If you've been curious to learn more about The Silk Rooms after our recent On-site Commercial Conversion Day, we thought you might be interested in hearing more about the minds behind the project and how they managed to secure such a promising development opportunity.

We've compiled some of the advice and insights shared during our event, especially for those who couldn't attend. So, let's dive in and discover what makes this project so exciting!

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First things first, let's meet Kath and Jim.

It's fair to say that Kath and Jim have a fascinating background in property development, with a unique combination of professional experiences under their belts.

Before they met on a blind date in 2005, Jim had already begun building his property empire. After working as a seasoned ski instructor, and alongside his dad on a few builds, Jim spotted an interesting opportunity to convert an Andorran cow shed into a bar and restaurant – a decision that kickstarted his property ventures.

By the time he met Kath (who was working in marketing at the time), Jim had already developed two bars, a restaurant, three offices, a cafe, and was in the process of buying a farmhouse in France too - an impressive feat!

Together as a couple, Kath and Jim went on to renovate the French farmhouse into a luxury rental holiday home and B&B, laying the foundations for their future property plans.

From there they; grew a holiday rental business with three ski apartments, converted Jim's offices in Andorra into flats, and began building a business for expats in France. They also met with investors, which allowed them to expand their portfolio even further.

In 2015 they returned home to England and completed their first flip in the UK. They then went on to complete four bungalow flips with the help of investors, flipped a doctor's surgery into their personal home, undertook a large home conversion, flipped a repossessed house, and even bought a hairdresser's shop and flat – which they developed into a 2-bed terraced property with planning permission for two additional flats.

Throughout the years that followed, their portfolio continued to expand as they bought a 150m2 space above a Tesco store in Northwich, which they developed into three flats and then subsequently sold to support their latest project, The Silk Rooms.

They also bought a pre-auction social club (shown below), which they developed into nine 1-bed flats and leased out to the supported living sector – a challenging project due to Covid and financing issues.

Their journey in property development has not always been smooth sailing and, as you can imagine, they've had to learn from their experiences and mistakes along the way.

Looking back at the nature and progression of their property development projects, and at the increasing scale of them, it's easy to see how they gravitated towards a project like The Silk Rooms, and how they had grown the confidence to take on such a challenge.

But where did they find an opportunity like The Silk Rooms, and how were they able to spot the potential in it from the start?

Spotting the opportunity.

When The Silk Rooms (otherwise known as The Freemasons Inn) became available for lease in early 2021, after the closure of the former gastro-pub and brewery following Covid, Kath and Jim saw a unique opportunity to invest in the local area that they knew so well.

However, following some research, they soon realised that the investment required for the leased property was too steep for their budget. Despite the setback, they remained determined to make the investment work, and held out for the owners to eventually sell the property.

After a lengthy process, they eventually managed to purchase the property in October 2021, but the journey wasn't without obstacles. They had first made an offer in February 2021, but the property was taken off the market until May, when their offer was finally accepted. Despite the challenges, they always believed in the potential of The Silk Rooms and were willing to put in the time and effort to make the investment a success.

Deciding on the most suitable usage.

After considering various options for usage, Kath and Jim ruled out converting The Silk Rooms into flats due to the small size of the individual rooms, and the local council's regulations and oppositions against HMOs.

However, they did notice that the local planning guidelines highlighted a potential need for more overnight accommodation in the town. With this in mind, they decided that the best route was to convert the building into private serviced accommodation units, whilst still keeping the commercial unit below for lease to help with their cash flow.

Their decision was based on solid market research and a recognition of the demand for high-quality overnight accommodation in Knutsford.

Knutsford is a popular market town with a growing tourism industry, attracting visitors to its numerous wedding venues, local events, and other attractions. Despite this, there is a shortage of accommodation in the area to meet the demand. By converting The Silk Rooms into serviced accommodation, Kath and Jim have created a valuable asset that will serve the local market and attract visitors from further afield.

The complexities of restoring a historic building.

Formerly an old silk mill, the Freemasons Inn building boasts a rich history, as evidenced by its Grade II listed status. This level of heritage has meant that Kath and Jim have had to restore the property in a particular way, adhering to certain restrictions and regulations.

They required planning consent and listed building consent to complete the necessary works, which involved preserving original features both inside and outside the building, as well as in any buildings in the curtilage – including maintaining quirky features such as wonky windows, floors, stairs, and the roof.

The Grade II listing also limited the division of spaces within the building, requiring Kath and Jim to work with the existing space as much as possible to avoid and minimise structural changes. One innovative solution they came up with was to move a set of internal stairs to the outside of the building to provide access to the upstairs bedrooms and open up more usable space.

Kath and Jim worked with a range of specialists throughout the development, including a listed building architect, heritage consultant, conservation structural surveyor, and planning consultant.

The restrictions imposed by the listed status meant that the project required a lot more consideration, input, and thought than the previous developments they had worked on in the past.

The building works involved.

We don't think that builds come as complicated as this one!

Before purchasing the building back in May 2021, Kath and Jim met with an architect and heritage consultant for a consultation to discuss layout ideas. The planning process then followed a series of steps, including an urgent works notice in November 2021, planning permission submission in February 2022, and planning approval in July 2022.

During the renovation process, the construction team encountered a number of worrying issues that threatened the building's structural integrity. It became clear that a complete internal steel rebuild was necessary to stabilise the building, which was leaning to the right.

In addition, the roof had to be removed, the back wall rebuilt, and a new ring beam, support truss, lintels, structural studs, new floors, and underpinning were all required. Throughout these works, the team faced a number of other challenges such as rotting materials, heritage considerations, time constraints, and budget limitations.

To tackle this complex project, and it's challenges, the team relied heavily on a network of trusted subcontractors who brought a wealth of experience to the table. Drawing on lessons learned from past projects, they meticulously planned and scheduled each phase of the build, seeking the advice of a quantity surveyor along the way. This proved to be a wise decision, as the surveyor's expertise in older and grade II listed buildings was invaluable.

Despite the many obstacles they faced, the team were able to preserve much of the building's original character and charm. The external facade, roof beams, slates, old bricks, match reclaimed wood, chimneys, and outbuildings were all carefully preserved and incorporated into the final design.

The end result is a stunning blend of old and new, and a testament to the team's dedication and expertise.

Budgeting for a project of this scale.

As anyone who's watched an episode of Grand Designs knows, staying on budget during a property renovation or build is a rare occurrence!

It was certainly the case with this project, which was initially estimated to cost around £400k which would have been based on £1000m2 on 370m2 conversion, however the cost was closer to £555k at £1500m2, a 50% increase on original budget.

This was due in part to the project's complexity, which required a significant investment in professional fees including architect fees, planning consultant fees, a conservation survey, a heritage report, building control, and solicitors fees. Together, these fees amounted to approximately £45,000, a significant portion of the overall budget.

Unfortunately, the team had only built in a contingency of 5%, which proved to be insufficient given the scale and complexity of the project. In hindsight, a contingency of at least 20% would have been more appropriate.

If you're considering a development project of this scale, it's important to budget for professional fees early on in the planning process. This can help you avoid costly surprises down the road and ensure that you have sufficient resources to see the project through to completion. Whilst it's impossible to predict every potential cost, building in a generous contingency can provide a much-needed buffer and help you stay on track financially.

Taking the branded approach.

In early 2021, Kath selected Jade from Beespace to be her property mentor throughout this monumental project. By doing so, she secured the guidance of an experienced and trusted sounding board to help navigate her through the complexities of the project with confidence . Jade provided valuable support in various aspects of the project, including purchasing, raising private finance, design, branding, and building systems. Additionally, Jade helped Kath to establish a team to operate the business efficiently.

Working on Jade's Branding and Design Programme in particular (available to access here in The Hive for just £19.99pm), Kath had formed a very clear vision for The Silk Rooms – it was to be heritage in style, dark, and cosy.

She used Pinterest to create mood-boards of brand concepts and interiors, which helped her to visualise an identity that looked both heritage and luxury. By the end of the programme, Kath had defined a really cohesive look-and-feel for her brand, and was on route to creating a well-defined style for interiors too.

Throughout this process, Kath learned the important role of branding in a project like this, how it would play a crucial part in the success of her serviced accommodation, and how it could be used to support the business and help her to stand out, be memorable, and evoke emotions in her potential customers.

After researching Raw Clay and their work, Kath felt that they were a perfect match for her business and had experience working on similar projects. In the end, the team did an exceptional job with the branding of The Silk Rooms, and it successfully encapsulates everything that Kath wanted to achieve.

The branding pays homage to the heritage of the building, its rich history, and evokes a sense of tranquility and elegance.

Designing the internal spaces.

Because of Kath's in-depth consideration into the look and feel of The Silk Rooms, Raw Clay had a clear vision of the desired outcome very early on in the interior design process, which enabled them to maintain consistency throughout.

The team aimed for luxury and indulgence without sacrificing on practicality. And they understood that paying particular attention to the finer detail would be essential to helping The Silk Rooms stand out, and to creating a wonderful experience for their guests.

The six rooms were split into blue and brown hues, providing guests with the option to choose their preferred color scheme. Two of the superior rooms feature stunning freestanding bathtubs and walk-in showers, which are rare luxuries in serviced accommodations, and are sure to attract a greater number of potential guests.

Despite the structural complexities of the rooms, which limited the layout options, the team worked diligently with the floor plans to create spacious and beautiful rooms fit for two. The team also had a detailed budget for interior design costs, based on tile costs, flooring, and bathroom fixtures.

Designing the external space.

Early on in the project, the Aneto team knew that the external space surrounding the property would need to be designed with the needs of a potential hospitality tenant in mind.

Given the limited outdoor dining space in Knutsford town, creating a versatile and attractive outdoor area was a top priority to attract their target tenant. To achieve this, the team embarked on a complete rebuild of the outside space, including new drainage, outbuildings, and windows.

Despite the need for functionality, the team were careful to keep the overall design simple and adaptable, using reclaimed bricks, slate-looking tiles, and new cladding to create a clean and versatile backdrop that would allow the tenant to make the space their own. The result was an outdoor area that could accommodate a variety of uses and be easily customised to suit the needs of different businesses.

Despite the fact that the space was overlooked by neighboring properties, we were surprised to learn that there were no issues with the planning application. This was likely due to the fact that the property already had a license, and because it was built before the neighboring properties (which were constructed in the 1990s - 2000s). Nonetheless, the team were careful to ensure that the design of the space was both functional and aesthetically pleasing, and didn't encroach on the overlooking neighbours view.

Finding a tenant.

When seeking out a tenant for a mixed-use space, especially where a serviced accommodation is involved, it is crucial to consider the compatibility of the potential tenant with the vibe and overall experience of the accommodation.

The new tenant should not negatively impact guests' experiences with noise or disruption, or attract an opposing clientele. Instead, they should enhance the overall experience, possibly by offering services or experiences that complement the serviced accommodations, such as hosting bridal brunches or other events.

Choosing the right tenant can significantly improve the value of your serviced accommodation business, whilst the wrong tenant can have the opposite effect. It's essential to choose a tenant that aligns with the brand and vision of the accommodation, and to establish clear guidelines and expectations to maintain a harmonious and mutually beneficial relationship.

Finding the right tenant to take over the commercial space within The Freemasons Inn is particularly crucial for the financial cash flow of Kath and Jim's business. But, whilst they have found a potential tenant with excellent experience and a strong offering for the local community, they are still struggling to secure the lease – so we'll have to wait to see what's in-store for the Freemasons Inn!

Was it all worth it?

Undoubtedly, The Silk Rooms project posed numerous challenges, ranging from timing and labor costs to structural issues, rotting, and more. But, despite these difficulties, Kath found the act of restoring a building in such poor condition to be an incredibly rewarding experience.

She also learned a great deal about project management, including the importance of carefully managing costs and cash flow. Looking back, it's clear that a more robust contingency (closer to 20%, rather than the original 5-10%) might have been wise, given the complexity of the project.

In hindsight, Kath and the team have also wondered whether it might have been cheaper to simply knock down the building and start from scratch, rather than dealing with the difficulties and restrictions imposed by the Grade II listing. Ultimately, though, they are proud of the final result and the opportunity to restore a historic property to its former glory.

Advice to those pursuing a commercial conversion project or a Grade II listed renovation.

As Kath mentioned during the event, pursuing a commercial conversion project or Grade II listed renovation can be a challenging (albeit rewarding) endeavor. Here's her advice to help you navigate the process:
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• Develop a solid plan – one that outlines your goals, budget, and timeline. Working with experienced professionals, such as architects and contractors (with proven experience), can help ensure that your plan is realistic and achievable.
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• Surround yourself with the right people – Building a team of experienced professionals who have successfully completed similar projects can help you avoid common pitfalls and ensure that your project runs smoothly.

• Budget accordingly – Renovation and conversion projects can be expensive, and unexpected costs can quickly add up. Ensure that you have a realistic budget that includes contingencies for unforeseen expenses.

• Be patient – Renovation and conversion projects take time, and you should not expect overnight returns. Be patient, stay focused on your goals, and trust the process.

• Trust your end product – Your vision for the end product is what motivated you to pursue the project in the first place. Trust your vision and stay committed to achieving it, even when the going gets tough.

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If you're impressed with the level of detail you've read above, then you don't want to miss out on our next on-site day this Summer!

The information shared is just a small snippet of what was shared during our on-site day last month, and as always our guests walked away from the event feeling so much more confident in their knowledge and in their ability to push forward with their own projects.

Make sure you're in the Club for first dibs on discounted tickets!

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