Total Fitness. Kingston-Upon-Hull. Long Income Single Let Leisure Investment. Willerby Business Park HU10 6ED

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Lucy Newman
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1 Total Fitness Willerby Business Park Kingston-Upon-Hull HU10 6ED Long Income Single Let Leisure Investment

Investment Summary High yielding long income single-let leisure investment. Located on Willerby Business Park in an affluent and popular suburb of Kingston-upon-Hull.

2 Investment Summary High yielding long income single-let leisure investment. Located on Willerby Business Park in an affluent and popular suburb of Kingston-upon-Hull. Purpose-built two storey health and fitness centre constructed in 2003, providing state of the art leisure facilities. 81,449 sq ft. Freehold. Total site area of 5.85 acres, providing a low site coverage of c.18%. Potential for future further development on the site. Single-let to Total Fitness Health Clubs Ltd (D&B: 1A2) for a term of 35 years from 28 November 2003 (21.4 years unexpired), with a break option on 11 June 2029 (12 years). Current rental income of 325,000 per annum reflecting a low overall rate of 3.99 per sq ft. The lease is subject to a minimum fixed uplift of 400,000 per annum in June We are seeking offers in excess of 3,750,000. Pricing at this level reflects a Net Initial Yield of 8.13% (assuming purchaser s costs of 6.52%) and a minimum reversionary yield of 10% at the June 2019 fixed uplift.

Willerby lies approximately 4.5 miles north west of Hull, 20 miles north of Scunthorpe and 35 miles south east of York.

3 Location The property is located c.1.5 miles north of Willerby, a popular affluent suburb of Kingston-Upon-Hull, which borders a number of other established residential areas such as Kirk Ella and Cottingham. Willerby lies approximately 4.5 miles north west of Hull, 20 miles north of Scunthorpe and 35 miles south east of York. Kingston-Upon-Hull is the regional and economic capital of East Yorkshire and the Humber region, with a resident population in excess of 450,000 and a potential catchment within a 30 minute drive of approximately 800,000 people. Hull was named UK City of Culture 2017 and 190 million is being invested into the city through the cultural capital investment programme. Situation The property is situated on the established Willerby Hill Business Park, adjacent to Castle Hill Hospital. Surrounding uses include residential, clinical, agricultural and retail. The property prominently fronts the Beverley Humber Bridge link road (A164), which provides access to the A63 dual carriageway approximately 2.5 miles to the south and subsequently the M62 motorway. The property is within 1 mile of Willerby Shopping Park totalling 115,000 sq ft of retail space, where key occupiers include Waitrose, McDonalds, Iceland, Santander, B&M Bargains and Poundstretcher. There is very little competition in the surrounding area from other gym operators with the nearest national operator c.5 miles away.

Description The property comprises a purpose built two storey health, fitness and leisure centre constructed in 2003.

There is substantial car parking to the south of the property, with further overflow parking to the north west.

9 81,449 The property occupies a site area of approximately 5.85 acres (2.37 ha), equating to a low site cover of approximately 18%.

5 Description The property comprises a purpose built two storey health, fitness and leisure centre constructed in The building is of steel portal frame construction with part brick and part profile metal cladding, beneath an insulated metal deck roof. There is substantial car parking to the south of the property, with further overflow parking to the north west. Ground Floor Mezzanine Accommodation Site Description Sq. m Sq. Ft Ground Floor 4, ,063 Mezzanine 3, ,386 Total 7, ,449 The property occupies a site area of approximately 5.85 acres (2.37 ha), equating to a low site cover of approximately 18%. Reception area and offices Given the low site cover, there is the potential for future further development on the site. Squash courts 3 swimming pools Sauna and steam room Open plan training room & Studio Changing rooms and WC s Crèche and hairdressers Open plan training area Ladies only gym Consultants room Studios Office 200 metre running track Café and lounge area

6 Tenure The property is held Freehold under title number YEA Tenancy Tenant Total Fitness Health Clubs Ltd. Term 35 years less 3 days from 28 November Covenant Total Fitness Health Clubs Limited (Company No ) are a market leading health and fitness club operator. Operating from 17 health clubs across the North of England and Wales, Total Fitness employ approximately 600 staff and have over 90,000 members. Total Fitness real estate portfolio extends to approximately 1.2million sq. ft., with each club typically ranging from between 60,000 80,000 sq ft. Break Option Tenant s break option 11 June Current Rent Rent Review 325,000 per annum ( 3.99 per sq ft). Every 5 th anniversary from the Deed of Variation. Rent reviews in June 2019 and June 2024 are to be the greater of 400,000 p.a. and the open market value. Usual assumptions and disregards apply. In April 2015, a private equity backed management buy-out resulted in North Edge Capital acquiring a majority stake in Total Fitness Health Clubs Ltd. Total Fitness have an expansion strategy in place, with the intention to steadily grow their portfolio within core locations at a rate of one new site per year. The Tenant is rated 1A2 by Dun & Bradstreet representing a lower than average risk of business failure. A summary of the last three years accounts are provided below: User Repair Alienation As a health and fitness centre within Use Class D2 of the Town and Country Planning (Use Classes) Order FRI lease subject to a schedule of condition. Assignment and underlettings of the whole permitted with landlords prior consent. Non-material underlettings (aggregating less than 30% of the total floorspace) permitted without landlords prior consent. 31 Dec Dec Dec Dec 2013 Sales Turnover 35,774,000 33,768,000 31,308,000 26,649,000 Profit / (Loss) Before Taxes Tangible Net Worth Net Current Assets (Liabilities) TBC* 2,717,000 1,850,000 1,688,000 TBC* 1,132,000 ( 8,320,000) ( 10,682,000) TBC* ( 8,982,000) ( 19,186,000) ( 20,722,000) *Information not yet available for the financial year ending 31/12/16.

Rental Comparables Property Date Size (GIA) Rent Per Annum Rent Psf The Gym, Altrincham JD Gyms, Wigan The Gym, Oldham Pure Gym, Stirling Dec-16 20,360

08 Investment Comparables Property Date Size (GIA) Rent Per Annum (psf) Unexpired Term (break) Price Net Initial Yield Price Cap Val Total Fitness, Bolton

4% 134 DW Fitness, Nottingham Dec-16 45,350 633,633 ( 13.97) c.16.25 years 9.6m 6.19% 211 Pure Gym, Stockport Dec-16 17,654 135,252 ( 7.66) c.12 years 1.

7 Rental Comparables Property Date Size (GIA) Rent Per Annum Rent Psf The Gym, Altrincham JD Gyms, Wigan The Gym, Oldham Pure Gym, Stirling Dec-16 20, , Jun-16 19, , May-16 16, , Nov-15 22, , Investment Comparables Property Date Size (GIA) Rent Per Annum (psf) Unexpired Term (break) Price Net Initial Yield Price Cap Val Total Fitness, Bolton Under offer 83, ,000 ( 3.00) 15 years Q. 2.6m Q.9% Q. 31 The Gym, Oldham Feb-17 16, ,000 ( 9.13) c.14 years 2.2m 6.4% 134 DW Fitness, Nottingham Dec-16 45, ,633 ( 13.97) c years 9.6m 6.19% 211 Pure Gym, Stockport Dec-16 17, ,252 ( 7.66) c.12 years 1.81m 7.03% 102 Pure Gym, Stirling Nov-16 22, ,000 ( 5.08) c.14 years (c.6 years) 1.3m 8.4% 57 DW Fitness, Warrington Oct-16 33, ,000 ( 11.21) c.6 years 4m 8.8% 119 Virgin Active, Derby Mar-15 46, ,335 ( 11.08) c.13 years 7.18m 6.74% 155

VAT The property is elected for VAT and it is anticipated that the transaction will qualify as a Transfer of a Going Concern (TOGC). EPC The property has an EPC rating of D98.

13%, (assuming purchaser s costs of 6.52%) and a minimum reversionary yield of 10% at the June 2019 fixed uplift.

8 VAT The property is elected for VAT and it is anticipated that the transaction will qualify as a Transfer of a Going Concern (TOGC). EPC The property has an EPC rating of D98. A copy of this certificate is available upon request. Proposal We are seeking offers in excess of 3,750,000. Pricing at this level reflects a Net Initial Yield of 8.13%, (assuming purchaser s costs of 6.52%) and a minimum reversionary yield of 10% at the June 2019 fixed uplift. Further Information For further information, please contact the following: Callum Robertson crobertson@geraldeve.com Leo Nicholson lnicholson@geraldeve.com Charlotte Campbell ccampbell@geraldeve.com No. 1 Marsden Street Manchester M2 1HW Subject to Contract Conditions under which these particulars are issued All details in these particulars are given in good faith, but Gerald Eve LLP for themselves and the Vendors/Lessors of this property for whom they act give notice that:- 1. These particulars do not and shall not constitute, in whole or in part, an offer or a contract or part thereof, and Gerald Eve LLP have no authority to make or enter into any such offer or contract. 2. All statements contained in these particulars are made without acceptance of any liability in negligence or otherwise by Gerald Eve LLP, for themselves or for the Vendors/Lessors. 3. None of the statements contained in these particulars is to be relied on as a statement or representation of fact or warranty on any matter whatsoever, and intending purchasers must satisfy themselves by whatever means as to the correctness of any statements made within these particulars. 4. The Vendors/Lessors do not make, give or imply, nor do Gerald Eve LLP or any person in their employment have any authority to make, give or imply, whether in these particulars or otherwise,any representation or warranty whatsoever in relation to the property. The statement does not affect any potential liability under the Property Misdescriptions Act Particulars issued June Gerald Eve LLP. All rights reserved. Gerald Eve LLP is a limited liability partnership registered in England and Wales with registered number OC and its registered office at 72 Welbeck Street, London, WIG 0AY

DVLA, Sandringham Park, Swansea, SA6 8AJ. Grade A Business Park Office Investment Let to the Government

DVLA, Sandringham Park, Swansea, SA6 8AJ Grade A Business Park Office Investment Let to the Government INVESTMENT SUMMARY Modern well specified Swansea office investment in an established business area.