MARINA DEVELOPMENT SITE FOR SALE FREEHOLD

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Jeffry Price
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MARINA DEVELOPMENT SITE FOR SALE FREEHOLD Swindon Village Marina Staffordshire Key Investment Criteria Forward funding opportunity within a buoyant market sector Vendor/developer is the UK s most

1 MARINA DEVELOPMENT SITE FOR SALE FREEHOLD Swindon Village Marina Staffordshire Key Investment Criteria Forward funding opportunity within a buoyant market sector Vendor/developer is the UK s most experienced inland marina developer Opportunity for a fully managed investment upon completion Strong demand for high quality moorings A secure, UK focussed market Average UK marina occupancy 88% (British Marine statistics, 2017) Land sale price 650,000 Construction cost estimate (assuming construction is undertaken by vendor): 3,150,000 Year five EBITDA projection 312,000 delivers a yield of 8.2% based on total investment of 3.8m

3 The Opportunity To purchase a freehold site with full, implemented planning consent for the construction of a 199 berth inland waterway marina. The vendor is part of the Land & Water Group, the UK s most active inland marina developer, having built or extended 19 canal and river marinas over the last 20 years. The marina construction has been fully costed by the vendor at 3,147,000 on a turn key basis. There are three options for a buyer: 1. To purchase the freehold land, with the benefit of planning consent at a price of 650, To purchase the freehold land and contract with Land & Water to construct the marina 3. To purchase the freehold land and contract with the Land & Water Group to both construct and subsequently operate the marina under a management agreement. Option 3 would deliver a modern, highly specified marina and would ensure a smooth transition from construction to operation, with the marina being managed by an experienced operator. The management fee payable to Land & Water would be fixed at just 30,000 per annum for the first 5 years, thereafter rising in line with RPI. This arrangement enables an investor to acquire this freehold opportunity and have the marina built and operated by the UK s most experienced inland marina construction group on an arms length basis. The vendor will supply all the necessary expertise, so facilitating access to this fast growing market by those with no existing marina experience.

Financials The Land & Water Group currently operate 2 marinas and are developing a third for an investor, details are:- Caen Hill Marina, Kennet & Avon Canal, Wiltshire a modern full service marina

4 Financials The Land & Water Group currently operate 2 marinas and are developing a third for an investor, details are:- Caen Hill Marina, Kennet & Avon Canal, Wiltshire a modern full service marina that provides a good guide for the specification and operating model of the proposed new Swindon Village Marina Northwich Marina, River Weaver, Cheshire a smaller town centre marina constructed as part of a larger retail and leisure development Campbell Wharf Marina, Grand Union Canal, Milton Keynes a 117 berth marina currently under construction, alongside a housing and leisure development. This experience has been used to prepare detailed trading projections for the new marina business, showing a build up of occupancy to a fully trading level. We are confident that a high quality marina in this location will prove popular with boat owners, noting that it is the first new marina development on this waterway. around 16 miles north of Stourport and 10 miles south of Autherley Junction where the canal connects with the Shropshire Union Canal. There are junctions with the Birmingham Canal Navigations near Autherley and also at Stourbridge approximately 4 miles to the south of Swindon. These junctions mean that there are a variety of possible cruising routes available from a marina at Swindon. This is of paramount importance to boaters who will value the range of destinations and circular cruising routes that are made possible by this location. This will be the first modern marina to be built on the Staffordshire & Worcester Canal. There are a few small mooring sites along the canal, but local competition will be minimal when this new marina opens. Location The village of Swindon lies approximately 5 miles north of Stourbridge and 8 miles south of Wolverhampton in south Staffordshire. The location is rural but road links are good with the M5, M6 and M54 all within 15 miles of the site. The site lies on the south western edge of the village and is accessed directly from the High Street, which has a range of local shops including a convenience store and take-away food outlets as well as two public houses, all within easy walking distance. This differentiates this site from many other inland marinas which are often in entirely rural locations with no local facilities or shops within walking distance. The Staffordshire & Worcestershire Canal connects a number of major waterways in the West Midlands. It links the Trent & Mersey Canal at Great Haywood Junction near Stafford, with the River Severn at Stourport. Swindon is located

Description The site has full planning consent for a 199 berth inland marina, this consent has been implemented through some minor works so it is secure and ready to proceed.

The most common berth size is 60 feet because the most popular boat size on the inland waterway network is between 55 and 60 feet in length.

5 Description The site has full planning consent for a 199 berth inland marina, this consent has been implemented through some minor works so it is secure and ready to proceed. The marina will have 199 berths, all designed for steel hulled narrow boats. The marina will have a variety of berth sizes, up to 70 feet in length. The most common berth size is 60 feet because the most popular boat size on the inland waterway network is between 55 and 60 feet in length. The development will comprise an irregular shaped marina basin with groups of moorings interspersed by smaller areas of planting to create an attractive, natural looking lake. A service road around the basin will access a number of small car parking areas, with additional visitor and overflow parking near the site entrance. The marina pontoons will be fixed timber structures containing individual finger berths accessed from spine pontoons round the marina edge. Each berth is to have an electricity and water supply provided from a proprietary services bollard located on the pontoon. The development will include a facilities building which will be located at the northern end of the marina, close to the site entrance. This will contain berth holders shower, WC and laundry facilities together with a marina office. The planning consent for the marina includes an additional building at the side of the entrance that is identified on the plans as a visitors centre. This is envisaged to be predominantly a cafe and farm shop, although it will also have some tourist and visitor information. This building is not included within this first phase of development, but it could be developed either now or later if required, offering the potential for useful additional income. The site is significantly larger than the proposed marina basin, allowing a sizeable area of amenity land that might, in time be suitable for additional development.

6 Accommodation We have measured the site area from the Ordnance Survey Plan to total approximately 9 hectares (22 acres). Of this total site area, the marina basin itself will comprise approximately 3 hectares (7 acres). The proposed marina layout will provide the following narrow boat berth numbers: Berth length (feet) Number Total 199 The marina facilities building will be a single storey structure containing a marina office, berth holder s showers and WCs. The approved plans include a visitor centre and café, although this is not proposed to be built in this first phase of development. It would be a single storey building placed close to the site entrance. The plans indicate a largely open plan layout, the majority of which will comprise a cafe and farm shop. There will also be a kitchen and office, together with WC facilities. The gross internal area of the building, measured from plans, is square metres (3,518 square feet).

Services The site will benefit from all mains services and will be connected to the mains sewer which we understand to be available within Swindon High Street.

7 Services The site will benefit from all mains services and will be connected to the mains sewer which we understand to be available within Swindon High Street. Each marina berth will benefit from a water and electricity supply provided by a proprietary bollard on the pontoon. In addition, there will be low level lighting provided around the marina and pontoon. The marina will have a service wharf adjoining the marina office. This will contain a diesel fuel pump and a foul water pump out facility. Planning Planning permission for the proposed marina was granted on 31 May 2011 under Reference 10/00312/FUL. This permits the construction of a 199 berth inland marina with associated ancillary development and landscaping, it also included the visitor centre and café at the site entrance. All the pre-commencement conditions have been discharged and the planning consent has been implemented by the vendor, so the development is ready to proceed. The planning consent is for a non-residential marina, although two boats can be permanent dwellings, to allow a marina warden or similar to live on site. This is a common arrangement and allows for cost effective management and operation of inland marinas. It also provides valuable additional security through a permanent presence on site. Tenure The site is freehold. Individual marina berths will be let on mooring licences that allow a boat owner to keep a vessel within the marina and they are usually annual. The licences will not give exclusive possession of any particular berth and will not create a landlord/tenant relationship. This is the standard basis of occupation of almost all UK marinas, both coastal and inland. The connection from the marina to the canal will be governed by a Network Access Agreement with the Canal & River Trust, the canal owner and navigation authority. This is a standard document that has been commonplace for new canal marinas since 2005 and would be a long term agreement (usually 150 years) allowing a permanent connection to the waterway. It requires a payment based upon 9% of moorings income. This has been included within the financial projections for the marina business.

8 Trading Projections Detailed trading projections can be made available on request. These have been prepared by the vendor, with input from ourselves. The vendor currently operates two inland marinas and has previously operated others. This experience enables accurate forecasts to be prepared. Summary trading projections are as follows: Trading Projections Year 1 Year 2 Year 3 Year 4 Year 5 Occupancy 25% 50% 75% 80% 90% Boat Numbers Moorings Income 123, , , , ,866 Fuel / retail / misc income 21,415 28,058 33,900 34,767 35,660 Total Turnover 145, , , , ,526 Direct Costs 19,393 19,975 20,574 21,191 21,827 Gross Profit 125, , , , ,699 Overheads 118, , , , ,818 EBITDA 7, , , , ,881 The main source of income will be from annual mooring contracts, this being the standard form of mooring agreement in UK marinas. In addition to annual contracts, there is demand for seasonal berths, for example from boat owners who cruise the waterways in summer but seek a secure marina berth in winter when cruising can be restricted by poor weather. The location of this marina within walking distance of the village shops and on a regular bus route will attract such continuous cruisers as they are rarely car owners. This will be the first modern marina to be built on the Staffordshire & Worcester Canal and strong demand is anticipated from potential berth holders. We have assumed a five year build up of occupancy which is considered a cautious assumption. Additional income will be generated through fuel sales. This is not just diesel but also coal and bottled gas sales, both to marina berth holders and passing boaters on the canal. The planning consent includes a building at the site entrance earmarked for a café and visitor centre. A café or tea rooms could generate significant market interest in this setting once the marina is complete. The construction costs outlined in this document do not include this building, so our income projections allow for a ground rental value only.

of brokerage operations within the marina. We have assumed a modest rental or licence income on this basis.

9 There is also scope for additional income through boat sales and brokerage. This could be an in-house boat sales operation, but it is more commonplace to agree a lease or licence with a local brokerage specialist, with a rent or licence fee payable in return for exclusivity of brokerage operations within the marina. We have assumed a modest rental or licence income on this basis. Operating costs and overheads have been modelled largely on other marinas owned and/or operated by the vendor. This reliance on actual trading examples enables robust profit projections to be prepared. Marina Development The Land & Water Group are the UK s most experienced inland marina construction group. They have prepared a detailed cost schedule and are able to construct the marina on behalf of the buyer, should you wish. The total development cost is 3,147,024 on a turn-key basis. This is to construct the 199 berth marina, together with a suitable marina facilities building. This cost does not include the proposed café/visitor building that was included in the planning permission. This could be added at an additional cost, or you may prefer to build out that element of the site later, once the marina is established. A detailed bill of quantities has been prepared and further details, together with a full specification of the proposed marina build, can be provided.

Water Group to construct the marina to an agreed specification. The total investment under this option is 3,800,000. These figures are all stated exclusive of VAT, where payable.

10 Investment Terms The site is available to purchase unconditionally at a price of 650,000. Alternatively, the investment is offered as a forward funding opportunity, with the purchaser acquiring the site upon completion and simultaneously signing a construction contract with the Land & Water Group to construct the marina to an agreed specification. The total investment under this option is 3,800,000. These figures are all stated exclusive of VAT, where payable. Viewing & additional information Further information is available via an on-line data room. For access please contact the selling agents, providing your name, address and phone number. Site viewing is strictly by appointment with the sole agents:- Ian Froome Vail Williams LLP Tel: +44 (0) ifroome@vailwilliams.com Subject to Contract Date: November 2018 Misrepresentation act 1967 Vail Williams for themselves and for the vendors or lessors of this property, whose agents they are, give notice that: 1. The particulars are set out as a general outline only for the guidance of intended purchasers or lessees and do not constitute nor constitute part of an offer or contract. 2. All descriptions, dimensions, reference to condition and necessary permissions for use and occupation, and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them. 3. No person in the employment of Vail Williams has any authority to make any representation or warranty whatsoever in relation to this property. Finance Act 1989 Unless otherwise stated, all prices and rents are quoted exclusive of Value Added Tax (V.A.T.). Any intending purchasers or lessees must satisfy themselves independently as to the incidence of V.A.T. in respect of any transaction.

11 These plans are not to scale

TO LET either individually or together

CANAL SIDE WORKSHOPS AND MOORINGS ON THE SHROPSHIRE UNION CANAL TO LET either individually or together KEY FEATURES - MOORINGS 46 jetty moorings plus additional bankside berths Serviced moorings with power