Hotel and Hospitality – Reinstatement of Lapsed Planning and Disposal Mandate for a Country House Hotel – Colshaw Hall (Jersey) Limited

SP acted for a family office who had acquired Colshaw Hall out of receivership as a creditor. The Property had lapsed planning permissions for conversion into a Country House Hotel and two 18 hole golf courses. SP advised upon the successful reapplication and reinstatement of the planning permissions.

The Properties known as Colshaw Hall and Merrydale Farm represented a unique opportunity to develop a Five Star Luxury Hotel and Golf Resort in Over Peover village, four miles south of Knutsford, Cheshire. Colshaw Hall is a Grade II Listed building constructed circa 1901 with a wealth of character and 36 acres of gardens. Merrydale Farm adjoined Colshaw Hall’s grounds, extends to 144 acres and was acquired for the purpose of developing a golf course. The reinstated planning permissions included:

Developing a 50 room luxury hotel which included a 100 cover gourmet restaurant and conference facilities for 45 delegates.
A health spa with 12 treatment rooms.
Two championship golf courses, designed to the highest standards and capable of holding professional and international events.
A new golf clubhouse build, with extensive facilities, in excess of 16,000 sq ft.

Prior to reinstatement of the lapsed hotel and golf planning permissions, Knight Frank valued the residential property and land at £2.75m. Upon reinstatement of the Hotel and golf course permissions the business plan for the business opportunity including the property was valued at £7.25m by DTZ. SP added value by negotiating the reinstated planning and negotiating the subsequent sale of these properties with the benefit of the valuable planning permissions.

SP developed a business master plan for Colshaw Hall and organised the revaluation of the reinstated business, negotiated a JV sale to the CCA International who were a leading developer and operator of five star private clubs in the Asia Pacific region with an expanding portfolio.

The property was sold to Irlam for £7.25m in cash, being a positive turnaround result of a £4.5m capital gain over the original value attributed to the property by Knight Frank when, it was acquired by SP’s client out of Administration.