PDF Brochure - Lewis Ellis

WELL SECURED, FREEHOLD LEISURE INVESTMENT LET TO STONEGATE PUB COMPANY LTD
INVESTMENT SUMMARY
nn The property is well located within High Wycombe and is the No.1 late night destination
venue in the town.
nn Adjacent to the new Windsor House halls of residence for Buckinghamshire New
University.
nn Close to the main shopping area and other key leisure facilities including restaurants,
a multiplex cinema, Premier Inn and Travelodge hotels.
nn Large and prominent property with extensive glazed frontage.
nn Open plan ground floor bar/restaurant area and first floor ancillary accommodation
totalling 11,130 sq ft (1,034 sq m). Additional external seating area to the front of the
property, comprising approximately 806 sq ft (74.91 sq m).
nn Freehold.
nn Let to Stonegate Pub Company Ltd for 999 years from 1st November 2001, subject to a
Tenant break option at the 25th year (31st October 2026), providing a minimum guaranteed
term of 12.5 years.
nn There is a Landlord’s break option at the 35th year (31st October 2036), after which the rent
reverts to a peppercorn if this is not exercised.
nn The passing rent is £115,000 per annum (£10.33 per sq ft overall), with 5 yearly upward
only rent reviews to OMV, the next being due on 1st November 2016. The rent has recently
been rebased from £160,000 per annum.
nn We are seeking offers in excess of £1,550,000 (one million, five hundred and fifty
thousand pounds), subject to contract and exclusive of VAT. This reflects an attractive net
initial yield of 7.00%, after the deduction of usual purchaser’s costs of 5.80%.
A41
19
AMERSHAM
A4010
5
Chorleywood
Hazlemere
A355
A413
WATFORD
18
4
South Oxhey
BEACONSFIELD
GERRARDS
2
CROSS
M25
M40
3
HARROW
Wooburn Green
MARLOW
A404
LOCATION
High Wycombe is a large town in Buckinghamshire, located approximately
29 miles (47 km) north west of central London, 23 miles (37 km) south east
of Oxford and 15 miles (24 km) north west of Heathrow airport. The town is
prosperous and its affluent hinterland includes the Chiltern Hills to the north
and west.
CATCHMENT & DEMOGRAPHICS
High Wycombe benefits from a growing population, with an increase of
13% recorded between 2001 and 2011, and a primary catchment estimated at
214,000.
The population of the town is considered highly affluent with 36% classified
within the most affluent AB social groups, compared to the UK National
average of 13%. Car ownership is significantly above the UK average at
86% (UK 73%), with a high representation of multiple car owners. Furthermore,
78% of the town’s population are homeowners, compared to the UK average
of 79%.
1
16 1A
UXBRIDGE
Henleyon-Thames
A40
Burnham
MAIDENHEAD
A404(M)
M4
8 9
Road communications to the town are strong with the A40 running through
the centre. It is close to the M40 (junction 4), which is 2 miles (3 km) south of
the town centre, providing access to the M25/London to the south east and
Oxford/Birmingham to the north west.
High Wycombe is a popular London commuter town and is served by frequent
trains into the capital, with typical journey times of around 30 minutes into
London Marylebone. Heathrow airport is approximately 20 minutes drive to the
south.
Bushey M1
17
RICKMANSWORTH
4
5
SLOUGH
7
HAYES
M25
6
15 4B
5
WINDSOR
4
4A
3
A4
M4
A4
14
HEATHROW
13
A329(M)
10
EGHAM
STAINES
HOUNSLOW
2
SITUATION
BUCKINGHAMSHIRE (BUCKS) NEW UNIVERSITY
The property is situated on Frogmoor and forms
part of the retail core of High Wycombe with many
nearby leisure uses including a Premier Inn
(120 bedrooms), The Bell and Butlers public houses
and numerous A5 fast food and takeaway retail units.
The principal campus of Bucks New University is situated within the town centre, with a current student population of approximately
7,500. The history of the University can be traced back as far as 1893 and in October 2007 it was awarded University status by the
Government in recognition of its high standards of teaching, training and research.
Yates’s specifically target the student population of Buckingham New University by offering student discounts and targeted entertainment.
STUDENT VILLAGE
(5 MINS)
PRE
WY
C OM
BE R
MIE
D
AR
CH
0
A4
RD
BUTLERS (MARSTONS)
THE WILLIAM ROBERT LOOSLEY
(WETHERSPOONS)
RD
THE
PRIO
RY A
White
Hart
Mall
CHURCH ST
HIGH
WYCOMBE
CAS
TLE
ST
VE
HIGH WYCOMBE
RAILWAY STATION
OV
ER
O’NEILLS
ST
THE FALCON
(WETHERSPOONS)
HOBGOBLIN
PAU
THE SNUG BAR
ST
M
Y
AR
0
A4
RD
AY
YW
BE
AB
SUF
FIEL
D
ROW
L’S
LILY’S WALK
T
THE ANTELOPE
WE
ND
DO
NS
EN
D
FOR
DS
T
REN
WE
ST
Cineworld
Hollywood Bowl
Pizza Express
Zizzi
Wagamama
Nando’s
Ranch Burger
RD
Windsor House
Halls of Residence
PRIOR
Y
ST
FROGM
OOR
DO
VE
CO
TR
D
RD
E
G
OX
T
YS
ND
ME
RD
ST
The main family leisure destination is close to the
subject property, forming part of the Eden Centre,
and comprises a Cineworld multiplex cinema, AMF
bowling centre and restaurants including Pizza Express,
Nando’s, Wagamama, Ranch Burger and Zizzi.
FO
ID
BR
GREE
THE BELL (FULLERS)
OX
Brook Street
Halls of Residence
RY RD
PRIO
NWA
Y
ST
H
UG
RO
SBO
DE
There is currently no nightclub within High Wycombe
and as such Yates’s is considered the ‘destination’
late night establishment for revelry within High
Wycombe. The property has the latest licensing hours
in the town open until 3am on Fridays and Saturdays.
Furthermore, there is entertainment nightly and well
established late opening student nights on Tuesdays
and Thursdays.
RW
AY
AVE
RY
PRIO
OK
BRO
LEISURE IN HIGH WYCOMBE
Licensed retailing is focused in two clusters within
the town centre. The first cluster is around the subject
property on/close to Frogmoor, which includes Butlers
(Marstons), The Bell (Fullers) and The William Robert
Loosley (J D Wetherspoon). The second cluster is
around Church Street, which includes The Falcon
(J D Wetherspoon), O’Neill’s (Mitchells & Butlers),
The Antelope, Hobgoblin and The Snug Bar.
TEMPLE
EST
AY
0W
W
A4
END
BELLFIELD RD WEST
A4
04
C
In recent years the town has been subject to
considerable investment and as part of a wider
regeneration scheme, the Eden Shopping Centre
opened in March 2008 providing 850,000 sq ft of retail
floor space. It is now the 32nd largest shopping centre
in the UK. The centre provides 107 shops and is
anchored by Marks & Spencer, BHS, Next, H&M, Boots
and House of Fraser.
A4
12
8
Adjacent to the subject property is The Chilterns
shopping centre, which converted its upper floors
in 2012 to provide a new hall of residence for
Buckinghamshire New University known as Windsor
House.
The University has four halls of residence in High Wycombe town centre of which Windsor House (adjacent to the subject property) is
the newest with 70 rooms. Brook Street Halls (398 rooms) is close by to the west, Hughenden Avenue Halls (234 rooms) is to the north
and Alexandra House (39 rooms) is on the main campus site to the south.
DESCRIPTION
The property comprises a substantial two storey building, over ground and first floors, originally
constructed in the 1960’s. The façade was significantly altered in 1998 and the property
now provides a modern public house with extensive frontage to Frogmoor, extending to
approximately 88 ft (27m).
The ground floor provides an open plan bar / restaurant area, with licensing capacity for 550
people. The first floor comprises storage, customer toilets, a large staff flat and two bedsits.
The property also offers an external seating area to the front of the property, comprising
approximately 806 sq ft (74.91 sq m). To north of the property is the entrance to the rear
delivery yard and an area for car parking.
The property currently trades under the Yates’s brand and we understand it is the dominant
public house in High Wycombe town centre. It opens at 10am daily (except Sundays) and
serves an extensive food menu throughout the day, showing the latest sporting events and
football fixtures on numerous large screens and plasma TV’s. Furthermore it is a well-known
evening venue with live music and DJ’s on several nights of the week. The property has
licensing to be open until 1am on Wednesday, 2am on Tuesday and Thursday and 3am on
Friday and Saturday.
FLOOR AREAS
The property provides the following gross internal floor areas.
Floor
Sq Ft
Sq M
Ground Floor
5,552
515.84
First Floor
5,578
518.27
Total
11,130
1,034.11
The site area of the property is 0.273 acres (0.11 hectares).
TENURE
Freehold.
ENERGY PERFORMANCE CERTIFICATE
The property has an EPC rating of E and a score of 106. A copy of the EPC is available on the
Lewis Ellis website.
TENANCY
The property is let to Stonegate Pub Company Ltd for 999 years from 1st November 2011,
subject to a tenant break option at the 25th year (31st October 2026). This provides a minimum
guaranteed term of 12.5 years.
There is a landlord’s break option at the 35th year (31st October 2036), after which the rent
reverts to a peppercorn if this is not exercised.
The passing rent is £115,000 per annum (£10.33 psf overall), with 5 yearly upward only rent
reviews to OMV, the next being due on 1st November 2016.
Recently, in exchange for removing a break option and improving the covenant on the lease,
the vendor agreed to reduce the rent from £160,000 per annum (£14.37 psf overall) to the
current level, a 28% decrease.
The lease permits the property to be used under A3 use provisions, however conversion to A1
is permitted subject to obtaining the Landlord’s consent.
TENANTS COVENANT
Stonegate Pub Company Ltd (Registered No. FC029833) is the largest privately held managed
pub operator in the UK. It trades from over 620 locations through a variety of formats including
Yates’s, Slug & Lettuce, The Living Room, Scream and Missoula. Stonegate is owned by
TDR Capital who currently manage funds of circa 2.6 billion euros. Stonegate was established
in 2010 and in November of that year acquired an estate of 333 pubs from Mitchells & Butlers
located throughout Britain for £372.685 million. In June 2011, Stonegate purchased the
Town & City Pub Company for £285 million, creating the largest privately held managed pub
operator in the UK and acquiring the Yates’s and Slug and Lettuce brands in the process.
Stonegate Pub Company Limited reported the following financial figures for the year to
30th September 2012:
Sales Turnover
£484,213,000
Profit/(Loss) Before Tax
£14,573,000
Shareholders Funds
£180,407,000
VAT
The property has not been elected for VAT.
DATAROOM
There is a dataroom for the property with key tenancy information, title documentation and
EPC. Access to it can be obtained via the current sales page on the Lewis Ellis website:
www.lewisellis.co.uk
PROPOSAL
FURTHER INFORMATION
We are seeking offers in excess of £1,550,000 (one million, five hundred and fifty
thousand pounds), subject to contract and exclusive of VAT.
Should you require any additional information or wish to view the property please contact either:
This reflects an attractive net initial yield of 7.00%, after the deduction of the usual
purchaser’s costs of 5.80%.
Matthew Brown
Tel: 020 7493 3330
Mob: 07836 724 420
Email: mbrown@lewisellis.co.uk
David Kos
Tel: 020 7493 3330
Mob: 07709 813 267
Email: dkos@lewisellis.co.uk
Lewis Ellis LLP for themselves and for the vendors or nominees 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 the intending purchasers
or lessees, and do not constitute part of an offer or contract; (2) all descriptions, dimensions, references to condition and necessary permissions 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 Lewis Ellis LLP has any authority to make or give any representation or warranty whatever in relation to the property. Designed and Produced by Creativeworld. Tel: 01282 858200. May 2014.