well let care home investment opportunity...location blackpool is a popular seaside town located on...
TRANSCRIPT
KIPLING DRIVE, BLACKPOOL, FY3 9UX
AMBER COURTC A R E H O M E
In excess of 17 years unexpired and benefits from fixed Annual Rental Increases
WELL LET CARE HOME INVESTMENT OPPORTUNITY
avisonyoung.co.uk/14855
• An opportunity to acquire a modern care home investment situated in Blackpool offering 33 en-suite bedrooms.
• Rated as ‘Good’ by CQC.
• Let to Countrywide Care Homes (2) Limited on a 30 year FRI lease expiring on 10 June 2037 (in excess of 17 years unexpired) at a current rent of £184,052 pa.
• Lease benefits from annual uplifts based upon fixed increases of 2% pa.
• Run by highly regarded operator and management team with occupancy levels generally at around 93%.
• Sister company, Maria Mallaband Care Group are one of the UK Market leaders in the care home industry having over 80 care homes across the UK.
• Offers in excess of £2,250,000 (Two Million Two Hundred and Fifty Thousand Pounds) subject to contract, which offers a purchaser an attractive net initial yield of 7.7%, based upon purchaser’s costs of 6.33%.
• In addition, the fixed annual rental increase create an attractive running yield profile as outlined below.
Year Yield
October 2019 7.85%
October 2020 8%
October 2021 8.16%
October 2022 8.33%
October 2023 8.49%
October 2024 8.66%
October 2025 8.84%
October 2026 9.01%
October 2027 9.19%
Year Yield
October 2028 9.38%
October 2029 9.55%
October 2030 9.76%
October 2031 9.95%
October 2032 10.15%
October 2033 10.35%
October 2034 10.56%
October 2035 10.77%
October 2036 11%
INVESTMENT SUMMARY
AMBER COURTC A R E H O M E
B L A C K P O O L
291
92
1
28
8
4
6
7
810
11
12
13
3
30
31
32
33
13
4
M66
M6
M6
M55
M65
M65
A5085A583
A585
A585
A585
A5073A6
A6
A582A59
A565
A59
A570
A666
A666
A666
A666
A677A6119
A680
A671
A6068
A646
A6119
A59
A59
A59
A59
A59
A682
A56
A682
A65
A56
A58
CHORLEY
DARWEN
BURNLEY
COLNE
LEYLAND
TARLETON
BLACKBURN
WHALEY
CLITHEROE
LYTHAM ST ANNES
BLACKPOOL
POULTON-LE-FYLDE
GARSTANG
LONGRIDGE
CHIPPING
DUNSOP BRIDGE
BARNOLDSWICK
GISBURN
LONG PRESTON
BROUGHTON
FLEETWOODPILLING
SOUTHPORT
ROCHDALE
LITTLEBOROUGH
RAWTENSTALL
PRESTON
RIVER RIBBLE
Preston New Road
A5
84
- New
Pro
men
ad
e
A5230
Squires Gate Lane
B5410
Cropper R
oad
Yeadon Way
Eas
t Par
k D
rive
Newton Drive
Whiteg
ate Drive
B5390
B526
1St A
nne’s R
oad
Mid
gela
nd
Ro
ad
Clifton Road
Mythop Road
Harrowside
B5
26
2
Chain
Lan
e
Preston Old RoadKipling Drive
Highfield Road
B5
26
2
B526
1
A5099
BLACKPOOL
M55
BLACKPOOL PLEASURE BEACHTRAIN STATION
BLACKPOOL SOUTHTRAIN STATION
BLACKPOOL NORTHTRAIN STATION
MARTON FOLD
J4
BLACKPOOLZOO
LOCATION
Blackpool is a popular seaside town located on the Lancashire coastline, approximately 27 miles (43 km) north of Liverpool and 40 miles (64 km) north-west of Manchester.
The town boasts a number of famous attractions and events which support its strong tourism industry and vibrant nightlife. Major attractions include Blackpool Piers, Blackpool Tower, The Pleasure Beach, Madame Tussauds, Blackpool Zoo and its extensive beaches.
Blackpool has an estimated population of 139,870, 22% of which are over the age of 65, which lies above the UK average of 16%. According to a 2018 NOMIS study, Blackpool has the oldest population of any UK city.
The town benefits from excellent road, rail, tram, and sea communication links. By road, the town centre is a short drive from the M55 Motorway which links directly with J32 of the M6. By rail, four stations provide regular services locally and by main line to London, Liverpool and Manchester.
“ Blackpool has an estimated population of 139,870 22% of which are over the age of 65, which lies above the UK average of 16%”
AMBER COURTC A R E H O M E
AMBER COURTC A R E H O M E
AMBER COURTC A R E H O M E
B L A C K P O O L
SITUATION
The property is situated approximately 2 miles east of Blackpool’s famous promenade. It lies off Kipling Drive which provides direct access onto Preston New Road and later Junction 4 of the M55 motorway (approximately 1.3 miles away), a main thoroughfare into the town centre.
The property lies within a predominately residential area and backs onto Martin Mere Local Nature Reserve, a site that is nationally accredited as a site of special scientific interest. As a result, the area has excellent hotel/leisure/health facilities taking advantage of the areas natural beauty such as Blackpool Zoo, Blackpool Model Village and Gardens, and Martin Mere Holiday Village. The state-of-the-art 154 bed mental health hospital, The Harbour, which completed in 2015 costing £40m, is also within proximity.
“ By road, the town centre is a short drive from the M55 Motorway which links directly with J32 of the M6”
AMBER COURTC A R E H O M E
B L A C K P O O L
The property comprises a high quality purpose built care/nursing home facility. It is of traditional part brick part rendered brick construction under a pitched roof. Internally it offers:
• 33 en-suite bedrooms• Numerous lounge and dining areas• Onsite hair salon• Garden and patio area• External parking
Full details of the property can be found on the company’s web page www.mmcgcarehomes.co.uk
DESCRIPTION
AMBER COURTC A R E H O M E
B L A C K P O O L
Site
The property occupies a site of 0.439 acres (0.178 hectares).
Tenure
The property is held long leasehold for a period of 999 years from 29 January 2008 at a peppercorn rent.
THE SITE
“ The property offers a high quality purpose built care / nursing home facility”
AMBER COURTC A R E H O M E
B L A C K P O O L
The property is let to Countrywide Care Homes (2) Limited on a 30 year Full Repairing and Insuring lease from 11th June 2007 at a current rent of £184,052 pa. In addition the property benefits from annual rental uplifts based upon 2% per annum increases with the next increase being October 2019 when the rent increases to £187,733 pa.
The lease was subject to deed of variation in 2011 when Countrywide Care took assignment when the rent was rebased. There is also a photographic schedule of condition.
Year £/pa
October 2019 £187,733
October 2020 £191,487
October 2021 £195,317
October 2022 £199,223
October 2023 £203,208
October 2024 £207,272
October 2025 £211,417
October 2026 £215,645
October 2027 £219,959
October 2028 £224,358
October 2029 £228,845
October 2030 £233,422
October 2031 £238,090
October 2032 £242,852
October 2033 £247,709
October 2034 £252,663
October 2035 £257,717
October 2036 £262,871
TENANCY
Future uplifts are outlined below:
Under the terms of the lease the tenant provides full management accounts to the landlord. Copies of these can be supplied to interested parties.
AMBER COURTC A R E H O M E
B L A C K P O O L
Countrywide Care Homes (2) Limited are 100% owned by Countrywide Care Homes Limited, who also own AAG Homes, Countrywide Belmont Limited and Countrywide Care Homes (3) Limited.
Countrywide Care Homes were founded in 2011 to provide high quality and affordable care for the elderly. It was set up to take over the running of a number of care homes within the Southern Cross Healthcare portfolio.
Despite being relatively new the company is a sister company to Maria Mallaband Care Group which has been providing specialist care since 1996. The company is still family owned and is recognised as one of the UK’s leading independent care suppliers. The company run over 80 care homes in the UK. Both businesses were founded by Phil Burgan who is CEO and Chairman to both companies.
Countrywide Care Homes operate around 30 properties around the UK and further information can be found at www.mmcgcarehomes.co.uk which is a shared web platform with its sister company, Maria Mallaband Care Group.
Countrywide Care Homes (2) Limited have a D&B rating of 2A1 (minimum risk offailure). The company employs over 550 people and reported for the year ending30th April 2018 the following financial figures:
Year Turnover Pre Tax Profit Shareholders Funds
2018 £16,635,540 £686,547 £9,675,326
2017 £16,278,346 £856,694 £5,913,611
2016 £14,689,178 £104,679 £5,026,917
Countrywide Care Homes (2) Limited is 100% owned by Countrywide Care Homes Limited, who for the year ending 30th April 2018 reported a turnover of over £50m.
MMCG which employs over 1,700 people across the UK achieved a turnover of £71m for the year ending 30th April 2017.
TENANT COVENANT
AMBER COURTC A R E H O M E
B L A C K P O O L
Year Yield
October 2019 7.85%
October 2020 8%
October 2021 8.16%
October 2022 8.33%
October 2023 8.49%
October 2024 8.66%
October 2025 8.84%
October 2026 9.01%
October 2027 9.19%
October 2028 9.38%
October 2029 9.55%
October 2030 9.76%
October 2031 9.95%
October 2032 10.15%
October 2033 10.35%
October 2034 10.56%
October 2035 10.77%
October 2036 11%
EPC
The property has an EPC rating of A(24).
VAT
The property is not elected for VAT.
We are seeking offers in excess of £2,250,000 (Two Million Two Hundred and Fifty Thousand Pounds), subject to contract, which offers an attractive net initial yield of 7.7% rising to over 8% in 2020, net of purchasers costs of 6.33%.
In addition, the fixed annual rental increases create an attractive running yield profile as outlined below.
Contacts and further information
Should you require further information or wish to inspect the property please call. Additional information can be downloaded at our data site www.avisonyoung.com/14855
David WinterbottomT 0161 956 4103M 07836 225 552E [email protected]
Adam Wildig T 0161 956 4029M 07739 325 666E [email protected]
Misrepresentation Act 1967. Unfair Contract Terms Act 1977 The Property Misdescriptions Act 1991. These particulars are issued without any responsibility on the part of the agent and are not to be construed as containing any representation or fact upon which any person is entitled to rely. Neither the agent nor any person in their employ has any authority to make or give any representation or warranty whatsoever in relation to the property. February 2019.
RB&Co 0161 833 0555. www.richardbarber.co.uk
FURTHER INFORMATION
avisonyoung.co.uk/148550161 834 7187