Well Let Leisure & Trade Counter Investment - ST HILARY PARK, WYMANS LANE, KINGSDITCH, CHELTENHAM GL51 9NE - Realla
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Well Let Leisure & Trade Counter Investment ST HILARY PARK, WYMANS LANE, KINGSDITCH, CHELTENHAM GL51 9NE
INVESTMENT SUMMARY
n Leisure & retail/trade counter investment in established Kingsditch
trade area of Cheltenham
n 37,137 sqft gym and trade counter units
n Topps Tiles lease varied in 2015, expiry now February 2025
n Simply Gym lease varied in 2016, expiry June 2026
n Let to Simply Gym & Topps Tiles with a WAULT of 9.27 years to
expiries and 5.84 years to break
n Total current rent passing of £242,125 per annum
n Topps Tiles lease has ANNUAL RPI reviews, Simply Gym have
outstanding rent review from June 2016
n Offers sought in excess of £2,840,000
n Initial Yield – 8.01%
LOCATION
Cheltenham is an historic spa town some 50 miles south of Birmingham, 42 miles north east of
Bristol and 9 miles east of Gloucester. The town lies east of both Junctions 10 & 11 of the M5.
The A40 is the town’s main arterial road leading west to Gloucester and mid Wales and east
towards the Cotswolds and Oxford.
Kingsditch trade area is 2 miles north west of the town centre, just north of the A4019
Tewkesbury Road, the main arterial road out to Junction 10 of M5. There is a mixture of retail
warehousing and established trade occupiers in the vicinity. Gallagher, Gateway and Kingsditch
Retail Parks are all located on the A4019 while Kingsditch Trade Park fronts Kingsditch Lane
which links into Wyman Lane.
The subject property occupies a prominent site at the junction of Wymans Lane and Swindon
Lane. There are three separate access points on to the site. The commercial property opposite
on Wymans Lane has been acquired by Superdry.
Kingsditch Trade Park is directly across the road where occupiers include Evans Cycles, Bensons
For Beds, Brandon Hire, Toolstation and Screwfix. Other trade/retail occupiers in the immediate
vicinity include Booker, Speedy Hire and Safestore.
n Simply Gym 123 spaces
n Topps Tiles 23 spaces
DESCRIPTION n No Parking (9am-5pm) 4 spaces
Total 150 spaces
The subject property comprises two leisure/trade units and is to be branded St Hilary ACCOMMODATION
Park. The units front Wymans Lane and have part re-clad elevations. Unit 2 is fitted The property provides a total of 3,450 sqm
out as a gym occupied by Simply Gym; which has a main gym area and a ladies only (37,137 sqft). Individual unit sizes are detailed in
gym. Soul Serenity run a sports massage and aromatherapy concession while Tick the schedule below. There are a total of 150 car
Tock provides a creche facility which is open 7 days a week. Unit 3 is a retail/trade unit spaces on the site. Simply Gym have the right to
occupied by Topps Tiles. use 123 permanently and a further 4 after 5pm.
There are 23 other spaces predominantly used by
To the rear is a 109 space car park which is used predominantly by the gym. There is Topps Tiles.
lighting and a pedestrian access route to the gym’s entrance. There is also parking to the
front of each of the units providing a further 41 spaces. The overall site extends to 1.07 hectares (2.65
acres). Site coverage is only 32%.
There are two advertising hoardings along the eastern boundary on a neighbouring
property. Access is across the subject site. TENURE
Adjoining the property is a 0.6 acre development plot which does not form part of the Freehold.
sale but is to be developed for a new Halfords Autocentre scheme. Works are due to
commence at the end of October 2016 with PC scheduled for April 2017.
TENANCIES
The property is currently let on two main leases and two licences.
There is a current total rental income of £242,125 per annum.
The Topps Tiles lease was extended and varied in 2015 and now
expires in February 2025. Simply Gym varied their lease in 2016
and the lease expires in June 2026.
There is currently a WAULT of 9.27 years to expiries and 5.84 years
to break. The Topps Tiles lease is subject to ANNUAL RPI reviews
(with collar/cap of 1-5%). There is an outstanding rent review
from June 2016 on the Simply Gym lease.
There is a licence agreement over part of the rear access road for
an adjoining occupier (hatched red on the photo opposite) and a
second agreement for right of access to the advertising hoards to
the side of the Topps Tiles unit.
Details of the current tenancies are outlined below:
UNIT TENANT AREA LEASE TERMS LEASE EXPIRY RENT £/SQ.FT COMMENTS EPC
(SQ.FT.) (BREAK)
2 Simply Gym Ltd 28,194 15 years from 02/06/2026 £165,000 £5.85 02/06/2016 rent review is outstanding. Tenant has right to D-93
03/06/2011 (02/06/2021) now use 123 car park spaces (previously 90) by way of a Deed
of Variation in 2016. Service charge cap at £11,070 per annum
(no shortfall, increases annually with RPI). Parts of the unit are
sub let to Tick Tock & Soul Serenity. The lease is subject to a
schedule of condition.
3 Topps Tiles (UK) Ltd 8,943 Originally 10 28/02/2025 £75,975 £8.50 Reversionary lease completed on 31/07/2015 and extends the C-56
years from (No break) term from 01/03/2020 for further 5 years. ANNUAL RPI rent
01/03/2010 reviews in March with collar & cap of 1-5%.
Land R J Ball 02/02/2005 £150 Rolling licence agreement.
Hoarding Primesight Ltd 01/01/2000 £1,000 12 month term on a rolling basis. Either party can terminate
on 1 month’s notice.
TOTAL 37,137 £242,125
ASSET MANAGEMENT ANGLES
There are a number of initiatives a purchaser can progress:
n Conclude the Simply Gym rent review.
n Look to remove Simply Gym break option.
n Work with Simply Gym to provide a new, second customer entrance into their unit from the rear
car park.
n Renegotiate the advertising hoarding agreement.
COVENANTS
The company was established in 2011 and now operate from 11 locations around the country. The
Cheltenham gym was the original unit and flagship operation. Simply Gym operate a low cost model,
charging members £15-20 per month with no signing on fee. We understand there are c. 4,500
members at the Cheltenham operation.
The company reported in the 2016 accounts (up to 31 March) Total Assets less Current Liabilities of
£1.429m, this shows 22% growth on the 2015 figures, following 68% growth from 2014 to 2015.
Total Assets less Current Liabilities
31 March 2016 £1,429,000
31 March 2015 £1,171,000
31 March 2014 £698,000
Topps Tiles are Britain’s biggest tile and wood flooring specialist with 349 stores nationwide and a
33.3% market share by value. Topps Tiles plc has a market capitalisation of approximately £220m. The
company have a 5A1 D&B rating. A summary of Topps Tiles (UK) Ltd accounts are set out below:
03/10/2015 27/09/2014 28/09/2013
(£’000s) (£’000s) (£’000s)
Turnover 212,180 195,192 175,177
Pre-tax Profit 15,795 14,496 (4,309)
Total Assets less Current Liabilities 88,217 81,549 71,421
KINGSDITCH TRADE AREA
General rents on the Kingsditch Trade Park vary depending on their location and prominence. Units range from 2,500 sqft up to
15,500 sqft. Those units fronting the main Kingsditch Lane have achieved in excess of £12 per sqft (Tile Giant and Brandon Tool
Hire).
UNIT TENANT SQ.FT. TERM RENT DATE COMMENTS
(£/SQ.FT)
P2, Kingsditch Trade Corinium 6,256 10 year lease with 6 year £10.00 January Tenant upsized from
Park Carpets break 2014 Unit Y3.
Unit L, Kingsditch Magnet 7,858 10 year lease with 5 year £9.80 July 2015 Refurbished unit.
Trade Park break Planning changed
to B8 from B2.
Unit Y3, Kingsditch Capital Tiles 5,200 10 year lease with 5 year £10.00 January
Lane break 2016
Swindon Road/ Halfords 5,800 Pre-let 15 year lease £12.00 May 2016 Initial 6 months rent
Wymans Lane Autocentres free granted.
Former Costwold Airborne 10,383 10 year lease with 5 year £11.55* July 2016 *Average over first
CONTACTS
Fabric Unit, break five years. Secured For further information or if you wish to arrange a viewing,
Tewkesbury Road planning for D2 use. please contact :-
ANDREW PRICE
At £8.50 per sqft the Topps Tiles unit is below general trade counter rents in the area. The gym rent as well we believe is also 0121 513 0892
reversionary. andrew.price@fspproperty.co.uk
Our view of ERV for the property is £275,000, an increase of 13.5%.
BEN BLACKWALL
0121 513 0893
PRICE ben.blackwall@fspproperty.co.uk
We are instructed to seek offers in excess of £2,840,000, this reflects a net initial yield of 8.01%, after allowing for purchaser’s
costs of 6.44%. Franck Steier Price Ltd
Third Floor, Victoria House
Based on our conservative view of ERV we believe the reversionary potential to be 9.1%.
114-116 Colmore Row, Birmingham,
B3 3BD
VAT
The property is elected for VAT and VAT would be payable on the purchase. The intention would be to sell as a TOGC. Misrepresentation Clause : The accuracy of any description, dimensions, references to condition,
necessary permissions for use and occupation and other details contained herein are not
guaranteed and are for general guidance only and prospective purchasers or tenants must not rely
on them as statements of fact or representations and must satisfy themselves of their accuracy.
EPCs Neither Franck-Steier Price Ltd, nor any of their employees or representatives has any authority
to make or give any representation or warranty or enter into any contract whatever in relation
to the property. Prices and rents quoted in these particulars may be subject to VAT in addition.
The reference to any mechanical or electrical equipment or other facilities at the property shall
The certificates for the individual units are available on request. The energy performance ratings are detailed in the tenancy not constitute a representation (unless otherwise stated) as to its state or condition or that it
schedule. is capable of fulfilling its intended function. Prospective tenants/purchasers should satisfy
themselves as to the condition of such equipment for their requirements.
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