Hotel leasebacks in the UK

[Craig Tork]

I'm a new investor and I've been looking into some of the hotel leaseback programs, such as the Harland Hotel, Atlantic Bay Hotel, Carmarthen Bay, Caer Rhun Hall, etc.  Has anybody else looked into these or invested in these?  They keep talking about assured 10% NET annual returns and a 125% buy-back in 10 years, with everything being contractual.  Is this a legit investment, or is there some catch that I'm just not seeing?  Thank for the help.

[Saul L.]

Thanks @Craig Tork - had a quick look. There are a lot of these kind of slick marketing "RE investment" opps in the UK- Ive seen this a lot with student housing and generally prefer to stay away. I noted that nowhere do they say its a 10% guaranteed return. If you want to look into this further do proper due diligence on the operator and management and subscription documents- You are tied to them for 10 years and not sure if there is any way out, if for whatever reason they don't perform.  I have also come across regulations not permitting US investors into certain RE syndicates in the UK for tax reasons. You might want to confirm that issue before proceeding with any DD on potential UK investments. 

IMHO there is no shortage of opps in the US and generally of higher quality and better returns than what I am seeing in the UK.