dw fitness club & smyths toys unit...dw fitness club & smyths toys unit vicarage lane, blackpool,...

DW FITNESS CLUB & SMYTHS TOYS UNITVICARAGE LANE, BLACKPOOL, LANCASHIRE, FY4 4NBSECURE, LONG LET LEISURE AND RETAIL WAREHOUSE INVESTMENT WITH FIXED UPLIFTS

INVESTMENT CONSIDERATIONS ■ City Fringe Gym Investment and Retail Warehouse

Investment situated on the busy Vicarage Lane within close proximity to Blackpool city 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 city 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 Dave Whelan Sports Limited and Smyths Toys UK Limited

■ Attractive average weighted unexpired lease term of 14.4 years (12.8 years to break)

■ Producing a total rent of £377,257 pa, equating to a low passing rent of £6.88 psf

■ 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 £4,750,000 (Four Million Seven Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. Based on this level of pricing, the net initial yield reflects 7.5%, assuming standard purchasers costs.

YIELD PROFILEApril 2021 8.57%April 2026 9.87%

*based on forecast RPI at 2.5%

DW FITNESS CLUB & SMYTHS TOYS UNIT VICARAGE LANE, BLACKPOOL, LANCASHIRE, FY4 4NB SECURE, LONG LET LEISURE AND RETAIL WAREHOUSE INVESTMENT WITH FIXED UPLIFTS

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.

In addition, improvement works on the current Central Station site in the heart of the town is expected to start in 2020.

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 IMPROVEMENTSLancashire Enterprise Partnership, in conjunction with Blackpool Council, commenced work in July 2019 on a £7m ‘facelift’ of key roads and infrastructure around Blackpool town centre. These improvements include, resurfacing pavements and roads, planting new trees, benches and bin as well as improved.

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

LOCATIONThe well known seaside town of Blackpool is situated in the county of Lancashire and is a within the North West of England on the Lancashire 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 city 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 city 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 2.5miles south west of the property, with Manchester International Airport is situated approximately 93.2 km (57.9 miles) to the south east of Blackpool.


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

BLACKPOOLBLACKPOOL

BURTO

N ROA

D

Daggers Ha

ll Lane

Penrose Ave

Whalley Lane

Holb

eck A

veHalton Gardens

Macauley Avenue

Vicarage Ln

VICA

RAG

E LANE

VICARAGE LANE

VICARAGE LANE

CHE

RRY T

REE

ROA

D

C

HER

RY T

REE

RD

CHE

RRY

TR

EE R

OAD

SAND

ER

SON WA

Y

St George’s School

Macadams Blackpool

TangerineConfectionery

Group

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.

The north eastern side of 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.


DESCRIPTIONThe 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 the other is arranged to provide a Toy Store.

DW UNITThe unit occupied by DW 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 TOYSThis 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. Externally 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.

SITE AREA4.2985 acres (1.738 hectares).


PLANNINGDW Store – 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 Smyth’s 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.

SCHEDULE OF ACCOMMODATION & TENANCYUnit Tenant Trading

NameSq Ft Sq M Lease

StartLease End

(Break)Rent Unexpired

Term (Break)Rent psf

Rent Review

Comment

Gym Dave Whelan Sports Limited

DW Fitness

31,553 2,931.3 01/04/2011 30/03/2036 £262,257 pa 16.25 years £8.31 01/04/2021 01/04/2026 01/04/2031

Fixed uplifts at review: 01/04/2021 - £304,028 pa 01/04/2026 - £352,452 pa 01/04/2031 - £408,589 pa

Toy Store

Smyths Toys Limited

Smyths Toys

23,304 2,164.9 11/01/2016 10/01/2031 (10/01/2026)

£115,000 pa 11 years (6 years)

£4.93 10/01/2021 10/01/2026

Break subject to 9 months notice Rent reviews based on: upward only open market capped at 2.5% compounded. Rent expected to rise to £130,000 at next review

Total 54,857 5,096.2 £377,257 pa

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

DW FITNESS CLUB & SMYTHS TOYS UNIT VICARAGE LANE, BLACKPOOL, LANCASHIRE, FY4 4NB SECURE, LONG LET LEISURE AND RETAIL WAREHOUSE INVESTMENT WITH FIXED UPLIFTSD 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.

COVENANTDave Whelan Sports Ltd

Established in 2009, DW has grown exponentially to become the second

largest operator of gyms in the UK. This leading leisure and retail business

currently operates 78 retail stores across the UK stocking a wide range of

authentic sports performance brands, as well as 121 gym clubs providing

extensive facilities for members including large gym floor and functional

training areas, member cafes, swimming facilities and a wide range of

group exercise classes.

In September 2016, DW Sports acquired Fitness First UK, which added an

additional 45 Fitness First Clubs. This acquisition expanded DW’s market

share into the south-east market giving an even greater nationwide presence.

For the year ended March 2019, Dave Whelan Sports Limited has

continued to streamline its business. They have reported a level of

turnover in line with last year, with an adjusted EBITDA figure of £14.2m.

This drop in EBITDA from March 2018 is a result of the closure of 13 loss

making stores resulting in a £4.25m impairment, however total revenue

levels have been maintained at £222m.

The Group completed its disposal programme of non-core Fitness First Clubs and they continued its store and club refurbishment.

During 2019, Net Cash Inflow into the business was strong at £12.95m with Health and Fitness membership numbers increasing by 1.5%.

Furthermore, the Whelan family loans are quasi equity and total £44.7m, which when added to Net Assets provides Shareholder Funds of £100m.

In addition, Health & Fitness revenues increased from £134m to £137m and DW have reduced their exposure to retail sales now at £84m with the 13 loss making store closures.

Dave Whelan Sports Ltd reported the following results over the last 3 years:

31/03/2019 31/03/2018 31/03/2017

Sales Turnover £222,223,000 £222,961,000 £203,528,000

EBITDA £14,271,000 £18,274,000 £18,582,215

Pre-Tax Profit (£18,128,000) (£8,925,000) (£7,987,398)

Shareholders Funds £55,051,000 £68,230,000 £55,943,000

Smyths Toys UK LtdSince it’s inception in 1986, Smyth’s 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 has

continued to grow increasing their revenue by over £100m last year and profits by c. 30%.

Smyths Toys UK Ltd reported the following results over the last 3 years:

30/12/2018 30/12/2017 30/12/2016

Sales Turnover £581,570,000 £475,741,000 £396,490,000

Pre-Tax Profit £14,532,000 £11,884,000 £10,100,000

Shareholders Funds £43,800,000 £32,578,000 £23,739,000

Property Sale Date Tenant Earliest Determination NIY Sale Price

Timber Beach Road, Sunderland June 19 DW Fitness 16.5 years 6.50% £2,600,000

Tritton Road, Lincoln May 19 DW Fitness 14.5 years 5.90% £2,900,000

Ranelagh Road, Ipswich April 19 DW Fitness & Orwell Motorcycles 16 years 7.00% £4,650,000

125 Copenhagen Way, Norwich Jan 19 Pure Gym 15 years 6.00% £2,500,000

43 Peninstone Road North, Sheffield Aug 18 Greenwich Leisure 12 years 6.10% £2,545,000

The Pentagon, Nottingham Aug18 Nuffield Health 25 years 5.48% £9,850,000


GYMNASIUM INVESTMENT COMPARABLES

PROPOSALThe vendor is seeking offers in excess of £4,750,000 (Four Million Seven Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. Based on this level of pricing, the net initial yield reflects 7.5%, 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 02.20

allsop.co.uk

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

PRIVATE CLIENT TEAM

Alex Butler020 7543 [email protected]

Ronnie Morgan020 7543 [email protected]

EPCDW Sports Fitness, Vicarage Lane - available on the dataroom. Smyths Toys, Vicarage Lane - available on the dataroom.

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

DATAROOMFor access to Allsop Dataroom please use the following link: https://datarooms.allsop.co.uk/register/dwsmythsblackpool

Yield ProfileApril 2021 8.57%April 2026 9.87%

*based on forecast RPI at 2.5%

dw fitness club & smyths toys unit...dw fitness club & smyths toys unit vicarage lane, blackpool,...

Documents