Part 1

Definition Sprint

A ten week process to establish everything required to be in a position to raise, covering the thesis, brand and product, sustainability standards, business plan and model, structure and the full capital readiness pack.

£34,000 fixed · 10 weeks

50 service lines across 6 sections

Executive Summary

The sprint converts an idea into an institutional proposition by establishing the demand case, defining the customer and testing the platform against the operators it will be measured against, all of which is completed before any approach is made to capital.

It then fixes the product itself, setting the prototype campus, its use mix and area schedule, the membership architecture and the sustainability standards that would underwrite a green financing route if that route is used.

It closes with the controlling documents of the raise, comprising the business plan, the integrated model, the organisation structure proposal, the investor materials, an indexed data room and a qualified target list.

Commercial Overview

Fixed fee
£34,000
Single fee for the complete Part 1 scope
Duration
10 weeks
Mobilisation through to the sprint board
Payment on agreement
50% - £17,000
Due on signature of the engagement letter
Payment at midpoint
25% - £8,500
Due at the mid sprint review, week six
Balancing payment
25% - £8,500
Due on delivery of the closing board presentation

Scope of Services

1A

Thesis and market

8 lines

  • 1A.01

    Preparation of the investment thesis setting the demand case for the product. The desire for the resurgence of human connection in real life, wellness and the intersection of both with our living spaces.

    Thesis paper
  • 1A.02

    Definition and segmentation of the target customer across member, resident, guest and tenant.

    Customer definition
  • 1A.03

    Assembly of the demand evidence base across membership, wellness and residential markets.

    Evidence base
  • 1A.04

    Competitive profiles of Soho House, Equinox and Equinox Hotels, The Whiteley and selected branded residential operators. North America, Europe and Asian review.

    Competitor profiles
  • 1A.05

    Benchmarking of membership pricing, structures and retention across reference operators. Review of growth profiles, raise strategy and OpCo set ups, and production of hierarchical ideals for the company structure.

    Benchmark set
  • 1A.06

    White space analysis and the positioning conclusion for the platform.

    Positioning conclusion
  • 1A.07

    Construction of the city screening model across Toronto, New York, Vancouver, Boston, Montreal and Chicago.

    Screening model
  • 1A.08

    Recommendation of the market entry sequence with supporting rationale.

    Entry sequence

1B

Brand and product definition

12 lines

  • 1B.01

    Development of naming territories and shortlist criteria.

    Naming territories
  • 1B.02

    Drafting of the positioning statement and brand architecture across club, residences, hotel and rental.

    Brand architecture
  • 1B.03

    Setting of tone of voice principles and visual direction references.

    Voice and direction
  • 1B.04

    Compilation of the agency brief and the shortlist for issue.

    Agency brief · Optional
  • 1B.05

    Definition of prototype campus use mix ratios across club, wellness, sale, hotel and rental.

    Use mix
  • 1B.06

    Preparation of the indicative area schedule by component.

    Area schedule
  • 1B.07

    Setting of minimum and preferred site parameters to guide acquisition screening.

    Site parameters
  • 1B.08

    Design of membership tiers and entitlements.

    Tier design
  • 1B.09

    Setting of membership pricing corridors by market.

    Pricing corridors
  • 1B.10

    Structuring of the founder member offer and its role in pre sales.

    Founder offer
  • 1B.11

    Definition of cross city access rights, renewal and waiting list mechanics.

    Access rights
  • 1B.12

    Drafting of the operating principles charter.

    Charter

1C

Sustainability standards

4 lines

  • 1C.01

    Setting of design standards informed by passivhaus methodology.

    Design standards
  • 1C.02

    Setting of certification targets by asset across LEED, BREEAM and WELL.

    Certification targets
  • 1C.03

    Definition of the operational net zero pathway.

    Net zero pathway
  • 1C.04

    Definition of green financing eligibility criteria and the evidence the platform must maintain.

    Eligibility criteria

1D

Business plan and model

7 lines

  • 1D.01

    Preparation of the integrated business plan as the controlling narrative document for the raise.

    Business plan
  • 1D.02

    Preparation of the rollout plan and city sequence.

    Rollout plan
  • 1D.03

    Compilation of the risk register with mitigations.

    Risk register
  • 1D.04

    Construction of the OpCo revenue model by site and membership cohort.

    OpCo model
  • 1D.05

    Construction of PropCo deal level underwriting on forward purchase and forward fund bases.

    Underwriting model
  • 1D.06

    Preparation of programme cash flows with sources and uses.

    Programme cash flows
  • 1D.07

    Preparation of sensitivity tables and the documented input sheet.

    Sensitivities

1E

Structure and governance

8 lines

  • 1E.01

    Analysis of OpCo and PropCo separation.

    Separation analysis
  • 1E.02

    Analysis of holding company jurisdiction and intellectual property ownership.

    Jurisdiction paper
  • 1E.03

    Design of the management and licence agreement architecture.

    Agreement architecture
  • 1E.04

    Briefing of cross border tax considerations for Canadian and United States assets held with United Kingdom and European capital, including scope for third party advice.

    Tax brief
  • 1E.05

    Preparation of the instruction brief for counsel.

    Counsel brief
  • 1E.06

    Design of board composition, appointment rights and the reserved matters schedule.

    Board design
  • 1E.07

    Design of the management incentive and option framework.

    Incentive framework · Optional
  • 1E.08

    Setting of the reporting calendar and information rights.

    Reporting calendar · Optional

1F

Capital readiness

11 lines

  • 1F.01

    Preparation of the capital strategy and raise sequencing paper.

    Capital strategy
  • 1F.02

    Sizing of the OpCo seed and its use of funds.

    Seed sizing
  • 1F.03

    Design of the PropCo programmatic joint venture structure and tranches.

    JV design
  • 1F.04

    Setting of the debt programme approach on stated assumptions.

    Debt approach
  • 1F.05

    Preparation of the OpCo teaser.

    Teaser
  • 1F.06

    Preparation of the OpCo investment presentation.

    Investment presentation
  • 1F.07

    Preparation of the PropCo programme information memorandum in outline.

    IM outline
  • 1F.08

    Design, build and indexing of the data room with access controls.

    Data room
  • 1F.09

    Mapping and qualification of the investor universe with routes to introduction.

    Qualified list
  • 1F.10

    Weekly steering meeting with a maintained decision log.

    Decision log
  • 1F.11

    Preparation of the closing board presentation with the go or no go recommendation.

    Board presentation