Living Ventures to raise £750k through EIS scheme
Restaurant and bar group Living Ventures is encouraging individual investors to buy a slice of its latest £2.5m fine dining venue. The group is looking to raise £750,000 and is offering a 30% shareholding in its Manchester House Restaurant and Lounge Bar, which is due to open in Spinningfields in June.
In an unusual step, the company is offering 30 investors or "member partners" from the Manchester area to each take a 1% stake for £25,000. In return, shareholders will receive a yearly yield on their investment and a dividend. They will get access to priority bookings as well as a monthly expense account.
Their investment backing will fall under the government's Enterprise Investment Scheme, which encourages individuals to invest in smaller UK firms by offering tax incentives.
Manchester House Restaurant, Spinningfields
Managing Director Tim Bacon has teamed up with Aiden Byrne, the youngest chef to win a Michelin Star in the UK, for the new venture, and the duo are planning a restaurant that ‘embodies Manchester and its people' and is ultimately aiming for a Michelin Star.
It will be based at Tower 12, Avenue North, Spinningfields - the building was formerly known as Manchester House and acts as the inspiration behind the name. It will feature a second-floor restaurant and a 12th floor Sky Lounge
Mr Bacon said: "This is a different kind of fundraising exercise and an alternative to approaching the banks. We want to bring in a mix of investors whom we want to be part of the business.
"A lot of people want to own a restaurant or be part of the restaurant trade, and this gives them the opportunity to do just that. We want Manchester people on board, who will come in, use the facilities, host parties and enjoy being part of it."
Living Ventures, which employs 1,100 staff, is set to turnover £45m for its current financial year which ends on March 31, and is targeting revenues of £50m for 2013.
It toasted its best Christmas trading to date, with sales up 14% on the previous year, boosted by openings in 2012 which included a second Alchemist on New York Street, Manchester, and The Botanist, in Alderley Edge.
This year, Living Ventures expects to open Artisan, a pizza restaurant, which will also be in Manchester House, and the group is expanding the Australasia bar to create the Grand Pacific Bar and Garden.
The group now operates a total of 27 venues, is eyeing openings in Leeds and Liverpool, and is in total investing £5m-£6m and recruiting around 200 staff during 2013.
A menu of Pacific Rim flavours underpinned by European cooking tradition, an exotic blend of Indonesian and Southeast Asian influences. Australia's strong ties with Japan also help determine taste and style.