King Street, East Grinstead, West Sussex RH19 3DJ

Transcription

1 For Sale Pre Let Site or forward investment purchase Site with detailed planning permission for 18,026 sqft of commercial pre-let to Wilkinson and 79 bedroom hotel pre-pet to Travelodge ready to be built out. King Street, East Grinstead, West Sussex RH19 3DJ CGI of proposed development

2 Summary/ Description A development site in the centre of East Grinstead with detailed planning permission for 18,026 sq ft of commercial with a 79 bedroom hotel above with tenants in place ready to be build out. Wilkinson (Wilkinson Hardware Stores Ltd) have entered into an agreement to lease to take 11,503 sqft of ground floor retail space at level 1 with a further 4,368 sqft of staff and stock at first floor level 2. There is a car park with 18 parking spaces to the rear at Location/ The site / proposed development is located on the corner of King Street and Little King Street in the centre of East Grinstead adjacent to the Atrium Cinema which incorporates a Wetherspoons Public House. Directly opposite is a public car park. King Street leads into London Road which connects the A22 in one direction and the High Street in the other. The development is located with 700m from East Grinstead Train Station which provides a service every 30 minutes into central London in less than one hour. The A22 links East Grinstead with Uckfield and then in turn Eastbourne/the East Sussex coast to the South, and the M25 (Junction 6) and London to the North. level 2 accessed via Little King Street. Access for deliveries to stock is also via Little King Street and the rear car park. Travelodge (Travelodge Hotels Ltd) have entered into an agreement to lease to take a 79 room hotel in the upper parts of the development. The Wilkinson unit needs to be provided and handed over in shell and core condition. The Travelodge Hotel needs to be provided and handed over fully fitted out out ready for Travelodge to begin trading. The completed development has an investment value of c. 7,000,000 (6.3% NIY). Interested parties may look to build and sell the development or build and retain the train station development as an investment. A pre-sale of the investment at this stage could be arranged. T:

3 Accommodation Tenancy Schedule Tenants Accommodation Use Lease Terms Rent Wilkinson Hardware Stores Ltd Ground Floor/Level 1 - NIA retail 11,503 sqft plus stair & lift cores of 689 sqft. GIA of 12,192 sqft. A1 150,000 pax First Floor/Level 2 - NIA staff/stock 4,368 sqft plus plant of 895 sqft. GIA 5,834 sqft. Combined total - 18,026 sqft 15 year full repairing and insuring lease with no breaks inside the 1954 landlord and tenant act with rent reviews every 5 years based on market rent. There is a 6 month rent free period running from 5 days after practical completion. There is a capital contribution (PC) payment of 160, to assist with costs of Wilkinsons fit-out payable 5 days after PC. The rent in the first year is 75, and then 150,000.00pa thereafter to the first review. The agreement for lease (AFL) provides commencement of works must begin by 30th August 2014 with practical completion (PC) by 14th August There is a long stop date of 30th September Travelodge Hotels Ltd Ground floor entrance at front on King Street with accommodation over 3 floors above (level 2-4) comprising a 79 bedroom hotel. C1 (Hotel) 25 full repairing and insuring lease with no breaks inside the 1954 landlord and tenant act with rent reviews every 5 years based on RPI. There is a 6 months rent free period running from 5 days after pratical completion (PC). On PC the Landlord pays the Tenant 2, plus VAT per room for Landlord Fixtures and Fittings (LF&F) plus a Technical Fee of 2, plus per room. The agreement for lease (AFL) is dated 11th November It has been amended to provide for target date for PC of 30th April 2014 and longstop date of 29th February Please note, Travelodge are happy to extend dates. 316,000 pax Total 466,000 pax Planning The planning permission was granted on 7th December 2011 under reference number 11/02371/FUL for Demolition of the existing buildings and the construction of a part three/part four storey building to accommodate a retail unit of the ground floor and a 79 bedroom hotel on the upper floors, pluc car parking, cycle storage, bin storage and commercial vehicle facilities. Covenants Travelodge Hotel The Travelodge lease is taken in the name of Travelodge Hotels Ltd. On the 12th October 2012, Travelodge s owner, Dubai International Capital, ceased its involvement with the company. Ownership transferred to three of the company s key investors; the US Companies and global investment firms, Goldentree Asset Management, Avenue Capital and Goldman Sachs. As part of this process, the current debt holders agreed to restructure the company s debt, writing off a substantial part of their loans and re-structuring repayment of the remaining debt to 2017/18. Cash interest was reduced and 75m of new money injected, part of which has funded a major 55m refurbishment programme. Under the terms of the re-finance, Travelodge s net debt dropped from 1,111m to 331m, reducing the gearing ratio (total net debt / EBITDA) from 30.4 times to around 9 times. This ratio is forecast to fall to around 4 times by the end of A condition of the lender support was that Travelodge implement a Company Voluntary Arrangement (CVA), resulting in the leases for 49 value dilutive hotels being terminated and rent being reduced by 25% on a further 109 hotels. The CVA proposal was overwhelmingly voted through by the creditors on the 4th September 2012 and implemented immediately. Under the new corporate structure, Travelodge s balance sheet has improved significantly and a sustainable, long-term future has been secured. In January 2013, it was announced by Travelodge that they were to benefit from a cash investment of 233m to assist the company s growth which includes a major refurbishement and advertsing program. Much of the refurbishment has now been carried out. The Travelodge business has improved significantly since completion of the CVA. The accounts for 2013 will not be published until the summer of 2014, however, a financial statement can be provided to serious parties upon receipt of a signed confidentiality agreement.

4 Wilkinson Terms The Wilkinson lease is taken in the name of Wilkinson Hardware Stores Ltd. Year Turnover 1,559,384,000 1,565,400,000 1,529,668,000 Pre-tax Profit 60,824,000 22,736,000 27,512,000 Additional Information Available upon request are: The agreement for leases/leases. A full set of the consented plans. The planning permission. Full ground investigation report. Site sale guide - 1,800,000 plus VAT with the benefit of planning permission and agreements for lease. sale guide - Alternatively offers are invited for a forward purchase of the completed development. Construction of the development can be arranged. Offers should be directed to Tom Luck (tom.luck@acorn.ltd.uk) and should include level of offer, proposed timescales or exchange and completion, details of the purchaser and how the purchase will be funded. The purchaser will be responsible for payment of the agent (Acorn) letting fees to Wilkinson and Travelodge at 15% plus vat of the first full years rent with half paid on purchase of the site as the agreements for leases are in place with the second half payable on hand over to the tenants. Viewings The site can be viewed from the roadside without prior appointment. Any internal inspections are stictly by appointment only with Acorn s, and Division. Tenure Freehold, subject to the agreements to leases. VAT The site has been elected for VAT and therefore will be chargeable on the sale price. The site is held in an SPV which has only traded in purchasing the subject site. A transaction can be arranged by a way of sale of the company. Existing

5 Proposed Floorplans Level 1

6 Proposed Floorplans Level 2

7 Proposed Floorplans Level 3 & Level 4

8 CGI of proposed development T: acorn Part of the Acorn Group incorporating... Acorn as our vendor s agent have endeavoured to check the accuracy of these sales particulars, but however can offer no guarantee, we therefore must advise that any prospective purchaser employ their own experts to verify the statements contained herein. All measurements are approximate and should not be relied upon. No equipment,utilities, circuits or fittings have been tested.