24/7 Fitness Automotive Components Park, Hallens Drive, Wednesbury, West Midlands WS10 7DD LEISURE INVESTMENT OPPORTUNITY - Buchanan Bond
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24/7 Fitness Automotive Components Park, Hallens Drive, Wednesbury, West Midlands WS10 7DD LEISURE INVESTMENT OPPORTUNITY
24/7 Fitness, Hallens Drive, Wednesbury, West Midlands WS10 7DD
Investment Summary
• Modern purpose built gym facility
constructed in 1998 extending to 18,102 sq
ft (1,681.72 sq m).
• Wednesbury is situated 9 miles north west
of Birmingham City Centre.
• Let to Fitness First Clubs Limited
(guaranteed by Fitness First Limited) for
a term of 35 years expiring 29th April 2039,
subject to a break option 30th April 2029.
• Term certain of 11 years to break and 21
years to lease end.
• Underlet to 24/7 Fitness Group Limited ,
on matching terms, with a guarantee from
Twenty Four Seven Fitness Limited.
• Current rent of £198,410 per annum.
• Rent to be topped up to the fixed uplift rent
review on 30th April 2019 at £224,481 per
annum.
• 24/7 Fitness is the fastest growing low cost
gym operator in the UK, offering flexible ‘no
contract’ gym memberships.
• Freehold.
• Offers are invited in excess of £2,800,000
(Two Million, Eight Hundred Thousand
Pounds) , subject to contract and exclusive
of VAT. This reflects a Net Initial Yield of
7.50% based off the topped up level of
£224,481 per annum, assuming normal
purchaser’s costs of 6.41%.
24/7 Fitness, Hallens Drive, Wednesbury, West Midlands WS10 7DD Location Wednesbury, in the West Midlands, lies within Sandwell Metropolitan Borough in the area known as the Black Country. It is located approximately 9 miles (14.5 km) north-west of Birmingham City Centre, with Walsall 5 miles (8.0 km) to the north-east and Wolverhampton 6 miles (9.6 km) to the north-west. The town is strategically located on the motorway network being approximately 3 miles (4.8 km) west of the intersection of the M5 and M6 motorways. Junction 9 of the M6 motorway is 2 miles (3.2 km) north-east of Wednesbury via the A461 (Dudley Road), and Junction 1 of the M5 lies 4 miles (6.4 km) to the south east via the A41 (Black Country New Road). Wednesbury is located on the Midland Metro Tram Line which links Birmingham and Wolverhampton via West Bromwich and Wednesbury. Mainline Rail services are from Walsall providing services to the 24/7 Fitness West Midlands area including Birmingham New Street Station. Birmingham International Airport is located approximately 20 miles (32.2 km) to the south-east of Wednesbury and is easily accessible within a 40 minute drive time via the M6. Situation The property occupies a prominent position fronting the busy Steel Roundabout on Hallens Drive. The Steel Roundabout provides the main access route to the Automotive Components Park and lies at the junction of the A41 (Black Country New Road) and A461 (Dudley Road). The A41 provides direct access to the M5 to the south and M6 to the north. Wednesbury Parkway tram station neighbours the property to the south, with journey times to Birmingham City Centre and Wolverhampton within half an hour and 15 minutes respectively. The property is situated on the southern border of the Britannia Business Park, a well-established commercial location with a number of major occupiers represented including Amazon, Warburtons Bakers, WH Smith, Dreams Furniture and E-ON.
24/7 Fitness, Hallens Drive, Wednesbury, West Midlands WS10 7DD Description The property comprises a purpose built gymnasium building with part mezzanine floor and extensive car park constructed in 1998. The building is of steel frame construction with cavity brick infill and part cladding to the front elevation under a shallow pitched roof of profiled metal. Internally the ground floor provides a large open plan gym, male and female changing rooms, a communal shower and spa area, a reception, a small office and a bar/lounge area. There is a 5 person lift providing access between ground and mezzanine floors. The first floor mezzanine area is accessed via a metal frame staircase to an open balcony providing access to an exercise studio, beauty and sunbed area, first floor gym, and an RPM studio for bike classes. Accommodation Buchanan Bond understands the gross internal floor area (GIA) to be as follows: Floor Sq M Sq Ft Ground 999.05 10,754 Mezzanine 682.67 7,348 Total 1,681.72 18,102 The car park provides a total of 125 marked spaces with 4 for disabled use. The property occupies a site of approximately 2.61 acres (1.06 hectares) providing a site coverage of approximately 16%. Tenure Freehold.
24/7 Fitness, Hallens Drive, Wednesbury, West Midlands WS10 7DD
Tenancy
Tenant Lease Term Rent Review Break Date Lease Expiry Rent pa. Rent psf Comments
Fitness First Clubs Limited with 35 years 30/04/2019 and 5 30/04/2029 29/04/2039 £198,410 £10.96 The 30/04/2019 rent review is subject to a fixed uplift to £224,481 per
guarantee from Fitness First yearly thereafter annum exclusive which the vendor will top up to completion. *The lease has
Limited* been underlet to 24/7 Fitness Group Limited with a guarantee from Twenty
Four Seven Fitness Limited
Covenant 24/7 Fitness Limited and Twenty Four Seven Fitness Limited
Established in 2011, 24/7 Fitness is the fastest growing low cost gym operator in the UK, offering
Fitness First Clubs Limited flexible “no contract” gym memberships. The company currently operates 14 gyms throughout the
UK which are all open 24 hours a day.
Fitness First started as a single health and fitness club in Bournemouth in 1993. They are now the
largest privately owned health club group in the world. They consist of more than 360 Fitness First 24/7 Fitness Limited has a D&B rating of B2 which represents a “lower than average risk” of business
clubs worldwide with just over 927,000 members in 16 countries. In the UK alone there are 78 Fitness failure. Summary accounts for the last 3 years are set out below:-
First clubs with over 171,000 members.
Fitness First Clubs Limited has a D&B rating of 4A2 which represents a “lower than average risk” of 24/7 Fitness Limited 30/06/2017 30/06/2016 30/06/2015
business failure. Summary accounts for the last 3 years are set out below:- Tangible Net Worth £326,797 £286,014 £71,518
Fitness First Clubs Limited 31/03/2017 31/10/2015 31/10/2014 Twenty Four Seven Fitness Limited has a D&B rating of N4 which represents a “high risk” of business
(000s) (000s) (000s) failure.
Sales Turnover £101,212 £75,435 £76,322
Profit Before Taxes £159,228 -£6,675 -£13,299 EPC
Tangible Net Worth £20,768 -£117,475 -£112,517
An EPC is available on request.
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Proposal VAT Offers are invited in excess of £2,800,000 (Two Million, Eight Hundred Thousand Pounds), subject to The property has been elected for VAT and it is envisaged that the transaction will be treated as a contract and exclusive of VAT. This reflects a Net Initial Yield of 7.50% based off the topped up level of Transfer of a Going Concern (TOGC). £224,481 per annum, assuming normal purchaser’s costs of 6.41%. Further Information Should you require further information or wish to view the property please contact either:- STEVEN POLLACK JONATHAN SKERRY 3-5 Barrett Street ANDREW J B RILEY WILL WYNN WILLIAMS 3-5 Barrett Street T: 020 7042 6002 T: 020 7042 6004 St Christopher’s Place T: +44 (0)20 3871 2672 T: +44 (0)20 3871 2671 St Christopher’s Place M: 07530 424 019 M: 07736 300 594 London W1U 1AY M: +44 (0)7900 983 608 M: +44 (0)7581 544726 London W1U 1AY E: steven@buchananbond.com E: jonathan@buchananbond.com www.buchananbond.com E: andrew@somerfordre.com E: will@somerfordre.com www.somerfordre.com Misrepresentation Act 1967 & Declaration Buchanan Bond Real Estate Ltd and Somerford, for themselves and for the vendors of this property whose agents they are, give notice that: i) The particulars are set out as a general outline only for the guidance of intending purchasers, and do not constitute, nor constitute part of, an offer or contract. ii) 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 should not rely on them as statements or representations of fact and must satisfy themselves by inspection or otherwise as to the correctness of each of them. iii) No person in the employment of Buchanan Bond Real Estate Ltd and Somerford has any authority to make or give any representation or warranty in relation to this property. MAY 2018.
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