DW FITNESS FIRST TIMBER BEACH ROAD, SUNDERLAND, TYNE & WEAR, SR5 3XG - 16 YEAR+ SECURE INCOME GYM INVESTMENT WITH GUARANTEED MINIMUM RENTAL ...
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DW FITNESS FIRST TIMBER BEACH ROAD, SUNDERLAND, TYNE & WEAR, SR5 3XG 16 YEAR+ SECURE INCOME GYM INVESTMENT WITH GUARANTEED MINIMUM RENTAL UPLIFTS AT RENT REVIEW
DW FITNESS CLUB TIMBER BEACH ROAD, SUNDERLAND, TYNE & WEAR, SR5 3XG 16 YEAR+ SECURE INCOME GYM INVESTMENT WITH GUARANTEED MINIMUM RENTAL UPLIFTS AT RENT REVIEW
INVESTMENT CONSIDERATIONS
■■ City Fringe Gym Investment situated on the ■■ Current passing rent of £180,846 pa with a ■■ The vendor is seeking offers in excess of
busy Wessington Way within close proximity guaranteed fixed rental uplift to £209,650 pa in £2,650,000 (Two Million Six Hundred and Fifty
to Sunderland city centre October 2020, £243,041 pa in October 2025 and Thousand) subject to contract and exclusive of VAT.
■■ Located in an established retail warehouse location £281,750 pa in October 2030 Based on this level of pricing, the Net Initial Yield
adjacent to Hylton Riverside Retail Park ■■ Freehold reflects 6.41%, assuming purchasers costs of 6.40%.
■■ Let to Dave Whelan Sports Limited on a ■■ Benefits from on-site car parking for YIELD PROFILE
25 year lease from 25th October 2010 approximately 141 cars October 2020 7.44%
(16.5 years unexpired) ■■ Site area of 0.59 Hectares (1.458 acres) October 2025 8.62%
October 2030 9.99%
DW FITNESS CLUB TIMBER BEACH ROAD, SUNDERLAND, TYNE & WEAR, SR5 3XG 16 YEAR+ SECURE INCOME GYM INVESTMENT WITH GUARANTEED MINIMUM RENTAL UPLIFTS AT RENT REVIEW
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DW FITNESS CLUB TIMBER BEACH ROAD, SUNDERLAND, TYNE & WEAR, SR5 3XG 16 YEAR+ SECURE INCOME GYM INVESTMENT WITH GUARANTEED MINIMUM RENTAL UPLIFTS AT RENT REVIEW
DEMOGRAPHICS NORTHERN SPIRE BRIDGE
With a population in excess of 277,962 Sunderland is home to The August 2018 opening of the Northern Spire
over 127,000 households spread across 60 neighbourhoods Bridge has also improved accessibility within
with a high proportion aged 65 and over. Sunderland is the Sunderland and particularly to Timber Beach
second biggest local authority area in Tyne and Wear covering Road. Northern Spire crosses the river from the
a total of 137 square kilometres. Sunderland’s residents make A1231 Wessington Way where Timber Beach
up 10.57% of the North East’s population and 24.75% of the Road joins Hylton Park Road near Sainsbury’s
Tyne and Wear population. in Castletown on the north bank to join with
the B1405 European Way/Pallion New Road
in Pallion on the south bank. It will provide a
vital new transport link across the River Wear
that will help connect the Port of Sunderland
SUNDERLAND REDEVELOPMENT and Sunderland city centre with the A19, the
Since 2015, almost £1 billion has already been invested in developing IAMP Enterprise Zone and the wider
Sunderland as part of a masterplan aimed at generating jobs, Tyne and Wear city-region.
improving infrastructure and cultural assets in the city. Looking As well as improving road transport links and
ahead, a further £626m of spending is due to flow into the city making journeys quicker and more reliable, the
by 2024. Sunderland Railway Station is due to undergo a £13.7m new bridge will open up the Metro network to
redevelopment, while an extension to the Bridges Shopping thousands of people who live, work and play on
Centre development will see a new retail development built the north side of the River Wear to employment
on the former site of Crowtree Leisure Centre. Several major and leisure opportunities right across the region.
housing developments are also in the pipeline.
DW FITNESS CLUB TIMBER BEACH ROAD, SUNDERLAND, TYNE & WEAR, SR5 3XG 16 YEAR+ SECURE INCOME GYM INVESTMENT WITH GUARANTEED MINIMUM RENTAL UPLIFTS AT RENT REVIEW
SITUATION DESCRIPTION
The property is prominently situated on the The property comprises a substantial, detached
north side of the River Wear and only 2 miles health club arranged over ground and first
west of Sunderland City Centre. The A1231 floor. The ground floor is arranged to provide
lies immediately to the north of the subject a swimming pool (18m) area with Jacuzzi and
property providing links from the city centre. steam room, male and female changing rooms,
Neighbouring retailers included Argos, Aldi, two studios, and a salon and lounge area. The
B&M Home Store, Costa, Greggs, Card Factory, first floor is arranged to provide a large open
Matalan, Pets at Home and Poundstretcher. plan gym with cardio and free weights areas
There are also a number of office buildings along with a studio room.
nearby including Berghaus Head Office, TSB
Riverside House and Bibby Financial Services.
DW FITNESS CLUB TIMBER BEACH ROAD, SUNDERLAND, TYNE & WEAR, SR5 3XG 16 YEAR+ SECURE INCOME GYM INVESTMENT WITH GUARANTEED MINIMUM RENTAL UPLIFTS AT RENT REVIEW
FLOOR AREAS TENANCY
Floor Use Sqm Sq Ft The property is let in its entirety to Dave Whelan Sports Limited
(trading as DW Sports Fitness) on a 25 year effectively FRI lease
Ground Floor Gymnasium 1,194.9 12,862 from 25th October 2010 (lease expiry October 2035) at a current
Mezzanine Gymnasium 1,178.2 12,682 rent passing of £180,846 per annum, which equates to a rent of
£7.07 psft.
Total 2,373.1 25,544
The lease provides 5 yearly upwards only rent reviews that are
fixed as follows:
SITE AREA 25th October 2020: £209,650 pa
0.59 Hectares (1.458 acres) 25th October 2025: £243,041 pa
25th October 2030: £281,750 pa
TENURE
Freehold.
© Crown Copyright, ES 100004106. For identification purposes only.
DW FITNESS CLUB TIMBER BEACH ROAD, SUNDERLAND, TYNE & WEAR, SR5 3XG 16 YEAR+ SECURE INCOME GYM INVESTMENT WITH GUARANTEED MINIMUM RENTAL UPLIFTS AT RENT REVIEW
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
increased from £55.9m to £68.2m.
Dave Whelan Sports Ltd reported the following results over the last 3 years:
31/03/2018 31/03/2017 27/03/2016
Sales Turnover £222,961,000 £203,528,000 £159,585,620
EBITDA £18,274,000 £18,582,215 £14,753,942
Pre-Tax Profit (£8,925,000) (£7,987,398) £3,565,691
Total Net Worth £68,230,000 £55,943,000 £51,803,631
GYMNASIUM INVESTMENT COMPARABLES
Property Sale Tenant Earliest NIY Sale Price
Date Determination
Tritton Road, May 19 DW Fitness 14.5 years 5.90% £2,900,000
Lincoln
Ranelagh Road, April 19 DW Fitness 16 years 7.00% £4,650,000
Ipswich & Orwell
Motorcycles
125 Copenhagen Jan 19 Pure Gym 15 years 6.00% £2,500,000
Way, Norwich
43 Peninstone Aug 18 Greenwich 12 years 6.10% £2,545,000
Road North, Leisure
Sheffield
The Pentagon, Aug 18 Nuffield Health 25 years 5.48% £9,850,000
Nottingham
EPC PROPOSAL
DW Sports Fitness Club, Timber Beach Road rated 38 (Grade B).
The vendor is seeking offers in excess of £2,650,000 (Two Million, Yield Profile
Six Hundred and Fifty Thousand) subject to contract and exclusive October 2020 7.44%
VAT
of VAT. Based on this level of pricing, the Net Initial Yield reflects October 2025 8.62%
The purchase will be subject to VAT and it is our client’s intention
to sell the property by way of a TOGC. 6.41%, assuming purchasers costs of 6.40%. October 2030 9.99%
DATAROOM For further information or to make arrangements for viewing please contact:
For access to the Allsop dataroom please use the following link: PRIVATE CLIENT TEAM
https://datarooms.allsop.co.uk/register/dwsunderland Ronnie Morgan Jonathan Butcher
020 7543 6808 020 7543 6755
ronnie.morgan@allsop.co.uk jonathan.butcher@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 05.19
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