SOUTH COAST : DAWLISH RETAIL & RESIDENTIAL INVESTMENT Piermont Place, Dawlish EX7 9PH

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1 SOUTH COAST : DAWLISH RETAIL & RESIDENTIAL INVESTMENT 9-13 Piermont Place, Dawlish EX7 9PH

2 Retail and Residential Investment Dawlish is a popular seaside town in Devon. The property comprises an amusement arcade with 9 residential flats above. Freehold. Ground floor amusement arcade let to Luxury Leisure until 9 April 2029, paying 90,000 per annum, 12 years unexpired. 9 flats in total, 8 let on ASTs producing a gross rent of 47,580 per annum and a net rent of 31,477 per annum (after deduction of all costs), with potential to increase to a net rent of 37,177 per annum on letting the vacant flat. Total net passing rent 121,477 per annum. Offers are sought in excess of 1,750,000 (One Million Seven Hundred and Fifty Thousand Pounds) reflecting a net initial yield of 6.53% and a reversionary yield of 6.84% assuming normal purchaser s costs of 6.20%.

3 Location SOUTH COAST Dawlish is a popular seaside town on the south coast of Devon. The town is located between Torquay, 15 miles to the south, and Exeter, 12 miles to the north. The A379 provides access to Junction 31 of the M5 motorway at Exeter. The town is a popular holiday destination for families as it offers a range of amusements as well as a long sandy beach. The South Devon Railway Line runs through Dawlish and is considered one of the most scenic railway lines in Britain, running along the coast from Exeter to Newton Abbot. The town has a population of 11,312 (2011 Census) with numbers significantly increasing during the summer months with the influx of tourists visiting the town. Exeter NEWPORT SWINDON A30 A3052 SWANSEA CARDIFF BRISTOL BATH A382 A38 A379 A38 A380 A379 Teignmouth A376 Exmouth Dawlish Warren DAWLISH A39 A30 BARNSTAPLE A388 A386 EXMOOR NATIONAL PARK A39 A377 A30 DARTMOOR NATIONAL PARK EXETER EXMOUTH DAWLISH A303 YEOVIL BOURNEMOUTH WEYMOUTH A381 NEWQUAY A390 A38 PAIGNTON A383 Newton Abbot Shaldon A379 A380 A30 TRURO A394 PENZANCE ST AUSTELL PLYMOUTH

4 Situation DAWLISH The property is located in the centre of Dawlish, situated on Piermont Place, between the railway station to the east and The Lawn to the west. The Lawn, a wide open green, is popular with families for games and picnics. Directly to the south of the property is Dawlish Water which runs through the centre of the town. The beach is a minutes walk to the west of the property. The Strand is the main retail pitch for the town and is under a minute s walk from the property. Nearby occupiers include Lloyds Bank, Co-op Food, Ladbrokes, Boots and a number of independent restaurants and cafés. Being centrally located the property is close to many of the hotels and bed & breakfasts popular with visitors to the town. The property is the only amusement arcade in this popular seaside town and the amusement arcade enjoys a monopoly position and is popular with holidaymakers and local residents.

5 LOCAL AREA EX7 9PH

6 Description The property comprises a ground floor amusement arcade with ancillary storage, office and kitchen areas. The ground floor comprises a number of retail units that have been joined together. At first and second floors there are 9 residential flats comprising 3 one bed flats, 5 two bed flats and 1 three bedroom flat. There are 6 flats in a separate adjacent building that have been sold off on 125 year leases, at a peppercorn rent. Accommodation The ground floor of the property comprises the following net internal areas: Description sq ft sq m Retail 6, Ancillary 1, TOTAL 8,

7 Tenure Freehold. Tenancy The ground floor of the property is let to Luxury Leisure on an effective FRI lease for a term of 15 years from 10th April 2014 at 90,000 per annum. The lease is subject to five yearly upward only rent reviews. There are 9 flats on the first and second floors 8 of which are let on Assured Shorthold Tenancies. The passing rent for the flats is detailed below: Flat Beds Rent per month Passing rent ERV 1A ,300 6,300 1B ,000 6, ,500 7, ,700 5, ,280 5, ,400 5, ,700 5, ,700 5, none Vacant 5,700 TOTAL 47,580 53,280 The total gross income from the flats is 47,580 per annum. In the last twelve months the total management costs for the flats, including agency fees, were 16,103. Allowing for management costs the net income from the flats is currently 31,477 per annum. Flat number 8 is used by Luxury Leisure on an informal basis. There is currently no rental income from this property. The rental value for the flat is 475 per month and therefore the total gross rental value for the flats is 53,280 per annum. The total net passing rent for the property is currently 121,477 per annum.

8 Tenant Covenant Luxury Leisure ( ), formerly owned by the Noble Organisation, became part of the Novomatic UK Group in It serves the group s high street Adult Gaming Centre division, with 84 town centre and seaside adult gaming centres. Luxury Leisure was founded in the early 1970s and incorporates several high street arcade brands in one group with branches across the UK. Brands in the group include Nobles Amusements, Sun Valley Amusements, Shoppers Amusements and Harrisons Amusements. In the past three years Luxury Leisure reported the following figures in their accounts: 31/12/ /12/ /10/2013 Turnover 53,544,645 57,455,528 47,485,476 Pre Tax Profit 6,668,056 2,168, ,490 Net Worth 5,304,492 3,809,851-5,587,461

9 EPC Copies of the EPCs for the property are available on request. VAT The property is registered for VAT. It is anticipated that the sale of the property will be dealt with as a Transfer of a Going Concern (TOGC). Proposal We are seeking offers in excess of 1,750,000 (One Million Seven Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT, reflecting a net initial yield of 6.54% and a reversion of 6.84% assuming normal purchaser s costs of 6.20%. Further information For further information or to arrange an inspection please contact the sole agents: Gemma-Jane Ogden T: E: Rob Amey T: E: Hartnell Taylor Cook LLP for themselves and for the vendor or lessor of this property, whose agent they are, give notice that: These particulars are set out as a general outline only for the guidance of intending purchasers or lessees and do not constitute part or whole of an offer or contract; All descriptions, dimensions, photographs, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but intending purchasers or lessees should not rely on them as statements or representations of fact and must satisfy themselves as to their correctness; No person in the employment of Hartnell Taylor Cook LLP has any authority to make or give any representation or warranty whatsoever in relation to this property or these particulars nor enter into any contract on behalf of the vendor or lessor; Unless otherwise stated, all prices, rents and other charges are quoted exclusive of VAT. Any intending purchasers or lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction; All plant, machinery, equipment, services and fixtures and fittings referred to in these particulars were present at the date of publication. They have not been tested and we give no warranty as to their condition or operation; No responsibility can be accepted for any expenses incurred by intending purchasers or lessees in inspecting properties that have been sold or withdrawn. K Designed and produced by MAY