PRIME LONG LET HOTEL INVESTMENT WITH INDEXATION - PREMIER INN FLEMINGATE BEVERLEY EAST RIDING OF YORKSHIRE HU17 0NR
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PREMIER INN
FLEMINGATE • BEVERLEY • EAST RIDING OF YORKSHIRE • HU17 0NR
PRIME LONG LET
HOTEL INVESTMENT
WITH INDEXATION
PREMIER INN
FLEMINGATE • BEVERLEY • EAST RIDING OF YORKSHIRE .two
INVESTMENT SUMMARY.
• Beverley is an affluent Georgian Yorkshire town •T
his reflects a highly reversionary room rate. The
current rent equates to only £3,996 pax per bed
• 80 bed Premier Travel Inn Hotel and 2,012 sq.ft
retail unit, situated at the Flemingate development •P
remier Inn Hotels have an undoubted covenant
close to the centre of Beverley. and a Dun & Bradstreet rating of 5A1
• Flemingate is a successful, significant mixed-use • Long Leasehold - 250 years at a peppercorn
development which includes a 6 screen cinema,
•T
he hotel has an exceptional occupancy rate,
130 homes, East Riding College, large number of
increasing year on year since opening and now
retailers including Debenhams, H&M and River
at over 87%.
Island, various restaurants and bars and a 500
space multi storey public car park. •2
,012 sq.ft retail unit will be offered on the basis
of a 24 month rents/rates and service charge
• Let to Premier Inn Hotels Limited on a 25 year FRI
guarantee at a rent passing of £24,144 per annum
lease from 29th April 2016 to 28th April 2041 (21
years 6 months term certain) with a break option in •T
otal rent passing £343,838 per annum
29th April 2036 (16 years 6 months term certain).
•T
he Office for Budgetary Responsibility forecast
• The lease is subject to 5 yearly rent increases to CPI CPI of 2.0% per annum over the next 5 years
capped at 5% per annum compound. The next rent
review is 29 April 2021. ffers are sought in excess of £6,540,000 (Six
•O
Million, Five Hundred and Forty Thousand Pounds)
• The hotel will be sold via a ‘topped up’ passing rent subject to contract and exclusive of VAT.
of £319,694 per annum. The top up shall be to the
29th March 2019 and has been calculated using •A
purchase at this level reflects the following yield
the CPI Index. profile (assuming purchasers’ costs at 6.64%)
PRIME
Rent
Date NIY %
Premier Inn Retail Unit Total
Topped Up Passing Rent (as March 2019) £319,694 £24,144 £343,838 4.93%
INVESTMENT OPPORTUNITY
Forecast (assuming 2% pa CPI)
2021 £332,610 £24,144 £356,754 5.12%
2026 £367,228 £24,144 £391,372 5.61%
2031 £405,449 £24,144 £429,593 6.16%
2036 (break option) £447,649 £24,144 £471,793 6.76%
PREMIER INN
FLEMINGATE • BEVERLEY • EAST RIDING OF YORKSHIRE .three
TOUR DE YORKSHIRE HUMBERSIDE AIRPORT
BRIDLINGTON
A1035 A1035
LOCATION.
Beverley founded in the 7th century is a historic and
HARROGATE A165
YORK A1035 prosperous market town located approximately 8
A1079
HORNSEA miles north of Kingston upon Hull, 32 miles south
A1(M)
MARKET
WEIGHTON east of York and 56 miles east of Leeds. Beverley is
A19 A1079 BEVERLEY the County Town of the east Riding of Yorkshire and
LEEDS
M1 SELBY A165 A1174 PREMIER has a resident population in the region of 30,800.
M62
A63
HULL WITHERNSEA
BEVERLEY INN The town benefits from excellent road
A1079 A164 communications with the A164 and A63 linking
Riv
M62
er
A15 to Junction 38 of the M62 approximately 14 miles
Hu
FLEMINGATE
mb
A1 M18 BEVERLEY
A19 Humberside to the west.
er
WAKEFIELD SCUNTHORPE Airport WESTWOOD
M180 BEVERLEY
M180 GRIMSBY
MINSTER B1230 Beverley’s main train station is situated within a 2
M1 DONCASTER
minute walk from Flemingate with services across the
B1230 UK. By train, Hull is only a 15 minute journey with
A15 MINSTER WAY
M18 A1(M) A159 Leeds and Manchester Piccadilly accessible in 1.5
GAINSBOROUGH A1079 A164 hours and 2.5 hours respectively. The direct London
SHEFFIELD train journey is 3 hours 11 minutes. Humberside
M1
A1 Woodmansey Airport is the closest airport to Beverley, located 23
LINCOLN miles to the south of Flemingate with international
and domestic flights.
Beverley: Tourism
The town is a popular tourism destination known for
the famous Beverley Minster (built 1420), Beverley
Westwood and Beverley Racecourse (established
1767). The town is also known for its impressive
Georgian streets containing a great number of listed
PRIME
buildings including 15th century North Bar. Various
BEVERLEY WESTWOOD FLEMINGATE DEVELOPMENT NORTH BAR sports, food and music festivals are held through the
year including the Tour de Yorkshire. The east coast
seaside resorts of Hornsea, Bridlington, Flamborough
INVESTMENT OPPORTUNITY
and Filey are close by as well as the Yorkshire Wolds
made famous by the artist David Hockney. The town
was recently listed in the Sunday Times report Best
Places to Live in northern England.
BEVERLEY RACECOURSE FILEY BEACH BEVERLEY MINSTER
PREMIER INN
.four
intake
gas
FLEMINGATE • BEVERLEY • EAST RIDING OF YORKSHIRE
duct
Incoming
electricity
supply
duct
Incoming
telecom
15
supply
16
1
Up
15
Stair
2
14
3
Steel
13
Stair
4
12
Steel
5
11
6
10
Up
7
duct supply
9
Incoming
8
water
Landing
Steel
1
Unit 2
Vacant Unit (GF)
(Hotel Rooms Above)
Block
H bin
store
Extension
cb
SVP
es
cb
water
liveri
SITUATION.
l De
cb
water
phone
Hote
cb
Premier Inn
NE
Hotel (GF) Harr
The property is located within Flemingate which is which is located close to the centre of Mult ison
F ZO
i-Sto Mew
rey s
Car
P OF
cb
Park
Beverley and occupies a highly prominent position next to the multi storey public car park.
Belfast
Sink
DRO
cb
The property is accessed off the B1230 which is the main route through the southern part of Premier Inn
Entrance
Beverley. The B1230 leads to the A164 which provides access to A63/M62.
Stair
Steel
1
2
3
4
5
6
7
8
Landing
cb
11
&
10
Steel
9
Stair
Switch
Steel
controls
cupboard
cb
cb
BEVERLEY
Flem
inga
te (B
For indicative
123
0) purposes only
EXTERIOR
SEATING
EXTERIOR
SEATING
1230)
gate (B
Flemin
BEVERLEY EASTGATE EXTERIOR SEATING
MINSTER
CAMPUS
UNIT 4B UNIT
S
B2
CE
GROVEHILL RD
FI
OF
ARMSTRONG WAY
B1230 PRIORY RD
PRIME
EX
UNIT 1
HU 1 7 0 NZ
INVESTMENT OPPORTUNITY
TE
RIO 6 SCREEN CINEMA
RS
EA
TIN
WITH OVER 1,000 SEATS
G
B1230 HU17 0NZ
PREMIER INN
FLEMINGATE • BEVERLEY • EAST RIDING OF YORKSHIRE .five
FLEMINGATE.
Flemingate is a regionally significant FLEMINGATE
mixed-use development which includes
a 6 screen cinema, East Riding College,
a large number of retailers including
Debenhams, H&M and River Island,
various restaurants and bars and a
500 space multi storey public car park.
The scheme is 95% let and has a
weekly footfall of 50,000.
FLEMINGATE FLEMINGATE FLEMINGATE AT CHRISTMAS
PRIME
INVESTMENT OPPORTUNITY
HU17 0NZ
EAST RIDING COLLEGE FLEMINGATE FLEMINGATE
PREMIER INN
FLEMINGATE • BEVERLEY • EAST RIDING OF YORKSHIRE .six
DESCRIPTION.
The Premier Inn hotel was constructed in 2015 and
trades as the Premier Inn Beverley Town Centre.
It totals circa 30,676 sq ft and extends over ground
and 3 upper floors. It provides 80 en-suite bedrooms
together with a branded bar and restaurant. A retail
unit is part of the asset but not included in the
Premier Inn demise. The unit extends circa 2,012
sq.ft and is subject to a 2 year rent/rates/service
charge guarantee. It has planning for a retail
unit use but would suit other uses subject to the
required planning permission. The vendor has had
discussions with Premier Inn about taking the unit
for additional bedrooms and planning permission
has been secured.
The hotel has an exceptional occupancy rate,
increasing year on year since opening and
now at over 87%.
Area
We have been provided with a summary of the
hotel’s approximate GIA floor areas as follows:
Floor Area Sq.ft Rooms
3 7,416 22
2 8,385 25
1 8,385 25
PRIME
Ground (hotel) 6,490 8
Ground (retail) 2,012
INVESTMENT OPPORTUNITY
Total 32,688 80
PREMIER INN
FLEMINGATE • BEVERLEY • EAST RIDING OF YORKSHIRE .seven
TENANCY SCHEDULE. COVENANT.
Let to Premier Inn Hotels Limited on a 25 year FRI lease from 29th April 2016 to 28th April 2041 (21 years The occupational lease is held by Premier The hotel group was named the UK’s top-rated travel
6 months term certain) with a break option in 29th April 2036 (16 years 6 months term certain). The lease Inn Hotels Limited (Company No. 05137608). brand and the top-rated hotel chain for 2017 by
is subject to 5 yearly rent increases to CPI capped at 5% per annum compound. The hotel will be sold via a Which?. Additionally, they have being voted Best
Premier Inn are the UK’s leading budget hotel operator
‘topped up’ passing rent of £319,694 per annum. The top up shall be calculated using the CPI Index to 29th UK Economy & Midscale Hotel at the British Travel
with a substantial market share of the budget hotel
March 2019. This reflects a highly reversionary room rate of only £3,996 pax per bed. The 2,012 sq.ft retail Awards for 2018 and The Business Traveller Awards
market. Premier Inn Hotels Limited is a wholly owned
unit will be offered on the basis of a 24 month rents/rates and service charge guarantee at a rent passing of named them Best Budget Hotel Chain for the seventh
subsidiary of the Whitbread Group PLC whose other
£24,144 per annum. The total rent passing is £343,838 per annum. year in a row. Premier Inn has been awarded the Best
brands include, Table Table, Tayburns, Beefeater and
UK Family Hotel in the TripAdvisor Travellers’ Choice
The Office for Budgetary Responsibility have provided the following CPI forecast, which averages at Brewers Fayre. They are part of Whitbread PLC which
Awards, Best UK Hotel Group in the Silver Travel
2.0% pa. over the next 5 years: recently celebrated its 275th Anniversary as a British
Awards and the Business In The Community
business. Premier Inn has more than 750 hotels in the
2019 2020 2021 2022 2023 Environmental Leadership Award.
UK with over 72,000 rooms. Premier Inn’s pipeline is
1.8% 1.9% 2.0% 2.0% 2.0% secured to target 85,000 rooms by 2020. Whitbread Premier Inn Hotels Limited offers a Dun & Bradstreet
Group PLC recently sold Costa Coffee for £3.8 billion 5A1 covenant. This rating represents a minimum risk
Based upon this CPI forecast, we anticipate a future yield profile of: to the Coca-Cola Company and plans to use these of business failure and therefore illustrates Premier
proceeds to reduce the group’s indebtedness which Inn to be a strong investment grade covenant.
will provide significant headroom for further expansion
Rent
Date NIY % of Premier Inn.
Premier Inn Retail Unit Total
Topped Up Passing Rent (as March 2019) £319,694 £24,144 £343,838 4.93%
Forecast (assuming 2% pa CPI) 28 February 2019 01 March 2018 02 March 2017
2021 £332,610 £24,144 £356,754 5.12% Turnover £905,086,000 £874,907,000 £812,000,000
2026 £367,228 £24,144 £391,372 5.61%
Profit before tax £243,838,000 £245,675,000 £268,397,000
2031 £405,449 £24,144 £429,593 6.16%
2036 (break option) £447,649 £24,144 £471,793 6.76% Tangible Net Worth £1,135,333,000 £940,001,000 £1,143,166,000
PRIME
INVESTMENT OPPORTUNITY
PREMIER INN
FLEMINGATE • BEVERLEY • EAST RIDING OF YORKSHIRE .eight
THE HOTEL INVESTMENT MARKET.
The fixed lease investment market for hotels has strengthened Premier Inn has one of the most in demand covenants, as
as demand has increased for index linked long income secured they offer both secure and predictable levels of real income.
against strong covenants. INDICATIVE IMAGE
Rent Per Tenant Break Lease
Date Property Price Rent Yield Purchaser Comments
Room Options Length
Mar Premier Inn Avebury 25 Forward Fund
£23,700,000 £1,026,000 £5,700 20 years 4.24% M&G
19 Boulevard, Milton Keynes years 180 Bed Hotel
Mar Premier Inn,St Marys 25 126 Bed Hotel
£10,330,000 £478,921 £3,800 N/A 4.35% CBREGi
19 Gate, Sheffield years 999 – Year LLH
Jun Premier Inn, 25 IM Forward Fund
£6,900,000 £346,350 £4,329 20 years 4.70%
18 Holyhead years Properties 80 Bed Hotel
Christian
Dec Premier Inn, 22 79 Bed Hotel,
£6,245,000 £316,808 £4,010 17 years 4.75% Vision
17 Lichfield years 250 Year LLH
Charity
Nov Premier Inn, 25 Forward Fund
£14,040,000 £712,250 £6,475 20 years 4.75% Undisclosed
17 Tunbridge Wells years 110 Bed Hotel
AEW UK
Sep 25 95 Bed Hotel.
Premier Inn, Camberley £8,465,000 £448,767 £4,723 20 years 4.97% Long Lease
17 years 999-Year LLH
REIT
TENURE. EPC.
PRIME
The Property is long leasehold - 250 years at a peppercorn. EPC’s can be provided upon request.
VAT. ANTI MONEY LAUNDERING.
INVESTMENT OPPORTUNITY
The property is elected for VAT although it is anticipated that the In accordance with Anti-Money Laundering Regulations,
sale will be structured as a Transfer of a Going Concern (TOGC). two forms of identification and confirmation of the source
of funding will be required from the successful purchaser.
PREMIER INN
FLEMINGATE • BEVERLEY • EAST RIDING OF YORKSHIRE .nine
PROPOSAL.
Offers are sought in excess of £6,540,000 (Six Million, Five
Hundred and Forty Thousand Pounds) subject to contract and
exclusive of VAT. A purchase at this level reflects the following
yield profile (assuming purchasers’ costs at 6.64%):
Rent
Date NIY %
Premier Inn Retail Unit Total
Topped Up
Passing
£319,694 £24,144 £343,838 4.93%
Rent (as
March 2019)
Forecast
(assuming
2% pa CPI)
2021 £332,610 £24,144 £356,754 5.12%
2026 £367,228 £24,144 £391,372 5.61%
2031 £405,449 £24,144 £429,593 6.16%
2036 (break
£447,649 £24,144 £471,793 6.76%
option)
CAPITAL ALLOWANCES.
There are no unclaimed capital allowance available.
FURTHER INFORMATION. STEVE CARRICK DAVID NICHOLLS
DATA ROOM.
PRIME
sc@carrickre.com david.nicholls@haguenicholls.com
For further information or to arrange a viewing, 0161 806 0455 • 07711 042 584 0113 234 6573 • 07950 574 986
A data room has been set up with relevant please contact the joint agents.
DAVID HAGUE
documentation; access is available on request.
INVESTMENT OPPORTUNITY
david.hague@haguenicholls.com
0114 279 5010 • 07960 195 167
carrickre.com
IMPORTANT NOTICE: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Carrick Real Estate or Hague Nicholls in the particulars or by word of mouth or in writing (“information”) as being
ON THE INSTRUCTIONS OF WYKELAND GROUP factually accurate about the property, its condition or its value. Neither Carrick Real Estate or Hague Nicholls 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). 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. 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. VAT: The VAT position relating to the property may change without notice. Carrick Real Estate is a limited company registered in England
with registered number 10893418. Our registered office is Canada House, 3 Chepstow Street, Manchester, M1 5FW where you may look at a list of members’ names. October 2019. carve-design.co.uk 14321
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