DW FITNESS CLUB PORT WAY, PRESTON, LANCASHIRE, PR2 2YQ - 17 YEAR + SECURE INCOME GYM INVESTMENT WITH GUARANTEED FIXED RENTAL UPLIFTS EVERY 5 YEARS ...
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DW FITNESS CLUB PORT WAY, PRESTON, LANCASHIRE, PR2 2YQ 17 YEAR + SECURE INCOME GYM INVESTMENT WITH GUARANTEED FIXED RENTAL UPLIFTS EVERY 5 YEARS
DW FITNESS CLUB PORT WAY, PRESTON, LANCASHIRE, PR2 2YQ 17 YEAR + SECURE INCOME GYM INVESTMENT WITH GUARANTEED FIXED RENTAL UPLIFTS EVERY 5 YEARS
INVESTMENT CONSIDERATIONS
■■ Gym Investment located within close proximity ■■ Current passing rent of £173,890 per annum with ■■ The vendor is seeking offers in excess of
to Preston City Centre a guaranteed fixed rental uplift to £276,955 pa in £3,550,000 (Three Million Five Hundred and Fifty
■■ Substantial detached gymnasium arranged November 2021, £321,065 pa in November 2026 Thousand Pounds) subject to contract and exclusive
over 2 floors, totalling 20,330 sq ft and £372,201 pa in November 2031. The vendor of VAT. Our client proposes to top up the rent to the
proposes to top-up the rent in line with the 2021 November 2021 uplift and the price will reflect the
■■ Let to Dave Whelan Sports Ltd with uplift following net initial yield profile:
c. 17 years remaining
■■ Benefits from on-site car parking for approximately
■■ Freehold YIELD PROFILE
132 cars
Today 7.32%
■■ Site area of 0.24 Hectares (1.45 acres) November 2026 8.50%
■■ Low site coverage of 18% November 2031 9.84%
DW FITNESS CLUB PORT WAY, PRESTON, LANCASHIRE, PR2 2YQ 17 YEAR + SECURE INCOME GYM INVESTMENT WITH GUARANTEED FIXED RENTAL UPLIFTS EVERY 5 YEARS
LOCATION
Preston is the administrative centre of Lancashire located 25
miles (40 km) south of Lancaster, 35 miles (56 km) North West
of Manchester and 62 miles (99 km) west of Leeds.
It is a major commercial centre with the city being home to
major offices for the British Defence Aerospace industry with
key BAE Systems facilities located on either side of the city.
Other major employers include the Springfields Nuclear
Processing Plant, James Hall & Co, Booths Fulwood, Eric
Wright Group and Homeserve.
The area benefits from excellent communications with the city
prominently situated on the national road and rail networks,
both of which provide excellent links across the UK:
ROAD
Preston is situated on the M6 providing access to
Birmingham to the south and Carlisle and Scotland to the
north. The M55 lies to the north of the city linking Preston and
Blackpool. The M61 and M65 both terminate at Preston with the
Bra
A583 M61 providing access to Manchester via Bolton and the M65
y Street
Tulketh Brow
Egerton Road A5072 Tulketh Roa
Harrogate
d linking the city to Colne via Blackburn and Burnley.
Swa
A59
Dou
YORK
nse
RAIL
Lan e
glas
A658
a St
A65
Stre
P e d d er s
Powis Road
ree
Leeds A61
A64
Preston Railway Station is a major hub on the West
et
t
Bradford
A6068
A1(M)
A5
A59 A19 A583 Wate
M6 A629 ry Lan
e Coast Main Line, offering direct services to London Euston (2
07
Blackpool LEEDS
Co
2
hours 8 minutes) to the south and Glasgow, Edinburgh and
Po r t W a y
rp
M55
PRESTON BRADFORD
We
or
ati
M65 Burnley
Aberdeen in the north. It also serves as a centre for connecting
st
A583
o
A63
nS
Str
Blackburn Accrington Castleford Mariners Way
services to Blackpool, Lancaster, Blackburn, Leeds, Manchester,
tre
an
A646 Halifax
et
d
A56
A59
Wakefield
M62 Ch
an
ne
Liverpool and Wigan.
A6033
M62 Huddersfield
Marina lW
ay
M66 Rochdale M1
A1
AIR
A570 M61
Bolton
A629 M180 Liverpool John Lennon Airport and Manchester
Wigan Oldham Barnsley A59
M58 Doncaster Na
vi g Airport, both international airports, are
a t ion Way
MANCHESTER
Po
rt
M6
A628 Wa
y Talbo
t Ro a
d
approximately 40 miles (64 km) south-west and
A580
LIVERPOOL
Robin Hood
south-east of the city respectively. Preston Railway Station
l Park
Rotherham River Ribble
M60 A1(M)
M62
provides a direct service to Manchester Airport, with a journey
Warrington
SHEFFIELD time of approximately 52 minutes.
ationa
P or
A1 tr W
M56 ay
Manchester A523
Liverpool M1 Worksop
M53
A623
A61
ct N
Northwich Macclesfield Buxton Retford
A60
A556 Chesterfield
Penwortham Golf Club
stri
9
ll
A5
Chester M6 A614 Hi
te
DW FITNESS CLUB PORT WAY, PRESTON, LANCASHIRE, PR2 2YQ 17 YEAR + SECURE INCOME GYM INVESTMENT WITH GUARANTEED FIXED RENTAL UPLIFTS EVERY 5 YEARS
DEMOGRAPHICS
Preston is an affluent city and district that falls
within Lancashire County. The City has an estimated
population of 142,000 people and is home to c.
62,600 households spread over 16 wards, totalling
142 square kilometres. Preston accounts for roughly
9.6% of Lancashire’s population.
PRESTON REDEVELOPMENT SITUATION
Preston City Centre is currently undergoing major The property is situated on the eastern side of Port Way, just 1.4 miles (2.2
redevelopment as part of the £435 million Preston and km) east of Preston city centre. Port Way provides direct access to the
Lancashire City Deal Scheme. The initiative will see A583, which in turn links to the M55 Motorway to the west and Preston city
the regeneration of Preston’s main High Street, with centre to the east.
an additional £50 million used to transform Preston’s The property is located within established commercial location, anchored
Markets Quarter, which will include a new cinema, retail by a number of office and leisure tenants within the immediate area
units, restaurants and a car park. including Regus, Odeon and KFC as well as several car show rooms.
In addition to this, the forward development of the HS2 Preston’s main out of town retail pitch is situated in very close proximity to
will link Preston Birmingham and London in 44 minutes the property, with national covenants including Halfords, Mothercare, Pets
and 78 minutes respectively, significantly increasing at Home, Lidl, McDonalds and a Morrison’s superstore and petrol station.
connectivity within the area.
Additionally, there are a number of residential developments positioned
within proximity to the Marina.
DW FITNESS CLUB PORT WAY, PRESTON, LANCASHIRE, PR2 2YQ 17 YEAR + SECURE INCOME GYM INVESTMENT WITH GUARANTEED FIXED RENTAL UPLIFTS EVERY 5 YEARS
DESCRIPTION FLOOR AREAS
The property comprises a detached two storey health club Floor Use Sqm Sq Ft
arranged over ground and first floors extending to 1,889 sq m
(20,330 sq ft). The ground floor consists of male and female Ground Floor Gymnasium 1036.7 11,159
changing rooms with shower facilities, customer café and Mezzanine Gymnasium 852.0 9,171
open-plan gym area. The rear of the property consists of an Total 1,888.7 20,330
18.5 meter pool with Jacuzzi, sauna and steam room.
The first floor is accessed via a centrally located staircase
which leads to another open-plan gym space with of two
additional fitness studios. SITE AREA TENURE
The property provides c 128 parking spaces with 4 disabled The property comprises a site area of Freehold.
spaces. 0.24 Hectares (1.45 acres) and a very
low site coverage of approximately 18%.
© Crown Copyright, ES 100004106. For identification purposes only.
DW FITNESS CLUB PORT WAY, PRESTON, LANCASHIRE, PR2 2YQ 17 YEAR + SECURE INCOME GYM INVESTMENT WITH GUARANTEED FIXED RENTAL UPLIFTS EVERY 5 YEARS
TENANCY
The property is let in its entirety to Dave Whelan Sports
Limited (trading as DW Sports Fitness) on a 25 year effectively
FRI lease from 25th November 2011 (lease expiry November
2036) at a current rent passing of £173,890 per annum, which
equates to a rent of £8.55 psft.
The lease provides 5 yearly upwards only rent reviews that are
fixed as follows:
25 November 2021: £276,955 pa
25 November 2026: £321,065 pa
25 November 2031: £372,201 pa
It is our clients intention to top up the rent to £276,955 pa.
COVENANT
Dave Whelan Sports Ltd
Established in 2009, DW has grown exponentially to become the
second largest operator of gyms in the UK. This leading leisure and retail
business currently operates 90 retail stores across the UK stocking a
wide range of authentic sports performance brands, as well as 120 gym
clubs providing extensive facilities for members including large gym
floor and functional training areas, member cafes, swimming facilities
and a wide range of group exercise classes.
In September 2016, DW Sports acquired Fitness First UK, which
added an additional 45 Fitness First Clubs. This acquisition expanded
DW’s market share into the south-east market giving an even greater
nationwide presence.
For the year ended March 2018, the new emerged group of companies
reported a record level of turnover of £223m with an adjusted EBITDA
figure of £18.2m. The Group completed its disposal programme of
non-core Fitness First Clubs and they continued its store and club
refurbishment, which in part has resulted in the accounts showing a pre-
tax loss, predominantly due to a higher depreciation charge of £18.37m
and goodwill amortisation, acquisition and integration costs of £5.245m.
The EBITDA remains strong at £18.27m. During 2018, DW’s turnover
rose by £19.4m, membership numbers grew by 3% and net assets GYMNASIUM INVESTMENT COMPARABLES
increased from £55.9m to £68.2m.
Dave Whelan Sports Ltd reported the following results over the last Property Sale Date Tenant Earliest Determination NIY Sale Price
3 years: Timber Beach Road, Sunderland June 19 DW Fitness 16.5 years 6.50% £2,600,000
31/03/2018 31/03/2017 27/03/2016 Tritton Road, Lincoln May 19 DW Fitness 14.5 years 5.90% £2,900,000
Sales Turnover £222,961,000 £203,528,000 £159,585,620 Ranelagh Road, Ipswich April 19 DW Fitness & Orwell Motorcycles 16 years 7.00% £4,650,000
EBITDA £18,274,000 £18,582,215 £14,753,942 125 Copenhagen Way, Norwich Jan 19 Pure Gym 15 years 6.00% £2,500,000
Pre-Tax Profit (£8,925,000) (£7,987,398) £3,565,691 43 Peninstone Road North, Sheffield Aug 18 Greenwich Leisure 12 years 6.10% £2,545,000
Total Net Worth £68,230,000 £55,943,000 £51,803,631 The Pentagon, Nottingham Aug 18 Nuffield Health 25 years 5.48% £9,850,000
EPC PROPOSAL
DW Sports Fitness Club, Port Way, rated 122 (Grade E).
The vendor is seeking offers in excess of £3,550,000 (Three Million, YIELD PROFILE
Five Hundred and Fifty Thousand Pounds) subject to contract and Today 7.32%
VAT
exclusive of VAT. Our client proposes to top up the rent to the November November 2026 8.50%
The purchase will be subject to VAT and it is our client’s
intention to sell the property by way of a TOGC. 2021 uplift and the price will reflect the following yield profile: November 2031 9.84%
DATAROOM For further information or to make arrangements for viewing please contact:
For access to Allsop Dataroom please use the following link:
https://datarooms.allsop.co.uk/register/dwpreston Ronnie Morgan Alex Butler
020 7543 6808 020 7543 6722
ronnie.morgan@allsop.co.uk alex.butler@allsop.co.uk allsop.co.uk
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to
be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties,
undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as
to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary
searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 09.19
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