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Freehold Ground Rent Investment
Devon Cliffs Holiday ParkSandy Bay, Exmouth, Devon EX8 5BT
OVER 48
YEARS U
NEXPIR
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WIT
H RPI
RENT R
EVIEW
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UPER R
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Investment Summary• Devon Cliffs Holiday Park is located
on Sandy Bay near Exmouth, Devon.The entire site extends to approximately 200 acres of land and includes Sandy Bay beachto the low tide mark (usual form of ownershipis only to high tide mark) and part of BudleighBay to the high tide mark.
• The Park is one of the largest in the UK andWestern Europe and benefits from its locationon part of the Jurassic Coast World HeritageSite.
• The site is offered on a freehold – ground rentinvestment basis.
• The site has been in the same ownership since1950.
• The site is entirely let to Haven Leisure Ltduntil 30th November 2060. (Approximately48.5 years unexpired)
• The current passing rent of £18,452 per annumexclusive is subject to uncapped upward onlyrent reviews on a 17 yearly basis in line with100% of the retail price index.
• The lease has been contracted outside of theprotection of the 1954 Act.
• Offers Invited.
Investment RationaleThe investment rationale for this opportunity is one of security of income and long term wealth creation. Although the income return over the short term is low,the anticipated future uplift in value at lease expiry will besignificant. This will be by virtue of either renegotiationwith the existing leaseholder or through gaining full controlof the site at lease expiry and development of the land.There is further opportunity for the purchaser to negotiatewith the current leaseholder whereby as the term of thelease diminishes, the leaseholder may seek to negotiate anextension to the lease partway through the term inexchange for a premium payment.
LocationDevon Cliffs Holiday Park includes Sandy Bay and isapproximately 3 miles to the east of Exmouth, 3 miles westof Budleigh Salterton and 8 miles to the west of Sidmouth.Sandy Bay is a long sand beach backed by the famousJurassic Devon Cliffs, which connects directly to Exmouthbeach.
The Dorset and East Devon Coast World Heritage Site isEngland’s first natural World Heritage Site – known as The Jurassic Coast. It covers 95 miles of truly stunningcoastline from East Devon to Dorset, with rocks recording185 million years of the Earth’s history.
World Heritage status was achieved because of the site’sunique insight into the Earth Sciences as it clearly depicts ageological ‘walk through time’ spanning the Triassic, Jurassicand Cretaceous periods. More information can be found atwww.jurassiccoast.com.
Exmouth is connected by national rail and coach stationsand is approximately 8 miles south of the M5 – Junction 30,thus providing easy access to Taunton, Bristol, Gloucester,Worcester and Birmingham and also connects to the M4which leads directly into London (115 miles).
Exmouth Rail Station is situated 3 miles from the park.
Exeter International Airport is situated 13 miles to thenorth of the Park, offering flights to 48 destinations.
These plasn are published for convenience of identification. Any boundaries shown are indicative only and should be checked against the Title Deeds. These plans are based upon Ordnance Survey Map withthe
THE SITE
SituationSAT NAV: Post Code: EX8 5BT
Driving DirectionsTake Junction 30 off the M5, then take the A376signposted to Exmouth. As you come into the outskirtsof Exmouth take the left turn at the traffic lights tofollow signs for Budleigh Salterton/Littleham/Sandy Bay,this will bring you directly to Devon Cliffs Holiday Park.
DescriptionDevon Cliffs Holiday Park is one of the largest and mostprofitable parks within The Haven portfolio. The Park isone of Haven’s flagship sites set overlooking Sandy Bay onone side and with the picturesque Budleigh Bay on theother side. The site is located on a cliff top with sea viewsfrom almost all plots, set within 200 acres of rural land.
According to our investigations, Devon Cliffs can house upto 8,000 tourists at the height of the season with over1,700 caravan pitches. The majority of these are privatelyowned. Haven Holidays have planning permission toincrease capacity to over 2,000. Sandy Bay is one of thelargest employers in the local area. The site employs circa100 permanent employees with numbers rising to roughly500 staff at the height of the season. Haven Holidays arecontinually improving The Park having invested significantfunds since 2000.
The site houses a number of food and beverage providersthat operate under franchise agreements includingStarbucks, Burger King, Papa John’s and Spar, whilst thefoodhall is currently undergoing extension work due tohigher than anticipated customer levels. Haven Holidaysalso operate two show bars; Capone’s and Bugsy’s whichcan each house over 1,000 customers.
The site has a wide range of facilities including indoor/outdoor swimming pool, luxury spa, paintballing facilities,crazy golf and an abseiling wall. The site also benefits fromclose proximity to a number of tourist attractionsincluding World of Country Life, Crealy Adventure Park,Bicton Park Botanical Gardens, Woodbury Common, theJurassic Coastline and Exeter Cathedral.
TenureFreehold.
TenancyThe Park is entirely let to Haven Leisure Limited (01968698)on a full repairing and insuring lease expiring 30th November 2060 with approximately 48.5 yearsunexpired. The current passing rent is £18,452 per annum.The lease provides for the rent to be reviewed 17 yearly inline with the Retail Price Index (RPI) on an upward only basiswith the next review being on 13th November 2019.
The lease is excluded from the provisions of Sections24 to 28 of the Landlord and Tenant Act 1954. Atlease expiry the tenant will not have a legal right torenew or extend the lease unless agreed prior withthe landlord.
The advantage of the lease being outside the Actprovides the future Landlord with control of the site.Given that the land has existing development on it,this would indicate a high likelihood of securingfavourable alternative development uses.
Tenant ProfileHaven Holidays are Britain’s largest provider of domesticholidays, owning and operating 35 award winning parksthroughout the UK. Haven Holidays forms part of theBourne Leisure portfolio which also includes WarnerLeisure Hotels and Butlins Resorts. Bourne acquired RankGroup Holidays Division in 2000. This deal also includedthe Haven brand forming the largest privately ownedholiday operator in the UK. Haven Holidays serves over 2.4 million holidaymakers every year.
Haven Holidays was recognised by the British TravelAwards 2009 as the ‘Large Tour Operator of the Year’.This was followed by the accolade of the Best DomesticOperator of the Year in 2010 by TTG Travel Awards.
Summary of some of Haven Leisure’s Parks
UK Parks
• Scotland – Seton Sands, Craig Tara
• Northumberland – Berwick, Haggerston Castle
• Yorkshire – Blue Dolphin, Primrose Valley, Reighton Sands
• Lincolnshire – Thorpe Park, Golden Sands
• Norfolk – Caister, Hopton Seashore, Wild Duck
• Essex – Orchards
• Kent – Allhallows-on-Sea
• Sussex – Combe Haven, Church Farm
• Dorset – Rockley Park, Little Sea, Seaview, Weymouth Bay
• Devon – Devon Cliffs
• Cornwall – Riviere Sands, Perran Sand
• Somerset – Doniford Bay, Burnham on Sea
• South Wales – Lydstep Beach, Kiln Park, Quay West
• North Wales – Greenacres, Hafan y Mor, Presthaven Sands
• Blackpool – Marton Mere, Cala Gran
• Lake District – Lakeland
A summary of the financial performance for Haven LeisureLimited over the last 3 years is as follows:
31st Dec2008
31st Dec 2009
31st Dec2010
Turnover £251,060,000 £265,514,000 £271,078,000
Pre-Tax Profit £29,197,000 £28,505,000 £35,185,000
Total Net Worth(excludes intangiblefixed assets)
£166,904,000 £162,738,000 £168,346,000
INVESTMENT SALESGROUP CONTACTS
Devon Cliffs Holiday ParkSandy Bay, ExmouthDevon EX8 5BTFor further information or to arrangean inspection please contact:
MIKE BURDENTel: 020 7152 5086Email: [email protected]
DAVID ESTERKINTel: 020 7152 5370Email: [email protected]
NICK DUFEUTel: 020 7152 5069Email: [email protected]
Cushman & Wakefield LLP43/45 Portman SquareLondonW1A 3BG
www.cushmanwakefield.com
April 2012
MISREPRESENTATION ACT 1967 and PROPERTY MISDESCRIPTIONS ACT 1991 Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors orlessors of this property whose agents they are, give notice that: (1) The particulars are producedin good faith, are set out as a general guide only and do not constitute any part of a contract. (2) No person in the employment of the agent(s) has any authority to make or give anyrepresentation or warranty whatever in relation to this property. (3) This property is offeredsubject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing in these particulars should be deemed to be a statement that the property is in goodcondition or that any services or facilities are in working order. (5) Unless otherwise stated, noinvestigations have been made regarding pollution or potential land, air or water contamination.Interested parties are advised to carry out their own investigations if required.
Photography, Print & Design by Plus Art Ltd 0115 972 4000
ProposalOffers Invited.
VATWe do not believe that The Park has been elected forVAT.
Plant and MachineryNone of the systems or equipment in the property havebeen tested by Cushman & Wakefield LLP to check thatthey are in working order and purchasers may wish tomake their own investigations.
Energy Performance Certificates for The Park are availableto download from the Property Website.
Additional LandThere is a further parcel of land which adjoins the site andamounts to approximately 12.69 acres and is also let toHaven on a separate but coterminous lease term to thesubject site at an annual peppercorn rent. Haven haverecently secured planning for further caravans to be locatedon the site and purchasers may also be offered theopportunity to submit a separate offer for this additionalland (as hatched in blue on the aerial plan). More information can be supplied on request.
PlanningThe site benefits from a planning consent (Ref: 85/P1312and 85/P1313) granted by East Devon Council on 22nd July1985, allowing for the entire site to be used as a staticholiday caravan site.
The additional land also received planning consent (Ref: 10/1210/MFUL) approved on 17th November 2011comprising redevelopment, relocation and upgrading ofaccommodation. This includes change of use of land forsiting of caravans, overall landscape enhancement togetherwith refreshment kiosk and toilets.
www.cushmanwakefieldinvestmentsales.co.uk/cw/devoncliffs
Energy Performance Certificatehttps://www.ndepcregister.com/direct/report/0391-0732-3109-2494-1002
