Middleton, Lancashire, M24 4TH

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1 SECURE INCOME LEISURE INVESTMENT Middleton, Lancashire, M2 TH gva.co.uk/87

2 EXECUTIVE SUMMARY Located within 2 miles of both the M0 and the M2 motorways and within miles of Situated within a densely populated area with over 2.8 million living within a 0 mile radius Strong location supported by favourable demographics Flagship health and racquets club, providing 2,9.8 sq m (, sq ft) of accommodation and associated car parking. 9 indoor tennis courts, outdoor tennis courts and badminton courts Over,700 members Let to the strong covenant of Virgin Active Limited and Virgin Active Health Clubs Ltd for a term of expiring th July 20 Rental income of 2,9.9 per annum, low rental of 2. psf overall per annum Yearly reviews from July 207 will be increased in line with RPI subject to a collar of % and a cap of % pa Long Leasehold Offers are sought in excess of,00,000 (Five Million Four Hundred Thousand), subject to contract and exclusive of VAT The proposed price reflects a capital value per sq ft of.72, which is below replacement cost for the club. A purchase at this level would reflect a yield profile, assuming GVA RPI forecasts and acquisition costs of.80%, of :- Acquisition Average yield over term 9.

3 A2 A9 LOCATION 2 7 of Rochdale, Greater. It is located 8 miles Ellesmere A Hollywell 9 Port Blackpool which runs through Flint Middleton. A02 A8 A Southport 7 A Wrexham 0 2 Liverpool Liverpool John Lennon Airport River Mersey Speke A 0 Chester A A2 Victoria, Bolton, Wigan and Leeds. M M7 A8 A08 Middleton is located within the Metropolitan Borough north east of and miles south west of Rochdale. and Rochdale are linked via the Middleton is a predominately residential area which A7 2 serves as a great catchment area for a fitness club. The Middleton Bus Station is adjacent A9 to the Middleton Arndale shopping centre. The majority of services serve destinations including Bury, Oldham, A2 A Rochdale, Tameside and city. Middleton is located A close to junction A99 of them2 motorway and, at Rhodes, junction 2 of the M0 motorway. Mills Hill railway station is on the eastern boundary of town, one mile east of the town centre, with direct services to Rochdale, M8 A A9 A A00 M 7 Preston M St Helens A A M 2 0 2A M Widnes A0 20 A 9 SITUATION 0 M A7 A A Wigan 2 Blackburn A Bolton Worsley 2 Altrincham M 2 2 M2 The 2 club is located in Middleton 9 approximately A9 miles north A of City Centre. The property is A7 situated off of Heywood Old Road (0) which links A on to Junction 9 of the M0 City Orbital A7 A7 Motorway or Junction 9 of the M2. Northwich Macclesfield M A M A7 M2 A A9 A9 M A A M A0 Crewe M2 Middlewich A A A00 M0 8 7 A2 A8 0 7 Bury M02 A M A A 7 Heywood Middleton 9 20 Prestwich 2 22 A7 A00 A0 A0 Airport A A 00 Rochdale Congleton A A A27 A8 2 Oldham 27 Stockport A2 A Stoke on-trent A2 A0 2 A20 A 2 Newcastle Halifax 28 Leeds A A Huddersfield 2 29 A A0

4 DEMOGRAPHICS Middleton has a population of 2,972 (20 Census), extending to 778,289 persons within a 0 minute drive time. The area benefits from a an above average proportion of the most affluent AB social group, and a higher proportion of adults aged between 2 compared to the UK average, who traditionally have a higher disposable income. MIDDLETON COMPETITOR ANALYSIS A. Printworks Nuffield Health,, M 2BS B. Bannatyne Health Club, Quay St,, M NR C. Bannatyne Health Club, Whitworth Street,, M JU D. Bannatyne Health Club, Chepstow St, M FW E. LA Fitness, King St, M2 LQ F. Pace Health Club & Nu Spa, Cheetham Hill Road,, M EW G. David Lloyd Fitness, Barton Embankment, Trafford Park, M7 8RH H. Fitness for Life, Caldershaw Business Centre, OL RY I. DW Sports Fitness, Bolton, BL 2NE J. Virgin Active, Bolton, BL 8TS K. Total Fitness, Waters Meeting Rd, Bolton, BL 8TT L. Kingfisher Health Club, Houldsworth Mill, Stockport, SK DA 0 A M M 2 A80 Bolton Worsley M2 J K I M0 2 Altrincham A8 G 0 Bury M02 A A 7 M 2 0mins mins Heywood A8 mins 9 9 Prestwich A7 20 A0 A-E 2 2 (Virgin Active) Middleton L 20 Rochdale H A M2 Oldham 27 Stockport A0 2 A0

5 DESCRIPTION The purpose built flagship health and fitness club comprises a modern steel framed construction with part steel and glazed elevations under a profile steel barrel roof. Connecting the health and fitness club is a single storey tennis facility under a dome shaped lightweight construction. The Club caters for the following facilities:- GROUND FLOOR Crèche Beauty spa Sports shop Café (with Costa Coffee facilities) Function room Indoor heated swimming pool Sauna, steam room and spa 9 indoor tennis courts 2 squash courts Badminton Courts Multi purpose court FIRST FLOOR treatment rooms Aerobic Studios Gym Squash Courts EXTERNAL FACILITIES Heated swimming pool external tennis courts

6 ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice (Sixth Edition) and has the following approximate gross internal floor areas: Accommodation Floor Area Sq M Area Sq Ft Ground Floor 2,900.22,28 Tennis, Squash and multi-purpose courts 8,07.2 8,922 First floor,7.8 8,02 Total 2,9.8,

7 SITE The site extends to an area of.7 acres. TENURE The property is held on long leasehold from the Rochdale Borough Council for a term of up to 08 years at a peppercorn rent. The leasehold interest currently expires on March 209, however, the lessee benefits from an option to extend the long leasehold by a further 2 years. TENANCY INFORMATION The property is let on a joint tenancy to Virgin Active Health Clubs Limited (09) and Virgin Active Ltd (company no 8) on Full Repairing and Insuring Terms expiring 7th May 20. The lease is subject to yearly reviews in line with RPI from th July 207, subject to a collar of % and a cap of % per annum. A reversionary lease is in situ extending the term to July 20. The commencing rent under the reversionary lease is to be the passing rent under the current lease at the lease expiry. The property currently produces 20,790 per annum with a fixed review as at th July 20 to 2,8.9 p.a. which equates to only 2. per sq ft. It is the vendor s intention to top the rent up to this level on completion of the sale.

8 COVENANT PROFILE Since it was founded years ago, Virgin Active has grown to become one of the largest global health club companies and now has. million members in 272 clubs across the UK, Europe, South Africa and Australia. Following the acquisition of Holmes Place s UK business in 200, and Esporta in 202 there are now 8 Virgin Active clubs across the UK, making the company one of the country s leading health and fitness providers. For the year ending December 20, the joint covenant reported the following financial figures:- ENERGY PERFORMANCE CERTIFICATE S Energy Performance Certificate s (EPC s) for the property is 8, which provides a C group rating. VAT The property has been elected for VAT which will therefore be payable on the purchase price unless the sale can be treated as a Transfer of a Going Concern (TOGC). Virgin Active Health Clubs Limited (09) (Formerly Holmes Place Health Clubs Ltd) /2/20 /2/202 /2/20 Sales Turnover,8,000 20,20,000 7,0,000 Profit/(Loss) before Taxes,28,000 (,089,000),7,000 Net Assets 0,80,000 9,,000 2,82,000 Virgin Active Limited (8) /2/20 /2/202 /2/20 Sales Turnover 7,82,000 7,20,000 7,2,000 Profit/(Loss) before Taxes,08,000 ( 8,,000),0,000 Net Assets,229,90, ,,000 9,922,000

9 PROPOSAL Offers are sought in excess of,00,000 (Five Million Four Hundred Thousand), subject to contract and exclusive of VAT. A purchase at this level would reflect a yield profile, assuming GVA RPI forecasts and acquisition costs of.80%, of :- Acquisition Average yield over term 9. The proposed price also reflects a capital value per sq ft of.72, which is below replacement cost for the club.

10 FURTHER INFORMATION Should you wish to inspect the property or require additional information, please contact: Philip Colman philip.colman@gva.co.uk Mark Frampton mark.frampton@gva.co.uk Gavin Quinn gavin.quinn@gva.co.uk Gurminder Manak gurminder.manak@gva.co.uk gva.co.uk/87 For any other investment sales please visit: London West End 0 Stratton Street London WJ 8JR London City 80 Cheapside London EC2V EE Belfast Rose Building Third Floor Howard Street Belfast BT PA Birmingham Brindley Place Birmingham B 2JB Bristol St Catherine s Court Berkeley Place Bristol BS8 BQ Cardiff One Kingsway Cardiff CF0 AN Edinburgh Quayside House 27 Fountainbridge Edinburgh EH 9QG Glasgow 20 St Vincent Street Glasgow G2 SG Leeds City Point First Floor 29 King Street Leeds LS 2HL Liverpool No. St Paul s Square Old Hall Street Liverpool L 9SJ Norfolk House 7 Norfolk Street M2 DW Newcastle Central Square Forth Street Newcastle upon Tyne NE PJ SUBJECT TO CONTRACT Published by GVA - 0 Stratton Street, London WJ 8JR 20 Copyright GVA GVA is the trading name of GVA Grimley Limited and is a principal shareholder of GVA Worldwide, an independent partnership of property advisers operating globally gvaworldwide.com GVA Grimley Limited Conditions under which Particulars are issued GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that:.) The particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. 2.) All descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details, 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 but satisfy themselves by inspection or otherwise as to the correctness of each of them..) No person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property..) All rentals and prices are quoted exclusive of VAT. Reproduced by courtesy of the Controller of HMSO. Crown Copyright reserved. Licence No 779. If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co Ltd and/or The Automobile Association. For identification purposes only. Designed by Richard Barber & Company October 20.