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4 — INVESTMENT OVERVIEW
EXECUTIVE SUMMARY
Harrison Golf & Leisure Ltd (HG&L) has been formed to realise the vision and opportunity
for Hot Shots in the UK. It owns HG&L Newcastle Ltd (HNL) and will become the holding
company of additional companies, as it develops further Hot Shots Centres across the
UK.
In putting together this CIM and the financial model, information from TopGolf in the UK,
BigShots in the USA and a 120 bay centre in Singapore has been used. TopGolf is a
comparable product attracting over 900,000 visitors a year to its three centres around
London. Club Corp has invested in BigShots USA, with plans for 100 new centres across
the USA.
Hot Shots, with vastly superior technology, a Golf Academy and focus on a wider
spectrum including serious club players, golf teaching and a first class retail offer will
appeal to a much larger cross section of potential customers.
This document largely focuses on the first site based in Newcastle upon Tyne. Full
planning approval was obtained in March 2021 with a view to contractors starting on
site in October 2021 and completion in late summer 2022.
The total Newcastle project funding need is £16m. Initial Phase 1 seed funding of some
£500k through to planning consent has already been provided. The seed funding and
pre-development expenses will be repaid at financial close. The total cost of the Centre
is proposed to be by way of equity of £8m and bank debt of £8m. Appendix 1 shows the
sources and application of the funds.
The equity will be contributed at financial close of the £16m funding immediately before
construction start on site, when the bank debt is in place with all pre-conditions met.
The Centre will be profitable from day 1 of operation, with the key assumption being that
it will attract 236,000 visitors a year. The projection is based on previously mentioned
similar facilities and, given that there are over 1.6 million people living within a 30 miles
radius from the Centre. This is a reasonable assumption as there are no similar golf
entertainment facilities in the region.
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