AEQ Management S.à r.l.
RCSL B302489 · Capellen, Luxembourg

Confidential Proposal · May 2026

Prepared for Rajan

Hospitality Portfolio.
£50m Portfolio, Luxembourg Managed Fund.

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The opportunity.

A £50,000,000 dedicated compartment of Aequitas Securitisation FT, deployed as a basket of South East country estates operated as luxury hospitality. Each acquisition combines a freehold mansion with a value-add programme — cabins, pools, retreat and wedding consents, occupancy optimisation — to generate stabilised hospitality income and a capital re-rating on exit.

~2.7×
Total return multiple (10y)
~17%
Stabilised yield on cost
10 yrs
Hold period

South East estates, hospitality-led.

Substantial freeholds in the South East and Home Counties acquired with surplus land or under-monetised hospitality offer. £400-500k of value-add capex per asset funds cabins, glamping, swimming pools, wedding licences and corporate retreat consents — multiplying the income surface materially while keeping the principal residence intact for a clean exit. Owner-operated through Aequitas's hospitality stack: ~25% direct opex, no rent, no leverage interest. Stabilised gross yields of 13-25% on cost are typical.

i.

Acquisition

Off-market freeholds, 4-15 acres, principal house £2-7m typical lot.

ii.

Value-add

Cabins, pool, wedding/event consents — within ancillary-use planning, typically 6-12 months from completion.

iii.

Operate or exit

Stabilised running yield 13-25% gross, capital re-rating on exit at hospitality cap rates.

Edge: deal flow sourced off-market; planning history, AONB / National Park / green belt and TPO constraints screened pre-bid; operating platform absorbs deals at scale.

Six deals, on file.

Indicative of the basket. All figures shown gross of fund-level fees — fund economics summarised at end of proposal.

Case Study ICountry · Yield-led

Lodge Lane, Essex.

  • Acquisition: £4.0m freehold on Ardleigh Reservoir, near Colchester (CO7) — 8-bed mansion with existing holiday cabins generating ~£700k annual revenue.
  • Rationale: established hospitality income on day one, plus surplus land and consents for material expansion — clear path from yield to capital re-rating.
  • Value-add programme: £500k capex to add 5 further luxury cabins, lifting revenue by ~£250k. Wedding licence and corporate retreat use add further upside not in base case.
  • Stabilised: £4.5m total invested · £950k revenue · ~£713k NOI (after 25% opex) · gross yield 21.1% on cost.
  • Hold: 10 years. Exit ~£10m via continued operation or sale to hospitality operator. Combined market growth + income re-rating implies ~100% capital uplift.
£4.0m
Acquisition
21.1%
Stabilised yield
£713k
Annual NOI
~100%
Capital uplift
10 yrs
Hold (yrs)
~14.5%
Gross IRR
Case Study IICountry · Yield-led

Mulberry House, Sussex.

  • Acquisition: £3.5m freehold at Copthorne Common, West Sussex (RH10) — 8-bed mansion plus existing KOA holiday cabins, ~£700k annual revenue.
  • Rationale: stabilised cabin income on a Sussex prime country freehold, with capacity to add cabins and amenities — yield-led entry, capital re-rating on exit.
  • Value-add programme: £400k capex for additional cabins and a swimming pool, taking total revenue to ~£1m.
  • Stabilised: £3.9m total invested · £1m revenue · ~£750k NOI (after 25% opex) · gross yield 25.6% on cost.
  • Hold: 10 years. Exit £8-10m on hospitality cap rate of c.7% applied to NOI. Implied ~100% capital uplift over the hold.
£3.5m
Acquisition
25.6%
Stabilised yield
£750k
Annual NOI
~100%
Capital uplift
10 yrs
Hold (yrs)
~15%
Gross IRR
Case Study IIICountry · Brand-led

Middle Green, Berkshire.

  • Acquisition: £7.0m freehold at Middle Green, Berkshire (SL3) — country estate within the Heathrow-belt prime country market. Notable provenance: former London-area home of George Michael, gifted to Geri Halliwell. Currently generating ~£700k annual revenue.
  • Rationale: trophy provenance asset that anchors the portfolio's brand and event offer. Yield is moderate at 10% on cost; the strategic value sits in platform-level marketing leverage across the rest of the basket.
  • Strategic plan: deploy as the portfolio's flagship — corporate hospitality, brand events, music & film industry partnerships. Crossover with existing music/film tokenisation relationships in LA. Marketing halo lifts performance of other portfolio assets.
  • Stabilised: £7.0m total invested · £700k revenue · ~£525k NOI (after 25% opex) · gross yield 10.0% on cost.
  • Hold: 10 years. Exit ~£8-9m on hospitality cap rate plus organic market growth. Standalone capital uplift modest at ~30%; substantial additional value through portfolio brand-platform effect not captured in single-asset cashflows.
£7.0m
Acquisition
10.0%
Stabilised yield
£525k
Annual NOI
~30%
Capital uplift
10 yrs
Hold (yrs)
~8%
Gross IRR
Case Study IVCountry · Yield-ramp

Fidlers Moat, Essex.

  • Acquisition: £3.5m freehold in Essex — boutique short-let / hospitality asset (Airbnb-listed), current revenue ~£250k.
  • Rationale: well-located Essex country asset operating substantially below capacity — clear ramp opportunity by adding amenity and inventory.
  • Value-add programme: £500k capex for a swimming pool plus additional cabins, lifting revenue from £250k to ~£750k (3× uplift).
  • Stabilised: £4.0m total invested · £750k revenue · ~£563k NOI (after 25% opex) · gross yield 18.8% on cost.
  • Hold: 10 years. Exit ~£8m on hospitality cap rate of c.7% applied to NOI. Implied ~100% capital uplift over the hold.
£3.5m
Acquisition
18.8%
Stabilised yield
£563k
Annual NOI
~100%
Capital uplift
10 yrs
Hold (yrs)
~13%
Gross IRR
Case Study VCoastal · Hospitality

Brighton Retreat, Brighton.

  • Acquisition: £1.7m freehold in Brighton & Hove (East Sussex) — 5-bed resort-style villa with private heated pool, hot tub, sauna, cinema, gym and chef's kitchen, minutes from Brighton's beach and The Lanes. Already operating as a luxury short-let, ~£220k current revenue.
  • Rationale: stabilised hospitality asset in a high-demand coastal location, no major capex required. Yield-led entry on a fully-fitted, resort-style property.
  • Operating plan: optimise occupancy via direct booking channel mix; lift average daily rate via corporate/events/golf-tourism positioning. No structural capex required.
  • Stabilised: £1.7m total invested · £220k revenue · ~£165k NOI (after 25% opex) · gross yield 12.9% on cost.
  • Hold: 10 years. Exit ~£3-3.5m on hospitality cap rate of c.7% applied to NOI plus market growth. Implied ~75-100% capital uplift over the hold.
£1.7m
Acquisition
12.9%
Stabilised yield
£165k
Annual NOI
~85%
Capital uplift
10 yrs
Hold (yrs)
~10%
Gross IRR
Case Study VICountry · Yield-led

Brockhurst Barn, West Sussex.

  • Acquisition: £2.35m freehold barn conversion at Washington, near Pulborough, West Sussex (RH20 4AS) — 4-bed barn on 4.75 acres adjoining the South Downs National Park, already operating as a luxury short-let with established revenue of ~£300k p.a.
  • Rationale: stabilised hospitality income on day one, no capex required at base case. Asset already includes pool, gym, stables, menage, shepherds hut, 4-car garaging plus 4,000 sq ft of additional outbuildings — significant headroom for further development.
  • Setting: properties adjoining or within National Parks command meaningful premiums over comparable non-designated rural stock (per Nationwide HPI Research 2024 — see regional market data below).
  • Optional upside (not in base case figures): 4.75-acre paddock and existing shepherds-hut precedent supports further glamping cabins or huts within ancillary curtilage — could lift revenue ~£200-300k p.a. above base. Treated as upside, not headline.
  • Stabilised: £2.35m total invested · £300k revenue · ~£225k NOI (after 25% opex) · gross yield 12.8% on cost. Hold 10 years. Exit ~£3.2m on 7% hospitality cap rate plus market growth; ~40% capital uplift.
£2.35m
Acquisition
12.8%
Stabilised yield
£225k
Annual NOI
~40%
Capital uplift
10 yrs
Hold (yrs)
~11%
Gross IRR

The £50m portfolio, at scale.

The six anchor deals shown above represent £22m of property acquisitions and define the operating characteristics of the basket. The figures below extrapolate those characteristics to a fully-deployed £50m compartment — applied across an estimated 12–14 South East country estates sourced through the same off-market deal flow. Of the £50m raised, approximately £45m is deployed into property and value-add capex; the balance covers acquisition costs, fund set-up and working capital reserves.

Capital committed

£50m
Total fund deployed
  • Property acquisitions£40m
  • Value-add capex£4.5m
  • South East estates~12

Capital returned (Year 10)

£80m
Stabilised exit value
  • Capital uplift on fund£30m
  • Gain on capital~60%
  • Gross IRR (10-year)~10.5%

Through the 10-year hold

£7.5m
Stabilised revenue p.a.
11.2%
Cash yield on deployed
£56m
Cumulative income (10y)

Figures derived from the six anchor deals' weighted-average operating ratios applied to a ~£45m asset basis (£40m property purchases + £4.5m value-add capex; remaining ~£5m of the £50m compartment covers acquisition costs, stamp duty, fund set-up and working capital reserves). 16.7% gross stabilised revenue yield on cost; 75% NOI margin (25% operating costs covering utilities, OTA platform fees, cleaning, insurance, repairs); 1.78× exit multiple at 7% capitalisation rate; cumulative income assumes flat stabilised NOI through the hold (no inflation uplift). Stamp duty modelled at residential rates with the 5% additional dwelling surcharge for corporate purchasers — a deliberately conservative basis; per-deal SDLT treatment is subject to professional advice and may be optimised at counsel discretion (e.g. via the FA 2003 s.116(7) six-dwellings election where the freehold includes the principal house plus six or more separately-occupiable cabins). Any optimisation savings flow back to the fund. Capital at risk; figures are indicative not guaranteed.

Fund economics.

Mechanics

  • VehicleAequitas Securitisation FT — dedicated compartment
  • IssuerAEQ Management S.à r.l.
  • Note formRegistered, EUR 1bn programme
  • ListingLuxSE Euro MTF
  • SettlementEuroclear / Clearstream
  • EligibilityProfessional & ECP only

Fees

  • Compartment size£50,000,000
  • Term10 years
  • Hold period10 years per asset
  • DistributionsAnnual cash
  • Fund management fee2% p.a. on invested
  • Performance fee20%
  • Property management fee10% of revenue

All deal-level figures shown elsewhere in this proposal are gross of the fund-level fees stated above. Definitive terms set out in the compartment's Note Issuance Documentation. This page is a marketing summary and does not constitute an offer or solicitation.

Capital at risk. Past performance does not guarantee future results. For professional investors only.