FAT Properties Ltd
About Our Business
FAT Properties develops and operates property designed for wellbeing. We operate in the student and hospitality sectors, as this is where our high quality design and outstanding customer service makes the biggest impact.
We have a development team and a property management team comprising of property managers and support staff.
Directors Tom and Philippa are regular speakers in the property industry (Property Week, GSL, HMO Awards and more), and most recently won the 2024 HMO Awards award for Sustainability.
They authored the bestseller Designed for Wellbeing, a design guide to creating student accommodation which enhances wellbeing and outperforms the market.
Our Company Values
Our principles are: People, Place, Planet:
People: we design all our properties to enhance wellbeing. This creates a framework for higher productivity, health and success throughout life. Happier, healthier, more productive individuals form the basis of a healthy society and productive economy.
Place: we ask ‘how can this project contribute to the community it is part of?’ We want our projects to enhance not just people, but the communities and cities they are part of as well. We help people integrate with their communities to create stronger places.
Planet: we make decisions that our kids will thank us for. Our developments strive to be low carbon and sustainable. Our management uses sustainable practices and we have initiatives to educate and encourage our students to live sustainably.
What Differentiates Us
Our passion is empowering people to improve their wellbeing.
As designers, we approach our business with an eye towards innovation, striving to deliver our commitment to wellbeing in an efficient, tech-led way.
Our hospitality experience significantly influences our approach to student property management. We draw on the high levels of customer care and service we deliver in the hospitality industry and bring these principles to the student sector.
This blend of wellbeing focused, design-driven efficiency, and hospitality-grade service is what sets us apart from others.
KEY Information
Registered company name: FAT Properties Ltd
Year started in property investment: 2011
Operational areas:
North West: Lancaster, Kendal, Preston
Typical portfolio type: Student accommodation (primarily HMOs), serviced accommodation (serviced apartments, holiday homes, boutique hotels)
Portfolio value: £5.75m
LTV across portfolio: 58%
Ave ROI on owned projects: 20%
Ave private funding amount: £500k - £1m
Ave term length: 1-2 years
Ave interest offered: 8-10%
Securities on borrowing: 1st charge on property
Meet the Founder/S
Tom Charrier, Philippa Charrier
Philippa, trained as an architect and is an award-winning urban designer, spent her professional career in urban regeneration across the UK and Australia. She has developed local and regional plans, policies, and masterplans. Tom is a Chartered Landscape Architect with fifteen years’ experience working on residential and commercial projects in the UK and internationally. He worked for several years as an expert witness at public inquiries for residential developments, both for the public and private sectors. Together, Philippa and Tom understand the impact the built environment has on people’s behaviour, physical and mental wellbeing. They founded FAT Properties to develop student homes that improve student wellbeing. They are the authors of the best selling book Designed for Wellbeing.
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Our Existing Portfolio
Student sector:
Conversion of residential and semi-commercial properties to student HMOs.
We occupy the high end of the market: attractive properties, high quality design, mixed ensuite and shared bathrooms (depending on the property). All our properties are designed to enhance wellbeing.
This strategy benefits from:
- Immediate value uplift from the planning gain
- High cashflow
- Long term capital appreciation
Hospitality sector:
Conversion of commercial property (often disused or vacant) to apart-hotels / serviced apartments.
Conversion of residential properties to high end holiday rentals.
Again we target the high end of the market with high quality design and outstanding customer service.
This strategy also benefits from:
- Immediate value uplift from the planning gain
- High cashflow
- Long term capital appreciation
The Ethos Behind The Portfolio Type We Work With
There is national need for student homes which enhance wellbeing. Lancaster has a top 10 UK university with over 20,000 students, and a shortage of high quality student homes.
The student model is stable, highly predictable, profitable and secure. Our student HMOs enjoy signed contracts up to 24 months in advance (for the current and next academic year), and each tenant comes with a UK based guarantor, proving excellent security.
We consistently have 100% occupancy.
We develop and operate serviced apartments in areas of high tourist and business traveller demand. They generate high cashflow and have income security as guests pay before arrival.
CASE STUDIES >>>
PROJECT 1
Rebel Lofts
The Property & Strategy
This was a semi-commercial property with commercial use at ground floor and residential above, converted to a 9 bed student HMO (comprised of one 5 bed unit and one 4 bed unit).
We agreed an ‘option to buy’ the property subject to planning permission being obtained.
Once we had the option agreed with the vendor, we obtained planning consent, undertook the development, which comprised extensive remodelling and internal rebuilding.
We then refinanced the property to release the cash used to buy and develop the project and repay the loan our investment partner put into the project.
We named the property Rebel Lofts, as we converted attic space into amazing communal space with fantastic views across the city and countryside, and we collaborated with Rebel Walls who supplied the wallpaper.
It's now one of our most popular student homes, and a high cash flowing asset.
Numbers
Project started date: January 2021
Project completed date: November 2021
Financing method: Bought and developed with investment from private investor
Purchase Price: £250,000
Cost of Works (including finance costs): £175,000
Legals, professional services and fees: £11,000
Total spend: £186,000
GDV: £625,000
Profit from costs: 8.50%
Annual cashflow after all costs: £37,000
Location
The property is in Lancaster, a top 10 university city with 20,000 students. It is in a vibrant area with great amenities, local shops, cafes and parks. It is walkable to the city centre and on main bus routes to the main university campus.
Planning
Once we had the option to buy agreed with the vendor, we submitted a planning application for conversion of the property to residential use, and then used permitted development rights to convert from regular residential use to HMO use, before an Article 4 area was introduced which then limited the conversion of residential houses (C3 planning use class) to HMOs (C4 planning use class).
Additional information
This was a complex project comprising extensive structural works and internal remodelling. The structural works turned out to be more extensive than anticipated, which increased the budget and extended the timescales.
We were able to bring in additional construction staff in order to complete the works by the necessary deadline (which was the introduction of the Article 4 area), and manage costs to mitigate the additional spend on structural works.
