Center Parcs Domaine des Hauts de Bruyères, Sologne
Center Parcs is one of the most popular tried and tested resort brands in Europe with the average resort occupancy level at a remarkable 85%. Offering short breaks in the countryside all year round the resort boasts a plethora of activities on site including a spa, restaurants, pools, tennis and much more.
All running costs paid by developer
Low reservation fee
Straightforward purchase procedure
Comfort cottages from €290,000
Very successful Center Parcs brand
Eco-generation freehold properties
Huge Aquadome and numerous facilities
19.6% VAT pre-financed by developer
9 year+ guaranteed rental income
No management or maintenance costs
Unique and sustainable eco-village
Single storey cottages built of wood
Bordering 200 hectares of forest
Fully furnished at no extra cost
Fully fitted kitchen & high quality decor
Fully sustainable eco-village
Average resort occupancy at 85%
4.2% Net rental return guaranteed
Government backed VAT refund
“…The key to guaranteed rental yields is high occupancy rates. Center Parcs has 82 to 93 per cent, plus good management. At Center Parcs, you can buy a cottage purely for personal use with no income, but most buyers prefer to have no personal usage, or just one to two weeks per year and maximum income. They can choose between ownership options and a sliding scale of yields from 4.5 per cent to 3.1 per cent...” DAILY MAIL - Click here for full report
Properties on the resort are currently available with a 4.2% net guaranteed rental return for 9 years and this is fully renewable thereafter. Furthermore, there are no management or running costs for you to pay; just sit back and relax as your property earns you money.
To be able to purchase a property in such an established successful business model as Center Parcs with less than €10,000 is too good to miss!
Adding to this, you have the security of not only buying through a developer which turns over €1.5 Billion a year but also that your deposit will be subsidised by the French government due to their support for the project!
The Resort This tried and tested brand is one of the most popular in Europe with the average resort occupancy level at 85%
The resort itself is a fully operational Center Parcs village hidden away in an immense region of moors, heather, lakes and forests. Center Parcs resorts are known for their excellent facilities, and Center Parcs Domaine des Hauts de Bruyères in Sologne is no exception. The resort boasts a host of activities including water sports, indoor and outdoor pools, lagoons, lakes, sporting activities, hiking trails, mountain biking and more. Relax and indulge in the innovative on-site spa which offers a world of relaxation and pleasure. Whatever your age, whatever your indulgence, you will find numerous activities on hand to relax and inspire you.
The properties and facilities on Center Parcs Domaine des Hauts de Bruyères have been meticulously designed with the local area and environmental considerations in mind. Top architects have created a sense of peace and calm with use of natural materials, primarily wood and design which is sympathetic to the setting. All properties and facilities in the resort are the result of sustainable construction and boast very high energy performance standards.
The properties available are existing cottages due for complete refurbishment by December 2011.
Cottages come fully equipped with a fitted kitchen, furnishings, and high quality decor. All of the three styles of cottage available boast spacious and light interiors and have been designed and equipped to the HQE (High Quality Environmental) standard.
Comfort Cottage - Convivial & Modern
A fresh atmosphere, colourful decor, light-coloured wood
A calm atmosphere, designer furnishings, clean lines
Open plan kitchen, fireplace, flat screen TV in living room and bedroom, home cinema, whirlpool bath, shower with hammam
Patio with garden furniture
Breakdown of Cottages at Center Parcs domaine de la Forêt de Chambarand
Number of cottages
Bedrooms
Surface area
410
2 - 4
54 to 80 sqm
429
2 - 4
55 to 85 sqm
182
2 - 3
67 to 85 sqm
Management
The tried and tested Center Parcs brand is one of the most popular in Europe with the average resort occupancy
level at 85%
Center Parcs Domaine de la Forêt de Chambaran will be managed by The Pierre et Vacances Group, a European leader in holiday properties and tourism management for over 40 years. Also the developers of the resort, Pierre et Vacances are leaders in sustainable development. With 7.5 million customers and a turnover of €1,425 million, the company are considered experts in their field. This tried and tested Center Parcs brand is one of the most popular in Europe with the average resort occupancy level at 85%.
Rentals
There are currently three existing Center Parcs villages in France with a fourth planned for 2010. These incredibly successful resorts boast a substantial 85% occupancy rate. Every year, large numbers of new and returning customers from across Europe and France flock to Center Parcs resorts for family holidays, weekend retreats, business venues and special occasions. Due to the popularity of the brand combined with the stability of the developer themselves, Pierre et Vacances are currently offering all purchasers a 4.5% net guaranteed rental return for 9 years, fully renewable thereafter.
Leaseback
A popular way to invest in property in France is to buy a leaseback property which benefits from a government-backed VAT-refund incentive, designed to encourage investment in tourist residences. Through freehold ownership of an apartment or cottage that is leased back to a management company for a minimum period of 9 years, investors benefit from guaranteed annual returns from their fully managed and maintained property with relatively low up-front costs and no ongoing maintenance or running charges.
Main features of a leaseback property with P&V:Investors benefit from guaranteed annual returns from their fully managed and maintained property with relatively low up-front costs and no ongoing maintenance or running charges
A freehold, fully furnished property
Investor entitled to benefit from the 11-19.6% VAT rebate
Property leased to P&V management/tourist company for minimum 9-year period, with automatic renewal for a further 9 years
Investors receive index-linked, guaranteed annual return of up to 4.5% with options for personal usage
No running charges or maintenance costs
What does leaseback mean?
Investors buy the freehold of a property outright but lease it back to a management company who specialise in the tourist management, maintenance and rental of these properties for a minimum 9-year period. In return owners receive a guaranteed annual return, irrespective of occupancy of the property, NET of all communal charges, maintenance and running costs.
The management company boasts 6.9 million clients staying in their 250+ residences in 6 European countries each year
Pierre & Vacances are uniquely and very importantly the developers and the managers of the properties they sell, with 6.9 million clients staying in their 250+ residences in 6 European countries each year so have a very clear vested interest in the quality construction, location and ongoing maintenance of the properties.
Potential Capital Appreciation
Property in France historically offers very good growth with a high demand from local and overseas investors. France has the fastest growing population in Europe and an increasing divorce rate which further increases the demand for more housing. Strict national and regional planning regulations prevent mass building so existing and new property stock is in demand.
Leaseback properties are built for tourists and as such are situated in the best locations with the facilities, amenities and accessibility that holiday-makers expect and as such benefit from features such as swimming pools, tennis courts, sports facilities, restaurants and entertainments that a normal property does not . These factors all contribute to the demand for Pierre & Vacances managed properties and the capital appreciation that results.
Prices and Returns
Properties within the Center Parcs resort are priced differenly according to their size and plot, however the table below gives an average cost for the different styles of property available in the resort.
Cottage Style
Bedrooms
Average Surface Area (m2)
Average Price
Comfort Cottage
2
57.4
€290,000
Premium Cottage
3
72.4
€322,216
VIP Cottage
4
84.2
€348,215
Financial Summary:
The table below gives a breakdown of the costs and returns of purchasing a property at Center Parcs, in this case a 3 bedroom Premium Cottage.
Purchase Price (incl VAT)
€317,900
Discounted Price (excl VAT)
€265,803
Government Subsidy
€7,000
Luxury Furniture Pack
€0
Legal, bank & broker fees
€0
Client Contribution
€9,524
Mortgage Required (incl estimation of deferred interest)
€276,251
Return on initial investment over 5 years (assuming 5% pa growth)
€139,927 (14.69%)
Return on initial investment over 10 years (assuming 5% pa growth)
€252,023 (26.46%)
Rental returns to cover mortgage payments:
An example of a current mortgage facility of €276,251 available on the property is an interest only mortgage over 20 years with a current interest rate of 3.30%.
Per Month
Mortgage Monthly Repayment Cost
€760
Guaranteed Rental Payment at 4.5% net of all running costs
€997
Surplus of rent over mortgage costs
€237
Running costs are paid by the developer leaving you a surplus of €237 per month
