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ST JOSEPHS VILLAGE ALBERT ROAD, PO21 1NJ
BOGNOR REGISA FREEHOLD ESTATE PROVIDING HIGH QUALITY ACCOMMODATION FOR STAFF WORKING AT BUTLINS
APPROXIMATELY 23.75 YEARS (18.75 YEARS TERM CERTAIN) WITH RPI LINKED REVIEWSLET TO THE SECURE COVENANT OF BUTLINS SKYLINE LIMITED
Outline for indicative purposes only.
APPROXIMATELY 23.75 YEARS (18.75 YEARS TERM CERTAIN) WITH RPI LINKED REVIEWSLET TO THE SECURE COVENANT OF BUTLINS SKYLINE LIMITED
ST JOSEPHS VILLAGE, ALBERT ROAD, PO21 1NJ
BOGNOR REGIS
Outline for indicative purposes only.
5 MINS WALK TO BUTLINS
WALTON HOUSEST JOSEPHS
LAS ARENASBEACH LODGE
BLACKBIRD COTTAGE
ESSEX HOUSE
WALTON WALLS
INVESTMENT CONSIDERATIONS• Unique opportunity to acquire a secure, long let,
index linked investment arranged over 7 buildings the properties total approximately 29,900 sq ft (2,780 sq m)
• Situated in the seaside resort of Bognor Regis on the south coast of England
• Let to the 5A1 covenant of Butlins Skyline Limited
• The property provides high quality affordable HMO staff accommodation for workers at Butlins
• Total passing rent of £605,360 per annum
• Butlins have recently completed the development of a £36 million leisure and splash pool
• Offers sought in excess of £10,800,000 (Ten Million, Eight Hundred Thousand Pounds) after allowing for purchaser’s costs of 6.71%. This reflects a net initial yield of 5.25%.
• Long unexpired lease term of 23.75 years (18.75 years term certain)
• FRI lease subject to five yearly RPI plus 2% linked rent reviews with a collar and cap of 112.5% to 122.5%
• Large site area of approx. 1 acre offering long term large scale redevelopment potential
• Freehold
• Butlins is a chain of large seaside resorts founded in 1936
Reversionary Yield March 2023
Forecast based on OBR 6.18%
Minimum 5.91%
Maximum 6.39%
BOGNOR REGISBognor Regis is located in the county of West Sussex on the south coast of England approximately 7 miles south east of Chichester, 25 miles east of Portsmouth and 55 miles south of London.
The town benefits from good transport communications being located on the A29, providing direct access to the A27 dual carriageway which runs across the south coast from Brighton in the east to Portsmouth in the west. The A27 also provides access to the A23 and A24 trunk roads which lead to the M23 and M25 motorways.
Bognor Regis has a regular direct rail service to London Victoria (1 hour 40 mins). The station provides frequent services to Brighton with a journey time of approximately 45 minutes and Chichester within 15 minutes, both requiring one change.
DEMOGRAPHICSThe total population within the Bognor Regis Primary Retail Market Area is 84,000, and the town is expected to see significantly above average growth in population over the period 2017-2022. The town includes a high proportion of the retired, aged 65 and over.
The drive for economic growth in Bognor Regis is centred on tourism, retail and service industries. Over 65% of employees in Bognor Regis are employed by the service sector and this has continued to rise over time.
APPROXIMATELY 23.75 YEARS (18.75 YEARS TERM CERTAIN) WITH RPI LINKED REVIEWSLET TO THE SECURE COVENANT OF BUTLINS SKYLINE LIMITED
GATWICK
HEATHROW
J12
J10
J10
J11
J7J8
J9
J9J9a
J6A331
A339
A303
A322
A264
A272
A31
A31
A34
A34
A33
A27
A36
A22
A24
A23
A3
M4M4M4
M4
M4
M3
M25
M271
M27
M25
M23
A3(M)
LONDON BROMLEY
CROYDON
BIGGIN HILL
EASTGRINSTEAD
CRAWLEY
HORLEY
HORSHAM
HAYWARDSHEATH
BILLINGSHURST
EDENBRIDGE
BURGESS HILL
LEWES
WORTHING
NEWHAVENLITTLEHAMPTONPORTSMOUTH
SOUTHAMPTON
COWES
RYDE
EASTLEIGH
ROMSEY
WINCHESTER
HAVANT
PETERSFIELD
ALDERSHOT
FARNBOROUGH
BASINGSTOKE
NEWBURY
READING
WOKINGHAM
BRACKNELL
ANDOVER
GODALMING
HASLEMERE
NEWPORT
FAREHAM
GOSPORT
SELSEY
BOGNORREGIS
DORKINGGUILDFORD REIGATE
STAINES
BRIGHTONCHICHESTER
WINDSOR
WOKING
EPSOM
CLAPHAM
FULHAM
WEYBRIDGE
RICHMONDHOUNSLOW
ST JOSEPHS VILLAGE, ALBERT ROAD, PO21 1NJ
BOGNOR REGIS
Gatwick Airport – 45 milesTRAVEL TIMES
Chichester – 7 milesPortsmouth – 25 milesLondon – 55 miles
Chichester – 15 minutesBrighton – 45 minutesLondon Victoria – 1 hour 40 minutes
For identification purposes only.
PRO
PSED
RO
AD
PRO
PSED
RO
AD
A29 SHRIPN
EY R
OAD
B2559 CHICHESTER ROAD
ROWAN WAY
B211
6
THE ESPLANADE
H
AWTH
ORN
RO
AD
A259 NORTH WAY BYPASS
A259 CHARLES PURLEY WAY
A29
B2259
B2259 FELPHAM WAY
BOGNOR REGIS
TOWNCENTRE
INDUSTRIALPARK
UNIVERSITY OF CHICHESTERBOGNOR REGIS CAMPUS
RETAILPARK
COMMERCIALAND
INDUSTRIALESTATE
SALTBOX
ROWANPARK
OLDLANDSFARM
AIRFIELDPARK
2
4
3
1
5
APPROXIMATELY 23.75 YEARS (18.75 YEARS TERM CERTAIN) WITH RPI LINKED REVIEWSLET TO THE SECURE COVENANT OF BUTLINS SKYLINE LIMITED
ST JOSEPHS VILLAGE, ALBERT ROAD, PO21 1NJ
BOGNOR REGIS
BOGNOR REGIS REGENERATION
2 ENTERPRISE BOGNOR REGIS
• The Saltbox site within Enterprise Bognor Regis has secured planning consent for a £34m business park offering over 323,000 sq ft of new floor space and the potential to create up to 1,000 new jobs in the area
• Rolls Royce have invested £70m in their Technology and Logistics centre totalling approximately 300,000 sq ft
1 BUTLINS
• Recently opened £36 million leisure and splash pool
• Employing approximately 1,400 staff
3 UNIVERSITY OF CHICHESTER
• The University’s new £36m Tech Park opened in 2018 and will bring an additional 1,500 students to the town by 2021
• The Park provides 63,500 sq ft of academic accommodation, up to 10,764 sq ft of facilities accessible to business and the local community. The park has created approximately 160 new jobs, delivering an estimated £176 million into the local and regional economy by 2023/24
4 TOWN CENTRE INITIATIVES
• A Business Improvement District (BID) is in place from April 2018 for 5 years
• The town centre has seen a growth in footfall figures in 2018
5 RAILWAY STATION
• Recently completed £2m refurbishment
• Planning approval for The Track, a £1m creative digital hub/shared workspace in the station has been granted and is expected to open in 2019
ST JOSEPHS
VILLAGE
SITUATIONThe site is bound by road on all sides, except to the south, where it is neighboured by a six storey block of flats, The Espalande Grande, which adjoins the seafront. The Properties are accessed from and bounded by Albert Road to the west, Walton Road to the north and Walton Avenue to the east. The site is square in shape save for the omission of a building (known as Pearlfishers) on the eastern side of the site, fronting Walton Avenue.
The properties are situated 0.5 miles (5 minute walk) from the Butlins campus.
DESCRIPTIONThe property provides HMO staff accommodation for workers at Butlins and comprises seven buildings arranged over ground, first and second floors.
Internally the buildings provide a total of 84 rooms (151 bed spaces) across a mix of single, twin and double rooms, together with communal kitchens and shower room facilities and manager accommodation.
The properties benefit from communal gardens and a large conservatory. Please refer to the Schedule of Accommodation and Floor plans for a full breakdown of the accommodation provided within each property.
WALTON HOUSE
APPROXIMATELY 23.75 YEARS (18.75 YEARS TERM CERTAIN) WITH RPI LINKED REVIEWSLET TO THE SECURE COVENANT OF BUTLINS SKYLINE LIMITED
ST JOSEPHS VILLAGE, ALBERT ROAD, PO21 1NJ
BOGNOR REGIS
© Crown Copyright, ES 100004106. For identification purposes only.
4.3m
PC
Berkeley Court
1 to 51
Esplanade Grande
1 to 52
LB
THE ESPLANADE
King's Court
Foreshore Station
PC
ISLOP WALK
WALTON ROAD
ALBERT ROAD
Allestree Court
1 to 6
Surrey
Avila
Romley
Court
Hatherleigh
Beachlands
Wellesley
1 to 7
Cartref
Sabey
Maria
Lodge
Shorebank
Walton C
ourtCourt
12
1 to 5
Eastlands
4.0m
WALTO
N AVENUE
WALTON ROAD
ROAD
ElSubSta
2
14 to 28
7
14 9
Compass Point1 to 25
3
10
1 to 12
5
0m 10m 20m 30m
Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 100022432. Plotted Scale - 1:1063
WALTON HOUSE
ST JOSEPHS
LAS ARENAS
BEACH LODGE
BLACKBIRD COTTAGE
ESSEX HOUSE
PEARL FISHERS
WALTON WALLS
SCHEDULE OF ACCOMMODATIONProperty Floor Bedrooms Bedspaces Area sqm Area sqft
St Josephs
Ground Floor 15 30 533 5,737First Floor 11 20 272 2,928Second Floor 3 6 80 861Third Floor 82 883Total 29 56 967 10,409
Walton WallsGround 2 102 1,098First 2 100 1,076Total 4 202 2,174
Blackbird Cottage
Ground 8 14 158 1,701Office 24 258First 5 9 138 1,485Total 13 23 296 3,186
Essex House
Ground 10 19 266 2,863First 8 15 201 2,164Second 3 4 128 1,378Total 21 38 595 6,405
Las ArenasGround 2 4 100 1,076First 2 4 110 1,184Total 4 8 210 2,260
Beach LodgeGround 3 6 97 1,044First 3 6 81 872Total 6 12 178 1,916
Walton HouseGround 4 8 135 1,453First 3 6 110 1,184Total 7 14 245 2,637
Conservatory 63 678
84 151 2,780 29,924
TENUREFreehold.
SITE AREA0.96 acres (0.39 hectares).
TENANCY The properties are let on two leases to Butlins Skyline Limited from 23 March 2018 and 13 June 2019 on full repairing and insuring lease terms.
The leases expire coterminously on 22 March 2043 with a tenant break option on 23 March 2038. Therefore an unexpired term of approximately 23.75 years term certain (18.75 years to break).
The passing rent of £594,360 pa is reviewed five yearly to RPI plus 2% with a collar and cap of 112.5% to 122.5%.
Walton Walls is let on a separate lease with a passing rent of £11,000pa. The rent review provisions are the same with the next review being on 23 March 2023.
The total passing rent is £605,360 pa.The leases are outside the protection of the Landlord and Tenant Act 1954.
Butlins Skyline Limited has total responsibility for the management of the properties and all the required HMO licences have been issued directly to Butlins Skyline Limited by the Local Authority.
ST JOSEPHS, LAS ARENAS & BEACH LODGE
ESSEX HOUSE & ST JOSEPHS
APPROXIMATELY 23.75 YEARS (18.75 YEARS TERM CERTAIN) WITH RPI LINKED REVIEWSLET TO THE SECURE COVENANT OF BUTLINS SKYLINE LIMITED
ST JOSEPHS VILLAGE, ALBERT ROAD, PO21 1NJ
BOGNOR REGIS
RESIDENTIAL OCCUPATIONAL LEASES
There are four residential leases in place, two at Las Arenas and two at Walton Walls.
The leases were granted between 2000 - 2007 by The Trustees for the Grace and Compassion Beneditines (Registered Charity) and are each for a term of 70 years at a peppercorn ground rent. We understand that the lessees do not have any rights to extend their leases and they cannot be assigned or passed to any successor in title. The leases with Butlins states that the tenant shall, as agent for the Landlord, provide and carry out all services that the landlord is obliged to carry out on behalf of these residential lease and manage the building and the common parts. We understand that the lessees are required to pay an annual service charge contribution towards the building which is payable to Butlins.
A copy of each lease is available within the dataroom.
APPROXIMATELY 23.75 YEARS (18.75 YEARS TERM CERTAIN) WITH RPI LINKED REVIEWSLET TO THE SECURE COVENANT OF BUTLINS SKYLINE LIMITED
WALTON WALLS
COMMUNAL AREA
LAS ARENAS
BLACKBIRD COTTAGE
ST JOSEPHS VILLAGE, ALBERT ROAD, PO21 1NJ
BOGNOR REGIS
ASSET MANAGEMENT POTENTIAL
• Opportunity to increase the passing rent when the four occupational leases expire by converting them into additional HMO accommodation
• Subject to future negotiation acquire ‘Pearlfishers’ on Walton Avenue to form a completely unbroken rectangular Freehold site.
• Large site area of approximately 1 acre offering long term, large scale re-development potential.
APPROXIMATELY 23.75 YEARS (18.75 YEARS TERM CERTAIN) WITH RPI LINKED REVIEWSLET TO THE SECURE COVENANT OF BUTLINS SKYLINE LIMITED
ST JOSEPHS VILLAGE, ALBERT ROAD, PO21 1NJ
BOGNOR REGIS
PLANNINGLocal Planning Authority: Arun District Council www.arun.gov.uk
We have been informed by the Local Planning Authority that the properties are not Listed or nor are they situated within a Conservation Area.
The site was previously owned by Grace and Compassion Benedictines. St Josephs was historically used as a care home and Essex House was used to accommodate staff with classrooms on the upper floors while the remaining buildings were used as residential accommodation to house the sisters and their associates.
In March 2017 planning consent (REF: BR/348/16/PL) was granted for change of use of St Josephs, Essex House (1 & 2 Walton Road) & Blackbird Cottage including on-site stand alone conservatory building, from a care home (Class C2 use) to a House in Multiple Occupation (HMO) to provide team member accommodation for Butlins staff. This was subsequently varied in January 2018 (REF: BR/341/17/PL) to increase the number of bed spaces from 91 to 102.
In July 2017 consent was granted (REF BR/99/17/PO & BR/100/17/PO) and a deed of discharge was agreed to remove the previous age restriction on the residential properties at 3 Walton Road (Essex House) and Beach Lodge.
Further building regulation consents were obtained in June 2017 for the refurbishment of the existing residential properties Walton House and Las Arenas to provide additional HMO accommodation.
The site therefore provides a total of 181 bedspaces occupied by Butlins staff and four residential flats (located within Walton Walls and part of Las Arenas) subject to occupational leases.
REFURBISHMENT WORKSIn March 2018, the vendor completed a comprehensive programme of refurbishment and reconfiguration works.
All the works were completed to a high standard to ensure that all HMO Licencing criteria were passed in terms of Health and Safety regulations and size and density standards.
The properties have been fitted with new kitchens, shower rooms, heating systems and are double glazed throughout.
Works also included rewiring and the installation of a new plumbing system and each building has the benefit of new hardwired broadband/WiFi.
ST JOSEPHS
WALTON HOUSE
APPROXIMATELY 23.75 YEARS (18.75 YEARS TERM CERTAIN) WITH RPI LINKED REVIEWSLET TO THE SECURE COVENANT OF BUTLINS SKYLINE LIMITED
ST JOSEPHS VILLAGE, ALBERT ROAD, PO21 1NJ
BOGNOR REGIS
INTERNALS GALLERY
APPROXIMATELY 23.75 YEARS (18.75 YEARS TERM CERTAIN) WITH RPI LINKED REVIEWSLET TO THE SECURE COVENANT OF BUTLINS SKYLINE LIMITED
ST JOSEPHS VILLAGE, ALBERT ROAD, PO21 1NJ
BOGNOR REGIS
BOGNOR REGISButlins Bognor Regis opened in 1960 and in 1999 it was renovated with the construction of a Skyline Pavilion. In 2005, a new £10m hotel called The Shoreline was developed and, in 2009, a second hotel, The Ocean, opened on the site. In July 2012 a third hotel, The Wave, opened to guests.
• A NEW £36M LEISURE AND SPLASH POOL• £76M INVESTED IN THE SITE• APPROXIMATELY 1,400 STAFF
• WELCOMING APPROXIMATELY 350,000 GUESTS ANNUALLY, EACH STAYING BETWEEN 3-7 NIGHTS
COVENANT INFORMATION
Butlins Skyline LimitedButlins was founded in 1936 and now operate from three seaside resorts; Bognor Regis, Minehead and Skegness employing approximately 3,800 staff and hosting more than 1.5 million guests each year.
The company recorded the following accounts for the past 3 years:
31 Dec 2015 31 Dec 2016 31 Dec 2017
Turnover £218,232,000 £225,559,000 £229,682,000
Pre-Tax Profit £19,752,000 £26,833,000 £23,714,000
Total Net Worth £57,171,000 £55,376,000 £53,970,000
Butlins Skyline Limited is a subsidiary of Bourne Leisure Ltd, which also operate a number of other leisure brands including Warner Leisure Hotels and Haven Holidays. In 2016, the company posted a turnover of £996,559,000, pre-tax profit of £143,886,000 and a total net worth of £354,625,000.
Scott Tyler020 7543 [email protected]
Adam Kerven020 7344 [email protected]
For further information or to make arrangements for viewing please contact:
NATIONAL INVESTMENT RESIDENTIAL INVESTMENT AND DEVELOPMENT
Lottie Hayward020 7543 [email protected]
Anthony Dixon020 7344 [email protected]
PROPOSALOffers sought in excess of £10,800,000 (Ten Million, Eight Hundred Thousands Pounds) after allowing for purchaser’s costs of 6.71%. This reflects a net initial yield of 5.25%.
EPCsAvailable in the dataroom.
VATThe property is elected for VAT and we would anticipate the transaction to be treated as a Transfer of a Going Concern (TOGC).
DATAROOMFurther information is provided in the dataroom. For access please register on the following website: https://datarooms.allsop.co.uk/register/StJosephsVillage
allsop.co.uk
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 06.19
Reversionary Yield March 2023
Forecast based on OBR 6.18%
Minimum 5.91%
Maximum 6.39%