Notting Hill Pub EIS

Ducalian Capital Ltd (“Ducalian”) is seeking £5 million to acquire and redevelop an historic pub and music venue in Notting Hill, London. This will be the fifth EIS pub to be acquired and redeveloped by Ducalian.

Highlights

  • Asset-backed – prime central London freehold
  • Advance Assurance received
  • Target return of 2x money invested (returns not guaranteed) which the management expects to beat
  • Allots this tax year: investors can choose to offset income tax relief against this or last year's tax bill. EIS3 certificates expected mid 2018
  • Exit targeted for year four to five

Update 31 March 2017 – a large EIS portfolio has now invested in this offer: we expect it to reach capacity soon

The opportunity

For over a century this Notting Hill pub been run as a traditional public house and music venue supported by a loyal community of artists, bohemians, politicians and everything in between. A dispute between the former managers and landlord means the pub has now been closed for approximately one year. 

Ducalian has agreed to buy the freehold for £5.4 million (this equates to approximately £655 per sq ft) and refit the pub. EIS advance assurance has been received.

The refurbishment will keep the ‘local’ feel, build on the pub’s existing reputation for music and food, and add a restaurant and private members bar upstairs. The plan is to complete this refurbishment and reopen by the end of Q1 2018. 

Henry Harris, a leading British chef, will manage the refit and design the menu. He has had a successful career at Bibendum, Harvey Nichols Fifth Floor restaurant and Racines and has consulted for Soho House Group and the Groucho Club.

Investors should have flexibility to invest in this tax year or the next. There will be a first close on the initial £5 million fund raise on 5 April 2017 and investors investing in the first round should have the shares allotted this tax year, meaning they can have the investment treated as been made in the 2016/17 tax year or carried back to 2015/16.

Please read our full review for further details.

This short review, like our research report, is not advice, a research recommendation, nor a personal recommendation to buy the investment mentioned. Nor does it constitute due diligence or an audit. Wealth Club aims to highlight investments we believe have merit, but investors should form their own view. You should make your decisions based on the offer document and ensure you have read and fully understand it before investing.

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. 17 March 2017

The details

Min. Investment
(CLOSED)
Strategy
Asset backed
Amount Raising
(CLOSED)
Type
single company EIS
Deadline
5 Apr 2017

News about Enterprise Investment Scheme. Read all