& smyths toys

VICARAGE LANE, BLACKPOOLLANCASHIRE, FY4 4NB

SECURE, LONG LET LEISURE AND RETAIL WAREHOUSE INVESTMENT

& SMYTHS TOYS

JDGYMS & SMYTHS TOYS VICARAGE LANE, BLACKPOOL, LANCASHIRE, FY4 4NB


INVESTMENT CONSIDERATIONS> Edge-of-Town Gym Investment and Retail Warehouse Investment

situated on the busy Vicarage Lane within close proximity to Blackpool town centre

> The town has an extensive catchment population and benefits from excellent accessibility with the A583 & A5230 linking Blackpool to the M55 and A584 coast road, which connects the town to the affluent Lytham St. Anne’s.

> Total area of 54,857 sqft (5,096.2 sq m)

> Fully let to the strong covenants of JD Sports Gyms Limited and Smyths Toys UK Limited

> Attractive average weighted unexpired lease term of 12.44 years (7.44 years to break)

> Producing a total rent of £330,112 pa, equating to a low passing rent of £6.02 psf

> The rental levels are fully supported by new letting to JD Gyms and increase at 2021 rent review on Smyths Toys

> Freehold

> Benefits from on-site car parking for approximately 200 cars

> Site area of 4.3 acres (1.74 hectares)

> The vendor is seeking offers in excess of £4,150,000 (Four Million, One Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. Based on this level of pricing, the net initial yield reflects 7.50%, assuming standard purchasers costs.

Outline for indicative purposes only.

LOCATIONThe well-known seaside town of Blackpool is situated in the County of Lancashire and is within the North West of England on the Lancaster coast. It has a district population of approximately 142,065 (2011 Census).

The town is on the Irish Sea between the Ribble and Wyre estuaries,approximately 29 km (18 miles) west of Preston, 40 km (25 miles) south of Lancashire and 54 km (86 miles) north west of Manchester. There are a number of tourist attractions within the town including Blackpool Tower and the ‘Golden Mile’, which is dominated by funfair attractions

The town benefits from good road communications with the A583 and A5230 providing direct access to the M55 motorway, which in turn links to the national motorway network. In addition, the A584 coast road connects the town with Lytham St Anne’s to the south and Cleveleys, Thornton and Fleetwood to the north. Blackpool Rail Station provides a direct service to Preston with a journey time of approximately 25 minutes and an indirect service to London Euston with a journey time of approximately 2 hours 50 minutes.

Blackpool Airport is situated 2.5 miles south west of the property, with Manchester International Airport is situated approximately 93.2 km (57.9 miles) to the south east of Blackpool.

BURTON ROAD

Daggers Hall Lane

Penrose Ave

Whalley Lane

Holbec

k Av

eHalton Gardens

Macauley Avenue

Vicarage Ln

VICARAGE LANE

VICARAGE LANE

VICARAGE LANE

CHERRY TREE RO

AD

CH

ERR

Y TR

EE R

DCHERRY T

REE ROAD

SANDER

SON WAY

St George’s School

Macadams Blackpool

TangerineConfectionery

Group

BLACKPOOL REGENERATIONBlackpool is set for the biggest single investment for more than a Century. £300m has been earmarked for the ‘Blackpool Central’ development. This development will include, new hotels, restaurants, a food market, event square, residential apartments and multi-storey parking. Furthermore, a range of indoor attractions will be built, including the world’s first multimedia exhibition of its kind, the UK’s first flying theatre and the most advanced virtual reality experience.

Blackpool Council estimate that this regeneration will attract 600,000 additional visitors a year with a combined annual spend of £75m. They also believe it will also create 1,000 new jobs for people in Blackpool.

INFRASTRUCTURE IMPROVEMENTSIn April 2020, demolition began on the Wilko’s store site on Talbot, to develop a new car park, Holiday Inn hotel, an underpass leading to Blackpool North Station as well a new tram terminus.

The Blackpool University campus will receive £9m of funding to relocate the Blackpool & The Fylde College’s Palatine road campus to a new carbon neutral university campus in the town centre, with a view to improve education and revitalise Blackpool town centre.



BlackpoolInternationalAirport

WartonAerodrome

LiverpoolJohn LennonAirport

HawardenAirport

ManchesterInternationalAirport

Humberside Airport

Leeds/Bradford

M1

M1

M1

M6

M6

M6

M55

M606M621

M180 M181

M18

M18

M65

A1(M)

A1(M)

A1(M)

A1(M)

M60

M60M62

M62

M67

M66

M58

M58M53

M62

M62

M61

Yorkshire Dales National Park Authority

Peak District National Park

Lincolnshire Wolds

Preston

LIVERPOOL

MANCHESTER

SHEFFIELD

GRIMSBY

Chesterfield

Gainsborough

Worksop

Skegness

SCUNTHORPE

LINCOLN

DONCASTER

Rotherham

BRADFORDLEEDS

Pontefract

YORK

HULL

Bolton

Wigan

Warrington

Chester

Stockport

OldhamBarnsley

Harrogate

Buxton

Glossop

BLACKBURN

Burnley

Keighley

RochdaleHUDDERSFIELD

Halifax

Ilkley

BLACKPOOL

© Crown Copyright, ES 100004106. For identification purposes only.



DESCRIPTION The subject property comprises two single storey semi-detached retail warehouse units. One of the units has been converted to provide a gymnasium, with a swimming pool and other facilities, the other is arranged to provide a Toy Store.

The property sits on a large site which benefits from approximately 200 marked car parking spaces to the front and side elevations. The car park is free to use. There is a freestanding totem sign which faces Vicarage Lane.

JDGYM UNIT

The unit occupied by JD Gym is accessed via a protruding single storey entrance lobby. The lobby leads into a reception area with a custom built reception desk and barrier entrance gates which lead further into the gym. Within this area there is a customer café with associated seating areas.

The reception area leads to the main open plan gym which has been zoned into a cardio area and free weights area. There is a studio which is utilised for classes such as spinning, Les Mills group fitness and yoga.

Beyond the gym area are male and female open and cubicle changing rooms and WC facilities which themselves provide access to the swimming pool area. The pool area incorporates a swimming pool together with a Jacuzzi and steam room.

There is a plant room housed in an extension at the rear of the building. There is a small yard area to the rear of the unit which is accessed off Sanderson Way.

SMYTHS TOYS

This unit is accessed directly from the car park via two sets of double glazed entry doors. Internally it comprises an open plan retail unit with fitted with racking / display stands. To the rear of the unit is a store room and staff room / office area. This unit benefits from a roller shutter door which leads to a rear servicing area. This area is accessed directly from Sanderson Way.

To the front of the unit there is a trolley bay for storage of shopping trolleys.

D W Sports Fitness, Sandersons Way, Blackpool, FY4 4NB

created on Plotted Scale - 1:1,803

Misrepresentation Act: 1. Allsop LLP on their own behalf and on behalf of the instructing party, whose agents Allsop are, gives notice that: (a) these particulars do notconstitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on asstatements or representations of fact; and (c) the instructing party does not make or give, and neither Allsop nor any of their members nor any person in their employmenthas any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings andcontractual obligations to be given or undertaken by the instructing party are those contained and expressly referred to in the written contract for sale or agreement forlease between the instructing party and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness ofeach statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and inworking order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop isthe trading name of Allsop LLP.

SITUATIONThe subject property is situated on the corner of Sanderson Way and the north eastern side of the prominent Vicarage Lane which links to the A5073 and in turn the A583 approximately 1.1 km (0.7 miles) to the north.

Vicarage Lane is located on the outskirts of Blackpool town centre, which is situated approximately 4.8 km (3 miles) to the north.

Vicarage Lane, where the subject property is situated, is an established commercial location with a number of industrial buildings and retail and trade counter occupiers including an Asda Superstore, Home Bargains, Tool Station and Peter Jones Flooring.

Directly opposite the subject property, on the southern side of Vicarage Lane, is Blackpool Trade Park, which is home to occupiers such as Topps Tiles, Halfords, Screwfix and Euro Car Parts. Adjacent to this estate is a stand-alone B & M store.

SITE AREA4.3 acres (1.738 hectares).

TENANCY SCHEDULE

PLANNING JD Gym – as per planning application number 10/0794: the retail element shall be restricted to the sale of sports goods and related products; and shall only be operated by the fitness club operator. Smyths Toys – as per planning application number 15/0586: The retail use hereby permitted shall be operated only by Smyths Toys Limited and the premises shall be used for the sale of toys, children’s sports goods and equipment, bicycles and associated equipment, play equipment, baby equipment and products, electronic games and equipment and either products associated with toys and children’s entertainment and for no other purpose.

Further information on planning can be found in the dataroom.

TENUREFreehold.

Unit Tenant Trading Name

Sq Ft Sq M Lease Start Lease End (Break)

Break Option

Unexpired Term

Unexpired to Break

Rent Rent psf

Rent Review Comment

Gym JD Sports Gym Limited

JDGyms 31,553 2,931.30 19/02/2021 18/02/2036 19/02/2031 14.45 9.45 £200,000 £6.34 19/02/2026 Upward only rent reviews to the lower of open market value or a yearly increase of 2.5% compounded.19/02/3031

Toy Store

Smyths Toys UK Limited

Smyths Toys

23,304 2,164.90 11/01/2016 10/01/2031 10/01/2026 9.34 4.34 £130,112 £5.58 10/01/2026 At the 2021 rent review, the rent increased from £110,000 p.a. to £130,112 p.a - settled to the lower of OMRV or a yearly increase of 2.5% compounded. The review was agreed at 2.5% cap. Break subject to 9 month’s notice.

54,857 5,096.20 12.44 7.43 £330,112 £6.02



TENANT’S COVENANT JD Sports Gyms Limited – Risk Rating 74 - Below Average Risk

Launched under the umbrella of parent company and retail giant JD Sports in 2014, JDGyms have grown authentically, site-by-site to become an award winning low-cost gym operator.

Owned by the Pentland Group Limited, the gym offers stylish, affordable fitness facilities across over 70 gyms and plays host to a bespoke mix of industry leading equipment and a range of fitness classes. Previously awarded for being the ‘Best UK Budget Gym of the Year’ for two years in a row, the brand’s philosophy is quality over quantity. The brand has continued to expand slowly with the right opportunities, whilst other discount gym operators failed to survive.

The gym is unique in that it involves working with retail designers and shop fitters as well as gym designers.

Following extremely careful site considerations and only acquiring sites that have the fundamentals to work in the long term, the tenant undertakes an extremely thorough refurbishment of the sites in the region of £1.2m - £1.5m per unit achieve the fit-out that appeals to their customers and complement the core JD brand.

For a better footing in the competitive gym market, JDGyms purchased Xercise4Less and acquired 50 of their gyms across the UK in 2020. JD took over a number of DW’s in the north following DW’s failure. The brand continues to slowly expand by building on strong fundamental values and selecting only the profitable sites.

JD Sports Gyms Limited reported the following results over the last three years:

1 Feb 2020 2 Feb 2019 3 Feb 2018

Turnover 21,971,000 15,999,000 9,730,000

Pre-Tax Profit 1,128,000 994,000 1,084,000

Total Net Worth 1,285,000 400,000 -81,000

Smyths Toys UK Limited - Risk Rating 94 - Very Low Risk

Since its inception in 1986, Smyths Toys has grown exponentially. Founded by the four Smyth brothers in Ireland, the Smyths Group now operates globally across 200 stores, in the UK, Ireland, Germany, Austria and Switzerland.

This multinational chain specialises in toys, baby products as well as gaming and entertainment products.

Despite struggles in the retail sector as whole, Smyths Toys hasu continued to grow increasing their revenue by over £100m last year and profits by c. 30%. Smyths Toys UK Limited reported the following results over the last 3 years:

30 Dec 2019 30 Dec 2018 30 Dec 2017

Turnover 622,680,000 581,570,000 475,741,000

Pre-Tax Profit 12,482,000 14,532,000 11,884,000

Total Net Worth 44,008,000 43,499,000 32,341,000



GYMNASIUM INVESTMENT COMPARABLE

Date Tenant Earliest Determination Price NIY / Price per sq ft

Yarm Road, Stockton on Tees TS18 3TF July 2019 Trugym 10.6 £1,700,000 7.44%

Timber Beach Road, Sunderland Aug 2019 DW Sports 16.5 £2,600,000 6.50%

Ranelagh Road, Ipswich, IP2 0AQ April 2019 DW Sports & Orwell Motorcycles 16 £4,650,000 7.00%

Tritton Road, Lincoln, LN6 7QY March 2019 DW Sports & Orwell Motorcycles 14.5 £2,900,000 5.90%

125 Copenhagen Way, Norwich Jan 2019 Pure Gym 15 £2,500,000 6.00%



PROPOSALThe vendor is seeking offers in excess of £4,150,000 (Four Million, One Hundred and Fifty Thousand Pounds)

subject to contract and exclusive of VAT. Based on this level of pricing, the net initial yield reflects 7.50%, assuming standard purchasers costs.

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 09.20

For further information or to make arrangements for viewing please contact:

EPCAvailable in the data room.

VATThe property is subject to VAT and it is our client’s intention to sell the property by way of TOGC.

AMLA successful bidder will be required to provide information to satisfy the AML requirements when Heads of Terms are agreed.

DATA ROOMFor access to Allsop Dataroom please use the following link:

https://datarooms.allsop.co.uk/register/Blackpoolgym

Gergo Petrovics07961 234 029

[email protected]

Alex Butler07801 219 888

[email protected]

allsop.co.uk

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