We have recently established a successful relationship with Boohoo via a local agent E&M Lettings and have been contracted to provide rooms required by Boohoo to accommodate the vast increase in their blue-collar staff.
Boohoo Group have recently acquired the Debenhams, Dorothy Perkins, Burtons and Wallis brands. They have increased their sales dramatically during lockdown, which added to their new purchase means they will require a huge increase in workforce within their Burnley headquarters.
Our initial agreement to provide Boohoo units was signed in October when we filled 52 rooms within the first 3 weeks and since then we have had a steady growth within this marketplace. Virtually every room produced is now full! We have recently done a study and the average net profit from this contract paid to our clients (using our refinance model) has been as much as 16% return on cash invested.
The new contract for 2021 is to provide 10 houses giving a minimum 40 rooms per month. We have agreed that we will facilitate properties that are dual purpose. They will be in Boohoo defined postcodes but will also be available location wise to the university as we know the demand will grow there year on year.
In Burnley we currently have 17 units in the pipeline which will give us 68 rooms, so our focus now is to clear the pipeline into construction to service the early requirements. To this end we are gearing up the extra labour both on site and in project management.
Looking at the future, from May, we will need a minimum 10 houses per month. Based on our experience with Boohoo and E&M Lettings, we believe that using our business model, clients are virtually guaranteed at least 14% return on the cash invested.
Boohoo are obviously in this for the long haul, they have increased their workforce steadily over the last five years. We are confident that this source of revenue will continue well into the future, however we also do not want to saturate one particular area and to this end we are going to ceiling our projects for Boohoo at 60 new units providing 240 rooms from May onwards.