PRIME LEISURE Simply Gym, Henley Way, Arlington Way, Shrewsbury, Shropshire SY1 4YQ Investment for Sale ENTER HALLS COMMERCIAL 01743 450 700
2 SUMMARY Gym premises located directly opposite to Sundorne Retail Park. Extensive car parking area Total Gross Internal Floor area 29,289ft sq (2,721m sq) SITUATION / Total Site Area 1.46 acres (0.59hectares) Let to Simply Gym Limited on a 15 year lease from 1st of May 2015 at a rent of 140,000 per annum (exclusive) Potential for alternative high value uses, subject to statutory consents. Asset Management Opportunity (with the current rent at a low rental level equating to 4.78/ft sq Price: Offers in excess of 1,880,500 (Exclusive) PROPOSAL Income: 140,000 per annum Price: Offers in excess of 1,880,500 Net Initial Yield: 7% (after stamp duty and acquisition costs of 1.5%)
3 LOCATION Located approximately 41 miles (66 km) to the south of Chester and 47 miles (75 km) to the north west of Birmingham, Shrewsbury is a historic market town and the county town of Shropshire. The total population within the Shrewsbury primary catchment area is 332,000, similar to the sub regional centre average. Road communications are excellent with the A5 ring road leading to the M54, 8 miles to the east, which leads to Junctions 10 and 11 of the M6 motorway and the rest of the national motorway network. Shrewsbury railway station provides direct services to Telford, Wolverhampton, Birmingham and London. 41 miles (66km) south of Chester 47 miles (75km) north west of Birmingham DEMOGRAPHICS Direct rail services to Wolverhampton (40 minutes) Birmingham New Street (55 minutes) and London (105 minutes) 53 miles north west of Birmingham International Airport The total population within the Shrewsbury primary catchment area is 332,000, similar to the sub regional centre average and ranking the town 76 out of the PROMIS Centres. The level of car ownership in Shrewsbury is significantly above average with a particularly high proportion of 2 car households.
4 SITUATION The property is situated fronting onto Arlington Way, which serves as the main access road into Sundorne Retail Park, where current occupiers include The Range, Go Outdoors, Staples, Dunelm and Dreams. The property is accessed from Henley Way and other occupiers in close proximity include Bookers, Formula One Auto Centres and a variety of Car Dealerships. The property is within close proximity of the Battlefield Island, which provides easy access to the national road network via the A5 (M54 Link Road). DESCRIPTION The property comprises of a detached building, which is currently arranged to provide a gym with ancillary leisure based use. The property was originally constructed as a commercial distribution centre but is very high specification in terms of design and presentation including fully glazed curtain walling to part of the front and side elevations and an eaves height of approximately 7.21 metres (23.7 feet). The property benefits from being within a very generously sized site area of approximately 1.46 acres (0.59 hectares). The property benefits from approximately 100 car parking spaces. The property is arranged internally to provide a well fitted out gym with 2,471m sq (26,598ft sq) on the ground floor and 249.98m sq (2,691ft sq) on the first floor. The accommodation includes a gym. a ladies gym, a spin room, a studio, offices and changing and welfare facilities. Externally the car park is tarmacadam and has a security fencing around the perimeters of the site.
5 SUMMARY LOCATION DESCRIPTION TENURE Ground Floor Areas First Floor Areas Total Site Area 2,471m sq ( 26,598ft sq) 249.98m sq (2,691ft sq) 1.46 Acres (0.59 Hectares) EPC Current rating C(59) on 0393-0395-9330-510-1503 TENURE The property is of Freehold Tenure. Title Number: SL114748. TENANCY The entire property is subject to a lease to Simply Gym Limited for a term of 15 years from the 1st of May 2015 on Tenants Full Repairing and Insuring Basis at a rent of 140,000 (One Hundred and Fourty Thousand Pounds) per annum. The lease is subject to a Tenants break as of the 1st of May 2025 subject to 6 months prior written notice. There are rent reviews at 5 yearly intervals.
6 Simply Gym Limited (Registered Company Number 07494084) is an established gym operator with 12 gyms including Cheltenham, Crewe, Coventry, Reading and Wrexham. The company has been running since January 2011 and has grown year on year. The business is dedicated to offering quality gym facilities at the lowest possible price. All their clubs feature large open gym spaces, while various other facilities are available at each club. Every club includes fitness classes in the membership, some have separate ladies only gyms whilst some have spa areas. There are currently no Legal Notices or Fines / Sanctions issued on the company. For the Financial Year ending 31st March 2016 the financial trading figures are as follows; Net Worth 941,600 (up 28.2% from 2015) Total Current Assets 604,800 (up 24% from 2015) Further information relating to Simply Gym Limited can be seen via their website on www.simplygym.co.uk EVIDENCE 23 High Street, Brierley Hill, DY5 3AB - Health Club Building of 35,109ft sq Sold on 19/01/2015 for 1,000,000 to Fitness4Less (Price per sq ft 28.48) Llandudno Pier, Happy Valley Road, Llandudno, LL30 2LP - Health Club Building of 7,744ft sq Sold on 05/05/2015 for 4,500,000 to Tir Prince Raceway Ltd (Price per sq ft 581.10) Virgin Active, Nottingham Road, Derby, DE21 6DA - Health Club Building of 46,221ft sq Sold on 23/03/2015 for 7,180,000 to Riverside Capital Group Ltd (Net Initial Yield of 6.74%) Pure Gym, Wall Way, Manchester, M18 7WY - Health Club Building of 20,389 ft sq Sold on 11/12/2014 for 1,575,000 (Price per sq ft 77.25) Victoria Park Way, Nottingham, NG4 2PA - Health Club Building of 45,732ft sq Sold on 01/10/2013 for 6,670,000 (Net Initial Yield of 7.94%) The premises are currently let at a low base rent for gyms of 4.78/ft sq. PLANNING It is understood that the premises benefit from planning consent currently for Use Class D2 (Assembly and leisure). Interested parties are advised to make their own enquiries to the local authority. PROPOSAL We are instructed to seek offers in excess of 1,880,500 (One Million.Eight Hundred and Eighty Thousand Pounds) for our clients freehold interest, subject to contract and exclusive of VAT which reflects a Net Initial Yield of 7%(after stamp duty and acquisition costs of 1.5%). VAT The property is elected for VAT purposes. It is anticipated that the investment will be treated as a Transfer of a Going Concern(TOGC). LEGAL COSTS Each of the parties are to be responsible for their own legal costs incurred in
7 RENTAL EVIDENCE / PROPOSAL
8 Halls for themselves and for the vendors of this property, whose agent they are, given notice that: i) These particulars are intended for guidance only. They are prepared and issued in good faith and are intended to give a fair description but do not consitute part of an over or contract. Any information given should not be relied on as a statement or representation of fact or that the property or its services are in good condition. ii) Halls have not made any investigations into the existance or otherwise of any issues concerning pollution and potential land, air and water contamination. The purchaser is responsible for making his or her own enquiries in this regard. iii) Neither Halls nor any of their employees has any authority to make or give any representation or warranty whatsoever in relation to the property. iv) The images show only certain parts and aspects of the property at the time they were taken/created. Any areas, measurements or distances given are approximate only. Any plans are for identification purposes only. v) Any reference to alterations to, or use of, any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained. An intending purchaser must verify these matters. An occupier should not rely upon the Use stated in these particulars and should check their proposed use with the relevant Planning Authority.
9 SUMMARY LOCATION DESCRIPTION TENURE Halls for themselves and for the vendors of this property, whose agent they are, given notice that: i) These particulars are intended for guidance only. They are prepared and issued in good faith and are intended to give a fair description but do not consitute part of an over or contract. Any information given should not be relied on as a statement or representation of fact or that the property or its services are in good condition. ii) Halls have not made any investigations into the existance or otherwise of any issues concerning pollution and potential land, air and water contamination. The purchaser is responsible for making his or her own enquiries in this regard. iii) Neither Halls nor any of their employees has any authority to make or give any representation or warranty whatsoever in relation to the property. iv) The images show only certain parts and aspects of the property at the time they were taken/created. Any areas, measurements or distances given are approximate only. Any plans are for identification purposes only. v) Any reference to alterations to, or use of, any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained. An intending purchaser must verify these matters. An occupier should not rely upon the Use stated in these particulars and should check their proposed use with the relevant Planning Authority. HALLS COMMERCIAL 01743 450 700
10 For further information or to arrange an inspection of the property please contact: James Evans 01743 450700 james.evans@hallsgb.com Rebecca Welch 01743 450715 rebeccaw@hallsgb.com HALLS COMMERCIAL Halls for themselves and for the vendors of this property, whose agent they are, given notice that: i) These particulars are intended for guidance only. They are prepared and issued in good faith and are intended to give a fair description but do not consitute part of an over or contract. Any information given should not be relied on as a statement or representation of fact or that the property or its services are in good condition. ii) Halls have not made any investigations into the existance or otherwise of any issues concerning pollution and potential land, air and water contamination. The purchaser is responsible for making his or her own enquiries in this regard. iii) Neither Halls nor any of their employees has any authority to make or give any representation or warranty whatsoever in relation to the property. iv) The images show only certain parts and aspects of the property at the time they were taken/created. Any areas, measurements or distances given are approximate only. Any plans are for identification purposes only. v) Any reference to alterations to, or use of, any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained. An intending purchaser must verify these matters. An occupier should not rely upon the Use stated in these particulars and should check their proposed use with the relevant Planning Authority.