Launched in 2008, the Darwin Leisure Property Fund (the Fund) owns and operates a portfolio of fifteen holiday parks in the UK and generates returns that are uncorrelated with any asset class, including real estate. Revenues are generated from the park operations, making it a very different proposition to traditional real estate investments.
The Darwin investment approach is to acquire parks which are operationally sound and cash generative and improve these through our model of operational excellence, exploiting economies of scale.
UPDATE FOLLOWING BREXIT…
Following the result of the EU referendum, please see below commentary from Anthony Esse, CEO of The Darwin Leisure Property Fund, as he considers the Fund’s position in light of the Brexit vote: –
“It has been a week since the result of the EU referendum and whilst there is a great deal of short-term political uncertainty, the Governor of the Bank of England made a very powerful – and seemingly well received – address yesterday. Broadly speaking, the Bank believe that economic growth will slow but that it will be in a position to provide liquidity to the system should the need be necessary. Furthermore, he was at pains to point out that the capital required by Banks in the UK was some ten times what it was in the global financial crisis of 2008.
When we launched the fund in January 2008, nobody foresaw what unfolded in 2008 and the extent of the global meltdown. In 2008, 2009 and 2010, the industry witnessed an increase in staycations caused partly because of weak Sterling. Across the industry, caravan sales in Q4 2008 were extremely fragile, but recovered quite quickly thereafter.
We have stated repeatedly that unlike all of our competitors we have a much greater emphasis on hiring rather than selling lodges and caravans and that such a hybrid model is, over the medium and long-term, much more suitable for investors because of four key reasons:
1. It dramatically reduces portfolio risk if caravan and lodge sales fall
2. Holidaymakers spend considerably more on their visits than owners of caravans – thereby making F&B offerings profit centres and not loss leaders
3. Cash flows from lodge holidays are substantial and the product has longevity
4. Creating the right environment and experience results in increasing occupancy. It is occupancy that drives everything
Whilst the last seven days is only one week, when we compare our year on year figure, we were ahead by about 6%. In addition, we are fully booked for the summer.
Our strategy has always been to provide investors with consistent returns in whatever economic scenario. This we achieved in some very dark days during the global financial crisis and we will leave you to judge whether we will deliver again.”
Darwin Triumph at 2015 European Pension Awards
We are thrilled that our awards success continued recently when Darwin Property Investment Management (Darwin) was named ‘Alternatives Investment Manager of the Year” at the 2015 European Pension Awards. More detail.
focus on technology companies based in the UK, which has a reputation for world-class research with 70 Nobel Prizes won by UK scientists and four UK universities – Oxford University, Cambridge University, Imperial College London and University College London – ranked in the top 6 worldwide with research income of over £1.2bn per annum.…..Find out more
Investing in UK health Care for the elderly, a massive and growing market. The fund offers a unique investment class with no correlation to the stock market with very low volatility and risk.