Introduction
Real estate entrepreneurs Robbert-Jan van Ravenswaaij (1978) and his wife Renate Verstraeten (1980) developed approximately four years ago the plan to transform a former DIY store in the Afan Valley (South Wales) into a modern aparthotel comprising 19 fully self-contained studios. For this purpose, Afan Valley Holidays Ltd was established. At the time, Robbert-Jan and Renate invested approximately €400,000 of their own capital and acquired ownership of the property (Bakers DIY) at the end of 2022. Subsequently, the required planning permission was obtained and a tender process was completed for the redevelopment. In 2024, the first tranche of development financing (€565,000) was successfully raised via this platform, followed by two additional tranches of €500,000 each from investors within the entrepreneurs’ network. In addition, two new shareholders joined, contributing a further €400,000 in capital. Alongside Robbert-Jan and Renate, there are now two additional shareholders, each holding 25% of the shares in Afan Valley Holidays Ltd.

The transformation is now nearly complete. The first 9 studios have been operational and generating rental income since March, and all 19 units will be available for operation from June. The project has therefore successfully transitioned from the development phase to the operational phase, with construction and development risks now largely behind us.

Ownership and further development of the project have been strengthened through the addition of shareholders with relevant expertise. Arnout van der Swaluw joined as co-owner, bringing extensive experience in real estate financing and structuring (re)financing processes. In addition, Craig Davies joined as co-owner. Craig is the local contractor responsible for delivering the transformation and has extensive experience in developing and operating hotel and accommodation concepts. Through his other business, he also brings hands-on experience in letting, management, maintenance, and cleaning of accommodation, ensuring not only construction quality but also efficient and cost-effective operations.

The combination of financial expertise, local execution, and operational experience strengthens the project and increases the likelihood of a successful operation and timely refinancing. The current focus is on achieving a stable operational performance to enable bank financing. A Bank Financing Memorandum has already been prepared (attached), but the entrepreneurs prefer to take this next step together with their loyal early-stage investors.

To refinance the existing development financing and bridge towards the banking phase, Afan Valley Holidays Ltd is seeking an interest-only loan of €1,625,000. The loan has a maximum term of 19 months and offers a fixed annual interest rate of 7%. Existing investors from the entrepreneurs’ network will reinvest approximately €1,000,000 in this phase, demonstrating continued confidence in both the project and the team.

Aparthotel Bakers DIY
The Location
Located in Neath Port Talbot, South Wales, Bakers DIY is strategically positioned in a region poised for significant tourism growth. With stunning natural landscapes, extensive hiking and mountain biking trails, and rich Welsh culture, South Wales is a popular destination. Recent investments such as the Wildfox Resort, Celtic Freeport, and the Rhydycar West Resort further enhance the attractiveness of the region, making this an ideal location for the Aparthotel.

Shortage of Accommodation
Despite its growing popularity, the Destination Management Plan of Neath Port Talbot Council identifies a shortage of high-quality accommodation. The council actively supports a favorable investment climate and encourages private initiatives to strengthen the visitor economy. Projects such as the Wildfox Resort, Afan Forest Park, the Waterfall Country Visitor Infrastructure scheme, and the Aberavon Seafront are expected to attract more visitors, increasing demand for high-quality, self-contained accommodation like this project.

The Project
The aparthotel consists of 19 studios, each featuring a private bathroom and a fully equipped kitchen, offering a modern and cost-efficient alternative to traditional hotels. All booking and communication processes are fully digital, resulting in low operating costs and strong value for money. This concept clearly differentiates itself from competing accommodations within a 30-minute radius, where facilities are generally outdated. The aparthotel is located approximately 300 meters from the future Wildfox Resort entrance and 15–20 minutes from Port Talbot. The region is entering a period of significant economic investment, including the Celtic Freeport, Tata Steel’s decarbonisation programme, and various energy and infrastructure projects. This will drive sustained demand for medium-term accommodation for contractors and technical personnel, while current supply in the Afan Valley remains limited to older hotels, small B&Bs, and a few holiday cottages. In the early years, the business model focuses on long-stay contractor accommodation, ensuring predictable occupancy and low operational complexity. As the Wildfox Resort opens and tourism increases, demand will diversify and higher studio rates can be achieved.

Operations

According to the attached P&L forecast, the project is profitable from year one.

The operational strategy initially focuses on medium- to long-term stays (3–12 months) for contractors and technical personnel active in the region (including industry, energy, and infrastructure sectors). This segment is characterized by:

• high and stable occupancy rates
• limited seasonality
• predictable cash flows
• low operational complexity

As a result, the income profile resembles that of real estate rental rather than traditional hotel operations.

Based on a conservative average occupancy rate of 75% and an average daily rate (ADR) of GBP 87 per studio, net rental income in year one is projected at GBP 396,000.

After total costs of GBP 139,000, EBITDA in year one amounts to GBP 257,000 (64% of net revenues). The relatively high EBITDA margin is driven by the scalable model, which operates without reception, food & beverage services, or restaurant facilities, and relies on fully digital processes.

Exit Strategy
The focus in the coming period is on achieving stable operations and building a proven track record of cash flow. In parallel, a Bank Financing Memorandum has already been prepared and initial discussions have been held with commercial real estate lenders in the UK. It is expected that after 6–12 months of stable operations, the project will qualify for bank refinancing under longer-term and more favorable conditions.

First Mortgage
A first-ranking mortgage has already been established in favor of Stichting Security Trustee KOM Group for the total financing requirement of €1.434 million plus costs. The Gross Development Value (GDV) as of April 2024 was set at GBP 2.44 million (€2.88 million), which has now at least been achieved. Based on this valuation, the loan-to-value (LTV) for this loan amounts to 56% (€1.625 million / €2.88 million). This implies a substantial equity buffer, providing additional security for investors and further reducing risk.