SECURE INCOME LEISURE INVESTMENT

Neath, Glamorgan, SA10 6GZ gva.co.uk/8374

• Located 2 miles west of Neath and 8 miles North East of Swansea

• Situated adjacent to Junction 43 of the M4 motorway

• Purpose built flagship health and racquets club comprising approximately 80,162 sq ft

• Facilities include aerobics studio, indoor heated pool, outdoor pool, spa, 3 squash courts, 6 indoor tennis courts, 4 outdoor tennis courts, basketball court and salon

• Let to the strong covenant of Virgin Active Ltd and Virgin Active Health Clubs Ltd, expiring 13th July 2036, providing a term certain of 21.7 years

• Over 3,700 members

• Rental income of £268,794 per annum, let off a low passing rent of £3.35 psf overall per annum

• Yearly reviews from July 2017 will be increased in line with RPI subject to a collar of 1% and a cap of 4% per annum

• Freehold / Part leasehold

• Offers are sought in excess of £4,000,000 (Four Million Pounds), subject to contract and exclusive of VAT

• The proposed price reflects a capital value per sq ft of £49.90, which is below replacement cost for the club.

• 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 7.26

2021 7.53

2026 8.94

2031 10.64

Average yield over term 9.15

E X E C U T I V E S U M M A R Y

A36

A303A303

A303

A35A35

A361

A39

A358

A30

A35

A4042

A470

A4232

A4061

A465

A4107

A467A4069

A464

A483A484

A476

A4118

A470

A40

A40

A48

A479

Salisbury

Ringwood

Winchester

Andover

Basingstoke

Shaftesbury

Gillingham

Bournemouth

Swanage

Southampton

Lymington Portsmouth

Weymouth

BridportSidmoth

Exmouth

Witheridge

Hatherleigh

LyntonMineheadIlfracombe

BarnstapleWiveliscombe

Bridgewater

Taunton

Llanelli

Pontypridd

Pyle

Merthyr Tydfil

Abergavenny

Lydney

ChepstowPembroke

Haverfordwest

Camarthen

Glastonbury

Bristol

Exeter

CardiffBridgend

Newport

Gloucester Cheltenham

SwanseaNeath

Swansea Bay

Shrewton

2

45

14

1819

3637

43

48

4746 45

44

3433

23

27

30

M4

M48

M4

M48

M5

M5

M5

M27

M3

Neath is located in the principal area of Neath Port Talbot, Wales. Historically in Glamorgan, the town is located on the river of the same name. The town is served by the South Wales Main Line at Neath railway station, and Neath bus station at Victoria Gardens. Rail and bus services operate to the neighbouring towns as well as Cardiff Central, Swansea, Bristol Parkway and London Paddington. The A465 skirts the town to the north east and provides a link to the M4.

The property is located adjacent to Junction 43 of the M4 Motorway, approximately 3 km (2 miles) from Neath Town Centre and approximately 12 km (8 miles) from Swansea City Centre.

The premises occupies the adjoining site to the Holiday Inn Express and a Harvester Pub Restaurant, as well as Neath Llandarcy College Campus, situated on the other side of the B4290, comprising a purpose built sports facility where students undertake practical and theoretical studies.

St. Modwen is currently undertaking a major development (the Coed Darcy Development) near Skewen in Neath Port Talbot which will provide “homes, schools, parks, playing fields, shops, offices, bars and restaurants in a project expected to become a bigger version of Prince Charles’s Poundbury Model Village in Dorset”.

L O C A T I O N S I T U A T I O N

Belfast

Dublin

GlasgowEdinburgh

Newcastle

LondonBristol

Cardiff

SCOTLAND

ENGLAND

IRELAND

NORTHERNIRELAND

WALES

Birmingham

Neath

Leeds

Manchester

Cardiff

D E M O G R A P H I C SNeath has a reported population of 50,658 (2011 Census), with the greater Neath Port Talbot’s population increasing by almost 4% to 139,800 since the 2001 Census. Swansea’s population increased from 223,293 in 2001 to 239,000 in 2011.

The area benefits from an above average proportion of subscriptions to sports and social clubs per person, and a higher level of participants in sports activities in comparison with the UK average.

N E A T H C O M P E T I T O R A N A L Y S I SA. Life Health and Fitness Club, Enterprise Park,

Swansea, SA7 9EGB. The Dragon Hotel, 29 The Kingsway, SA1 5LSC. DW Sports and Fitness, Llanelli, SA14 9UYD. Evolution Health and Fitness Centre,

Cross Hands, SA14 6RJ

A36A303

A303

A303

A35 A35

A361

A39

A358

A30

A35

A4042

A470

A4232

A4061

A465

A4107

A467

A4069

A464

A483A484

A476

A4118

A470

A40

A40

A48

A479

Salisbury

Ringwood

Winchester

Andover

Basingstoke

Shaftesbury

Gillingham

Burton

Yeovil

Bournemouth

Swanage

Southampton

Lymington Portsmouth

Weymouth

BridportSidmoth

Exmouth

Tiverton

Bampton

Witheridge

Hatherleigh

LyntonMineheadIlfracombe

BarnstapleWiveliscombe

Bridgewater

Taunton

Llanelli

Pontypridd

Pyle

Merthyr Tydfil

Abergavenny

Lydney

ChepstowTenbyPembroke

Haverfordwest

Camarthen

Glastonbury

Bristol

Exeter

CardiffBridgend

Newport

Gloucester Cheltenham

Swansea

Swansea Bay

Shrewton

2

45

14

181936

37

43

48

4746 45

44

34 33

23

27

30

M4

M48

M4

M48

M5

M5

M5

M27

M3

5mins

15mins

30mins

Port Talbot

(Virgin Active)Neath

AB

CD

D E S C R I P T I O N

The purpose built flagship health and fitness club comprises a modern steel framed construction with part steel and glazed elevations under a profile steel barrel roof. Connecting the health and fitness club is a single storey tennis facility under a dome shaped lightweight construction.

The club caters for the following facilities:-

G R O U N D F L O O R

• Crèche• Health and beauty salon• Café• Bar with kitchen facilities• Indoor heated swimming pool• Sauna, steam room and spa• 9 indoor tennis courts• 2 squash courts• Pool plant and store

F I R S T F L O O R

• Aerobic studios• Gym• Function room

E X T E R N A L F A C I L I T I E S

• Heated swimming pool• 4 external tennis courts

A C C O M M O D A T 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 2,142.33 23,060

Tennis, Squash and multi-purpose courts 3,963.49 42,663

First floor 1,341.42 14,439

Total 7,447.24 80,162

S I T EThe site extends to an area of 6.57 acres (2.66 HA).

T E N U R EThe majority of the premises are held on Freehold basis with a small section on the North West corner being held on long leasehold interest. The leasehold interest expires on 3 November 2124, with a current passing rent of £1.00 per annum. The lessee benefits from an option to purchase the area of land at any time at a cost of £1.00, plus acquisition costs.

T E N A N C Y 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 7 May 2031. The lease is subject to yearly reviews in line with RPI from 13th July 2017, subject to a collar of 1% and a cap of 4% per annum.

A reversionary lease is in situ extending the term to 13 July 2036. The commencing rent under the reversionary lease is to be the passing rent under the current lease at the lease expiry.

The property currently produces £237,660 per annum with a fixed review as at 13th July 2016 to £268,793 p.a. which equates to only £3.35 per sq ft. It is the vendor’s intention to top the rent up to this level on completion of the sale.

C O V E N A N T I N F O R M A T I O N 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 across the UK, Europe, South Africa and Australia.

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.

For the year ending 31 December 2013, the joint covenant reported the following 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

E N E R G Y P E R F O R M A N C E C E R T I F I C A T E ’ SEnergy Performance Certificate’s (EPC’s) for the property is 60, which provides a C group rating.

V A TThe property has been elected for VAT which will therefore be payable on the purchase price unless the sale can be treated as a Transfer of a Going Concern (TOGC).

P R O P O S A L

Offers are sought in excess of £4,000,000 (Four Million Pounds), 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 7.26

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 £49.90, which is below replacement cost for the club.

F U R T H E R I N F O R M A T I O N

Should you wish to inspect the property or require additional information, please contact:

Philip Colman 020 7911 2353philip.colman@gva.co.uk

Mark Frampton 020 7911 2181mark.frampton@gva.co.uk

Gavin Quinn020 7911 2558gavin.quinn@gva.co.uk

gva.co.uk/8374

For any other investment sales please visit:www.gva.co.uk/investment

SUBJECT TO CONTRACT

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GVA is the trading name of GVA Grimley Limited and is a principalshareholder of GVA Worldwide, an independent partnership of propertyadvisers 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 and prices are quoted exclusive of VAT. Reproduced by courtesy of the Controller of HMSO. Crown Copyright reserved. Licence No 774359. If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co Ltd and/or The Automobile Association. For identification purposes only.

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