Page 24 - Microsoft Word - Hot Shots CIM Version 1.9.2 Final

At Wallsend, just like many other courses, the club is stagnating with declining
membership. It presents the perfect opportunity and location for a substantial
investment to improve the drainage to allow year-round play and to reconfigure the
course to offer 6, 12 and 18 hole options.

The cost to reconfigure the course is some £1.5m, HNL will fund the reconfiguration.
STR will manage the redesign works on the Course.

STR will manage the club and course alongside its management of the Centre. The
parties will share the profits from the course 50/50.

STR will grant to HNL, on financial close of the funding required to build the Centre, an
option to take a sub-lease of the course of equal duration to and on the same terms as
the Centre sublease at a premium of £500,000.

CENTRE DELIVERY

HNL has appointed a full professional team for the Centre, with RIBA stage 4 design
development completed, in addition to the planning application. The current cost plan
including fit-out, digital ball tracking equipment & software, ball dispensing equipment
and the FF&E, together with the land and remodeling of the golf course is set at some
£16m including two conservative provisional sums to be finalised and a value
engineering review yet to be completed.

After a five contractor tender selection program, the preferred candidate, Robertson
Construction was appointed in February 2020. This early appointment will allow for
maximum contribution by the contractor to provide value engineering, under a design
and build contract. Start on site is planned for early autumn 2021, with practical
completion planned by late summer 2022.

Once completed, the Centre will be managed by STR Management Services Ltd under a
management agreement for which heads of terms have been agreed. STR have been
fully involved in the design of the first Centre, will sign off on all Centre specifications,
attend all testing and handover formalities and prepare a detailed and fully costed pre-
opening plan for the Centre as part of its cost plan. STR’s Managing Director, Chris
Sanderson and Chief Accountant Grant O’Neill have had a key role in the preparation of
the 5 year P&L, cashflow and balance sheet modeling for HNL.

In summer 2018 the HG&L directors Phil Harrison, Ian Robertson and Chris Sanderson
visited the first BigShots Centre built in Lubbock Texas.

In the UK TopGolf has been operating for 10 years with three centres in the Greater
London area (www.topgolf.com). It now has plans to build a centre in Glasgow and is
seeking other sites for new centres which has included its agent approaching STR to
purchase the Centurion Park site.

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