MANCHESTER ROAD FOR SALE PRIME LEISURE, HEALTH & FITNESS INVESTMENT OPPORTUNITY (A62) OLDHAM GREATER MANCHESTER OL8 7NG

Transcription

1 MANCHESTER ROAD (A6) OLDHAM GREATER MANCHESTER OL8 7NG FOR SALE PRIME LEISURE, HEALTH & FITNESS INVESTMENT OPPORTUNITY

2 INVESTMENT SUMMARY Prime leisure, health and fitness opportunity let to a 5A1 covenant Prime leisure, health and fitness opportunity let to a 5A1 covenant. Strategic location. 0.5 miles from Junction of the, 5 miles from Manchester City Centre, 1 mile east of Oldham town centre. High specification retail warehouse, fully fitted as a health and fitness centre. Let to The Gym Group with a 5A1 covenant and a turnover of 59.97m, pre-tax profits of 4.7m, shareholders funds of 6.61m. Let on a 15 year lease from May 016 incorporating 5 yearly upward only rent reviews. Passing rent 150,000 per annum. Low base rent of 9.19 psf. WAULT of approximately 14½ years. PURCHASE PRICE Offers in excess of,000,000 (Two Million Pounds) exclusive of VAT, net of costs. Total rent 150,000 per annum. Attractive net initial yield of 7%.

3 A67 ASHTON ROAD A miles from Junction of the, 5 miles from Manchester City Centre, 1 mile east of Oldham town centre LOCATION The property is prominently located fronting Manchester Road (A6) and Drury Lane (B6189), Oldham, Greater Manchester. It is located approximately miles south-east of Oldham town centre, 5 miles north-east of Manchester City Centre and approximately ¼ mile from Junction of the Orbital Motorway. Manchester Road (A6) is one of the busiest arterial routes in and out of Manchester. The property is within close proximity to Ashton-Under-Lyne, IKEA, Ashton Moss Retail & Leisure Park and the Snipe Retail Park. DRIVE TIMES BROADGATE B6189 EAVES LANE A66 BROADWAY A66 A66 BUTLER GREEN WASH BROOK FREEHOLD METROLINK BLOCK L A NE BLOCK LANE LANSDOWNE ROAD B619 B6191 A6 A6 MIDDLETON ROAD MANCHESTER STREET OLDHAM WAY OLD H AM WAY OLDHAM A67 ASHTON ROAD PARK ROAD OLDHAM WAY OLD HAM WAY PARK ROA Junction Manchester City Centre Manchester Airport Liverpool Birmingham Central London 0.5 miles 5 miles 17 miles 40 miles 90 miles 16 miles A6104 A66 BROADWAY J1 SEMPLE WAY A6104 HOLLINWOOD AVE HOLLINWOOD METROLINK B6189 DRURY LN SOUTH CHADDERTON METROLINK J A6 MANCHESTER RD THE PROPERTY A6104 HOLLINS RD B619 FREDERICK ST B619 HOLLINS RD A Farnworth M61 M6 BOLTON Walkden Irlam Little Lever 15/1 1 1/ Swinton 9 Urmston 8 A6144(M) Radcliffe 7 Whitefield 17 SALFORD Eccles Prestwich Pendlebury STRETFORD 18/4 19 A57(M) 19 MANCHESTER Middleton M6 THE PROPERTY 0 Royton A67 (M) Chadderton 1 Failsworth Droylsden 4 Oldham 1 Denton M67 SITUATION The Gym is located in Oldham, Greater Manchester in the county of Lancashire. The property is predominantly surrounded by residential with commercial to the rear. It is approximately ¼ mile from Junction of the Orbital Motorway which accesses the whole of the Greater Manchester conurbation and is within a few minutes of Oldham town centre and Manchester City Centre. Oldham has a population of.7 million. The age profile population within this 0 minute catchment area is younger than the UK average, providing a long-term sustainable pool of labour. Partington Altrincham Hale Sale 8 7 M /1 Gatley Cheadle 1 7 Stockport Bramhall 5 6 Over a third (7.7%) of the borough s population are classified as Wealthy Achievers, Urban Prosperity or Comfortably Off by CACI s Acorn consumer classification system. The cultural and leisure facilities in Oldham town centre will be improved further with the arrival of a new multiplex cinema and restaurant complex, leisure centre, theatre and heritage centre. The Orbital provides direct connections to Greater Manchester and the Regional and National Motorway Network. Manchester Road Handforth Manchester Airport and The Trafford Centre are within 15 minutes drive of the site.

4 1 A66 Broadway To Chadderton To Blackley/Middleton M6/M66 Tram Line B6189 Drury Lane To Manchester A6 Manchester Road To Ashton under Lyne M67/Stockport/M56 To Oldham High specification retail warehouse, fully fitted as a health and fitness centre

5 TENANCY The property is let to The Gym Limited registered number , registered office: Fifth Floor, No 1 Croydon, 1-16 Addiscombe Road, Croydon, CR0 0XT. Lease for a term of 15 years from the 17th May 016 to the 16th May 01. Option for an additional 5 years from 17th May ½ year unexpired term. Rent passing 150,000 per annum. 5 yearly rent reviews. Use: D. 4 hour gym. TENANT COVENANT months 000s months 000s months 000s Turnover Pre-tax profit Net Worth Let to The Gym Group with a 5A1 covenant and a turnover of 59.97m, pre-tax profits of 4.7m, shareholders funds of 6.61m The Gym Group has been awarded a D&B rating of 5A1. Further information can be found on DESCRIPTION The property is prominently situated on the corner of Manchester Road (A6) and Drury Lane (B6189). The property comprises a self-contained retail warehouse unit of a steel portal frame construction incorporating PVC coated cladding to walls and roof. The property benefits from a substantial yard and car parking area. The accommodation provides open plan column free space with a minimum eaves height of 5.5m to the haunch. It has recently been fitted out as a substantial gym and opened in September 016. ACCOMMODATION The property provides the following gross internal area: sq ft sq m Acres Hectares Warehouse 16,46 1,56 Site Area TENURE Our client will be disposing of their freehold and long leasehold interest.

6 THE GYM GROUP The Gym Group was founded by John Treharne, a former England squash player, in 008. The first Gym opened in Hounslow in 008 and now have almost 80 across the UK with a highly active and always increasing pipeline. The Gym Group is funded by Bridges Ventures who have committed 17.5 million to the business. Bridges has 75 million under management and has a 10 year proven track record. In November 015, The Gym Group successfully completed its Initial Public Offering (IPO) on the London Stock Exchange, the first European gym operator to float in more than a decade. The company raised 15 million from new investors which has been used to support the continuation of the company s aggressive growth strategy. OPERATIONAL PROGRESS Six new gyms opened in Q1 016 increasing the total estate to % increase in membership numbers versus prior year to 44,000 (Q1 015: 55,000) Maturing sites driving profitability Site EBITDA up 0.8% ahead of revenue growth demonstrating the Company s operational gearing. Strong pipeline for Q 016 and 017 expect to meet target of 15-0 new gyms per year. Recently exchanged contracts on four sites from another operator. 11. million visits in the period, up.1 million compared to Q Gold Investors in People Awarded. Let on a 15 year lease from May 016 incorporating 5 yearly upward only rent reviews OCCUPATIONAL MARKET Property Date Asking Price Rent (pa) Rent (psf) Yield Capital Value WAULT The Gym Group, Rodney Road, Southsea, Portsmouth Jan 016,60, , % year lease Pure Gym / Travelodge, Tower Street, Harrogate Jan 016 7,000, , (gym) 5.65% Purchaser: Private Virgin Active, Middleton & Virgin Active, Glamorgan Jan 015 9,000,000 (combined) 6.6% 1 years Purchaser: LaSalle IM

7 EPC An Energy Performance Certificate is available upon request. VAT The property is elected for VAT and it is the intention to treat this transaction as a Transfer of a Going Concern (TOGC). PROPOSAL We are instructed to seek offers in excess of,000,000 (Two Million Pounds), exclusive of VAT net of costs. This reflects an attractive net initial yield of 7%. FURTHER INFORMATION For further information, or to arrange an inspection, please contact: Rick Davies Davies Harrison Tel: Mobile: rick@daviesharrison.com IMPORTANT NOTICE: Davies Harrison for themselves and/or the Vendors or Lessors of this property whose agents they are give notice that: (1) The particulars do not constitute any part of an offer or contract. () All statements contained in the particulars as to the property are made without responsibility on the parts of Davies Harrison or Vendors or Lessors. () All descriptions, dimensions and other particulars are given in good faith and are believed to be correct, but any intending purchasers or tenants should not rely on them as statements or representations of fact and must satisfy themselves by investigation or otherwise as to the correctness to each of them. No person in the employment of Davies Harrison has any authority to make or give any representation or warranty whatever in relation to this property. October 016. Designed and produced by Creativeworld Tel: