DW FITNESS CLUB PORT WAY, , , PR2 2YQ 17 YEAR + SECURE INCOME GYM INVESTMENT WITH GUARANTEED FIXED RENTAL UPLIFTS EVERY 5 YEARS

6228 – main 6250 – inset 6313 6319 DW FITNESS CLUB PORT WAY, PRESTON, LANCASHIRE, PR2 2YQ 17 YEAR + SECURE INCOME GYM INVESTMENT WITH GUARANTEED FIXED RENTAL UPLIFTS EVERY 5 YEARS

INVESTMENT CONSIDERATIONS ■■ Gym Investment located within close proximity ■■ Current passing rent of £173,890 per annum with ■■ The vendor is seeking offers in excess of to Preston City Centre a guaranteed fixed rental uplift to£276,955 pa in £3,550,000 (Three Million Five Hundred and Fifty ■■ Substantial detached gymnasium arranged November 2021, £321,065 pa in November 2026 Thousand Pounds) subject to contract and exclusive over 2 floors, totalling 20,330 sq ft and £372,201 pa in November 2031. The vendor of VAT. Our client proposes to top up the rent to the proposes to top-up the rent in line with the 2021 November 2021 uplift and the price will reflect the ■■ Let to Dave Whelan Sports Ltd with uplift following net initial yield profile: c. 17 years remaining ■■ Benefits from on-site car parking for approximately ■ YIELD PROFILE ■ Freehold 132 cars Today 7.32% ■■ Site area of 0.24 Hectares (1.45 acres) November 2026 8.50% ■■ Low site coverage of 18% November 2031 9.84% DW FITNESS CLUB PORT WAY, PRESTON, LANCASHIRE, PR2 2YQ 17 YEAR + SECURE INCOME GYM INVESTMENT WITH GUARANTEED FIXED RENTAL UPLIFTS EVERY 5 YEARS

LOCATION Preston is the administrative centre of Lancashire located 25 miles (40 km) south of Lancaster, 35 miles (56 km) North West of and 62 miles (99 km) west of Leeds. It is a major commercial centre with the city being home to major offices for the British Defence Aerospace industry with key BAE Systems facilities located on either side of the city. Other major employers include the Springfields Nuclear Processing Plant, James Hall & Co, Fulwood, Eric Wright Group and Homeserve. The area benefits from excellent communications with the city prominently situated on the national road and rail networks, both of which provide excellent links across the UK: ROAD Preston is situated on the M6 providing access to to the south and and Scotland to the north. The M55 lies to the north of the city linking Preston and

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a S A658 S L tr A65 t RAIL s r e r e is Road e e Pow e Leeds t A61 t d A64 Bradford d A Preston Railway Station is a major hub on the West A6068 e ( ) 5 A1 M P A59 A19 5 0 A 83 Wate M6 ry L 7 A629 ane Coast Main Line, offering direct servicesC to London Euston (2 2 o P Blackpool r LEEDS o p W

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A DW FITNESS CLUB PORT WAY, PRESTON, LANCASHIRE, PR2 2YQ 17 YEAR + SECURE INCOME GYM INVESTMENT WITH GUARANTEED FIXED RENTAL UPLIFTS EVERY 5 YEARS

DEMOGRAPHICS Preston is an affluent city and district that falls within Lancashire County. The City has an estimated population of 142,000 people and is home to c. 62,600 households spread over 16 wards, totalling 142 square kilometres. Preston accounts for roughly 9.6% of Lancashire’s population.

PRESTON REDEVELOPMENT SITUATION Preston City Centre is currently undergoing major The property is situated on the eastern side of Port Way, just 1.4 miles (2.2 redevelopment as part of the £435 million Preston and km) east of Preston city centre. Port Way provides direct access to the Lancashire City Deal Scheme. The initiative will see A583, which in turn links to the M55 Motorway to the west and Preston city the regeneration of Preston’s main High Street, with centre to the east. an additional £50 million used to transform Preston’s The property is located within established commercial location, anchored Markets Quarter, which will include a new cinema, retail by a number of office and leisure tenants within the immediate area units, restaurants and a car park. including Regus, Odeon and KFC as well as several car show rooms. In addition to this, the forward development of the HS2 Preston’s main out of town retail pitch is situated in very close proximity to will link Preston Birmingham and London in 44 minutes the property, with national covenants including Halfords, Mothercare, Pets and 78 minutes respectively, significantly increasing at Home, Lidl, McDonalds and a Morrison’s superstore and petrol station. connectivity within the area. Additionally, there are a number of residential developments positioned within proximity to the Marina. DW FITNESS CLUB PORT WAY, PRESTON, LANCASHIRE, PR2 2YQ 17 YEAR + SECURE INCOME GYM INVESTMENT WITH GUARANTEED FIXED RENTAL UPLIFTS EVERY 5 YEARS

DESCRIPTION FLOOR AREAS

The property comprises a detached two storey health club Floor Use Sqm Sq Ft arranged over ground and first floors extending to 1,889 sq m (20,330 sq ft). The ground floor consists of male and female Ground Floor Gymnasium 1036.7 11,159 changing rooms with shower facilities, customer café and Mezzanine Gymnasium 852.0 9,171 open-plan gym area. The rear of the property consists of an Total 1,888.7 20,330 18.5 meter pool with Jacuzzi, sauna and steam room. The first floor is accessed via a centrally located staircase which leads to another open-plan gym space with of two additional fitness studios. SITE AREA TENURE The property provides c 128 parking spaces with 4 disabled The property comprises a site area of Freehold. spaces. 0.24 Hectares (1.45 acres) and a very low site coverage of approximately 18%.

© Crown Copyright, ES 100004106. For identification purposes only. DW FITNESS CLUB PORT WAY, PRESTON, LANCASHIRE, PR2 2YQ 17 YEAR + SECURE INCOME GYM INVESTMENT WITH GUARANTEED FIXED RENTAL UPLIFTS EVERY 5 YEARS

TENANCY The property is let in its entirety to Dave Whelan Sports Limited (trading as DW Sports Fitness) on a 25 year effectively FRI lease from 25th November 2011 (lease expiry November 2036) at a current rent passing of £173,890 per annum, which equates to a rent of £8.55 psft. The lease provides 5 yearly upwards only rent reviews that are fixed as follows: 25 November 2021: £276,955 pa 25 November 2026: £321,065 pa 25 November 2031: £372,201 pa It is our clients intention to top up the rent to £276,955 pa.

COVENANT Dave Whelan Sports Ltd Established in 2009, DW has grown exponentially to become the second largest operator of gyms in the UK. This leading leisure and retail business currently operates 90 retail stores across the UK stocking a wide range of authentic sports performance brands, as well as 120 gym clubs providing extensive facilities for members including large gym floor and functional training areas, member cafes, swimming facilities and a wide range of group exercise classes. In September 2016, DW Sports acquired Fitness First UK, which added an additional 45 Fitness First Clubs. This acquisition expanded DW’s market share into the south-east market giving an even greater nationwide presence. For the year ended March 2018, the new emerged group of companies reported a record level of turnover of £223m with an adjusted EBITDA figure of £18.2m. The Group completed its disposal programme of non-core Fitness First Clubs and they continued its store and club refurbishment, which in part has resulted in the accounts showing a pre- tax loss, predominantly due to a higher depreciation charge of £18.37m and goodwill amortisation, acquisition and integration costs of £5.245m. The EBITDA remains strong at £18.27m. During 2018, DW’s turnover rose by £19.4m, membership numbers grew by 3% and net assets GYMNASIUM INVESTMENT COMPARABLES increased from £55.9m to £68.2m. Dave Whelan Sports Ltd reported the following results over the last Property Sale Date Tenant Earliest Determination NIY Sale Price 3 years: Timber Beach Road, Sunderland June 19 DW Fitness 16.5 years 6.50% £2,600,000

31/03/2018 31/03/2017 27/03/2016 Tritton Road, Lincoln May 19 DW Fitness 14.5 years 5.90% £2,900,000

Sales Turnover £222,961,000 £203,528,000 £159,585,620 Ranelagh Road, Ipswich April 19 DW Fitness & Orwell Motorcycles 16 years 7.00% £4,650,000

EBITDA £18,274,000 £18,582,215 £14,753,942 125 Copenhagen Way, Norwich Jan 19 Pure Gym 15 years 6.00% £2,500,000

Pre-Tax Profit (£8,925,000) (£7,987,398) £3,565,691 43 Peninstone Road North, Sheffield Aug 18 Greenwich Leisure 12 years 6.10% £2,545,000

Total Net Worth £68,230,000 £55,943,000 £51,803,631 The Pentagon, Nottingham Aug 18 Nuffield Health 25 years 5.48% £9,850,000 EPC PROPOSAL DW Sports Fitness Club, Port Way, rated 122 (Grade E). The vendor is seeking offers in excess of£3,550,000 (Three Million, YIELD PROFILE Five Hundred and Fifty Thousand Pounds) subject to contract and Today 7.32% VAT exclusive of VAT. Our client proposes to top up the rent to the November November 2026 8.50% The purchase will be subject to VAT and it is our client’s intention to sell the property by way of a TOGC. 2021 uplift and the price will reflect the following yield profile: November 2031 9.84%

DATAROOM For further information or to make arrangements for viewing please contact: For access to Allsop Dataroom please use the following link: https://datarooms.allsop.co.uk/register/dwpreston Ronnie Morgan Alex Butler 020 7543 6808 020 7543 6722 [email protected] [email protected] 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 09.19