GALA BINGO, LIVERSAGE STREET DERBY DE1 2LD - New Reversionary Lease Agreed 2018 Providing 18+ years Income
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GALA BINGO, LIVERSAGE STREET
DERBY DE1 2LD
New Reversionary Lease Agreed 2018 Providing 18+ years Income
DERBY CATHEDRAL
DERBY COUNCIL HOUSE
DERBY MARKET HALL
DERBY RIVERLIGHTS
LEISURE SCHEME
A601
ST PETER’S SHOPPING
QUARTER
PARKING
NCP CAR PARK
A6
-c
. 24 million
footfall pa
- 1.3 million sq ft
- 180 retail units
TRAFFIC STREET
BRADSHAW WAY
RETAIL PARK
TRINITY WALK RESIDENTIAL
DEVELOPMENT
CASTLEWARD PHASE 1
RESIDENTIAL DEVELOPMENT
THE NIGHTINGALE QUARTER
- 500 New Homes
Executive Summary
• Gala Bingo completed a new
reversionary lease on 26th Feb 2018
for an additional 15 years from 25
Dec 2021 providing a term certain
of 18.5 years.
• Gala Bingo is currently being
re-branded as Buzz Bingo with
£8,000,000 being spent by the
business to re-brand and refresh
its portfolio.
• Highly prominent unit situated on
inner ring road, directly opposite the
1.3 million sq ft intu Derby Shopping
Centre which has a footfall of over
24 million people per year.
• The subject site of 2.17 acres is
zoned for residential. The property is
adjacent to a number of commercial
and residential regeneration projects,
including the £100m Castleward
scheme.
• Gala Bingo is the largest bingo
operator in the UK with 130 clubs.
• Rent remained at £318,750 per annum
following 2018 re-gear, reflecting
£11.92 psf.
• We have been instructed to seek
offers in excess of £5,025,000, subject
to contract and exclusive of VAT
reflecting a NIY of 5.95% assuming
standard purchasers costs of 6.59%.
A purchase at this level would reflect
a low capital value of £188 psf.
Location
Derby is strategically located in the heart of England 12
miles west of Nottingham, 22 miles north-west of Leicester
and 110 miles north-west of London. Derby benefits from
excellent road communications being located 7 miles to
the west of Junction 25 of the M1, accessed via the A52
to the east. To the west, the A50 links Derby to Stoke-on-
Trent and Junction 15 of the M6 motorway, whilst to the
south-west, the A38 affords quick access to Birmingham.
Derby occupies a key location in the national rail network,
the mainline railway station lies within 0.7 miles to the
south of the property and direct trains run frequently
to Birmingham New Street and London St Pancras with
a journey time of approximately 35 minutes and 1 hour
East Midlands
30 minutes respectively. East Midlands airport is located
just over 10 miles to the south-east of the city and serves
over 4 million passengers per year to a wide range of
destinations throughout the UK and Europe.
The subject property benefits from a 20-minute drive time
catchment population of approximately 386,000.
Situation
The property is located on the southern fringe of the city centre, fronting the inner
ring road A601, between the train station and intu Derby Shopping Centre. In 2017,
Intu Derby contributed £311 million to the local economy through employment,
regional investment and business rates paid and supported over 7,139 jobs last year -
representing 4.8% of all jobs in the area.
As well as being within 100m of the prime shopping centre in Derby, the subject
GALA BINGO
property is situated within an area of significant commercial and residential
regeneration. The £100 million regeneration of the Castleward area is a key element
of the City’s ambitious strategic development plan. The long-term regeneration
scheme will be carried out in a number of phrases and will provide about 800 new
home, 35,000 sq ft of retail accommodation, a school and community spaces.
The property is accessed via Liversage Street directly off the A601 Traffic Street ring
road, which connects to the A52 less than 1 mile to the north east, leading to the M1
motorway, providing access to the north and south of the UK.
Description
The property was constructed in 1997 and
comprises a single-storey bingo hall. The unit
is of steel frame construction with brickwork
to elevations under a pitched roof. Internally,
the property has been fitted-out in the tenant’s
corporate style and includes a bingo hall, arcade
kitchen and training centre.
The property benefits from a customer car park
providing approximately 116 car parking spaces,
reflecting a ratio of 1:230.
Site / Planning
The property has a site area of 2.17 acres (0.87
hectares) providing a site cover of approximately
28%.
Photography selection The Derby City Local Plan 2017 has identified a
number of strategic sites and locations to deliver
new homes and contribute to meeting the City’s
housing target. The subject property is located
within the Castleward site, which has been
allocated 800 dwellings. (REF: 01/100093).
48.4m
S ID
Works
DA
LS
49.4m
The property benefits from D2 (Assembly and
Leisure) Use class.
rks
Wo
Castle 48.5m
Nursery
CO School
PE Red Cross
LA
ND Headquarters
El
Su ST
k
Tenure
W al
b RE
S ta
ET
d
Works
elan
2
Cop
Works
WR
4
50.1m H ea VS
dq
uart
Freehold.
ers
Club
48.5m
Subway
Warehouse
S TRE ET
3
Works
FIC
TR AF
Conveyor
Hopper
Castleward Court
57.0m
12
to
6
LIV
ER
1 20 SA
GE
0m 25m 50m 75m
to
14
S TRE ET
4
2
Filling
Regeneration
Castleward is a £100 million scheme
that is being built over a number of
phases. A new boulevard linking Derby
Midland Station with the Intu Derby
shopping centre has also been created.
In all, 800 new homes will be built,
creating an ‘urban village’.
The first phrase has now completed
and provides 164 homes. A planning
application has been submitted to
4 Derby City Council for phrase two of
the Castleward regeneration scheme,
to build a further 180 homes on NCP’s
Liversage Street car park.
Nightingale Quarter Estates have
received unanimous approval for outline
planning for a £40 million mixed-use
regeneration scheme comprising shops,
1 restaurants, offices and a public park.
Nightingale Quarter Estates has also
2 agreed to pay for a new primary school
and part-fund a secondary school as
part of the section 106 agreement.
1 Castleward Phase 1
3 2 Castleward Phase 2
3 Nightingale Quarter
4 Identified for future mixed-use
development
Tenancy
Unit Area Rent Rent ERV ERV
Tenant Lease Start Lease Expiry Next Review Comments / Asset Management
Name (sq ft) (pa) (psf) (psf) (pa)
Gala completed a new reversionary lease on 26th Feb 2018
for an additional 15 years from 25 Dec 2021 - lease expiry
Leisure Gala Leisure Ltd * 26,737 25/12/1996 24/12/2036 25/12/2021 £318,750 £11.92 £11.92 £318,750 therefore 24 Dec 2036. The previous rent was £318,750 p.a.
Gala received an incentive of 3 months rent free.
*Re-named Buzz Group Ltd from 3rd September 2018. Name change only.
Covenant Analysis Bingo Market
Gala Leisure Limited (00794943) • Bingo market is worth circa £732 million
From 3rd September 2018, Gala Leisure Limited are now Buzz Group Limited. • Increase of 4% in revenue
This is a change of name only and therefore the registered company number and • Improved offering, improved income - F&B generates £88 million of spend in bingo clubs
other details remain the same.
Fame Credit Score: Secure (92)
• Gala Bingo is the leading UK bingo club operator by number of venues Bingo Market share nationwide
• Gala Bingo has an estate 50% larger than its nearest rival, Mecca.
Operator Number of Stores
• Gala Bingo occupies 37% of bingo clubs in the UK 24.6%
Gala Bingo 130
Gala Bingo is the UK’s leading bingo club chain, with 130 clubs nationwide. Rank Group (Mecca) 84 36.8%
Formerly owned by Gala Coral Group, the brand was sold to Caledonia Majestic Bingo 16
Investments in October 2015 for £241 million as part of preparations for Gala
Carlton Clubs 13 3.1%
Coral’s merger with Ladbrokes.
Club 3000 12 3.4%
Buzz Bingo Castle Bingo 11 3.7%
Gala Bingo is currently being re-branded as ‘Buzz Bingo’ with c. £8,000,000 Others 87 4.5%
being spent on CAPEX to re-brand and refresh its portfolio. Gala Derby is to be
re-branded w/c 17th September 2018. 23.8%
(Source: Mintel)
14/01/2017 26/09/2015 27/09/2014
Turnover £360,710,000 £284,674,000 £280,062,000
Profit before Taxation £19,031,000 -£1,933,000 £78,983,000
Net Worth £241,422,000 £271,041,000 £274,981,000
Gala Leisure Limited is a wholly owned subsidiary of Caledonia Investments PLC.
EPC Proposal
The property has an EPC rating of C (75). We have been instructed to seek offers in excess of £5,025,000, subject to contract and exclusive of VAT
reflecting a NIY of 5.95% assuming standard purchasers costs of 6.59%. A purchase at this level would reflect
a low capital value of £188 psf.
VAT Contact
Whilst VAT will be payable on the property For further information or to arrange an inspection please contact:
we anticipated that the sale will be treated
as a TOGC (Transfer of Going Concern). Andrew McGregor Daniel Serfontein
E: andrew.mcgregor@knightfrank.com E: daniel.serfontein@knightfrank.com
T: +44 20 7861 1531 T: +44 20 3640 7037
M: +44 7970 971 538 M: +44 7891 996 745
MISREPRESENTATION ACT: Knight Frank LLP give notice to anyone who may read these particulars as follows: 1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or
by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and accordingly any information
given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate
only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that
these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934.
Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members’ names. September 2018.
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