DAVID LLOYD GYMNASIUM - Allsop · DAVID LLOYD GYMNASIUM UNITS 1 & 2, 63-65 CORNWALL STREET . BIRMINGHAM B3 2EE SECURE VIRTUAL FREEHOLD LEISURE INVESTMENT SITUATION 63-65 Cornwall

DAVID LLOYD GYMNASIUMUNITS 1 & 2, 63-65 CORNWALL STREET BIRMINGHAM B3 2EE

SECURE VIRTUAL FREEHOLD LEISURE INVESTMENT

INVESTMENT CONSIDERATIONSn Birmingham is the UK’s second largest city and lies at the

centre of the West Midlands, boasting a thriving economyn Recently comprehensively refurbished City Centre building

forming part of an attractive mixed use development n Situated on the Northern Side of Cornwall Street

in the vibrant leisure quarter serving the Colmore Business District.

n Ground floor lock up premises totalling 4,908 sq ft with a prominent frontage onto Cornwall Street

n Let to David Lloyd Leisure Limited (D&B 5 A1) on a 15 year lease subject to a tenant option to determine at year 5 (exercisable subject to a year’s rental penalty at the then rate payable)

n Initial rent of £110,000 p.a. (£22.41 psf) with annual rental uplifts linked to RPI (2% - 4% collar and cap)

nVirtual Freehold 999 year lease

n Offers are sought in excess of £1,600,000 (One Million Six Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 6.48% after allowing for purchaser’s costs.


CGI image for illustrative purposes only.

LOCATIONBirmingham is situated in the heart of the UK, approximately 115 miles (185 km) North West of London, 88 miles (142 km) North East of Bristol and 85 miles (136 km) South East of Manchester. Classed as Britain’s ‘Second City’, Birmingham is a prominent player in the financial and administration sector within the UK.Birmingham’s central location places it at the heart of the M1, M6 and M42 motorways, with the A38M creating direct connections from the city to the national road network.

Birmingham is served by three railways stations (New Street, Snow Hill and Moor Street) and currently provides over 114 rail connections to London every day. Birmingham New Street has recently undergone a £650 million refurbishment and provides a direct link to London Euston with a current fastest journey time of 83 minutes.

Birmingham International Airport offers direct flights to 143 destinations each day serving over 9 million passengers per year. The runway was extended in 2014 and has improved the airport’s capabilities enabling direct non-stop connections to the Far East, South Africa and the West Coast of America.

The airport is 10 miles (16 km) to the east of the city centre and is well served by Birmingham International railway station with a 10 minute journey time.


GROS

VENO

R ST

WES

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EDMUND ST

GREAT COLMORE ST

FLOODGAT

E ST

BORDESLET ST

PARADE

CHEAPSIDE

ALCE

STER

STR

EET

IRVING ST

ESSEX RD

HOLLIDAY ST

PARK

ST

JAMES W

ATT QU

EENSWAY

MOO

R ST

QUE

ENSW

AY

DIGBETH HIGH ST DERITEND

BATH ROW HOLLOWAY HEAD

WHE

ELEY

LNISLINGTON ROW MIDDLEWAY

HURST ST

BROMSGROVE ST

TEM

PLE

ST

NEW STREET

HIG

H S

T

CHURCH ST

JENNEN

S ROAD

FAZELEY ST

BULL ST

DALE

END

NAVIGATION ST

COR

PORA

TION

ST

SUFFOLK ST QUEENSWAY

GRAHAM ST

NEWHALL ST

COLMORE ROW

STEELHOUSE L

ANE

PERSHORE ST

HILL ST

HILL ST

MERI

DEN

ST

NE

W C

ANAL

ST

BRADFORD ST

SHER

LOCK

STR

EET

BA

RFO

RD S

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SMALLBROOK

QU

EENS

WAY

ST V

INCE

NT

SAND PITS

BRIS

TOL

STRE

ET

UPPER DEAN ST

ST CHADDS QUEENSWAY

THE PRIORY Q’WAY

CURZON ST

GRANVILLE ST

KING EDWARDS R D

LIVERY STREET

BLUCHER ST

COMMERCIAL ST

BRIDGE ST

GEORG

E ST

CHAR

LOTT

E ST

MARY

ANN

ST

BERKLEY ST

HURST ST

INGLE ST

GAS ST

TEMPLE ROW

BISHOPSGATE ST

G R EAT CH

ARLE

S ST

QUEE

NSWAY

CORN

WALL R

OAD

BROAD ST

BROA

D ST

SEVERN ST

MOOR ST

CORP

ORAT

E ST

SHEEPCOTE ST

PEACEGARDENS

SUNSETPARK

CITY CENTREGARDENS

ST GEORGE ST CHAD

EAST-SIDE

GUNSMITHSQUARTER

ASTONTRIANGLE

DIGBETH

SOUTHSIDE

SMITHFIELDREGENERATION

WESTSIDEIRISH

QUARTER

JEWELLERYQUARTER

COLMOREBUSINESSDISTRICT

Mailbox

BBC VisitorsCentre

CentenarySquare

VictoriaSquare

CathedralSquare

GreatWesternArcade

TheSquare

BarcalysArena

Brindley Place

ICC & SymphonyHall

The BirminghamLibrary

BirminghamMuseum & Gallery

Chinatown

Arcadian

Bullring

GrandCentral

GasStreetBasin

O2Academy

NewStreetStation

Moor StreetStation

SnowhillInterchange

Station


DEMOGRAPHICSThe population within the Birmingham Retail Market Area is estimated at 1,297,000 at year end 2018, above the Major City average and ranking the city 2 after London out of the PROMIS Centres. Birmingham is projected to see above average growth in population within its Retail Market Area over the period 2018-2023. Birmingham ranks 2 in terms of the volume of total retail spend available within the Primary Retail Market Area. The age profile of the Birmingham Primary Retail Market Area includes a particularly high proportion of age groups to include young adults aged 15-24 and adults aged 25-44. In contrast, older working age adults aged 45-64 and the retired aged 65 and over are under-represented within the Birmingham area.

BIRMINGHAM ECONOMYBirmingham’s city centre is dominated by professional and business services firms, notable accountants, law firms, and financial advisors. Major employers include KPMG, EY, Deloitte and PwC to name but a few. This thriving town centre accounts for 179,600 employees, with more than 15,000 further jobs predicted to be created in the city in the next 5 years. Around 35 per cent of these will be in professional and business services, the creative industries, real estate and public sector. Most notably, PwC is aiming to expand their workforce by 1,000 employees at Paradise Circus. HMRC and the Department for Work & Pensions have already acquired around 340,000 sq ft and are looking to consolidate their operations into Birmingham. Similarly, BT are also looking to strengthen their operations in the city due to the city’s unrivalled connectivity. Furthermore, Law firms also maintain a strong presence within Birmingham, with Gowling WLG employing over 1,000 people in the city centre at Two Snowhill. Other law firms present in the city include Eversheds Sutherland, Irwin Mitchell, DAC Beachcroft, and Shakespeare Martineau.In addition, the city boasts the best development pipeline of any regional city, with two million sq ft of space available within the next 12 months. Residential development in Birmingham is at an “all-time high” (Deloitte Crane Survey), with 16 new schemes have been completed in 2018 and a further 20+ new mixed use schemes have broken ground delivering new offices, hotels and more apartments in the next couple of years.

DAVID LLOYD GYMNASIUMUNITS 1 & 2, 63-65 CORNWALL STREET BIRMINGHAM B3 2EE SECURE VIRTUAL FREEHOLD LEISURE INVESTMENT

SITUATION 63-65 Cornwall Street is situated in the bustling heart of Birmingham approximately 3 minutes walking distance (0.2 miles) from Birmingham Snow Hill Station and 6 minutes’ walk (0.4 miles) from Birmingham New Street Station.

The property occupies a prominent position on the Northern Side of Cornwall Street adjoining Purnell’s Michelin Star fine dining restaurant within the attractive and vibrant leisure quarter serving Colmore Business District, one Birmingham’s premier commercial addresses.

Nearby leisure occupiers include All Bar One, Opus Restaurant, Utopia Bar, Gaucho Restaurant, The Alchemist, San Carlo, The Botanist and Gusto Restaurant.

Nearby office occupiers operating nearby include AXA, HSBC, PWC, JLL, Santander, Handelbanken, Coutts, Belpenny and Mazars.

DAVID LLOYDUNITS 1 & 2, SEVENTY ONE CORNWALL STREET, BIRMINGHAM


DESCRIPTIONThe property comprises ground floor accommodation totalling 4,908 sq ft GIA with a prominent frontage onto Cornwall Street. The gym is within a recently refurbished mixed use development comprising 77 high end apartments and the adjoining A3 retail/leisure Unit 3 (to be let).We understand that David Lloyd are spending in the region of £850,000 fitting out their premises to suit their ‘Blaze’ concept demonstrating the strength of the location and the tenant’s commitment to the premises. The gym is due to commence trading in December.

BLAZESince its inception in March 2018 David Lloyd’s Blaze concept has gone from strength to strength.

The Blaze concept involves combining cardiovascular training with strength, boxing and martial arts skills, while syncing the workout to music. This gives participants a high intensity workout in a fast-paced and exciting environment. The classes also invite participants to wear heart rate monitors throughout the class which are linked to a TV monitor at the front. This allows class members to see the effort they are putting in and promotes healthy completion with each other.

Blaze has been incorporated into 30 existing David Lloyd gyms and is trading very successfully.


Gym Entrance - CGI.

TENUREVirtual Freehold – 999 year lease.

TENANCYThe property is let in its entirety to David Lloyd Leisure Limited on a FRI lease for a term of 15 years from 3rd October 2019 (lease expiry October 2034) at a current rent passing of £110,00 pa, which equates to a rent of £22.41 psf.

The lease provides for annual rental uplifts on 2nd October linked to RPI with a collar and cap of 2%-4%.

There is a tenant option to determine the lease on 2nd October 2024 exercisable subject to six months’ but no more than twelve months’ written notice. Should the tenant break, they must pay to the Landlord in cleared funds a sum equivalent to one year’s Annual Rent at the rate then payable.


COVENANTDavid Lloyd operates 99 clubs in the UK and a further 15 across mainland Europe. To date they have approximately 570,000 members and employ over 8.600 people, including an expert health and fitness team of over 2000 and more than 680 tennis professionals.Across all of the David Lloyd clubs, there are over 180 swimming pools offering more than 13,000 exercise classes every week.

Please see a summary of the past 3 years accounts below.

03/01/2017 03/01/2018 31/12/2018

Turnover £235,516,000 £265,638,000 £287,451,000

Pre Tax Profit £17,106,000 £39,891,000 £35,237,000

Total Net Worth £490,640,000 £520,448,000 £555,871,000

INVESTMENT COMPARABLESProperty Sale Date Tenant Earliest

DeterminationNIY Sale Price

Timber Beach Road, Sunderland June 19 DW Fitness 16.5 years 6.50% £2,600,000

Tritton Road, Lincoln May 19 DW Fitness 14.5 years 5.90% £2,900,000

Ranelagh Road, Ipswich April 19 DW Fitness & Orwell Motorcycles 16 years 7.00% £4,650,000

125 Copenhagen Way, Norwich Jan 19 Pure Gym 15 years 6.00% £2,500,000

43 Peninstone Road North, Sheffield Aug 18 Greenwich Leisure 12 years 6.10% £2,545,000

The Pentagon, Nottingham Aug 18 Nuffield Health 25 years 5.48% £9,850,000


Ronnie Morgan020 7543 [email protected]

For further information or to make arrangements for viewing please contact:

Andrew Wise020 7543 [email protected] allsop.co.uk

PROPOSALWe are seeking offers in excess of £1,600,000 (One Million, Six Hundred Thousand Pounds) subject to contract and exclusive of VAT. This reflects a net initial yield of 6.48% after allowing for purchaser’s costs.

SERVICE CHARGEPlease see budgeted service charge in the dataroom.

EPCThe property has been rated grade C15. Full copies of the EPCs are available on the dataroom.

VATThe property is elected for VAT and we would expect the transaction to be treated as a Transfer of a Going Concern (TOGC).

PLANNINGThe unit benefits from planing consent for Use Classes A1-A4 inclusive and also has recently obtained consent for Use Class D2 use.

AMLA successful bidder will be required to provide information to satisfy the AML requirements when Head of Terms are agreed.

DATAROOMFor access to the Allsop dataroom please use the following link: https://datarooms.allsop.co.uk/register/dlbirmingham

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 11.19

Documents

DAVID LLOYD GYMNASIUM - Allsop · DAVID LLOYD GYMNASIUM UNITS 1 & 2, 63-65 CORNWALL STREET . BIRMINGHAM B3 2EE SECURE VIRTUAL FREEHOLD LEISURE INVESTMENT SITUATION 63-65 Cornwall