Middleton, Lancashire, M24 4TH - SECURE INCOME LEISURE INVESTMENT gva.co.uk/8375 - NovaLoca
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SECURE INCOME LEISURE INVESTMENT ENTER Middleton, Lancashire, M24 4TH gva.co.uk/8375
EXECUTIVE SUMMARY
• Located within 2 miles of both the M60 and • Let to the strong covenant of Virgin Active • A purchase at this level would reflect a yield
the M62 motorways and within 5 miles of Limited and Virgin Active Health Clubs Ltd for a profile, assuming GVA RPI forecasts and
Manchester term of expiring 13th July 2036 acquisition costs of 5.80%, of :-
• Situated within a densely populated area with • Rental income of £362,913.49 per annum, low Acquisition 6.35
over 2.8 million living within a 10 mile radius rental of £2.66 psf overall per annum
2017 6.59
• Strong location supported by favourable • Yearly reviews from July 2017 will be increased
2018 6.80
demographics in line with RPI subject to a collar of 1% and a cap
of 4% pa 2019 7.01
• Flagship health and racquets club,
providing 12,649.85 sq m (136,163 sq ft) of • Long Leasehold 2020 7.25
accommodation and associated car parking. 2021 7.53
9 indoor tennis courts, 5 outdoor tennis courts • Offers are sought in excess of £5,400,000
and 4 badminton courts (Five Million Four Hundred Thousand), subject 2026 8.94
to contract and exclusive of VAT
2031 10.64
• Over 3,700 members
• The proposed price reflects a capital value per Average yield over term 9.15
sq ft of £46.72, which is below replacement cost
for the club.
Home Executive Summary Location Situation Demographics Description Accommodation Tenancy Covenant EPC VAT Proposal Contact
Preston
31 7
Blackpool A584
6
Blackburn A646
30
A646
5 A53
A59 29 Halifax
29 3 4
A582 1
28 M65
A565 A56 A644
8
A666
Southport
Huddersfield
M6 1
M66
A58
Rochdale
M62
A629
Bury 21
A6 Heywood
27 2
M6
6
Bolton A58 3 19
20
Oldham
M61
Wigan 5
3 4
5 26
A6 4
3 17
SCOTLAND 19
Middleton
20
M58
A6 16 Prestwich
21
A576
22 A627
1
Worsley A6
25
M6 Manchester
M60
7
12
M57 24 1 M602 A628
A580 3 23
6 A580 A6010
11
23 10
4 St Helens
M62 24 3
M6
A6
3
Glasgow
A5058 22 A5103
10
2 11
1 Liverpool 9
10
21A
6
5
25
27 26 Edinburgh
A560
5 M62 A56 A626
6 7 Stockport
2 1 21 3 2 4
1 3 2 A624
Altrincham
A5300 A557 4
3 5
Widnes A50 A6
20 8
LO C AT I O N S I T UAT I O N
Speke 7 6 Manchester
M56 Airport
A56 9
4 Liverpool
John Lennon
A561
10
Newcastle
NORTHERN
Airport M6 A34
A557
11 A523
M53 River Mersey
Middleton is located within the Metropolitan Borough The club is located in Middleton approximately
12 19
IRELAND
5 6 A59
7
of Rochdale, Greater Manchester. It is located 8 5 miles
Ellesmere
5 miles north of Manchester City Centre. The property is
A533
A623
north east
A55 Hollywell
of Manchester and 5 miles south9 west Port of M56
situated off of Heywood Old
A556
Road (A6045)A537which links
Rochdale. Manchester and Rochdale are linked10via the14 on to Junction 19 of theBelfast
M60 Manchester City Orbital A537 A537
A664 which runs through Flint Middleton. 11
15
Motorway or Junction 19 of the M62. Macclesfield
A5026 Northwich
A525
A548
A41 M6 A6
A556
Middleton
A541 is a predominately residential
A5117
area which A34
serves as a great catchment area for a fitness 12club. A54
The Middleton Bus Station is adjacent A494 to theChester
Middleton
18 A54 Leeds
A513
Arndale shopping centre. The majority of services A51
A49 Middlewich
A523 A53
serve destinations including Bury, Oldham, A55 Rochdale,
Congleton
A525
Tameside and Manchester city. Middleton is located Dublin 17
Manchester
A541
close to junctionA494 19 of theM62 motorway and, at Rhodes, A41 A50
A51 A34
junction 21 of the M60 motorway . Mills Hill railway A530 A534
station is on the eastern boundary of town, one mile
IRELAND
A527
east of the town centre, with direct services to Rochdale,
Crewe
A534 A534
Manchester
A525 Victoria, Bolton, Wigan and Leeds. A53
16
A500
A494
Wrexham A49 A500
A41
A520
Birmingham
A51 A34
Stoke
Home Executive Summary Location Situation Demographics Description Accommodation Tenancy Covenant EPC VAT Proposal Contact
A525 on-Trent
15
WALES A50
ENGLAND
A51
A584 Preston 6
7
Blackburn A646
30 A646
5
A59 29 Hal
29 3 4
D E M O G RA582
APHICS 1
28
Middleton has a population of 42,972 (2011
M65 30mins
Census), extending to 778,289 persons within
A565 A56
a 30 minute drive time. The area benefits
8
from a an above average proportion of the
A666
most affluent AB social group, and a higher
port
proportion of adults aged between 25–34
A58
M6
compared to the UK average, who traditionally
have a higher disposable income. 1
M66
15mins Rochdale
MIDDLETON H
COMPETITO R A6
Bury
Heywood
21 M62
J
27 K 2
A N A LY S I S Bolton
A58
5mins
20
M6 A58 3 19
6 I
A. Manchester Printworks Nuffield Health,
M61
Manchester, M4 2BS
B. Bannatyne Health Club, Quay St, Wigan 5 (Virgin Active)
Middleton Oldham
3
Manchester, M1 3NR A6 4 19
4
5 Club, Whitworth
C. Bannatyne Health 26 Street, 3 17 20
M58
Manchester, M3 3JU A6 16 Prestwich
21
A576
22 A627
1 D. Bannatyne Health Club, 3 Chepstow St,
Manchester M1 5FW Worsley A6
25
M60
E. LA Fitness, 55 King St, Manchester M2 4LQ
F. Pace Health Club & Nu Spa, 12
Manchester
57 24 1 M602
4 Cheetham Hill Road, Manchester, M4 4EW 3 A-E 23
6 A580 G A6010
G. David Lloyd Fitness,
A580 Barton Embankment, 11
23 10
4 Trafford Park, M17 8RH
H. Fitness St Helens
for Life, Caldershaw Business Centre,
M6
M62 24 3
OL11 1RY A6
3 A5103
I. DW Sports Fitness, Bolton, BL3 2NE 22 L
058 11
J. 10
2
Virgin Active, Bolton, BL1 8TS 6 25 A560
ol K. Total Fitness, Waters Meeting Rd, 9
10
21A
5 27 26 A626
5 Bolton, BL1 8TT M62 A56
6 7 Club, Houldsworth Mill, Stockport A624
L. Kingfisher
1 Health 21 3 2 4
1 3 2
Stockport, SK5 6DA Altrincham
A557 4
A5300 5
Widnes A50 20 A6
Speke 8
7 6 Manchester
A561 A56 M56 Airport
Home Executive Summary Location Situation 9
Demographics Description Accommodation Tenancy Covenant EPC VAT Proposal Contact
Liverpool
John Lennon 10 M6
Airport
A557 A34
DESCRIPTION GROUND FLOOR FIRST FLOOR
• Crèche • 3 treatment rooms
The purpose built flagship health and fitness club • Beauty spa • Aerobic Studios
comprises a modern steel framed construction with • Sports shop • Gym
part steel and glazed elevations under a profile steel • Café (with Costa Coffee facilities) • Squash Courts
barrel roof. Connecting the health and fitness club is • Function room
a single storey tennis facility under a dome shaped • Indoor heated swimming pool
EXTERNAL FACILITIES
lightweight construction. • Sauna, steam room and spa
• 9 indoor tennis courts
• Heated swimming pool
The Club caters for the following facilities:- • 2 squash courts
• 5 external tennis courts
• 4 Badminton Courts
• Multi purpose court
Home Executive Summary Location Situation Demographics Description Accommodation Tenancy Covenant EPC VAT Proposal Contact
ACCO M M O DAT I O N
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 31,218
Tennis, Squash and multi-purpose courts 8,075.25 86,922
First floor 1,674.38 18,023
Total 12,649.85 136,163
Home Executive Summary Location Situation Demographics Description Accommodation Tenancy Covenant EPC VAT Proposal Contact
SITE T E N A N C Y I N F O R M AT I O N
The site extends to an area of 3.71 acres. The property is let on a joint tenancy to Virgin Active Health Clubs Limited (01395346)
and Virgin Active Ltd (company no 3448441) on Full Repairing and Insuring Terms
expiring 7th May 2031. The lease is subject to yearly reviews in line with RPI from 13th
TENURE July 2017, subject to a collar of 1% and a cap of 4% per annum.
The property is held on long leasehold from the Rochdale Borough Council for a term of A reversionary lease is in situ extending the term to 13 July 2036. The commencing
up to 108 years at a peppercorn rent. rent under the reversionary lease is to be the passing rent under the current lease at
the lease expiry.
The leasehold interest currently expires on 1 March 2096, however, the lessee benefits
from an option to extend the long leasehold by a further 26 years. The property currently produces £320,790 per annum with a fixed review as at 13th
July 2016 to £362,813.49 p.a. which equates to only £2.66 per sq ft. It is the vendor’s
intention to top the rent up to this level on completion of the sale.
Home Executive Summary Location Situation Demographics Description Accommodation Tenancy Covenant EPC VAT Proposal Contact
COVENANT PROFILE ENERGY PERFORMANCE
C E RT I F I C AT E ’ S
Since it was founded 14 years ago, Virgin Active has grown to become one of the
largest global health club companies and now has 1.5 million members in 272 clubs Energy Performance Certificate’s (EPC’s) for the property is 58, which provides
across the UK, Europe, South Africa and Australia. a C group rating.
Following the acquisition of Holmes Place’s UK business in 2006, and Esporta in 2012
there are now 118 Virgin Active clubs across the UK, making the company one of the
country’s leading health and fitness providers.
VAT
The property has been elected for VAT which will therefore be payable on the purchase
For the year ending 31 December 2013, the joint covenant reported the following
price unless the sale can be treated as a Transfer of a Going Concern (TOGC).
financial figures:-
Virgin Active Health Clubs Limited (01395346)
(Formerly Holmes Place Health Clubs Ltd)
31/12/2013 31/12/2012 31/12/2011
Sales Turnover £116,385,000 £120,240,000 £117,063,000
Profit/(Loss) before Taxes £143,285,000 (£3,089,000) £11,167,000
Net Assets £606,840,000 £569,455,000 £426,821,000
Virgin Active Limited (3448441)
31/12/2013 31/12/2012 31/12/2011
Sales Turnover £73,823,000 £73,120,000 £71,261,000
Profit/(Loss) before Taxes £1,048,000 (£8,515,000) £4,140,000
Net Assets £1,229,901,000 £887,156,000 £594,922,000
Home Executive Summary Location Situation Demographics Description Accommodation Tenancy Covenant EPC VAT Proposal Contact
PROPOSAL
Offers are sought in excess of £5,400,000 (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 5.80%, of :-
Acquisition 6.35
2017 6.59
2018 6.80
2019 7.01
2020 7.25
2021 7.53
2026 8.94
2031 10.64
Average yield over term 9.15
The proposed price also reflects a capital value per
sq ft of £46.72, which is below replacement cost for
the club.
Home Executive Summary Location Situation Demographics Description Accommodation Tenancy Covenant EPC VAT Proposal Contact
FURTHER London West End
10 Stratton Street
Glasgow
206 St Vincent Street
I N F O R M AT I O N London W1J 8JR Glasgow G2 5SG
London City Leeds
80 Cheapside City Point First Floor
Should you wish to inspect the property London EC2V 6EE 29 King Street
or require additional information, please Leeds LS1 2HL
contact: Belfast
Rose Building Third Floor Liverpool
Philip Colman 16 Howard Street No.4 St Paul’s Square
020 7911 2353 Belfast BT1 6PA Old Hall Street
philip.colman@gva.co.uk Liverpool L3 9SJ
Birmingham
Mark Frampton 3 Brindley Place Manchester
020 7911 2181 Birmingham B1 2JB Norfolk House
mark.frampton@gva.co.uk 7 Norfolk Street
Bristol Manchester M2 1DW
St Catherine’s Court
Gavin Quinn
Berkeley Place Newcastle
020 7911 2558 Bristol BS8 1BQ Central Square
gavin.quinn@gva.co.uk Forth Street
Cardiff Newcastle upon Tyne
Gurminder Manak One Kingsway NE1 3PJ
0161 956 4105 Cardiff CF10 3AN
gurminder.manak@gva.co.uk
Edinburgh
Quayside House
gva.co.uk/8375 127 Fountainbridge
Edinburgh EH3 9QG
For any other investment sales please visit:
www.gva.co.uk/investment
SUBJECT TO CONTRACT Published by GVA - 10 Stratton Street, London W1J 8JR
©2014 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:1.) 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. 3.) 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. 4.) All rentals
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HMSO. Crown Copyright reserved. Licence No 774359. If applicable, with consent of
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8375 Automobile Association. For identification purposes only.
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