Freehold Leisure Investment Opportunity. trugym, Yarm Road, Stockton on Tees TS18 3SF

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Aubrey Beasley
5 years ago
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1 Freehold Leisure Investment Opportunity trugym, Yarm Road, Stockton on Tees TS18 3SF

Investment Considerations Well located in an established commercial area to the south

fitness club Total floor area of 1,686 sq m (18,152 sq ft) GIA Generous car parking

development of a standalone drive-thru restaurant Let to A1 Stockton Ltd (a wholly

2 Investment Considerations Well located in an established commercial area to the south of Stockton on Tees town centre A modern high quality purpose built health and fitness club Total floor area of 1,686 sq m (18,152 sq ft) GIA Generous car parking allowance of 120 car spaces (1:151 sq ft) The site may be suitable for the additional development of a standalone drive-thru restaurant Let to A1 Stockton Ltd (a wholly owned subsidiary of Trugym Ltd) with a further 22 years unexpired (12 years to break) Current rent 134,250 pa ( 7.40 psf) with the next rent review in 2019 Offers invited in excess of 1,750,000, subject to contract and exclusive of VAT Net initial yield of 7.20% 2

Stockton on Tees is a market town in County Durham located some 30 miles south of Newcastle upon Tyne and 4 miles west of Middlesbrough.

The primary catchment is estimated at 194,000 (PROMIS) with the town drawing upon neighbouring centres of Middlesbrough, Darlington, Billingham and Hartlepool.

The town centre is being regenerated under the Stockton Business Improvement Scheme which is an award winning programme set up by local businesses to develop and promote the town within a more

3 Stockton on Tees is a market town in County Durham located some 30 miles south of Newcastle upon Tyne and 4 miles west of Middlesbrough. Stockton has a district population of 178,408 persons (2001 Census) with 1.12 million people living within a 30 minute drive time and 660,000 people within a 20 minute drive time. The primary catchment is estimated at 194,000 (PROMIS) with the town drawing upon neighbouring centres of Middlesbrough, Darlington, Billingham and Hartlepool. Significant development is taking place in Stockton and the surrounding area. The town centre is being regenerated under the Stockton Business Improvement Scheme which is an award winning programme set up by local businesses to develop and promote the town within a more vibrant setting. Muse Developments in conjunction with Stockton Borough Council are developing a 300m mixed use scheme at North Shore on a 56 acre site which will provide a gateway scheme linked with the town centre providing Grade A offices and a high quality residential and leisure setting. The town benefits from excellent communications being 2 miles west of the A19 and 1 mile north of the A66 dual carriageway which links with the A19 and the A1(M) motorway. Stockton and Thornaby railway stations are located closeby and both stations provide regular rail services to Middlesbrough, Newcastle and Leeds with services to London terminals running via Darlington with a fast journey time of approximately three hours. Durham Tees Valley Airport is located 7 miles away to the south west with Newcastle Airport being 40 miles distant offering both domestic and international routes. 3

The property is situated 1 mile south of Stockton town centre in an established commercial location adjacent to the Preston Farm Industrial

The property is prominently situated to the west of Yarm Road (A135) close to the junction with the A66 which provides swift access to

The area is well known for car showrooms with dealerships in the immediate vicinity being occupied by Ford, Jaguar, BMW, Citroen and Mercedes

4 The property is situated 1 mile south of Stockton town centre in an established commercial location adjacent to the Preston Farm Industrial Estate and the Preston Farm Business Park. The property is prominently situated to the west of Yarm Road (A135) close to the junction with the A66 which provides swift access to Darlington to the west and Middlesbrough to the east. The area is well known for car showrooms with dealerships in the immediate vicinity being occupied by Ford, Jaguar, BMW, Citroen and Mercedes with other car showrooms and other tenants in the area to include Honda, Kia, Audi, Toyota, Wyevale and Warbutons. 1 Premier Inn 11 Kia 2 Warburtons 12 Vauxhall 3 Citroen 13 Interlink Express 4 Wyevale 14 Virgin Media 5 Ford 15 Lidl 6 Jaguar 16 Makro 7 BMW 17 Taylor Wimpey 8 Mercedes Benz 18 Honda 9 Land Rover 19 Audi 10 Kuehne & Nagel 20 Toyota 4

The property comprises a high quality purpose built

over ground and mezzanine floors of steel frame

extensive gym facilities together with studio rooms

cardio tone, general fitness and aerobics classes in

5 The property comprises a high quality purpose built health and fitness club constructed in 2001 arranged over ground and mezzanine floors of steel frame construction with part brick and part profile cladding elevations under a pitched profile clad roof. The property is primarily fitted out with extensive gym facilities together with studio rooms offering a range of circuit training, pilates, cardio tone, general fitness and aerobics classes in addition to male and female changing rooms including WCs and shower facilities. 5

6 We understand that the property provides the following gross internal floor areas:- Ground floor 1, sq m (12,148 sq ft) Mezzanine sq m (6,004 sq ft) Total 1, sq m (18,152 sq ft) The site area extends to a total of ha (1.915 acres) with extensive car parking for 120 vehicles providing a ratio of 1:151 sq ft. 6

Tenure Freehold Tenancy The property is let to A1 Stockton Ltd for a term of 35 years from the 1st November 2004 at a

40 psf) on full repairing and insuring terms with the provision for upwards only rent reviews every fifth year of the

The lease contains a tenant only break clause on the 1st November 2029 subject to six months notice.

the running of the Stockton gym operation.

7 Tenure Freehold Tenancy The property is let to A1 Stockton Ltd for a term of 35 years from the 1st November 2004 at a current rent of 134,250 pa ( 7.40 psf) on full repairing and insuring terms with the provision for upwards only rent reviews every fifth year of the term to open market rental value. The lease contains a tenant only break clause on the 1st November 2029 subject to six months notice. Covenant A1 Stockton Ltd is a wholly owned subsidiary of Trugym Ltd and is the financial entity solely responsible for the running of the Stockton gym operation. Trugym is a budget gym operator and trades from 12 sites (with a further 6 planned to open shortly) across the UK offering advantageous membership rates for members who want the true gym experience without expensive contracts and add on facilities that are rarely used. To the 31st May 2016 Trugym Ltd posted abbreviated accounts showing shareholders funds of 1.142m (previous year 956,000). 7

initiatives The property benefits from an

necessary planning consents, would suit the

restaurant development bearing in mind the sites

VAT The property is elected for VAT and it is

8 initiatives The property benefits from an extensive site area which, subject to the necessary planning consents, would suit the additional development of a standalone drivethru restaurant development bearing in mind the sites prominence to the surrounding area. VAT The property is elected for VAT and it is proposed that the sale shall be structured as the Transfer of a Going Concern. EPC The property has an Energy Performance Rating of B49. A copy of the EPC certificate is available upon request. 8

Proposal We are instructed to seek offers in excess of 1,750,000 (one million, seven hundred and fifty thousand pounds), subject to contract and exclusive of VAT, for the benefit of our client s

after allowing for purchaser s costs of 6.20%.

Tel: +44 (0)20 7659 1889 Email: james@lindleymortimer.com Bruce Mortimer Tel: +44 (0)20 7659 1890 Email: bruce@lindleymortimer.

particulars are a general outline only, for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; ii) Lindley Mortimer cannot

9 Proposal We are instructed to seek offers in excess of 1,750,000 (one million, seven hundred and fifty thousand pounds), subject to contract and exclusive of VAT, for the benefit of our client s freehold interest. This will show a net initial yield of 7.20% after allowing for purchaser s costs of 6.20%. Contacts Further information and arrangements to inspect the property can be made through the sole agents: Lindley Mortimer LLP 14 Cork Street, London W1S 3NS Tel: +44 (0) James Lindley Tel: +44 (0) james@lindleymortimer.com Bruce Mortimer Tel: +44 (0) bruce@lindleymortimer.com Misrepresentation Clause Lindley Mortimer LLP (and their Joint Agents where applicable) for themselves and for the vendors or lessor of this property for whom they act, give notice that: i) these particulars are a general outline only, for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; ii) Lindley Mortimer cannot guarantee the accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy; iii) rents quoted in these particulars maybe subject to VAT in addition; iv) Lindley Mortimer LLP will not be liable, in negligence or otherwise, for any loss arising from the use of these particulars; and v) the reference to any plant, machinery, equipment, services, fixtures or fittings at the property shall not constitute a representation (unless otherwise stated) as to it s state or condition or that it is capable of fulfilling its intended function. Prospective purchasers/tenants should satisfy themselves as to the fitness of such items for their requirements; vi) no employee of Lindley Mortimer LLP (and its subsidiaries and their Joint Agents where applicable) has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. November

FREEHOLD FOR SALE WITH FULL VACANT POSSESSION

FREEHOLD FOR SALE WITH FULL VACANT POSSESSION PRELIMINARY PARTICULARS OPPORTUNITY FOR OWNER OCCUPIERS, INVESTORS AND DEVELOPERS A TERRACE OF LIGHT INDUSTRIAL / WAREHOUSE UNITS WITH ONE OFFICE BUILDING AND A SUBSTANTIAL YARD FREEHOLD FOR SALE WITH