubs and will be working full time on the Ducalian portfolio.

We consider mid-point target returns before EIS tax relief to be approximately 1.5x money (over 2x money with EIS relief) which equates to approximately 15% to 20% IRR, however, Ducalian expects to exceed this. Returns are not guaranteed.

Please note, the pub won’t be operating until April 2018. EIS3 certificates are likely to be issued around September 2018.

Read important documents and apply

Wealth Club aims to highlight investments we believe have merit, but you should form your own view. You should decide based on the provider's documents and ensure you have read and fully understand them before investing. This review is a marketing communication. It is not advice or a personal or research recommendation to buy the investment mentioned. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination.

Please remember EIS investments are illiquid and capital is at risk. They are not suitable for everyone. Investors should not invest money they cannot afford to lose. The value of tax relief will depend on your circumstances and tax rules could change in future. 19 September 2017.

The details

Min. Investment
£10,000
Strategy
Asset backed
Amount Raising
£5.75 million
Type
single company EIS
Deadline
Closing soon

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