Restaurants
Pubs
Leisure Leisure Property Specialists Investments
On Market Issue 17/01
FUNDING FAMILY BREWERS BRISTOL IN BLOOM We quiz some of the top banks Chairman Martin Willis explores Our new Head of Retail Leisure about funding for the hospitality how they have shaped the drinks & Restaurants explores Bristol’s sector. market. casual dining market. A Punchy start to 2017
Graeme Bunn Managing Director
With Q1 2017 already consigned to the Capital, an investment partner of Invesco past, it would appear that the leisure sector Real Estate, for a reported €450 million. is continuing to defy pessimistic forecasts, The company operates 8,639 hostel bed alongside a UK economy which continues spaces in locations including London, Paris to do the same. We have seen better than and Copenhagen. Clearly Patron hope to expected GDP growth, with the economy use some of the funds generated from expanding by 1.8% as a whole during 2016. selling Generator Hostels in the acquisition Fleurets was recently UK unemployment also continues to fall of Punch, subject to the outcome of the announced by EGi as the most with the unemployment rate now 4.7% CMA investigation, will see Heineken and active agent in the leisure and - its lowest level since 1975. Therefore Patron acquire all 3,350 pubs for just over it is perhaps of little surprise that the UK £400 million. hotel sector for the first time population continues to enjoy staying, in our history. drinking and dining out. Perhaps the best Headwinds remain, however, not least with barometer of the leisure sector trading the Business Rates Revaluation which will environment within the UK is represented see many businesses suffering upto a 42% by JD Wetherspoon PLC who reported increase in business rates payable as of this 3.3% like-for-like sales over H1 FY17. month. The imminent introduction of the Across in the restaurant sector, Wagamama Apprenticeship Levy will also add to the tax reported average restaurant sales of almost burden of most multiple operators. £42,000 per week in January, which compares to the same restaurant sales two However, there is still much to celebrate years prior of £34,000 per week. and enjoy from the leisure sector. It remains a significant and growing part of the UK It is little wonder therefore that the leisure economy and Fleurets is delighted to play sector remains attractive to investors. our part in its success. Fleurets was recently Canadian based real estate investor, Jimmy announced by EGi as 2016’s Most Active Lai, acquired 170 pubs let to the Spirit Agent in the leisure and hotel sector for the Group from Cerberus in a deal reported to first time in our history. Our challenge is to be worth £400 million. Within the hotel remain in pole position for 2017. sector, Generator Hostels, was acquired by Queensgate Investment from Patron
Cover image: Virgin Active, Repton Park
2 On Market Issue 17/01 fleurets.com Contents
Market Commentary In this issue 04 - 05 M&A Activity - Alive and Well Market commentary INVESTMENTS
M&A Activity - Alive and Well 04 - 05 Investment commentary 18 -19
Paul Hardwick looks at corporate M&A activity HOTELS across the pubs hotels and restaurant sectors. Hotel commentary 20 - 21 Lifestyle Businesses 06 - 07 Properties 22 - 25 What constitutes a lifestlye business? and how do you find one? Simon Bland explores the trend. RESTAURANTS Restaurant commentary 26 - 27 Can I Secure the Funding? 08 - 11 Properties 28 - 29 Representatives from Metro Bank, Lloyds, Market Commentary Barclays and NatWest discuss funding. PUBS 06 - 07 Lifestyle Businesses & Where To Find Them Birmingham 12 - 13 Pub commentary 30 - 31
Exploring development and investment and the Properties 32 - 45 effects on Birmingham’s hospitality industry. LEISURE
Bristol in Bloom 14 - 15 Leisure commentary 46 - 47 Kevin Conibear, our new Head of Retail Leisure & Restaurants looks at Bristol’s casual dining market.
Family Brewers 16 - 17
Chairman Martin Willis explores the role of the family brewers within the drinks market.
Market Commentary 08 - 09 Can I Secure the Funding?
Market Commentary 14 - 15 Bristol in Bloom Important notice: Unless otherwise stated, all properties are being dealt with on a Sole Selling Rights basis. The prices and other particulars regarding properties are correct Leisure Property Specialists at the time of going to press, May 2017. As prices can be altered by the vendor at any time, interested potential Fleurets On Market buyers should check the latest position with Fleurets before viewing. The information contained in this publication is not Published by Fleurets Ltd to be reproduced in whole or in part without the expression 4 Roger Street, London WC1N 2JX permission in writing of Fleurets Ltd.
Enquiries: Lizzie Hawes - PR and Marketing Manager © Copyright - Fleurets Ltd. 2017 London. T: 020 7280 4745 E: [email protected] ‘All rights reserved’. W: fleurets.com/onmarket
fleurets.com On Market Issue 17/01 3 M&A Activity - Alive and Well
Paul Hardwick Director & Head of Hotels
2016 fell short of the previous year in terms of transaction volume, albeit this is perhaps a reflection of the exceptional levels of activity witnessed in 2015, rather than a sign of market deterioration in 2016. Furthermore, some players were distracted whilst digesting the fruits of their previous harvest. Of course, the referendum caused a brief hiatus, although any blip in activity approximately £48,000 per key. Both a blended net initial yield of around has seemingly passed, the last few months transactions appeared to offer value to 4.75%. Once of interest to only specialist witnessing significant activity across all of the buyers, pricing reflecting a substantial investors, pubs are now firmly accepted as a the leisure property sectors. discount of about 25% to returns often mainstream investment asset class. witnessed for the Travelodge covenant Hotels witnessed two portfolio investment and for assets offering long term, upward transactions, both involving Travelodge. only RPI linked income with strong trading Secure Income REIT acquired a portfolio fundamentals. The referendum caused a of 55 Travelodge investments for around brief hiatus, although any £200 million, reflecting a net initial yield of The pub sector attracted continued investor around 7%. This was followed a month later appetite as LaSalle Investment Management blip in activity has seemingly by Mansford’s acquisition of the Booking acquired a portfolio of six pub investments passed Portfolio of 17 long leasehold Travelodge let to subsidiaries of three major pub investments for a shade over £28 million, operators located predominantly in the again reflecting a net initial yield of 7%, South East for £17.8 million, reflecting It is, however, activity from trade buyers that has dominated the headlines. DW Sports acquired Fitness First and its 62 clubs in a deal reported at £70m, increasing its portfolio from 78 to 140 units in September, which turned out to be a busy month. Famous Brands acquired Gourmet Burger Kitchen and its 75 UK sites for around £120 million (£1.6m per site). Hot on the heels was Boparan Restaurants Holdings’, owner of Giraffe, acquisition of the Ed’s Easy Diner brand, head office team and 33 restaurants in a pre-pack administration; and Stonegate Pub Company acquired 10 units from JD Wetherspoon, taking Stonegate to a total of 664 sites.
September also saw Singha Estate and Fico Corporation acquire three provincially located branded hotels providing 229 rooms, off a guide price of £12 million, reflecting around £52,000 per key and, of
4 On Market Issue 17/01 fleurets.com course, Marriott International completed its approximately £113,000 per key. The opportunities will also arise as recent modest acquisition of Starwood Hotels & group now comprises approximately 3,000 buyers gradually consolidate and rationalise Resorts, creating the world’s largest hotel bedrooms spread nationally. their estates. There are certainly the right company in a £13 billion merger involving ingredients for an active 2017. around 5,700 hotels with 1.1 million rooms Several notable deals brought the year across 110 countries. to a close, spanning the pub, restaurant and leisure sectors. Lion Capital acquired After a quiet October, November picked up the majority stake in Loungers, a group again with Shepherd Neame’s acquisition comprising 94 sites, valuing the business of Village Green Restaurants Limited, which at £137m. Stonegate acquired Intertain operated five freehold pub restaurants in from Better Capital, the group operating its Kentish heartland, for £11.85 million the Walkabout chain of bars for a price (£2.37m per site), reflecting approximately believed to be in the region of £39m 13 times operating profit. reflecting circa 5 times EBITDA. Dominion Hospitality acquired 28 hotels and pubs from the privately owned Chapman Group Opportunities will also arise for an undisclosed price and, in the year’s biggest story to hit the pub headlines, as recent buyers gradually Punch agreed to a £402.7 million takeover consolidate and rationalise offer from private equity firm Patron Capital Advisors and Dutch brewer Heineken. The their estates. There are deal reflects approximately 10 times Punch’s certainly the right ingredients EBITDA and would involve around 3,300 public houses. for an active 2017.
Whilst activity has perhaps been a little subdued at the time of writing (which is Following a major £100m refinancing earlier often the case in the early months of the in the year, Newcastle based hotel and bar year), there is a competitive pool of well operator, Cairn Group, continued on the funded ready buyers across the spectrum. expansion trail with the acquisition five With several opportunities already in hotels out of the Hotel Collection portfolio the market, in addition to a steady flow off a guide price of £75 million, reflecting of unsolicited acquisition approaches
Reef Bar, Walkabout, Solihull fleurets.com On Market Issue 17/01 5 Lifestyle Businesses and Where To Find Them
Simon Bland These are mostly small businesses providing Bridging the gap between hospitality Associate modest incomes but usually crucially businesses and the licensed trade, a pub including a house. The novelty of cleaning (or perhaps a restaurant) with rooms offers toilets and showers 10 times a day (and lifestyle buyers another tempting option. dealing with the inevitable blockages) will wear off but since site licenses mostly limit the operation of the business to around 8 The Monday morning traffic jam or months of the year there are also obvious I have known clients run such overcrowded commuter train, and the rewards and, these days, greater variety businesses for 30 years and and innovation partly brought about by daily grind are perhaps apocryphal but realise they are millionaires recognisable aspects of modern life for environmental concerns, giving rise to the many people drawn to buying a lifestyle trendy ‘Glamping’ businesses that have when they come to sell. business or setting up their own. sprung up. And because there are significant barriers to entry, in addition to a living to As leisure property specialists, Fleurets has be had, there is the prospect of selling the been involved in the sale and acquisition of property to fund retirement. I have known Again, these run the gamut from modest many such businesses and properties that clients run such businesses for 30 years and hostelries with the odd letting room to have allowed many entrepreneurial buyers realise they are millionaires when the time high-end gastropubs with luxury rooms, like to realise their dream. comes to sell - a sum they could never have the renowned Drunken Duck in Cumbria or hoped to retire on if they’d stuck to the day the Bull at Ditchling in East Sussex, current The appeal of a lifestyle business is easy job! winner of the Best Freehouse at the Pub to understand and is usually defined as a of the Year Awards 2016. Fleurets’ Leeds business that is run by its owners, primarily Small hospitality businesses are some of the office is currently marketing the Buck Inn in with the aim of sustaining a particular level strongest magnets for first time business the stunningly pretty Yorkshire Dales village of income or to provide the means to enjoy owners and Fleurets has sold everything of Buckden, a freehouse with 14 letting a particular lifestyle. The Licensed leisure from boutique hotels to traditional seaside rooms as well as a restaurant and owner’s sector provides numerous opportunities B&Bs as well as guesthouses in towns and accommodation. promising this and attract people from all cities across the land. A classic example walks of life. Government figures tell us being the Bryn Derwen in Llandudno on So, if Mrs Miggins got the idea for a there are comfortably in excess of 5 million the North Wales coast. Recognising the pie shop today (also serving craft beer, private sector businesses in the UK and potential interest from buyers with no obviously), how would she fund it? 2016 was another record year for new previous relevant experience, the business Traditionally the money comes from equity businesses with over 80 an hour being born was marketed with an innovative ‘try before in a house or flat. Steve Chester of Axis according to Companies House. you buy’ offer, which was eagerly taken up Commercial Finance, who specialises in by the couple who went on to purchase the arranging funding in the leisure sectors, Lifestyle businesses come in all shapes and 9 room guesthouse in August 2016. acknowledges that new entrants’ lack of sizes but there are universal attractions, such as being your own boss, spending more time with the family and maybe moving somewhere greener. These are some of the attractions of holiday parks and particularly touring caravan and camping sites, which have attracted a lot of first time operators since the credit crunch and the resulting huge increase in the number of families choosing to holiday at home rather than abroad. And it’s no surprise that such businesses are usually concentrated in many of the most attractive areas around our coastline and countryside. They are affordable traditional holiday options allowing greater access to popular holiday destinations such as Cornwall, the Lake District or Scotland. The Buck Inn, Buckden
6 On Market Issue 17/01 fleurets.com movement is a truly democratic one. Martin Hillier, owner of the Butchers Arms and founder of the Micropub Association has put the cost of starting a micropub at as little as £5,000.
The ever-increasing popularity of craft beer in this country has meant that by September 2015 it was reported that the number of UK breweries had reached an 80 year high.
Bryn Derwen, Llandudno To anyone who is looking to acquire a lifestyle business, we suggest a review of experience isn’t really a factor in hospitality. lifestyle business and a real labour of love. the opportunities advertised in this issue But, while lenders will take outside income The Black Dog was created in what had of On Market. We are also always willing to into account, they will also want to see previously been a disused shop and while, provide our expertise to anyone considering that the business can support a loan. The as far as Mike is concerned, there are a few, selling one. additional security in the ‘bricks and mortar’ if any, rules, the essence of the appeal of a of guesthouses etc. makes this attractive to micropub was the concept of a small free banks and borrowers alike, the latter maybe house with low start up costs. He says the having one eye on retirement. Additionally, Black Dog is 70% about the ales but totally in these days of very low interest rates there about his vision of what makes a perfect is little difference between the costs of pub. In 3 years turnover has grown to a commercial and residential property finance. point where it comfortably exceeds many traditional pubs with much larger trading Set against the doom and gloom of pub spaces, which Mike puts down partly to his closures in recent years, the ever-increasing mantra of making an improvement to the popularity of craft beer in this country business every single week. The micropub has meant that by September 2015 it was reported that the number of UK breweries had reached an 80 year high. The spectacular rise in the popularity of craft beer is at the heart of the dramatic growth of the micropub movement. This counter culture, a reaction to the perceived dominance of the pub chains, is fast gaining traction and it is expected there will be as many as 800 by 2018.
The Black Dog in Whitstable is not only one of the best micropubs, it has been featured in a recent book as one of the 50 best pubs of any description in the UK. Having moved to the fashionable Kent seaside town with his family 15 years ago, owner Mike McWilliam was inspired by a visit to the original micropub, the Butchers Arms, in nearby Herne. This crystalised a latent idea which has become a fantastic The Black Dog, Whitstable fleurets.com On Market Issue 17/01 7 Can I Secure the Funding? Ask the Professionals
Ed Sandall Divisional Director BANK
Matt Walton Avril Carroll Head of Hospitality Relationship Director With the cost and availability of finance & Leisure at Metro Hospitality and being an increasingly important aspect of Commercial Banking Leisure at Lloyds Bank the hospitality sector, I thought it would be interesting to get the view of Relationship [email protected] [email protected] Directors from the main high street banks on a number of issues. The assembled experts were:
• Avril Carroll Relationship Director, Lloyds (AC); • Bob Silk Bob Silk Mark Flett Relationship Director, Barclays (BS); Relationship Director Relationship • Matt Walton at Barclays Director at National Head of Hospitality and Leisure Metro Westminster Bank Bank (MW); • Mark Flett Relationship Director, National [email protected] [email protected] Westminster Bank (MF).
1. How do you view the Business Rates MW: The above are both true, I think the BS: Aside from resisting the temptation to risk? intangible cost is the diversion of operators’ grow too quickly, human capital, the search time and energy away from their “knitting” for talent, has always been and seems likely AC: For prime locations in central London to focus on a technical area, that they to increasingly be, a fundamental constraint. this is a very big issue, with some of our need to learn fast. We are advising all our clients seeing large rises taking effect from customers to take specialist advice. MF: An issue which my customers are April. Where possible, we are trying to grappling with is margin pressure, be it ensure that all rate increases are built into 2. What are the main issues about growth national living wage, Business Rates, rent, cash flows and budgets, as we are aware for your customers? utilities, cost inflation in raw materials and that this additional cost could possibly the increased burden of compliance. In some affect cashflow. AC: Finding the right sites in the right businesses the margins are being squeezed locations, at an affordable cost, remains and operators are now looking at all of MF: We know some of our customers the age-old challenge for businesses their existing sites to drive more yield from are still appealing the previous list; the looking to grow. With site acquisition underutilised space or seeking to implement experience seems to be any refund costs at a historic high, it has caused some more efficient service procedures. takes time and is hard fought. The key firms to halt their expansion plans. Small is communication between us and independents are struggling to compete 3. Do banks lend on leaseholds? our customers to ensure both parties with the rapid expansion of chains, causing understand the state of play. some operators to look outside of London MF: Freeholds are obviously an easier sell; to cities such as Manchester, Birmingham or however a good proportion of our book is BS: For some operators this has clearly had Leeds for more affordable premises options. leasehold and the restaurant sector is almost a significant impact which, coupled with the exclusively leasehold and this is a space we other well-rehearsed cost headwinds are MW: I agree with Avril, the issue of scarcity are very comfortable in, so yes! difficult to defray. They combine to move is just as prevalent in the freehold public MW: With the cost of freehold assets the dial in terms of businesses break-even house and hotel space. We speak to lots of particularly in London and the South East, points, thereby placing cash under pressure operators that are young and dynamic and this is the route that a large part of the and further intensifying the need to build a are keen to grow, however cannot secure market has to exploit and we are supportive sustainable competitive advantage. the sites to match their ambitions. of that.
8 On Market Issue 17/01 fleurets.com BS: Yes, we have even lent on tied lease agreements for the right operators.
AC: Yes, particularly to proven concepts with strong trading track records where debt serviceability can be proven from historical financials.
Freeholds are obviously an easier sell; however, a good portion of our book is leasehold and the restaurant
sector is almost exclusively competition and it is not just expansion for unexpired term and a protected lease. leasehold. expansion sake. 5. What is the funding impact of Brexit? AC: The lease terms must be fully understood, particularly forfeiture clauses BS: Currently we have seen no adverse 4. So four yeses, what are the key and rent reviews. If you are negotiating impact; there is no shortage of liquidity in considerations? terms and will be seeking bank debt, it the market at the moment. We have not makes sense to have a chat with us at this adjusted our credit policies or appetite. BS: Management; not just in the board stage as we have sector specialist teams room but at a business’ “sharp end”, both who can advise on this. front and back of house; managements’ MW: If we are looking at an assignment AC: There was a little bit of a ‘wait and ability to generate sustainable cashflow of an existing lease with a rent review see’ attitude immediately following the across the economic cycle is critical. within the next couple of years, we always referendum, but we have since seen like to see that the operator has taken momentum pick up and it’s very much MF: Site selection is important, with some independent advice regarding rental business as usual for us now. Looking significant competition for the best sites, we budgeting to protect the integrity of the forward, we’re well-placed to help our want to understand how it sits verses the cash-flow. After that, we want to see a good clients manage any future risk or volatility
fleurets.com On Market Issue 17/01 9 with a clear focus on helping Britain are often our first impressions of how a is to diversify their revenue streams to prosper and maintaining support to the UK relationship with a borrower will play out. mitigate cost pressures. When our clients economy. propose this to us, it’s an exciting concept MF: Be realistic and honest about the to consider as we already understand the MW: The issue of Brexit does add risks, downsides and expect to be asked existing business model and it’s a case of uncertainty, but the hospitality sector is direct questions about those aspects of the working with the business to add value to used to uncertainty and has always been proposition. its services. Providing the demand can be good at dealing with speed bumps, look illustrated, we would be supportive. at the smoking ban, credit crunch etc. and AC: Involve the bank early in any request. MRO. We try to deal with any business Engage with us, show us the site and the MF: It is not just limited to letting risk in a measured way and are still actively concept and we can then support you on bedrooms; we are seeing operators seeking new customers - Brexit does not your business journey. We are keen to build getting creative with underutilised space impact that. strong relationships with our clients, and and creating flexible working spaces to this collaborative approach can help ensure encourage people to work from their sites. MF: To put a positive spin on things, the you are getting the best deal. devaluation of sterling has provided an 8. How does the bank view late night unexpected rise in tourist numbers and 7. How does the bank view capex projects traders and do banks lend to nightclubs? more interest from overseas buyers. We like additional letting bedrooms? have seen no real impact, or adjustment to AC: This is a market which is in decline, with credit policy and remain very active in the MW: It is always fascinating to see just how a third of the nightclubs in the UK closing. sector with an appetite to lend. well some businesses respond to injections But, the nightclub scene is an important of capex. We are supportive and encourage part of many cities’ night-time economy, 6. What is the best advice for a prospective continued investment in operator’s and can be highly cash generative. We are borrower? portfolios, from small touch-up jobs to full active in the market and consider support refurbishments and everything in-between. on a case-by-case basis. BS: The Duke of Wellington said “time spent on reconnaissance is seldom wasted”. This BS: We are supportive of income generative BS: Late night is a pretty challenging is sage advice for any management team or and value enhancing capital projects such segment of the leisure sector. Hence we entrepreneur. as, for example, the creation of additional are quite selective. As ever Managements’ letting bedrooms. experience and ability is key. MW: I agree, the initial document pack, presentation and ability to answer questions AC: A trend we have recently seen in the MW: We would not rule out lending to the and provide information in a timely fashion market is pubs adding letting rooms. This late night sector. We would, however, need to spend more time on our due diligence to ensure we were lending to the right person and the right site. There are some very good/iconic businesses in this space.
MF: We have a selective appetite for this sector and would tend to favour operators with a proven track record.
9. Do you feel the fast casual/high street branded restaurant market has reached saturation?
MF: Certainly not, however, we do believe that consumers are becoming more brand- led. There is a need for operators to refresh their offerings, to ensure that they remain current as those that do not will potentially be at greater risk from new entrants/ concepts.
AC: We very much see this as a market that will continue to grow, but one which will have to keep evolving and innovating
10 On Market Issue 17/01 fleurets.com to meet ever changing customer tastes and stay on trend. As a team we visit Street Feast venues such as Dinerama to try the street food on offer, see which traders are successful, as these traders often become the next generation of fast casual restaurant owners. It’s important for us as funders to understand this market.
Coffee in the UK is big business, with the market on track to exceed 30,000 outlets by 2025.
MW: London seems to have an insatiable appetite for restaurants at all segments of be passed onto the consumer. We think the market. I have more concerns regionally, BS: The developments in this market have there will be increased M&A activity with as it is difficult to anticipate which undoubtablely made pub and restaurant some of the smaller embryonic operators catchments are reaching or have reached operators up their game. Coffee and quality reaching maturity and seeking an exit. capacity. I think it will be an interesting year coffee is now a significant consideration of We will continue to seek out new lending for this sector. most hospitality operations. opportunities in 2017.
BS: There is a fair amount of comment in 11. Any predictions and will you still be MF: It is becoming a more competitive the trade press about saturation in the lending in 2017? landscape for both operators and funders casual dining market. What I see and what and we see this continuing in 2017. my customers tell me is that competitive BS: Are we still open for business and London remains a buoyant market with rivalry has become more intense than ever actively seeking new customers as well as overseas visitor numbers growing. Overall and this has been driven by the volume supporting our existing customers? Yes; this we expect growth to remain modest. We of new site development, which has is at the core of what we do. Predictions… are very supportive of new business and will accelerated in recent years. So, has the 2017 is going to be a difficult and therefore continue to support the sector in 2017. market become saturated? Possibly. a challenging year for many operators in the leisure sector; this is no secret – the cost 10. How much further do coffee and cake pressures and intensified competition are It seems that we will continue to have a focused venues have to grow? well documented. very supportive banking environment in 2017, which is great news for operators, AC: Coffee in the UK is big business, with MW: I think there will be a continued shift the sector in general and us as advisors. the market on track to exceed 30,000 to suburban London and regional locations If you have any queries for Avril, Bob, outlets by 2025. Emphasis has turned to as operators seek growth, in addition a Matt or Mark, their email addresses are quality coffee due to the influence from number of new developments are due detailed at the top of the article and I am both artisanal chains and independents. to open in 2017, which should open up sure they would be happy to discuss any Strong artisanal independents such as new catchments for the lucky operators opportunities. Grind and Taylor St Baristas have been so that secured the space. Despite the cost successful that they have now expanded pressure challenge we remain very positive into small chains. about the sector. We are a young bank, with no legacy issues that is keen to grow with MW: This market appears to be growing our customers. fast and in London there seems to be a move away from the corporate offering. AC: The sector as a whole will see There is certainly space for innovation from continued pressure by way of rising costs, new operators. It is a sector that we are including minimum wage and supplier monitoring and would love to lend to an costs. It remains to be seen if this cost can operator that has scale.
fleurets.com On Market Issue 17/01 11 Birmingham: Where Modern Meets Magnificent
Anthony Barnes Senior Associate
For anyone burdened by the misapprehension that Birmingham is a dull, concrete dominated, post industrial urban sprawl, a commonly held view with commentators of past decades, when arriving in its centre today, visitors will discover a city transformed and presenting an image fit for its rightful status as the Paradise Scheme across Chamberlain Square country’s true second city! Gone is the dominance of 1950s/60s concrete, bars and restaurants. Many of the more are expected to significantly boost both replaced by a dynamic and evolving city recent developments have been targeted city centre worker and resident numbers, landscape of modern inspired architecture at the traditional retail and central business helping increase the demand for leisure blending comfortably with the magnificent districts, which in previous years have opportunities. Of note are the development 19th century buildings. Along with the suffered from an under provision of quality schemes at Snow Hill Plaza to the north- new buildings is an improved and exciting operations. The city’s future appears eastern side of the central business district, public realm, delivering a greatly enhanced assured and in 2016 it achieved the highest Arena Central between Broad Street and experience for all. Over recent years both rate of business growth of any UK city, Holliday Street as well as Paradise Circus, public and private initiatives have helped reflecting double the national average. between Centenary and Chamberlain transform Birmingham city centre, delivering Along with this new interest and demand, Squares; this latter development made new and rejuvenated commercial, retail, licensed retailing rents in core parts of the possible by the relocation of Birmingham’s leisure and living space. Armed with this city centre have seen growth, although main Library to its new iconic building new infrastructure and skyline, the city the already established leisure schemes overlooking Centenary Square. The opening now displays a confidence which rightfully currently remain the highest rented of Grand Central has also acted to open underpins its status as it continues to locations. up the access to the city centre’s southern develop to meet future opportunities and side, helping facilitate a renaissance of John challenges. Leading the strategic developments is the Bright Street, once famed as a centre of redevelopment of New Street Station, which the city’s nightlife in the 1970s. Following Completed developments, those under emerged butterfly-like as Grand Central years in the doldrums with tired and vacant construction, as well as those planned over in September 2015. In addition to this premises, this street has seen the return the next few years, continue to provide strategic infrastructure project, a number of of restaurants and bars with a new hotel operators with confidence to open new new mixed use and grade A office schemes currently under development.
The city’s transformation and inward investment, has been assisted by both commercial and Government decisions. Firstly the decision to develop HS2, the nations high speed railway, Phase 1 linking London and Birmingham, which is to form the HQ for the construction, its future operation, maintenance and staff training. Secondly is HSBC Bank’s decision to site the new head office for its UK Retail banking business in the heart of Birmingham, resulting in the relocation of 1,000 jobs from London. HSBC has acquired Building 2 of Arena Central
Birmingham Grand Central (credit Network Rail)
12 On Market Issue 17/01 fleurets.com currently under construction and planned to be operational by early 2019.
The established leisure areas of Brindley place and The Mailbox will continue to play an important role servicing the increasing demand from visitors, workers, shoppers and residents. With its continued popularity amongst licensed retailing operators, the Water’s Edge, Brindleyplace development has seen its ground floor shell rents grow to £45 per sq. ft. However, the polarisation of demand for licensed and leisure space in these schemes may now be reducing, with key recent openings having occurred in the city’s central business and retail districts. Examples of corporate brands include; Byron opened in New Street in late 2016, Alchemist at The Grand Loungers’ Cosy Club opened in Bennetts Hill in May 2015, Living Ventures’ Botanist restaurant which provides up to 500 dining and Carters of Moseley, as well as the long opened in Temple Street in April 2015; and covers across 3 floor levels. established Simpsons in Edgbaston. subsequently Living Venture’s Gusto and Alchemist brands opened in September With a significant increase in users and 2016 as a part of the redeveloped former occupants of Birmingham’s city centre, Grand Hotel on Colmore Row. These A dynamic and evolving future leisure opportunities in the Paradise corporate operators have joined local city landscape of modern scheme ought to find ready occupiers. private group operators, Pure Bar & Kitchen Buildings One and Two of this development opened in Waterloo Street in 2014 and inspired architecture are planned to provide 9 new units totalling Lasan Group’s Nosh & Quaff fronting blending comfortably with up to circa 36,500 sq. ft. of ground floor Victoria Square opened in July 2015. the magnificent 19th century space for retail or licensed leisure uses. Whilst parties are keen to maintain the confidentiality of their deals, we understand era buildings. With its transformed bar and restaurant that headline shell rents in the central sector, Birmingham now has an offer fit for business district have now been established its second city status and ready to meet the in the range £25.00 to £30.00 per sq ft. demands of its existing and new workers For those seeking a fine dining experience and citizens. With the increased accessibility now Birmingham now has more Michelin-starred delivered by the New Street station restaurants than any other UK provincial redevelopment, John Bright Street saw city. Such quality is to be found at Adams the opening of The Stable bar by Fuller’s in Waterloo Street, Purnell’s in Cornwall in November 2015 and Turtle Bay in Street, Turners in High Street Harborne December 2015, joining BrewDog which opened as far back as December 2012. Here too, headline rents are understood to have now nudged £25.00 per sq ft.
Even the city’s much maligned leisure strip Broad Street has seen improvements, with Fleurets successfully introducing Burning Night Group to the long vacant former Brannigans bar for their Bierkellar, Around The World and Shooters Sports Bar concepts, which opened in December 2016. Opening in the same month, also at the western end of the street in the long redundant Waxy O’ Connor’s bar, a reported £4 million investment has created Varansai Tom’s Kitchen, recently opened in The Mailbox, Birmingham fleurets.com On Market Issue 17/01 13 Bristol in Bloom
Kevin Conibear Head of Retail Leisure & Restaurants
Whilst we continually witness the expansion of London operators to the regions, the rise of regional operators is equally impressive and one city and region in particular punches well above its weight. Turtle Bay, Cheltenham Road, Bristol
It is logical that the UK’s largest agricultural National Statistics, Bristol’s population is Aqua, Pieminster and Friska all call Bristol region, the South West, should be a catalyst home to 187 nationalities, 91 first spoken home and have enjoyed great success for food based businesses, given the languages and 45 different religions and the expanding to other locations across the UK. abundance of fresh produce, in addition population is predicted to increase at a rate The majority of these are well into double to access to one of the longest coastlines of 6% higher than the national average in digit growth and have a truly national in the UK. At the heart of the South West the coming years. That diversity filters into presence, recognised as leading restaurant is the region’s capital Bristol, a city that the restaurant scene, with novel concepts groups across the UK. continually tops polls as one of the best and styles. places to live and visit in the UK, recently Whilst growth tends to be organic at an described in the Sunday Times’ Top 100 Bristol has a thriving music and arts scene, early stage of their development, investors Restaurants as a “gastronomic boomtown”. which is symbiotic with the food and leisure recognise the strength of these concepts Its strategic position and proximity to the scene within the city. As the birthplace of and have courted the founders, often for countryside fuels Bristol’s popularity. Massive Attack, Roni Size and Tricky, at years for the opportunity to invest in their the core of Bristol is independence and expansion. Whilst some have rejected the Historically, the city was underpinned by a resistance to conform. Diversity is key, overtures and chosen to grow steadily the food and drink trade, from port in the which has created a hot bed of innovative through cash generation, others have 14th century to sugar in the 17th century. new concepts, supported by festivals such carefully selected funding partners to allow This has fostered a variety of cuisines and as Grillstock, Veg Fest and Eat Drink Bristol them to accelerate their growth beyond styles of operation, epitomised by a record Fashion. Bristol to become national brands. seventeen Bristol restaurants being named in the 2017 Good Food Guide. From pop- With their roots firmly in Bristol, a number One of Bristol’s monumental success stories ups and street food, through to Michelin of operators have expanded beyond their is Loungers, founded by three friends in Star restaurants, Bristol offers the entire South West heartland to become major 2002. Alex Reilley, Jake Bishop and Dave spectrum of innovative food choices. Why national players. Loungers, Las Iguanas, Reid opened their first Lounge on North such diversity? According to the Office of Boston Tea Party, Grillstock, Turtle Bay, Street, within a former opticians. The informal neighbourhood café bar ambience is aimed at families, friends and residents, offering all day dining and drinking options, with a touch of eccentricity. Bridging the “third space” between the office and home, at any point of the day you can expect to meet mothers, office workers, local residents and students in equal measure. Developing the brand and introducing Cosy Club in 2010, adapted to sit comfortably in city centres, the 100th Lounge will open in 2017, a growth story that originates from three Bristol friends, who were initially driven by what they identified as Bristol’s untapped potential.
Friska
14 On Market Issue 17/01 fleurets.com Alex Reilley Loungers
Alex Reilley, one of the original founders and current Chairman of the group has overseen Loungers’ growth from a Bristol suburb to being on the brink of opening number 100, within fifteen years.
Loungers, Banco Lounge
Why did you choose Bristol as the location to launch Once we addressed this, which in itself was an 18 the group? month process, we became a lot more organised and It was where the three of us that co-founded the successfully growing the business got a bit easier. business lived and at the time, it felt like suburban Bristol had a lot of untapped potential. What similarities or differences have you witnessed in other towns and cities compared to Bristol? At what stage did you decide to expand to other Personally I don’t know another town/city like Bristol - locations? it’s very unique. For sure there are other UK cities that It all happened pretty quickly. We opened our second share similarities to one another but Bristol marches to site just ten months after our first. This was driven by the beat of its own drum. the opportunity to do so and whilst we’d talked about opening more sites we hadn’t expected to open our What are your ambitions for the group over the next second so quickly. We’d initially talked about having three to five years? three sites in five years, but ended up having seven We will reach 100 sites by April/May this year. Our aim sites by the time our first site was five years old. is to reach 200 sites in the next 4 - 5 years.
What were the major considerations when deciding What is your opinion of the current Bristol leisure how to fund expansion and the speed of it? scene? In the early days we ploughed all of our profits back Unlike a lot of similar cities size-wise, Bristol has no into the business and we took on as little bank debt standout leisure pitch. It is therefore a very difficult as possible. This served us very well going forward as market to understand and operators coming into Bristol the business was never under any real pressure from really struggle to understand what makes a good pitch. carrying too much debt. As a result when we wanted Bristol also has a wonderful ‘independent’ scene, which to put our foot down the banks were really enthusiastic disrupts the norm. Over the years we’ve seen good to support our growth as we were very moderately brands open in Bristol and fail - they close their doors, leveraged. Funding obviously can dictate the speed of pack up and leave, not knowing why they failed. This is growth, but so can your operational ability to cope with the challenge with Bristol. As a city it’s not ‘anti-brand’ opening new sites and this has always been our biggest but it knows what it likes and what it doesn’t like. It’s a obstacle to growth. Physically opening new sites is confused, unique, and wonderful scene and, in my view, fairly easy, but recruiting the right people and ensuring if you can work in Bristol you can work in most other the unique culture of Loungers is retained is the real places. challenge. What advice would you offer to emerging concepts What period of growth has been the most challenging? with plans to expand beyond Bristol? Without doubt the early days. Up until us opening our Don’t be afraid! Bristol is a tough market compared to tenth site, our offer was very inconsistent and we were most other locations in the UK. hopelessly under-resourced in central management.
Loungers, Impero Lounge fleurets.com On Market Issue 17/01 15 Family Brewers
Martin Willis Chairman
In theory, the globalisation of brewers in recent years and a concentration on lager production was manna from heaven for the UK’s family brewers.
For a few years, things were looking good.
Then in 2002 the Government introduced Progressive Beer Duty (PBD) which followed breweries. Others, such as Young’s which recent years. Many now appreciate that the the European Union model whereby small ceased direct brewing to merge its brewing multitude of pub sales during the recession brewers benefited from a lower tax regime. activities with a fellow family brewer, years was well overdue and has resulted The UK did not adopt the full European Charles Wells, now operate as a pubco, in a stronger industry going forward. Most model, but substantial tax discounts are operating both managed and tenanted pub operators have realised the benefits of available to small brewers brewing up to outlets. investing in properties to provide the right 60,000 hectolitres (circa 36,600 barrels) per ambiance and the fundamental importance annum. The discount is skewed to benefit The proliferation of managed houses has of customer service. An interesting the smallest brewers, brewing up to 5,000 been a significant change in family brewer development in the family brewer sector hectolitres. operations although nearly all still operate has been the partnership joint ventures the traditional tied tenancy (as opposed that have been created with some of the This led to the proliferation of the to lease) model. Their estates are usually new breed of licensed retailers, which micro brewer and the rapid expansion confined to a fairly tight geographical area, have transformed customer service in the of the Society of Independent Brewers but this often means they own some of the industry. (SIBA) which has more than doubled its best licensed retailing sites in their area. membership in the last 10 years or so. With investment (many family brewers The family brewers continue to own strong have not shied from significant investment freehold property portfolios providing The growth in craft beer, beer brewed by in their estates) high quality houses have good investment fundamentals for either craft brewers at a craft brewery, usually been developed. The Pub Code changes an investor in the company or family considered to be small, traditional and introduced in 2016 should also benefit shareholders. Changes in the tax regime independent, has been significant. This the family brewers as most still regard can only be beneficial to the family brewers growth has, over the past 10 years, led to it the ‘paternal’ style of landlord and tenant going forward. This would also pave the way being a significant part of the beer industry. relationship as paramount. for some consolidation in the ale production SIBA has supported its membership by market. developing the Direct Delivery Scheme, Whether the current tax benefits available now known as Beerflex, which helps its to SIBA members will continue is a matter of The British Beer & Pub Association (BBPA) members sell and deliver to some of the debate. There are calls for the Government represents over 30 family brewers, over half significant retailers in the country such as to tweak the current tax regime to create of which are Fleurets’ clients, where the EI Group (formerly Enterprise Inns), Punch a fairer and more level playing field. firm provides property advice, agency and Taverns and supermarkets. Possibilities are that the first significant valuation services. tranche of benefit is made available to Notwithstanding the competition from SIBA all traditional brewers. Secondly, that Fleurets is proud to support the family members, the family brewers continue to the current ceiling of 60,000 hectolitres brewers - most of whom are of a similar thrive, largely as a result of their history, is increased to the European ceiling of age! family control and good management with 200,000 hectolitres. a long term objective. Two of the larger companies, Everards of Leicester and We have seen a significant shift in investor Thwaites of Blackburn are planning new sentiment towards the pub industry in
16 On Market Issue 17/01 fleurets.com Family Brewer No. of sites Year Established Financial Year End Turnover
Fuller Smith & Turner 391 1845 26/03/16 £350.5m
Shepherd Neame 317+ 1698 25/06/16 £139.9m
Frederic Robinson Ltd. 300+ 1838 31/12/15 £63.3m
Daniel Thwaites 275 1807 2015/16 £84.6m
Hall & Woodhouse Ltd. 250 1777 30/01/16 £108.6m
SA Brain & Company Ltd 250 1882 26/09/15 £126.8m
Young’s & Co. Brewery 220 1831 28/03/16 £245.9m
Samuel Smith’s c. 200 1758 16/11/15 N/A
Wadworth & Co. Ltd 200 1875 30/09/15 £58.0m
Charles Wells 197 1876 26/09/15 £167.7m
St. Austell Brewery Company Ltd 187+ 1851 02/01/16 £137.4m
Everards 175 1849 31/09/16 £31.6m
JW Lees & Co 172 1828 31/03/16 £64.1m
W H Brakspear & Sons Ltd 130+ 1817 31/12/15 £14.1m
McMullen & Sons Ltd 128 1827 26/09/15 £75.4m
Joseph Holt Ltd 122 1849 31/12/15 £54.3m
Arkells Brewery Ltd 103 1851 31/03/16 £21.0m
Heavitree Brewery Plc 70+ 1790 31/10/15 £7.1m
George Bateman & Son Ltd c. 70 1874 31/01/16 £15.8m
Hydes Brewery Ltd 60+ 1863 03/04/16 £27.7m
JC & RC Palmer Ltd 55 1794 31/03/16 £9.5m
Harvey & Son (Lewes) Ltd 45+ 1820 31/02/15 £20.6m
Hook Norton Brewery Company 35+ 1849 30/09/15 £7.1m
Timothy Taylor & Co 17 1858 30/09/15 £21.3m
fleurets.com On Market Issue 17/01 17 Investments Tied Investment Model
James Davies Director
The sale of a freehold public house with a tied occupational lease in situ has come to prominence following the introduction of the pubs code and Market Rent Only legislation in 2016.
A freehold public house with the premises. The reason for categorising reviewing the rent after say a 5 year period. these different types of income is down The quality of tenant will of course vary but a tied tenant in situ can be to the stability of return. The property most commonly will be a private “hands on” an attractive proposition for rent (dry rent) being the most consistent operator or independent pub company. both the property investor income followed by the wet rent and then the machines tie. This structure tends to Wet Rent – I have provided a brief overview and operator. work better on a volume basis whereby the of how the wet rent fits in to the structure landlord (and also the tenant) can benefit above so we will now go into a little more from bigger discounts from suppliers if they detail. When one refers to the barrelage of have perhaps hundreds or even thousands a pub, this relates to brewers barrels which For those unfamiliar with the term, a tied of pubs. are 36 gallon barrels providing 288 pints. lease provides the freeholder with multi Now, in practise this is only theoretical, as layered rental income, most commonly split A freehold public house with a tied tenant the metal barrels, generally used in public between the ‘dry rent’ and ‘wet rent’. in situ can be an attractive proposition for houses, range in size anywhere from 8 both the property investor and operator, gallons up to a 22 gallon keg, which can be Dry rent is simply the property rent, wet however to understand how such an back breakingly heavy! rent is derived from the “tie”, whereby the opportunity could be attractive it is tenant has to buy whatever products are important to breakdown the different parts We currently have two such properties listed in their lease from the landlord’s to see how it works in practise. for sale, located in Finsbury Park and nominated supplier. Normally this tie will Clerkenwell, (see page 32) we would be be at least all forms of beer, which usually Dry Rent – the length of a pub lease can of delighted to provide further information to also includes bottled beers and ciders and in course vary enormously, however a typical interested parties. some instances wines, spirits and minerals term would be between 10 - 20 years and as well. Group purchasing power enables the most common rent review provision the landlord to derive additional income would be a 5 yearly review period. More from the tie. common within the last 10 years have been leases which contain annual adjustments It is not uncommon for there to be a third in line with the Retail Price Index. These income from a machines tie whereby are quite often “collared and capped” to the landlord gets a share of the income limit fluctuation and have typically seen generated from any gaming machines on an annual increment and therefore a smaller adjustment when it comes round to
18 On Market Issue 17/01 fleurets.com Investments
Working example
Fleurets has recently sold a tied lease investment located in an average suburban high street within Greater London. The summary details were as follows:
£ Fair maintainable turnover - £325,000.
Likely trade split – 90/10 wet to dry (so a very drink focused business).
Lease terms – a 15 year agreement with approximately 4 years remaining with a purchasing tie to the landlord Machine Income Share for all beers, ciders and flavoured £4,000 4% alcoholic beverages. The passing rent was approximately £40,000. Machine income split 50/50 between landlord and tenant.
Beer volume – approximately 215 Wet Rent brewers barrels per annum. £43,000
The freeholder may well typically achieve perhaps 51% anywhere between £150 - £250 per barrel but this will vary enormously depending on the discounts offered to the tenant and purchasing power of the freeholder.
Purchase price of £1,000,000 with a % net yield of just under 8.25%. Dry Rent £40,000 45%
Costs will of course vary up and down but it does at least give the gist of how it may work in practise.
If the tenant does not wish to continue with the tie, as per the existing lease agreement, the purchaser of the freehold public house could choose to either offer a free of tie rent (which would normally be higher than the tied rent) or secure the services of a third party supplier to continue with a supply agreement and then take a percentage of the profit.
Landlord and Tenant Act – with good quality sites in scarce supply, an operator may consider buying a tied lease, which initially provides them with a stable income and then in the future an opportunity to take back occupation themselves at the end of the lease. The sitting tenant would normally have security of tenure provided by the Landlord and Tenant Act, however if the purchaser owns the building for in excess of 5 years and wants to take it back for their own occupation or development then notice can be served (a Section 25 Notice) to confirm their intention.
fleurets.com On Market Issue 17/01 19 Hotels Coaching Inns - Staging a Comeback!
Andrew Whelan Senior Associate
Before the railway, coaching inns provided a rest for weary travellers. However, recently the demand across the country has reached new heights, and we explore why. Five trends have emerged which has contributed to the drive in demand.
1. Growth in staycations. The changing habits of holiday-makers have led to, such as the Coaching Inns Group, Cirrus The graph below shows how Youngs’ generally, shorter and more frequent Inns and Oakman Inns, who are all actively occupancy rate and RevPAR has been holidays in the UK. Good quality coaching looking to source these buildings. For steadily increasing over the last 5 years. inns situated in historic towns and cities example, the Coaching Inns Group currently For the 6 months, ending September 2016, have benefitted from these changes. operates 16 coaching inns and intends Young’s is quoting occupancy across the to increase the size of its portfolio to 25 estate up 1.3% to 78.6% with RevPAR 2. Changing demographics. Coaching inns’ properties by March 2019. Kevin Charity of maintained at £63 an average room rate of customer profiles tends to suit the more the Coaching Inn Group has recently stated: £81.19. affluent older clientele. This is the part of “We have doubled our estate in the last 2 society that has seen one of the biggest years and we now have investment in place As branded budget hotels continue to growths in disposable income and leisure to support a £50 million expansion across increase their market share, the demand time. the UK.” for alternative quality accommodation with character is expected to grow and this 3. Casual dining boom. The press has This thirst for new sites is partly driven sector of the market will no doubt continue highlighted a shift from diners preferring by the current high occupancy rates and to boom for the foreseeable future. a casual gourmet experience over the RevPAR that can be achieved in this sector. more formal experience. A coaching inns’ comfortable atmosphere offers this ambiance. 80
4. Proliferation of the coffee-shop & 70 cream-tea culture. Most coaching inns are character buildings with traditional open-fire 60 lounge areas, enclosed patios and charming restaurants. Alongside strong Wi-Fi, many 50 offer a strong alternative to the coffee 40 chains and tea-shops now dominating our town centres. Y/E March Y/E March Y/E March Y/E March Y/E March 2012 2013 2014 2015 2016
5. Acquisitive pub chains. Major pub chains Occupancy Rate % 68.6 68.6 71.5 73.3 74.5 have been joined by large numbers of well RevPAR £ 48.85 49.25 52.02 56.82 63.8 funded and very acquisitive pub companies, Source – Young’s Financial Reports 2012 – 2016
20 On Market Issue 17/01 fleurets.com Hotels Small Hotels are in Demand Andy Frisby Divisional Director Property Approx. Sale Price Date Keys Approx £/Key
Caring Hotel, Bayswater £7,000,000 Feb-17 25 £280,000 Rose Park, Paddington £16,000,000 Oct-16 57 £280,000 Mowbray Court Hotel, Earls Court £42,500,000 Jun-16 138 £307,971 Hotel Moonlight, Earls Court £7,300,000 Mar-16 24 £304,166
Despite a widely reported drop in demand for London’s top priced residential property, increases in input prices to the F&B side of prices and we have seen an exponential rise the hotel/B&B market in areas such as the business. Online travel agents are an in value over the last 20-30 years alongside Bayswater, Paddington, Victoria and Earls increasingly important source of custom, other similar asset classes within Central Court continues to gain momentum. while the Government and local authorities London. The drop in value of sterling, a continue to want their ‘fair share’ of income growing economy and stable legal system Fleurets recently sold the Caring Hotel W2 with increases in rates as we move to the continue to attract foreign money into the location to Arianya Group, owners of the 2017 assessments. sector. Garden Court Hotel, off a guide price of £7 million. HotStats Hospitality Intelligence, quotes a The simplicity of the small hotel business 36.8% year on year increase in Rooms Costs was recognised by the marketplace for the The Caring Hotel was priced at £280,000 of Sales for the month of December and Caring Hotel in that an operation of 25 per key, a strong price. The market a profit decline in London in both Rooms rooms has just room servicing, reception reacted well and high demand resulted in (-0.4%) and Food and Beverage (-3.8%) for and limited F&B offer (continental breakfast competitive bidding. Interest came from a 2016 putting further pressure on overall only) making it a very simple business variety of different buyers, including existing profitability. model. As a result the cost increases operators, family offices, and overseas highlighted above have a limited effect in investors. Many of the hotels in W2 range from this sector of the market and buyers appear two to four stars, with the majority to recognise this. Recent comment from the trade press targeted towards the budget market place. suggests the small hotel marketplace is Historically, they are family owned and Cheaper sterling is attracting more foreign suffering. Much has been made of the passed down the generations. Few are put visitors. Central London hotels inevitably recent supply increase of 4,500 room to the open market and deals are generally benefit from these increases due to the stock in the capital as well as the massive done quietly. near proximity of tourist landmarks. growth of Airbnb. The hotel market is also dealing with unprecedented cost rises with These hotels are often seen as a safe haven, So, what of future supply of rooms? Within increases in the minimum wage, as well as having historically been underwritten by resi ½ mile radius of the Caring Hotel there has been an increase in supply of just 1.2%. The increase is only 2.6% within 2 miles of Radius from 2 to 4* Available Planned Pipeline Total the same location. Considering the time it Caring Hotel Hotels Rooms of New Rooms Variance % takes to apply for planning, convert and/ or build rooms, the local market is unlikely Within 1/2 mile 123 8,519 103 1.20 to saturate with new entrants in the near Within 2 miles 365 30,521 798 2.60 future.
Source: AM:PM The general marketplace does not appear to be overly concerned about cost pressures and the simple economics of safety, security, supply and demand continue to drive prices.
We expect continued strong demand for small hotels in Central London, however, it is unlikely that they will come to the open market. As ever, to obtain one of these prized assets it’s not a case of what you know, more who you know. The Caring Hotel, Bayswater fleurets.com On Market Issue 17/01 21 Hotels
Agent Details
London Paul Hardwick Director & Head of Hotels T 020 7280 4749 M 07748 988568 E [email protected]
Andy Frisby Eastbourne, East Sussex Divisional Director T 020 7280 4719 £5,500,000 - Freehold Substantial 108 bed seafront hotel, restaurant M 07471 953231 (160), multiple public areas & garden. E [email protected] South Ref: S-615488 EPC-C
Charlie Armour Graduate Surveyor T 020 7280 4708 M 07787 347182 E [email protected]
North West Lesley Watmough Divisional Director T 0161 683 5445 Covent Garden, London King’s Cross, London M 07887 504694 £6,450,000 - Long Leasehold £4,200,000 - Freehold E [email protected] 4 self contained apartments arranged over 6 storeys with mansard extension and decked roof terrace. Well located & presented 14 bed hotel. Fantastic location in heart of Covent Garden. Overlooking picturesque garden square. London Ref: LH-72976 EPC-E London Ref: LH-62879 EPC-N/A North Nick Thomas Negotiator T 0113 234 0304 M 0777 0672556 E [email protected]
Midlands Andrew Whelan Senior Associate Soho, London T 0121 236 5252 £2,000,000 - Leasehold M 07879 497363 Boutique hotel opportunity with 17 lett beds & E [email protected] suites. Restaurant (50). Prominent location. London Ref: LH-52814 EPC-D West & South Wales Chris Irving Divisional Director T 0117 923 8090 M 07818 412762 E [email protected]
South Nick Earee Divisional Director Bolton, Lancashire Cheltenham, Gloucestershire T 01273 429500 £1,800,000 - Freehold £2,100,000 - Freehold M 07836 541790 Bar, bistro & function room. T/O c. £900k. 42 en suite rooms and 5 suites. Turnover £1m+ & rising. Bar/restaurant c. 90 covers. Function room c. 144 E [email protected] Approximately 40 rooms, not in use. covers. Meeting rooms. 95 car parking spaces. North West Ref: NW-416514 EPC-TBC West & South Wales Ref: W-93644 EPC-C East Simon Jackaman Divisional Director T 01223 402600 M 07775 516674 E [email protected]
Preston, Lancashire Penrith, Cumbria Lyndhurst, Hampshire £1,550,000 - Freehold £1,550,000 - Freehold £1,350,000 - Freehold 9 luxury self catering apartments in converted mill. 8 luxury s/c apartments. Lifestyle business. 19 en suite letting bedrooms with separate bar & Dining area & kitchen. Proven profits. Landscaped gardens. Proven profits. restaurant. Car parking & gardens to front. North West Ref: NW-719585 EPC-TBC North West Ref: NW-719586 EPC-TBC South Ref: S-514707 EPC-B
22 On Market Issue 17/01 fleurets.com Hotels
Brighton, East Sussex Dalton-in-Furness, Cumbria £1,250,000 - Freehold £1,100,000 - Freehold 13 ensuite letting rooms. Near seafront. Established 27 bed wedding venue. Excellent Owner’s studio flat. trade. Retirement sale. Private 3 bed accom. South Ref: S-514976 EPC-TBC North West Ref: NW-517995 EPC-C
Eastbourne, East Sussex Hockley, Essex Ventnor, Isle of Wight £1,200,000 - Freehold £2,100,000 - Freehold £1,000,000 - Freehold 29 letting bedrooms, 60 cover restaurant, 2 bars & Established wedding venue with planning permission for 14 two bedroom chalets. Function rooms and Town centre. 28 en suite letting bedrooms, garden. Close to seafront & centre. extensive roof terrace. Set in over 2.5 acres. restaurant, bar & terrace with seating for 60. South Ref: S-514738 EPC-TBC London Ref: LH-72973 EPC-D South Ref: S-514923 EPC-C
SOLD STC
Brighton, East Sussex Stowmarket, Suffolk £999,500 - Freehold £995,000 - Freehold Well positioned in popular seafront square. Sea AA 3 star commercial hotel. 26 beds, lounge bar & views and opposite i360 tower. 70+ cover restaurant & function room. South Ref: EF: S-615401 EPC-N/A East Ref: E-514402 EPC-D
Bournemouth, Dorset South Downs, East Sussex Melksham, Wiltshire £985,000 - Leasehold £965,000 - Freehold £1,295,000 - Freehold 14 en suite letting rooms. Fine dining 8 en suite letting bedrooms. 2 Rosette restaurant. 13 en suite letting bedrooms, bar, restaurant, breakfast room, function room, 2 private flats & extensive restaurant (30), car parking & gardens. Owner’s accommodation & car park. grounds. Retirement sale. Potential to develop trade further. The private accommodation has an EPC of F. South Ref: S-615435 EPC-TBC South Ref: S-515158 EPC-D West & South Wales Ref: W-93634 EPC-D
Wigton, Cumbria Oxfordshire Bridport, Dorset Northwich, Cheshire £950,000 - Freehold £950,000 - Freehold £890,000 - Freehold £895,000 - Freehold Georgian country house hotel. 12 en suite letting 12 e/s rooms, restaurant/cafe & manager’s flat. 10 bed Georgian hotel, bar/restaurant. 14 letting bedrooms hotel. Rest (58), bar area & 3 bedrooms & extensive grounds. T/O c. £731k. Planning for further 8 double rooms. Car park. Gateway to Jurassic Coast. bed accommodation. Proven net profit £89k. North West Ref: NW-619505 EPC-N/A West & South Wales Ref: W-93558 EPC-C West & South Wales Ref: W-93478 EPC-C North West Ref: NW-619348 EPC-N/A
fleurets.com On Market Issue 17/01 23 Hotels
Blackpool, Lancashire Blackpool, Lancashire £825,000 - Freehold £799,000 - Freehold Modern refurbished 33 e/s lett bed sea Dining room c. 80 covers. 40 beds. Lounge front hotel. Bar (100) & restaurant (90). bar, TV lounge/games area. 2 bed accommodation. North West Ref: NW-719582 EPC-TBC North West Ref: NW-3167 EPC-C
Burton On Trent, Staffordshire Bournemouth, Dorset Porthmadog, Gwynedd Freehold - £799,000 £1,250,000 - Freehold £795,000 - Freehold 17 letting rooms. Located in the centre of town. Town centre. Established profitable business. Focus on group/party trade. 18 letting bedrooms & 2 bed flat. Profitable B&B business. 13 en suite rooms, 1 bed Highly profitable business. Lease also available. Additional 3 bed flat in need of refurbishment. cottage & private accom. Approx £120k net profit. Midlands Ref: M-112442 EPC-D West & South Wales Ref: W-93661 EPC-C North West Ref: NW-517921 EPC-E
Wakefield, West Yorkshire Harlech, Gwynedd Southampton, Hampshire Brookthorpe, Gloucestershire £750,000 - Freehold £750,000 - Freehold £725,000 - Freehold £699,995 - Freehold Established guest house. 17 lett beds, 3 5* Rest with 7 luxury rooms, 3 bed private Family operated 9 bedroom guest house Established business. 11 letting rooms, bed suite, lounge, bar & dining room. accom, proven T/O £222k. Adj Harlech Castle. with 2 bed private accom close to city centre. private accommodation, gardens & parking. North Ref: N-621232 EPC-D North West Ref: NW-619075 EPC-C South Ref: S-615800 EPC-TBC West & South Wales Ref: W-93480 EPC-F
Carlisle, Cumbria Llandudno, Conwy Rhosneigr, Anglesey Liverpool, Merseyside £695,000 - Freehold £695,000 - Virtual Freehold £695,000 - Freehold £675,000 - Freehold Country inn & restaurant. 11 en suite letting Fully refurbished 20 en suite lett bed B&B, 3 Detached country inn. 8 lett beds, private Refurb 12 en suite bed hotel, turnover approx beds, 3 bed accommodation. Lifestyle business. bed private accom & gardens. Established T/O. accom & car park. Proven accounts & profits. £197k net, car park, potential to increase trade. North West Ref: NW-416826 EPC-C North West Ref: NW-518317 EPC-C North West Ref: NW-619444 EPC-D North West Ref: NW-619329 EPC-D
SOLD STC
Barry, South Glamorgan Haworth, West Yorkshire Shanklin, Isle of Wight Morecambe, Lancashire £650,000 - Freehold £650,000 - Freehold £640,000 - Freehold £625,000 - Freehold 10 bed hotel & serviced caravan park. 2.5 Luxury guest house/hotel. 8 en suite letting 13 bedrooms. Dining/breakfast room, guest Approximately 0.827 acre site. Substantial acre site. Close to Cardiff Airport. bedrooms, lounge, dining rooms & 2 bed accom. lounge with sunroom, gardens & car park. building. Currently closed ex-hotel. West & South Wales Ref: W-93539 EPC-D North Ref: N-621384 EPC-C South Ref: S-716064 EPC-C North West Ref: NW-518087 EPC-D
24 On Market Issue 17/01 fleurets.com Hotels
SOLD STC
Llandudno, Conwy Llandudno, Conwy Llanberis, Gwynedd Shanklin, Isle of Wight £620,000 - Virtual Freehold £595,000 - Virtual Freehold £595,000 - Freehold £595,000 - Freehold Gr II listed Silver 3* hotel, 24 en suite letting Good location. 14 en suite lett beds. Bar, Country hotel & restaurant. 10 letting 32 en suite letting bedrooms. Restaurant (62), bar bedrooms with 1 bed accom. Proven profits. lounge, dining room (34), car park & gardens. rooms. 2 bed, 2 receptions & private accom. & car park. Retirement sale. North West Ref: NW-518229 EPC-N/A North West Ref: NW-619357 EPC-C North West Ref: NW-517368 EPC-C South Ref: S-414297 EPC-D
Llandudno, Conwy Leyburn, North Yorkshire Llandudno, Conwy Macclesfield, Cheshire £575,000 - Long Leasehold £575,000 - Freehold £585,000 - Long Leasehold £550,000 - Freehold Town centre B&B lifestyle business. Established Lovely Dales market town. 7 en suite letting 16 en suite bed hotel. Restaurant (40) & car park. 14 bed town centre commercial hotel. Turnover profits. 14 e/s beds, parking & 2 bed accom. bedrooms, lounge, dining room & 3 bed accom. Run as B&B lifestyle business. 3 bed accom. c. £106,000 high profits. Private acom. Car park. North West Ref: NW-618965 EPC-TBC North Ref: N-621506 EPC-N/A North West Ref: NW-518334 EPC-C North West Ref: NW-618690 EPC-E
Annan, Scotland Conwy, Conwy Chatteris, Cambridgeshire Llandovery, Dyfed £550,000 - Freehold £550,000 - Freehold £525,000 - Freehold £480,000 - Freehold Town centre commercial hotel, 24 e/s Country inn, restaurant 100 covers, bar, function Established 16th century hotel. 12 lett beds, Well presented boutique hotel with 6 rooms, bar, rest, function room, proven accounts. rm, 10 ensuite lett beds, 2 self catering cottages. lounge, restaurant, function room & 4 bed house. em suite lett beds. Viewing essential. North West Ref: NW-618890 EPC-C North West Ref: NW-619356 EPC-D East Ref: E-413909 EPC-TBC West & South Wales Ref: W-93551 EPC-N/A
SOLD STC
Carlisle, Cumbria Llandudno, Conwy Corwen, Conwy Llandudno, Conwy £465,000 - Freehold £355,000 - Virtual Freehold £370,000 - Freehold £350,000 - Freehold City centre B&B. 10 en suite lett beds & 3 bed 6 e/s B&B lifestyle business, breakfast Substantial pub/hotel/restaurant with 12 potential Detached property off promenade, 6 en suite private accom. Proven accounts c. £110k. room, 2 bed private accom. Accounts available. letting rooms. Development potential STP. letting bedrooms, 1 bed pvt flat, Dining rm c. 12. North West Ref: NW-618482 EPC-C North West Ref: NW-618610 EPC-D North West Ref: NW-518364 EPC-D North West Ref: NW-619317 EPC-E
Immingham, North Lincs Southport, Merseyside Shanklin, Isle of Wight Aberystwyth, Dyfed £349,000 - Freehold £289,000 - Freehold £155,000 - Leasehold £70,000 - Leasehold 11 en suite letting bedrooms. Bar/lounge (60), rest Lifestyle B&B, 6 en suite beds, 1 bed private 30 en suite letting bedrooms. Restaurant & bar. Award winning property with 15 bedrooms. 13 (60), conference room (28), & 4 bed accom. accom. Desirable location. May suit alt use. Indoor pool & leisure facilities. acre private complex in popular tourist area. North Ref: N-015064 EPC-F North West Ref: NW-518121 EPC-D South Ref: S-514613 EPC-C Midlands Ref: M-112427 EPC-B/D
fleurets.com On Market Issue 17/01 25 Restaurants Online Real Estate
Ed Sandall Divisional Director
There is a growing movement in the hospitality world to seek marginal gains through the use of technology. As a wave of costs hit the sector, anything that can either drive footfall, like Uber Eat or Deliveroo, or mitigate costs are being embraced. Only time will tell if they are all as beneficial as initially badged. are busy. Equally the customer no longer One technological facet being embraced needs to worry about busy staff noting by the eating out industry is online booking their booking down incorrectly or any platforms. It is now incredibly easy to book communication issues. It is therefore Bookatable was established a table via a booking platform, simply fill in not surprising that booking online has in 2006 in London and claims the online form, pick a time and get a neat widespread appeal from Millennial through email or text confirmation; or even easier, to the Baby Boomer generations. to have 13,000 restaurants on use an app. their books in 12 countries. A bit of Google research identifies Gone is the risk of the operator losing Bookatable.com and Opentable.com as the a booking because the telephone lines two main players in the UK market.
26 On Market Issue 17/01 fleurets.com Restaurants
Bookatable was established in 2006 booking, the customer pays nothing and before. If you speak with any hotelier, one in London and claims to have 13,000 can build up reward points in exchange for of their main grips is online travel agents restaurants on their books in 12 countries. loyalty to the site but not the venue, which (OTAs). Some years ago the hotel industry In 2016 they were acquired by Michelin. can be exchanged for discounted meals. was disrupted in the same way, with a myriad of websites initially offering the OpenTable was founded in 1998 in San The benefits to the operator are significant: customer the ability to see room price Francisco and has expanded to cover increased viability, hopefully escalated transparently for competing hotels in a more than 37,000 restaurants in an ever bookings as well as reduction in the time particular location. expanding list of countries, including the staff are handling booking enquires. The UK. In June 2014 the site was sold to the websites have larger budgets for Search As guests became more comfortable with Priceline Group for $2.6 billion. Engine Optimisation and often appear this medium of booking, the power swung higher on Google searches than the away from the hoteliers and to the websites, Users can filter restaurants by cuisine type, operators’ own websites. customers stopped direct bookings. The location or price range, and menus are hotelier, particularly at the independent end usually available to browse. Mobile devices of the market, lost their online real estate. already supply 36% of OpenTable’s UK This resulted in an increase in commissions restaurant bookings and 47% of those in in the profit and loss accounts and in some North America. OpenTable was founded cases a fall in value. in San Francisco and has Recent OpenTable innovations include Hot expanded to cover more than It is difficult to predict how the restaurant Tables, a service that automatically alerts industry might mitigate the impact of these you to coveted late cancellations. The 37,000 restaurants in an ever websites. If you are lucky enough to be company is also trialling mobile payments expanding list of countries located in high footfall locations, you have a for iPhone users in eight US cities, including including the UK. natural advantage. I am aware of operators New York, Chicago and Los Angeles. If the introducing loyalty cards and building their service gets a wider rollout, you won’t even own databases to initiate direct booking. have to hang around waiting for the bill Only time will tell if the battle for online real at the end of a meal. Everything is settled estate has been lost already. inside the app. The common issue which cannot be mitigated is the no shows, albeit it does We understand that, broadly speaking, the seem easy to press a button and opt to websites do the same thing by capturing the cancel a table, again avoiding the need to customer’s vital information, which can be make a call. shared with the operator while they are part of the subscriber base, albeit the operator On the surface these online portals seem does not own the data. The operator pays like the perfect conduit between operator a flat fee and additionally a charge per and customer. But we have been here
fleurets.com On Market Issue 17/01 27 Restaurants
Agent Details
Kevin Conibear SOLD STC Head of Retail Leisure & Restaurants T 0117 923 8090 M 0758 763 8268 E [email protected]
London James Davies Director Stafford, Staffordshire Wigan, Greater Manchester St Ives, Cambridgeshire T 0207 280 4711 £750,000 - Freehold £495,000 - Freehold £325,000 - Freehold M 0799 057 3176 Landmark property. 130 covers over two Town centre bar/rest 100 covers, 100 cover beer Long established 60 cover Italian E [email protected] levels. 26 parking spaces. 0.8 acres. garden, 4 bed flat. May suit alt use. restaurant in attractive Cambridgeshire town. Midlands Ref: M-112382 EPC-TBC North West Ref: NW-619336 EPC-C East Ref: E-715936 EPC-N/A Andy Frisby Divisional Director T 0207 280 4719 M 0747 195 3231 E [email protected]
Simon Bland Associate T 0207 280 4706 M 0747 1953 022 E [email protected] Dereham, Norfolk Brighton, East Sussex York, North Yorkshire £275,000 - Freehold £250,000 - Leasehold £215,000 - Leasehold Well presented café bar & restaurant. Close to Theatre Royal, modern Within city walls. 100 c. Net t/o £11,000 per North West Open plan (60+ covers), garden & car park. restaurant, cocktail bar and flexible accom. week on limited hours. Excellent potential. Tim Martin East Ref: E-715833 EPC-D South Ref: S-715961 EPC-TBC North Ref: N-621202 EPC-C Senior Associate T 0161 683 5445 M 0778 755 2909 E [email protected]
North Andrew Spencer Associate T 0113 234 0304 M 0788 449 5484 Southville, Bristol Greenwich, London Abingdon-on-Thames, Oxfordshire E [email protected] £195,000 - Leasehold Rental Offers Inv. - Leasehold Nil Premium - To Let Popular North Street location (1,898 sq ft) 1,711 sq ft riverside restaurant in shell 2 restaurant units (273-597sq m). Town Midlands plus terrace. High spec fitout. condition. Overlooking Canary Wharf. centre, adj Thames & new resi development. West & South Wales Ref: W-93671 EPC-TBC London Ref: R-55383 EPC-D West & South Wales Ref: W-93622 EPC-TBC Simon Cable Negotiator T 0121 236 5252 M 0783 359 0576 E [email protected] SOLD STC
West & South Wales
Chris Irving Divisional Director South T 0117 923 8090 M 0781 841 2762 Wrexham Brighton, East Sussex Islington, London E [email protected] Offers Invited - Leasehold £180,000 - Leasehold £125,000 - Leasehold Town centre shopping mall location. Award winning restaurant. Open plan Affluent resi catch. Busy thoroughfare. South Currently c. 90 cover. Approx. 2,530 sq ft GIA. dining (50), 3 bed accom. Rent £29,000 pa. 50 cover rest. £22k p.a. rent. 1am licence. North West Ref: NW-719695 EPC-D South Ref: S-715998 EPC-E London Ref: R-65547 EPC-D Kate Dowd Senior Negotiator T 01273 429 500 M 0779 871 6113 E [email protected]
East Simon Jackaman Divisional Director T 01223 402 600 M 0777 551 6674 Bishopston, Bristol Yate, Gloucestershire Forest Hill, London E [email protected] £100,000 - Leasehold £100,000 - Leasehold £80,000 - Leasehold Gloucester Road restaurant (2,268 sq ft) 160 cover fully fitted restaurant. High Town centre 50 cover restaurant. Opposite plus terrace. High quality fit out. spec. External terrace (26). station. Modern build. Recently refurbished. West & South Wales Ref: W-93668 EPC-C West & South Wales Ref: W-93607 EPC-D London Ref: R-65576 EPC-TBC
28 On Market Issue 17/01 fleurets.com Restaurants
Cotham, Bristol Bolton, Greater Manchester £45,000 - Leasehold Incentives Available - Leasehold Popular high footfall location. Strong, established circuit. Extends to 1,781 sq ft. Conservatory Dining. Town centre location. Good quality fitout. 110 covers restaurant over ground and first floors. 4,132 sq. ft. Close to Whiteladies, University and Clifton. private dining & function option. West & South Wales Ref: W-93672 EPC-E North West Ref: NW-719694 EPC-D
SOLD STC SOLD STC
Horfield, Bristol Birmingham, West Midlands Rugby, Warwickshire Clifton, Bristol £80,000 - Leasehold £65,000 - Leasehold £39,000 - Leasehold £25,000 - Leasehold 50 covers (1184 sq ft), sunny terrace (40). Located in famous & thriving Jewellery Long established restaurant 100 covers + 30 extra. Striking licensed unit, high footfall, good Fitted to high spec. High footfall. Quarter. Restaurant (80). New FOT Lease. First floor conservatory & roof terrace. quality fitout. External seating. West & South Wales Ref: W-93546 EPC-E Midlands Ref: M-112398 EPC-E Midlands Ref: M-112252 EPC-TBC West & South Wales Ref: W-93392 EPC-C
SOLD STC
Central Bristol Leeds, West Yorkshire Keighley, West Yorkshire Covent Garden, London £25,000 - Leasehold Offers Invited - Leasehold Nil Premium - Leasehold Nil Premium - Leasehold Striking property, 48 internal & 85 external, Flagship restaurant/bar units. 1,800 to Impressive former Courthouse in Town Centre. Shell restaurant, close to Covent Garden’s close to flats & offices. 13,000 sq ft. In city centre. Free of tie. 3,391 sq ft GIA. Guide rent £30k p.a. piazza. Nil premium, 4,882 sq ft. West & South Wales Ref: W-93266 EPC-D North Ref: N-418742 EPC-TBC North Ref: N-721879 EPC-G London Ref: R-55275 EPC-C
Ipswich, Suffolk Peterborough, Cambridgeshire Newcastle Under Lyme, Staffordshire Brighton, East Sussex Nil Premium - Rental Offers Invited Nil Premium - Leasehold Nil Premium - To Let Nil Premium - Leasehold Waterfront location. 150 covers. Roof Outstanding restaurant, Grade II, c. 204.75 New FOT lease. Modern bar/diner (90+) & New free of tie lease options. Restaurant & bar terrace. Theatre kitchen landmark property. sq m (2,204 sq ft) garden & car park. open plan trading areas. area to let. Investment required. East Ref: E-514638 EPC-C East Ref: E-615298 EPC-N/A Midlands Ref: M-112429 EPC-N/A South Ref: S-716114 EPC-C
fleurets.com On Market Issue 17/01 29 Pubs Sale Prices & Market Activity
Simon Hall Director & Head of Agency
Despite the political, legislative and economic uncertainty of the last 12 months the pub property market reached the end of 2016 with relatively little turbulence. The sales mix had moved away from bottom end pub sales, leasehold sales and package deals to increased volumes of freehouse sales and greater availability of free of tie leases. The Royal Oak - Leighterton - Sold to private buyer for continued pub use At corporate level, increased scrutiny Freehold Freehouses Sales Statistics Summary alongside an underlying caution, left some delaying investment decisions to see what Until mid 2015 operational and profitable • Freehold price £363,543 +4.9%. would happen. This inactivity was suddenly businesses had not transacted in any great • Leasehold price £39,801 -18% broken by the surprise announcement numbers since 2008. Unless there had been • Bottom end volume down -28%. of the planned Heineken led takeover of some external influence encouraging the • Freehouse volume up +150%. Punch Taverns. decision to sell, vendors chose not to. • Leasehold volume down -20%. • Brexit - no noticeable evidence of pricing H2 of 2015 saw double the freehouse adjustment. sales in H1. This continued into 2016 with • Pubcos being innovative to ease impact The average sale price for a transaction volumes increasing over 150% of MRO. over the year. • Tenants/LH buyers cautious due to MRO pub use was 38% higher than uncertainty. the average sale price for Private individuals were increasingly • 62% of freehold sales remaining as pubs. alternative uses. prepared to sell and more corporate managed house operators started to churn Market Overview their estates, taking the opportunity to move into the gap vacated by the large 2016 saw fewer package deals, fewer The Pubs Code stuttered into existence on tenanted pubcos, who had all but stopped bottom end pub sales and fewer leasehold 21st July 2016, the key element of which their disposal programmes. assignments but a significant increase in the was the Market Rent Option (MRO). Several volume of operational freehouse pub sales months in, and we are still waiting to see Bottom End Freehold Pubs and more free of tie lettings. what effect it will have on rents, values and market activity. Pubcos have innovatively Bottom end pub sales were dominated by Brexit did not impact on transaction managed the impact of MRO by offering the big 6 tenanted pubcos from the start volumes, individually or in packages. On new tenancies (not leases), offering existing of the recession, up until mid 2015. Since an individual level, the attraction of very lessees attractive deals to move to new then the pressure to sell has abated and low interest rates and positive trading agreements, in some cases buying back disposals now trickle through based on performance has seen purchasers prepared leases and by setting up managed divisions normal estate management decisions. The to buy, despite increasing operational costs capable of taking pubs under their control volume of these transactions declined -28% and what may or may not happen in Europe. at lease expiry. in 2016 (-23% 2015).
30 On Market Issue 17/01 fleurets.com Pubs
Demand has remained strong, led by cash backed purchasers, as finance remained difficult to obtain in this sector with typically 50-60% Loan To Value, all that is available.
With a higher average sale price and a higher average trading level, the quality of pubs being sold improved, reflected by the increased proportion of pubs remaining as pubs after they were sold, rising significantly to 62% (46% 2015).
Leasehold
The Pub Code and MRO legislation impacted the leasehold pub market throughout the year. This was compounded by the actions taken by some of the big 6 pubcos, increasing the uncertainty over the Foresters Arms - Glazebury - Free of tie letting leasehold assignment market. Until there the continued limited number of purchases Higher pub values were not found at all is greater clarity over the implementation with funding. This was the case for an levels. The sale price of bottom end pubs of the legislation many successful tenants overseas property owner on the Forresters sold for pub use was -6.7% lower than for will remain frustrated over the prospects of Arms, Glazebury, Warrington where we alternative use in the North, and -8.5% selling their leasehold businesses. agreed a free of tie lease with an option to lower in the South. This suggests that there buy the freehold. are still a number of more marginal pubs Despite the political and legislative that don’t have great value for pub use and uncertainty, the leasehold market did PUB SALES - Alternative Use Sales which the market determines are better however, display remarkable resilience. utilised for alternative uses. New lettings and business assignments • 62% of all freehold pub sales remained as continued to take place and significant pubs Out of the pubs sold for alternative use the premiums were achieved in some cases. • Pubs sold for continued pub use were largest proportion were sold for residential sold for 38% more than for non pub use use at 50%, restaurant 18%, retail 5%. The We saw a significant increase in free of tie now ubiquitous convenience store stayed lettings. This included lettings from some In a marked change to the previous 8 years, at just 3% of overall non-pub uses. Other pubcos but primarily they were from private 2016 saw the number of pubs sold for end uses included:- Art Gallery, Care Home, owners choosing to let instead of sell their continued pub use leaping to 62% from Antiques Showroom, Funeral Directors and freehold business. This reluctance to sell is 46%. Out of all the freehold pubs Fleurets Social Club amongst others. interpreted partly as a desire to retain the sold, the average sale price for a pub use property asset but also to open up new was 38% higher than the average sale price avenues of marketing when the freehold is for alternative uses. difficult to sell at an acceptable price due to
Total Freeehold Pub Sales From 2007 through to 2016 Avg. Freehold Sale Price Sale Freehold Avg.
fleurets.com On Market Issue 17/01 31 Pubs London 020 7280 4700 [email protected]
London
Pubs on market include...
14 Freeholds
18 Urban pubs
16 Pubs with gardens
8 Free of tie leases Agent Details James Davies Elysia Wilson-Gunn Director Associate T 020 7280 4711 T 020 7280 4747 M 07990 573176 M 07810 541579 E [email protected] E elysia.wilson-gunn@ fleurets.com
Andy Frisby Simon Bland Divisional Director Associate T 020 7280 4719 T 020 7280 4716 M 07471 953231 M 07471 953022 Shoreditch, London E [email protected] E [email protected] Offers Invited - Leasehold In one of London’s liveliest leisure locations, situated in the sought after Hoxton Triangle, 2 bar operation, trade kitchen. Licensed to 2am. London Ref: LA-620956 EPC-TBC
SOLD STC SOLD STC
Eton Wick, Berkshire Finsbury Park, London Reading, Berkshire Tottenham, London Offers Invited - Freehold Offers Invited - Freehold Investment Offers Invited - Freehold Offers Invited - Freehold Open plan bar & 3 bed accommodation, 15 Prominent location opposite Finsbury Park, Iconic buillding in Reading town centre Substantial North London freehold, 9 space car park & large trade garden. 9 bed accomm, outside trading area. location, split level trade areas. bedroom accomm, trade garden to rear. London Ref: LA-620932 EPC-TBC London Ref: LA-621011 EPC-TBC London Ref: LA-721085 EPC-F London Ref: LA-721090 EPC-TBC
SOLD STC
Wood Green, London Princes Risborough, Bucks Clerkenwell, London Stanford Dingley, Berkshire Offers Invited - Freehold £1,200,000 - Freehold £3,000,000 - Freehold Investment £595,000 - Freehold Close proximity to Wood Green Underground Alt use potential (STPP), 2.91 Acres, large car park Subject to the existing lease, prime WC1 Grade II character village pub, large beer Station/town Centre, late licence. & letting accom block. location, 80 cover open plan bar. garden, substantial trade kitchen. London Ref: LA-721108 EPC-D London Ref: LA-721190 EPC-TBC London Ref: LA-620812 EPC-TBC London Ref: LA-620653 EPC-TBC
SOLD STC SOLD STC SOLD STC
Sittingbourne, Kent Reading, Berkshire Long Marston, Hertfordshire Maidenhead, Berkshire £375,000 - Freehold £450,000 - Freehold £425,000 - Freehold £325,000 - Freehold Potential for alt use (STPP). Bar, restaurant, trade 4 miles from Reading town centre, bar & Village location, 25 space car park, 2 ensuite 1 mile from town centre. Open plan bar, 2 kitchen, & FF living accommodation. dining room, trade kitchen, car park. letting rooms, 3 bed accommodation. bedroom accom, patio garden & car park. London Ref: LA-721159 EPC-E London Ref: LA-620929 EPC-TBC London Ref: LA-620928 EPC-TBC London Ref: LA-620947 EPC-E
32 On Market Issue 17/01 fleurets.com Pubs London 020 7280 4700 [email protected]
Crouch End, London Milton Keynes, Buckinghamshire £130,000 - Leasehold £100,000 - Leasehold Located in centre of Crouch End, FOT Modern high quality premises set over 2 lease, manager’s one bedroom flat. floors, fully fitted bar and dining unit. London Ref: LA-620915 EPC-C London Ref: LA-721124 EPC-TBC
SOLD STC
Slapton, Buckinghamshire Sandwich, Kent Windsor, Berkshire £525,000 - Freehold £99,500 - Leasehold Nil Premium - Leasehold Prominent roadside location, attractive thatched property, 2 trading areas, 2 bed accommodation & good 15th century character pub/restaurant in FOT lease opportunity, open plan bar, 1st floor sized trade kitchen. historic Kent town, trade garden. function room, car park. London Ref: LA-721127 EPC-TBC London Ref: LA-721086 EPC-TBC London Ref: LA-620669 EPC-D
Brentford, Middlesex Ramsgate, Kent Badby, Northamptonshire Newbury, Berkshire Nil Premium - Leasehold Nil Premium - To Let Nil Premium - Leasehold Rental Offers Invited - Leasehold New FOT lease in desirable West London Well presented trading areas with sea Characterful property. 8 e/s lett beds, Large dining area, substantial car park, overflow suburb, 4 bedroom accom & trade garden. views. 3 bed living accom & trade kitchen. restaurant, 2 bar areas & car park. car park & 4 bed accommodation. London Ref: LA-620914 EPC-E London Ref: LA-721142 EPC-E London Ref: LA-721089 EPC-E London Ref: LA-721102 EPC-D
Newbury, Berkshire Staple, Kent £475,000 - Freehold Rental Offers Invited - To Let Prominent location 100 metres from Donnington Castle, Freehold - vacant possession, sizeable internal Grade II listed property. New FOT lease. Substantial pub & restaurant with 5 letting bedrooms, beer garden trading area, substantial car park & three bed accomm. & car park. Large owner’s/manager’s accommodation. London Ref: LA-721136 EPC-TBC London Ref: LA-721143 EPC-C
fleurets.com On Market Issue 17/01 33 Pubs North West 0161 683 5445 [email protected]
North West
Pubs on market include...
Agent Details David Sutcliffe Director 25 Pubs £150k or less T 0161 683 5445 M 07860 849236 E [email protected] 37 Freehold pubs Tim Martin Senior Associate 8 Leasehold T 0161 683 5445 M 07787 552909 E [email protected] 9 Lettings Ian Taylor Associate T 0161 683 5445 M 07795 842492 Preston, Lancashire E [email protected] £695,000 - Freehold Attractive 18th century coaching inn with 5 barrel plant micro-brewery, 6 en-suite lett beds, 2.45 acre caravan & camping land. North West Ref: NW-619260 EPC-C
Broughton-In-Furness, Cumbria Lancaster, Lancashire Carlisle, Cumbria Chorley, Lancashire £395,000 - Freehold £360,000 - Freehold £350,000 - Freehold £350,000 - Freehold 17th century coaching inn. 5 lett beds, dining (55), Country pub/restaurant with approx 60 covers. Detached property in 1.8 acres, restaurant 90 May suit alt use. 0.677 acres. Lounge bar, beer patio & 3 bed accommodation. Car park & gardens. 3 bed accommodation. covers, function room, 7 letting rooms. public bar, kitchen & 2 bed flat. North West Ref: NW-619375 EPC-F North West Ref: NW-618795 EPC-D North West Ref: NW-517448 EPC-C North West Ref: NW-618828 EPC-C
Blackpool, Lancashire Llangollen, Denbighshire Wythenshawe, Greater Manchester Oswaldtwistle, Lancashire £335,000 - Freehold £330,000 - Freehold £325,000 - Long Leasehold £275,000 - Freehold Town centre wet led trade. 3 bed private Town centre pub. Public bars, snug, Community local, lounge, public bar, 3 bed 2 bar local with established T/O c £240k. 3 bed flat. Development opp on 1st & 2nd floors. lounge, catering kitchen & 10 lett beds. flat. T/O £385k, site area 0.735 acre. flat, gardens & car park. North West Ref: NW-618873 EPC-TBC North West Ref: NW-719539 EPC-E North West Ref: NW-618630 EPC-TBC North West Ref: NW-618509 EPC-TBC
Failsworth, Greater Manchester Liverpool, Merseyside Alston, Cumbria Rochdale, Greater Manchester £270,000 - Freehold £240,000 - Freehold £210,000 - Freehold £200,000 - Freehold Detached community local with open plan Open plan trading area, 5 bed private accom. May Attractive traditional village inn. 5 bed Traditional community local with lounge bar, trading area & 3 bed private accommodation. suit alternative use. Proven accounts. accom. Regular local & tourist trade. games room & dining area. North West Ref: NW-618728 EPC-D North West Ref: NW-618729 EPC-D North West Ref: NW-618830 EPC-E North West Ref: NW-719698 EPC-D
34 On Market Issue 17/01 fleurets.com Pubs North West 0161 683 5445 [email protected]
SOLD STC
Ashton Under Lyne, Greater Manchester Manchester, Greater Manchester £175,000 - Freehold £160,000 - Freehold Newly refurbished throughout. Spacious 2 bed Popular local with lounge, public bars, beer flat. May suit alternate use (STPP). patio & well presented 3 bed flat. North West Ref: NW-619452 EPC-D North West Ref: NW-618596 EPC-D
Middlewich, Cheshire Chorley, Lancashire Bury, Greater Manchester £155,000 - Freehold £150,000 - Virtual Freehold £220,000 - Freehold Open plan, wet led local. Car park, beer Town centre local/circuit trade. Smoking shelter. Prominent main road community local. Traditional public house with 3 bed private accommodation. Trade patio, smoking shelter & 4 bed flat. Beer patio. Private flat. patio & smoking shelter to the rear. North West Ref: NW-114084 EPC-TBC North West Ref: NW-517998 EPC-D North West Ref: NW-619409 EPC-C
Clayton-le-Moors, Lancashire St Helens, Merseyside Blaenau Ffestiniog, Gwynedd Holyhead, Anglesey £150,000 - Freehold £150,000 - Freehold £145,000 - Freehold £125,000 - Freehold Traditional 2 room local. Garage & beer patio. May Wet led community local with open plan trading Community local’s pub, beer garden & 3 bed flat. Town centre traditional 2 room public house. suit residential use (STPP). area & spacious 2 bed living accommodation. May suit alternative (STPP). 9 letting rooms. Adj to Ferry terminal. North West Ref: NW-619318 EPC-D North West Ref: NW-719689 EPC-D North West Ref: NW-619436 EPC-F North West Ref: NW-619398 EPC-E
Nantwich, Cheshire Leigh, Lancashire £35,000 - Leasehold Offers Invited - Leasehold Attractive destination eating-house, dining Attractive canal side pub, large open plan room, bar & games room, private accommodation. bar & dining area. Terrace & garden. North West Ref: NW-619391 EPC-D North West Ref: NW-618871 EPC-F
Penrith, Cumbria Bunbury, Cheshire Caernarfon, Gwynedd £20,000 - Leasehold Nil Premium - To Let Nil Premium - To Let New FOT lease available. Guide rent £25,000 pa. Attractive affluent Cheshire village. Cosy room Situated in a prime tourist area. New FOT terms. Open plan trading, catering kitchen, 3 bed flat, large Town centre pub with 6 en suite letting rooms. with open fires & c. 85 dining covers. enclosed beer patio to the side. North West Ref: NW-719690 EPC-C North West Ref: NW-719601 EPC-D North West Ref: NW-619394 EPC-D
fleurets.com On Market Issue 17/01 35 Pubs North 0113 234 0304 [email protected]
North
Pubs on market include...
Agent Details Simon Hall Director & Head of Agency 32 Freehold Pubs T 0113 234 0304 M 07867 528102 E [email protected] 6 Confidential sales Andrew Spencer Associate 39 Leaseholds / New Lettings T 0113 234 0304 M 07884 495484 E [email protected] 15 Food led operations Nick Thomas Negotiator T 0113 234 0304 M 07770 672556 Skipton, North Yorkshire E [email protected] Nil Premium - Leasehold Located in the heart of the Yorkshire Dales. Bar, restaurant (40/50), 14 en suite lett beds, car park (20), beer garden, patio & separate 1 bed accom. Free of tie. North Ref: N-721802 EPC-D
Halifax, West Yorkshire Wakefield, West Yorkshire Pickering, North Yorkshire Confidential, East Yorkshire £1,100,000 - Freehold £595,000 - Freehold £565,000 - Freehold £525,000 - Freehold Circuit position. GF bar, FF/SF clubs, Prime circuit position. Spacious GF area & 50 cover gastro pub in delightful village. High turnover. Food-led freehouse. Refurbished smoking area & further undeveloped space. FF ancillary accom. Seating to front. Bar, restaurant, 3 bed accommodation & car park. bar/dining areas and private flat. North Ref: N-318180 EPC-D North Ref: N-520930 EPC-E North Ref: N-520354 EPC-E North Ref: N-621607 EPC-D
Pickering, North Yorkshire Sowerby Bridge, West Yorkshire Wakefield, West Yorkshire Batley, West Yorkshire £329,950 - Freehold £325,000 - Freehold £315,000 - Freehold £299,000 - Freehold Prominent position. GF trading, 6 en suite lett Well presented high street bar. Bar (40), Prominent position. 3 bed accom, car park Main road position. Well fitted trade areas, 3 beds & 2 bed flat. FOT lease option. snug (20) & large outside terrace. & beer patio. Possible development STPP. e/s lett beds & flat. £6kpw net T/O. North Ref: N-621042 EPC-D North Ref: N-520931 EPC-F North Ref: N-721929 EPC-TBC North Ref: N-621108 EPC-D
Burton Leonard, North Yorkshire Halifax, West Yorkshire Leeds, West Yorkshire Sheffield, South Yorkshire £295,000 - Freehold £295,000 - Freehold £295,000 - Freehold £275,000 - Freehold Close to A1, Harrogate & Ripon. Bar, Adjacent Dean Clough complex. Open plan Main road position. 6 trade rooms, function Prominent main road position. GF trading, upper dining, 3 bed accom, car park & beer garden. bar/dining areas. Strong profits. room, 7 bed accom & large outbuilding. floors, beer garden & land to rear. North Ref: N-621105 EPC-E North Ref: N-621628 EPC-TBC North Ref: N-621717 EPC-TBC North Ref: N-621092 EPC-TBC
36 On Market Issue 17/01 fleurets.com Pubs North 0113 234 0304 [email protected]
Hull, East Yorkshire Goole, East Yorkshire Wakefield, West Yorkshire Shildon, County Durham £245,000 - Freehold £210,000 - Freehold £195,000 - Leasehold £125,000 - Freehold Excellent condition. 3 bed accom, huge GF bar & function room. FF 4 bed accom. Circuit position. Spacious GF area. FF Community local. Dining room (34), bar potential, patio, parking (30) & beer garden. Yard to rear with planning for 3 flats. ancillary accom. Seating to front. (30), catering kitchen & 4 bed flat. North Ref: N-621694 EPC-D North Ref: N-519952 EPC-D North Ref: N-520711 EPC-E North Ref: N-520075 EPC-D
Bishop Auckland, C. Durham Shildon, County Durham Shipley, West Yorkshire Otley, West Yorkshire £110,000 - Freehold £100,000 - Freehold £75,000 - Leasehold £70,000 - Leasehold Main road position. GF trading areas & 3 Well fitted village pub. 1x2 bed & 2x1 bed Super high street bar/restaurant. 7,522 sq ft GIA ‘A’ road position. Bar (80), restaurant (60), bed accom. Potential alt use (STPP). flats, open plan bar & catering kitchen. over 2 floors. Rent £40k pa. 3 bed accom. 3 lett beds, car park & beer garden. North Ref: N-621161 EPC-D North Ref: N-520097 EPC-F North Ref: N-721931 EPC-TBC North Ref: N-520018 EPC-D
Huddersfield, West Yorkshire Morpeth, Northumberland Doncaster, South Yorkshire Church Fenton, North Yorkshire £60,000 - Leasehold £49,950 - Leasehold Offers Invited - Leasehold Offers Invited - Leasehold Circuit position. GF bar/rest & LGF bar. GF trading, 3 bed accom, 7 e/s lett beds & Destination food led venue. 4 bed private accom GF trading, 3 bed accom, car park (20) & Quality fit out. Great potential. FOT. beer garden. Net T/O £373,910. & parking circa 30. Free of tie. beer garden. Excellent potential. FOT. North Ref: N-621457 EPC-TBC North Ref: N-621206 EPC-D North Ref: N-913926 EPC-E North Ref: N-621241 EPC-TBC
Huddersfield, West Yorkshire Doncaster, South Yorkshire Cawood, North Yorkshire Malton, North Yorkshire Offers Invited - Leasehold Nil Premium - Leasehold Nil Premium - Leasehold Nil Premium - Leasehold Prominent circuit location. Opposite Detached. Excellent outside spaces. 3 bed Village location. GF trading, FF accommodation. New A3/A4 unit on the Market Place. university. GF bar & basement nightclub. accom & traditional trading spaces. Free of tie. Potential lett beds & beer garden. FOT. c. 3,800 sq ft GF & 9 bed accom. Free of tie. North Ref: N-418761 EPC-F North Ref: N-621064 EPC-D North Ref: N-621025 EPC-E North Ref: N-318272 EPC-D
Haxey, North Lincolnshire Leeds, West Yorkshire South Shields, Tyne & Wear Selby, North Yorkshire Nil Premuim - Leasehold Nil Premium - Leasehold Nil Premium - Leasehold New Letting - Leasehold Prominent position. 4 bed accom, beer 7,200 sq ft bar/café/restaurant. FOT proposals Circuit bar on high street prime position. Delightful village inn. 3 trade areas, large garden & car park. Great potential. FOT. invited. Joint investment possible. GF bar & FF nightclub. FOT terms. beer garden, parking & 2 bed accom. North Ref: N-621204 EPC-D North Ref: N-318489 EPC-D North Ref: N-621581 EPC-TBC North Ref: N-621713 EPC-D
fleurets.com On Market Issue 17/01 37 Pubs Midlands 0121 236 5252 [email protected]
Midlands
Pubs on market include...
Agent Details Andy Tudor Divisional Director T 0121 236 5252 M 07880 702166 22 Freehold pubs E [email protected]
14 Leasehold pubs Simon Cable Associate T 0121 236 5252 M 07833 590576 7 Pubs with letting rooms E [email protected]
2 Social clubs
Kidderminster, Worcestershire £800,000 - Freehold Beautiful historic pub in highly desirable and accessible village. Four character trade areas. Large car park & beer garden. Midlands Ref: M-112422 EPC-D
Leamington Spa, Warwickshire Daventry, Northamptonshire Bewdley, Worcestershire Nr Ludlow, Shropshire £650,000 - Freehold Investment £595,000 - Freehold £495,000 - Freehold £495,000 - Freehold Well located town centre retail/residential Charming canal side pub. Lounge/bar, restaurant Destination gastro pub. Lounge, bar & Charming riverside freehouse. Character investment let to Meatcure. & games room. Warks/Northants border. restaurant. Trade split 60% dry 40% wet. bar & 80 cover restaurant. Car park for 35. Midlands Ref: M-112334 EPC-D Midlands Ref: M-112390 EPC-E Midlands Ref: M-112080 EPC-E Midlands Ref: M-112110 EPC-C
Halesowen, West Midlands Telford, Staffordshire Etwall, Derbyshire Droitwich Spa, Worcestershire £495,000 - Freehold £475,000 - Freehold £475,000 - Freehold £450,000 - Freehold Long established & well known freehouse. Available first time in over 20 years. Grade II. 2 lett Attractive village pub. Lounge bar & restaurant. Excellent opportunity with superb garden. ‘Hidden gem’ beer terrace/garden. beds. Potential for 7 more. Potential to develop letting rooms. (STPP) Lounge/bar, restaurant & 2 bed private accom. Midlands Ref: M-112354 EPC-D Midlands Ref: M-112397 EPC-N/A Midlands Ref: M-112433 EPC-D Midlands Ref: M-112263 EPC-C
Stoke On Trent, Staffordshire Brewood, Staffordshire Barkby, Leicestershire Wolverhampton, West Midlands £350,000 - Freehold £325,000 - Freehold £245,000 - Freehold £245,000 - Freehold Established destination venue. Spacious trading Traditional inn in rural location. Lounge/bar, Character pub overlooking brook. Bar, lounge/ City centre FH. Licensed until 5.30 am. areas. Beer garden & patio & car park. restaurant, beer terrace & car park. restaurant. Car park (20+). Single trading area. Beer garden & patio. Midlands Ref: M-112399 EPC-TBC Midlands Ref: M-112404 EPC-D Midlands Ref: M-112406 EPC-C Midlands Ref: M-112430 EPC-D
38 On Market Issue 17/01 fleurets.com Pubs Midlands 0121 236 5252 [email protected]
SOLD STC
Matlock Bath, Derbyshire Chesterfield, Derbyshire Ripley, Derbyshire Alfreton, Derbyshire £225,000 - Freehold £215,000 - Freehold £200,000 - Freehold £165,000 - Freehold Character GF bar, FF restaurant (30+) & 2 Town centre freehouse, single trade room, F/F Busy high street/town centre pub. FF function Busy main road frontage. F/F function room. separate 2 bed flats. Overlooks river. trade kitchen. Patio & car park. room, bar, snug & 4 bed private accommodation. Opp. Lidl/adjoins Alfreton town centre. Midlands Ref: M-112293 EPC-E Midlands Ref: M-112407 EPC-D Midlands Ref: M-112386 EPC-D Midlands Ref: M-112387 EPC-F
Malvern, Worcestershire Leicester, Leicestershire Derby, Derbyshire Bilston, West Midlands £195,000 - Freehold £195,000 - Freehold £175,000 - Freehold Offers Invited - Long Leasehold Bar/restaurant in popular tourist town. Attractive landmark pub. Function room. Busy mixed use area. Less than a mile Detached community local with large F/H or FOT Lease available. Spacious 5 bed living accommodation. from Derby City. Open plan trading area. single trading area. 3 bed living accommodation. Midlands Ref: M-112366 EPC-C Midlands Ref: M-112392 EPC-E Midlands Ref: M-112396 EPC-D Midlands Ref: M-112120 EPC-C
Torksey, Lincolnshire Solihull, West Midlands Birmingham, West Midlands Dudley, West Midlands £395,000 - Freehold £225,000 - Leasehold £50,000 - Leasehold £25,000 - Leasehold Character rooms. C. 130 covers. 5 ensuite letting Canalside pub, 3 character trading rooms, ‘Izakaya’ style bar & lounge with 3 karaoke Character local’s pub, FOT Lease. F/F function rooms. magnificent beer garden. rooms. Popular licensed circuit. room, trade kitchen & beer garden. Midlands Ref: M-112378 EPC-E Midlands Ref: M-112282 EPC-D Midlands Ref: M-112362 EPC-C Midlands Ref: M-112356 EPC-N/A
Uttoxeter, Staffordshire Stafford, Staffordshire Rugby, Warwickshire Dudley, West Midlands £20,000 - Leasehold Nil Premium - To Let Nil Premium - To Let Nil Premium - Leasehold FOT lease in city centre location Town centre freehouse with external area. Destination food house potential. 6 ensuite Lounge/bar (80+), trade kitchen & Late night venue potential to develop trade. Potential landlord investment. letting rooms & ample car parking. conservatory. First floor function room. Midlands Ref: M-112416 EPC-TBC Midlands Ref: M-111820 EPC-F Midlands Ref: M-112148 EPC-D Midlands Ref: M-112340 EPC-E
Shipston On Stour, Warwickshire Leicester, Leicestershire Zouch, Nottinghamshire Warwick, Warwickshire Nil Premium - Leasehold Nil Premium - Leasehold Nil Premium - To Let Nil Premium - Leasehold Desirable village location. Currently undergoing a Adjacent to Hospital/De Montford University. Well Desirable village pub. Canalside beer Adjacent to Warwick Racecourse. Beer garden restoration. 2 trade areas. presented character trading areas. garden/patio. 80 covers over 3 trade areas. & patio to rear. Free of tie. Midlands Ref: M-112417 EPC-C Midlands Ref: M-112400 EPC-E Midlands Ref: M-112419 EPC-D Midlands Ref: M-112410 EPC-D
fleurets.com On Market Issue 17/01 39 Pubs West & South Wales 0117 923 8090 [email protected]
West & South Wales
Pubs on market include...
Agent Details Kevin Conibear Head of Retail Leisure 10 Freeholds & Restaurants T 0117 923 8090 M 07587 638268 E [email protected] 13 New free of tie leases Chris Irving Divisional Director 17 Pubs with gardens T 0117 923 8090 M 07818 412762 E [email protected] 9 Country pubs
Bristol, Bristol £1,600,000 - Freehold Highly visible city centre location near Cabot Circus. Trading accommodation of 12,000 sq ft on 3 floors with residential above. Possible alternative use STPP. West & South Wales Ref: W-93659 EPC-N/A
Marshfield, Gloucestershire Plymouth, Devon Winterbourne Monkton, Wiltshire Gloucester, Gloucestershire Offers invited - Freehold £1,500,000 - Freehold £600,000 - Freehold £495,000 - Freehold Bar, restaurant & 10 rooms on FF. Large car Development opportunity c. 1 acre. PP for 10 Lifestyle opportunity. Bar, large accommodation Well maintained open plan bar/skittle alley. park. Site c. 0.3A. Refurb/dev opp STPP. holiday & 6 resi apartments & pub/restaurant. +5/6 potential lett beds. Circa 3 acres. 3 bed flat. Wet led, c. 625 barrels. West & South Wales Ref: W-93683 EPC-D West & South Wales Ref: W-93589 EPC-C West & South Wales Ref: W-93624 EPC-E West & South Wales Ref: W-93658 EPC-TBC
Witney, Oxfordshire Dorchester, Dorset £475,000 - Freehold £425,000 - Freehold Bar, restaurant, function room (60), garden, car Town centre. Bar & function room/skittles. park & 5 bed accommodation. FF function room. 2 flats & garden. West & South Wales Ref: W-93653 EPC-D West & South Wales Ref: W-93421 EPC-TBC
Cassington, nr Witney, Oxfordshire Hornton, Oxfordshire Weston-Super-Mare, Somerset £675,000 - Freehold £425,000 - Freehold £400,000 - Freehold 8 en suite letting bedrooms. Bar/restaurant circa 42 covers. 2 bed private accommodation. Very accessible Classic country pub. Bar, snug, restaurant, Roadside pub. Extensive trade areas. Car location. 4 bed accommodation, gardens & car park. Park (30) & 3 bed owners accommodation. West & South Wales Ref: W-93650 EPC-E West & South Wales Ref: W-93667 EPC-E West & South Wales Ref: W-93647 EPC-D
40 On Market Issue 17/01 fleurets.com Pubs West & South Wales 0117 923 8090 [email protected]
Wallingford, Oxfordshire Woolaston, nr Lydney, Gloucestershire £375,000 - Freehold £365,000 - Freehold Desirable location. 4 trading areas, 3 bed private Established business. Bar/restaurant c. 50 & 2/3 accommodation, garden & car park. bed private. Lifestyle opportunity. West & South Wales Ref: W-93657 EPC-C West & South Wales Ref: W-93612 EPC-TBC
Sturminster Newton, Dorset Kingston Blount, Oxfordshire Abbots Leigh, Bristol £350,000 - Freehold £350,000 - Freehold £99,750 - Leasehold Pub/restaurant, bar, skittle alley, function room, car park & garden. In popular Dorset town. Site extends to Close to Chinnor/M4. Bar/restaurant, 3 bed Superbly presented pub in affluent location. 2 bars, 0.11 hectares (0.29 acres). accommodation, terraces & car park. restaurant, garden & car park. High turnover. West & South Wales Ref: W-93684 EPC-D West & South Wales Ref: W-93535 EPC-D West & South Wales Ref: W-93604 EPC-E
SOLD STC
Witney, Oxfordshire Trowbridge, Wiltshire Paignton, Devon Clifton, Bristol £320,000 - Freehold £195,000 - Freehold £175,000 - Freehold £195,000 - Leasehold Classic village green location, open plan Town centre. 2 bars & restaurant. 4 lett beds. Open plan trading area, private accommodation Refurbished premises, prime triangle pitch. 4am bar/restaurant (32). 2 beds, gardens, car park Alternative use potential STPP. beer garden. 0.06 ha (0.15 acres). licence. Trades on 2 levels. West & South Wales Ref: W-93645 EPC-C West & South Wales Ref: W-93646 EPC-D West & South Wales Ref: W-93501 EPC-D West & South Wales Ref: W-93360 EPC-TBC
Frampton Cotterell, Gloucestershire Lawrence Weston, Bristol Kingswood, Bristol Kidlington, Oxfordshire Nil Premium - Leasehold Nil Premium - Leasehold Nil Premium - Leasehold Nil Premium - Leasehold New FOT lease, village pub. Bar, restaurant, 3 bed New FOT lease. 2 bars, skittle alley, car park (20) & New FOT lease. Prominent position. 2 New FOT lease. Canalside bar, restaurant, 50+ accommodation. Gardens & car park. owner’s accommodation. bars, gardens & owner’s accommodation. covers. 7 rooms on upper floors. West & South Wales Ref: W-93497 EPC-C West & South Wales Ref: W-93560 EPC-D West & South Wales Ref: W-93573 EPC-F West & South Wales Ref: W-93575 EPC-D
Clifton, Bristol Broughton Gifford, Wiltshire Wellington, Somerset Minchinhampton, Gloucestershire Nil Premium - Leasehold Nil Premium - Leasehold Nil Premium - Leasehold Nil Premium - To Let New FOT Lease. Popular BS8 location. Bar, trade FOT. Destination location. Open plan bar/ New FOT lease, prominent position. Extensive FOT. Part refurb. Potential 60 covers & 6 lett beds. kitchen & 2/3 bed owner’s accommodation. restaurant, circa 50 covers. 4 bed private accom. trade areas, owner’s accomodation. Cottage, garden & car park. West & South Wales Ref: W-93592 EPC-TBC West & South Wales Ref: W-93639 EPC-E West & South Wales Ref: W-93640 EPC-TBC West & South Wales Ref: W-93680 EPC-D
fleurets.com On Market Issue 17/01 41 Pubs South 01273 429 500 [email protected]
South
Pubs on market include...
Agent Details Nick Earee Divisional Director T 01273 429 500 12 Freeholds M 07836 541790 E [email protected]
10 FOT Leases Kate Dowd Senior Negotiator 5 Food Led T 01273 429 500 M 07798 716113 E [email protected] 4 Letting rooms
Lewes, East Sussex Offers invited - Freehold Commanding and historic town centre site with parts dating back to 1610. Extensive accommodation to include 5 bedroom owners flat. Site area 0.31 acre. Offers invited. South Ref: S-715966 EPC-TBC
SOLD STC
Andover, Hampshire Winchester, Hampshire £750,000 - Freehold £650,000 - Freehold Flexible bar and dining areas 80 covers. Grade II listed property. Bar & dining External patios, gardens and barns. areas (70). 4 letting rooms. Car park. South Ref: S-615621 EPC-C South Ref: S-615756 EPC-TBC
SOLD
Godalming, Surrey East Sussex Burwash, East Sussex £849,950 - Freehold 650,000 - Freehold £540,000 - Freehold A well known destination pub, 3 en suite rooms, 4 bed accommodation, restaurant, lounge bar, gardens & Established village pub/restaurant, private dining & Located on the A265 in 1066 country. veranda to 3 sides. Free of tie lease may also be available. extended domestic accommodation. Potential for alternative use (STPP). South Ref: S-615713 EPC-D South Ref: S-615623 EPC-E South Ref: S-615926 EPC-TBC
SOLD SOLD STC
Fletching, East Sussex Brighton Compton, West Sussex Fareham, Hampshire £500,000 - Freehold £425,000 - Freehold £395,000 - Freehold £385,000 - Freehold Lounge bar, restaurant & private dining room. 3 City centre bar with open plan bar areas. Two bed Village location. Bar & restaurant with 14th century character property with three bed accommodation. Car park & gardens. accommodation above. extensive 5 bed accommodation. interconnecting trade areas, gardens & car park. South Ref: S-615608 EPC-C South Ref: S-615718 EPC-B South Ref: S-716084 EPC-C South Ref: S-615902 EPC-E
42 On Market Issue 17/01 fleurets.com Pubs South 01273 429 500 [email protected]
SOLD SOLD STC
Tonbridge, Kent Newhaven, East Sussex £360,000 - Freehold £350,000 - Attractive village pub in affluent area. Developing area, local’s public house. Bar Bar/dining area, restaurant, patio & garden. and dining areas (35). Owner’s accom. South Ref: S-615454 EPC-D South Ref: S-716050 EPC-TBC
Aldershot, Hampshire Windlesham, Surrey Billingshurst, West Sussex £295,000 - Freehold £130,000 - Leasehold £95,000 - Leasehold Community pub in residential area. Lounge Traditional pub/restaurant in affluent Listed village pub, excellent catering facilities, extensive customer patios & gardens, separate barn with bar areas, garden, patio & 3 bed accommodation. village. Private dining, mature gardens. lapsed planning permission for 6 lett rooms. South Ref: S-615678 EPC-D South Ref: S-615610 EPC-TBC South Ref: S-615829 EPC-TBC
SOLD STC
Petersfield, Hampshire Horley, Surrey West Clandon, Surrey Basingstoke, Hampshire £125,000 - Leasehold £115,000 - Leasehold £60,000 - Leasehold £35,000 - Leasehold Bar, café, restaurant, rear courtyard with Village pub/restaurant. Lounge bar and Grade II listed pub with bar, two dining Free of tie lease, trading over 3 floors, bar, customer patio & 1 bed accommodation. restaurant. Garden and patio. Car park. areas (60), car park & mature gardens. trade patio. Incentives available. South Ref: S-615717 EPC-TBC South Ref: S-716005 EPC-C South Ref: S-615603 EPC-TBC South Ref: S-615595 EPC-TBC
Southwick, West Sussex Henfield, West Sussex Gosport, Hampshire Scaynes Hill, West Sussex £35,000 - Leasehold £35,000 - Leasehold Nil Premium - Leasehold Nil Premium - Leasehold Free of tie lease. Lounge bar, games bar, Free of tie lease available. Bar & dining, Community pub with front & rear bars. Imposing property, extensive trading areas, spacious 3 bed accommodation. patio & extensive 3 bed accommodation. Customer patio. 3 bed accommodation. large garden, substantial site on A272. South Ref: S-716060 EPC-B South Ref: S-716105 EPC-N/A South Ref: S-615484 EPC-C South Ref: S-615617 EPC-TBC
Brighton, East Sussex Alton, Hampshire Alton, Hampshire Peacehaven, East Sussex Nil Premium - Leasehold Nil Premium - Leasehold Nil Premium - To Let Nil Premium - Leasehold New free of tie lease available. High footfall High street pub. 3 bar/dining area, 3 lett Character property in affluent village. Character 6 miles East of Brighton, open plan areas (600), location close to station. beds, car park (15) & patio areas. bar (25), restaurant (30), trade garden & car park. retaurant (30), garden & car park. South Ref: S-615740 EPC-C South Ref: S-716163 EPC-E South Ref: S-716199 EPC-D South Ref: S-716162 EPC-C
fleurets.com On Market Issue 17/01 43 Pubs East 01223 402 600 [email protected]
East
Pubs on market include...
Agent Details
Simon Jackaman Divisional Director T 01223 402 600 M 07775 516674 11 Freehold pubs E [email protected]
5 Leasehold pubs Gareth Hatton Negotiator T 01223 402 600 M 07471 953230 10 Free of tie leases E [email protected]
4 Pubs with letting rooms
Ipswich, Suffolk £369,000 - Freehold 17th century character pub close to Ipswich Waterfront. Spacious open plan trading area. Split level trade terrace. 3 bedroom living accommodation. East Ref: E-615085 EPC-TBC
Olney, Buckinghamshire Towcester, Northamptonshire Leavenheath, Suffolk Stowmarket, Suffolk Offers Invited - Freehold £449,500 - Freehold £475,000 - Freehold £425,000 - Freehold Refurbished village pub/extensive gardens Bar, restaurant and games room/snug. Four letting Destination dining pub. Bar, rest, 3 bed Prominent Suffolk town centre freehouse with potential for letting rooms STPP. bedrooms, function room. accommodation, gardens & car park. Est business. Well presented trade areas & trade garden. East Ref: E-615442 EPC-TBC East Ref: E-615249 EPC-TBC East Ref: E-615713 EPC-D East Ref: E-615456 EPC-TBC
SOLD STC
Raithby, Lincolnshire Manningtree, Essex Grantham, Lincolnshire Norwich, Norfolk £370,000 - Freehold £337,500 - Freehold £325,000 - Freehold £285,000 - Freehold Set in affluent village location. Three en suite Substantial dining pub. Main road position. Traditional village freehold with 2 restaurant areas, Stunning restaurant (40 covers) Trade garden, letting rooms, separate cottage & micro brewery. 80 covers car park & living accommodation. main bar & letting cottage. accom, car park. On outskirts of Norwich. East Ref: E-615567 EPC-N/A East Ref: E-615560 EPC-TBC East Ref: E-615652 EPC-TBC East Ref: E-615659 EPC-TBC
SOLD STC
Norwich, Norfolk Market Rasen, Lincolnshire Grantham, Lincolnshire Lowestoft, Suffolk £259,500 - Freehold £245,000 - Freehold £195,000 - Freehold £179,995 - Freehold Attractive village locals freehouse close to Award winning freehouse in the stunning Lincolnshire town centre pub. Bar, patio area/ Vibrant locals freehouse set within residential Norfolk Broads Bar, restaurant, gardens. “Lincolnshire Wolds” 2 Bars B&B accommodation. car park. area. Open bar area with accommodation. East Ref: E-615158 EPC-TBC East Ref: E-514399 EPC-E East Ref: E-715815 EPC-TBC East Ref: E-514422 EPC-D
44 On Market Issue 17/01 fleurets.com Pubs East 01223 402 600 [email protected]
Ipswich, Suffolk Colchester, Essex Huntingdon, Cambridgeshire Kings Cliffe, Northamptonshire £225,000 - Long Leasehold £99,500 - Leasehold £69,950 - Leasehold £55,000 - Leasehold Sought after Ipswich Town centre location. Exceptional town centre pub/restaurant/bar, Near to Huntingdon. Bar/rest (60), 8 en suite lett Village pub. Bar, lounge, restaurant, car Substantial property 140+ covers. dining & function room, trade garden. beds, function suite & car park. park & potential for 5 lett beds. Free of tie. East Ref: E-615455 EPC-TBC East Ref: E-615328 EPC-TBC East Ref: E-615638 EPC-TBC East Ref: E-615651 EPC-N/A
SOLD STC
Ely, Cambridgeshire Ongar, Essex Peterborough, Cambridgeshire Welton, Northamptonshire £39,950 - Leasehold £30,000 - Leasehold Nil Premium - Leasehold Nil Premium - Leasehold Attractive village pub. 2 en suite lett beds & 2 Substantial Essex inn & restaurant with New free of tie lease. Bar, restaurant, Free of tie. Traditional pub/restaurant & trade bed accommodation. Close to Ely city centre. B&B accommodation terrace and large car park. large car park & extensive private accommodation. garden. East Ref: E-615436 EPC-D East Ref: E-715792 EPC-TBC East Ref: E-615231 EPC-TBC East Ref: E-615252 EPC-TBC
SOLD STC SOLD STC
Beccles, Suffolk Bury St Edmunds, Suffolk Lowestoft, Suffolk Northampton, Northamptonshire Nil Premium - Leasehold Nil Premium - Leasehold Nil Premium - To Let Nil Premium - Leasehold Community hub pub with potential to offer Substantial property centrally located. 10 bedroom free of tie opportunity in town Northampton town centre free of tie food trade. Free of tie, historic town centre. centre location. opportunity with extensive private accom. East Ref: E-615274 EPC-TBC East Ref: E-615394 EPC-N/A East Ref: E-615499 EPC-D East Ref: E-615508 EPC-TBC
SOLD STC SOLD STC
King’s Lynn, Norfolk Colchester, Essex Offers Invited - Leasehold Nil Premium - Leasehold Norfolk free of tie pub located on busy road Substantial busy roadside dining pub (60) between Thetford and King’s Lynn. characterful property large car park East Ref: E-615586 EPC-TBC East Ref: E-615612 EPC-TBC
SOLD STC SOLD STC
Royston, Cambridgeshire Lowestoft, Suffolk Kettering, Northamptonshire Nil Premium - Leasehold Nil Premium - Leasehold Nil Premium - Leasehold Refurbished free of tie pub - 4 letting Free of tie Suffolk seaside town pub with Beatufully refurbished village, destination pub offered on a new free of tie lease. Extensive car park to rear rooms & apartment. Ideal destination pub. 2 main bars and large car park. as well as potential to introduce 5 letting rooms. East Ref: E-615630 EPC-TBC East Ref: E-715804 EPC-TBC East Ref: E-715824 EPC-TBC
fleurets.com On Market Issue 17/01 45 Leisure Massive Gains
Phil Smith Senior Associate
The UK health and fitness market continues to bulk up, with private club memberships estimated to surpass 6 million in the next three years according to Mintel. The sector has also diversified and a two tier market has emerged between health and fitness clubs and boutique studios, which provide Aberdeen Pure Gym an alternative to a traditional gym workout. With private equity backing nationwide expand nationwide. Owner Adam Stowell Ticking all those boxes leads to member expansion and the chase for space is driving comments; “Our concept is all about retention and this has been one of the key rental growth, the health and fitness sector creating a buzz and not just another boring factors behind the success of PureGym, is looking very healthy as an alternative gym. We are shaking up the market further owned by CCMP Capital. Founded in 2009 property investment. by combining the service and quality of with four sites, PureGym has expanded product you would expect at a boutique rapidly to become market leader across In 2016, the overall value of the health gym, with the affordability and convenience the private club sector. Having acquired and fitness market for private clubs was of a budget gym. For £19.99 Buzz Gym LA Fitness in 2015, it now has over 180 estimated to reach £3 billion. To achieve offer 24 hour access, over 200 stations sites nationwide, with more in the pipeline this growth, the sector has had to evolve of state of the art equipment, fully loaded for 2017. Sir Chris Hoy is the brand significantly. Looking back, as the recession Olympic lifting and strength zones and over ambassador and appears on TV and social took hold, it was the mid-market, dominated 400 free classes per month!” media marketing campaigns. by Fitness First and LA Fitness, which was hit hardest. Gym members had become To maximise member numbers, clubs are dissatisfied with high monthly membership open 24 hours a day, 365 days a year and costs, joining fees and being tied in to In 2016, the overall value are typically in excess of 20,000 sq. ft. This costs c. £1.5m to fit out with high quality contracts. They started to question value for of the health and fitness money and membership numbers began to running and cross training machines, free dwindle. market for private clubs was weights, strength training equipment and studios. They are all ‘dry’ clubs; LA Fitness’ estimated to reach £3 billion. This presented an opportunity to capture a swimming pools were filled in to maximise highly dissatisfied customer base, giving rise useable floor space and substantially reduce to the budget gym sector, which now makes operating costs. up c. 15% of the private club market. There The budget gym model maximises are many budget gym operators including membership numbers over the available Each club must fit within a tight property PureGym, The Gym Group, Anytime Fitness, floor space, extends opening hours and costing model. Depending on location, Fitness 4 Less and Buzz Gym to name but minimises operational costs, particularly rents in the periphery of central London a few. wages, whilst providing access to high will typically not exceed £15 per sq. ft. and quality equipment for a low monthly cost £10 per sq. ft. nationwide. A 15 year lease Buzz Gym currently have sites in Reading, and with flexibility over membership. with RPI rent reviews is standard, with cap/ Swindon and Slough and are looking to collar increases providing security over
46 On Market Issue 17/01 fleurets.com Leisure
future property liability. This also provides back the fit out, and with DJs providing the West End (£20 per class), Boom Cycle in the investor with a guaranteed income music, an intense atmosphere is created Holborn (£16) and Ride Republic in Fulham stream over the length of the lease, secured which aims push their members’ limits and (£20). Barrecore have 11 clubs nationwide by PureGym Limited, which has a Dun & sweat levels. and use ballet and yoga techniques to Bradstreet 5A2 rated covenant. ‘reshape your world’ for £28 per class. The focus is ‘functional fitness’; boxing rings Billed as the ‘best workout in the world’, Recent acquisitions include High Street, feature in many clubs and a huge draw is Barry’s Boot Camp has crossed over from Bromley, which is due to open imminently. the wide range of studio classes, which the US to open 3 studios in central London. This facility is c. 25,000 sq. ft. over two include Fight Klub, Bar-tendaz, Saved by floors and has reportedly let for £200,000 the Bell and Rave. With membership fees 1Rebel occupies 7,725 sq. ft. over ground p.a. (c. £8 per sq. ft). The largest inner at upwards of £70 per month, Gymbox are floor and basement at St Mary Axe in London facility is in Bermondsey, totalling pushing the upper limit of the mid-market, the City. The headline rent was agreed 21,000 sq. ft. and reportedly let at a rent however the model is clearly working: they at £265,000 p.a. (c. £34 per sq. ft.) They rising from £10.00 to £14.75 per sq. ft. over have eight gyms in central London, including combine three types of workout in their the first five years. Holborn, Bank and both Westfield’s. studio in HIIT classes called Rumble, Ride and Reshape. A second studio has recently The covenant strength is demonstrated One of the more recent openings is at the opened in Broadgate Circle and, with by the investment sale of PureGym Bower in Old Street, totalling c. 10,000 sq. funding secured, 1Rebel are now geared Camberwell. This is a new build facility ft., which reportedly let at a headline rent up for an expansion drive to the affluent of just under 12,000 sq. ft. which let at of £14 per sq. ft. However, the most recent surrounds of central London. £140,000 p.a. (c. £11.50 per sq. ft.), for opening is one of the largest gym lettings in a 20 year term with a tenant break at the central London. Located at 12 Leather Lane At these rental levels, it is little wonder 15th year. In October 2016, it sold for near Chancery Lane, it totals 38,000 sq. landlords are very keen to let otherwise £2.105m; a net-initial yield of 6.26%. ft. and reportedly let at a headline rent of secondary space to studio fitness operators £912,000 p.a. (c. £24 per sq. ft.). and with the revenues that can be With space at a premium in central London, generated by charging by the class, this particularly for in excess of 20,000 sq. The popularity of classes has led to the sector is attracting considerable investor ft. rent exceeds sustainable levels for the expansion of boutique fitness studios. attention. The open market letting activity budget gyms. The substantial customer These occupy smaller spaces and typically is driving rental growth at rent review and base and ability to increase membership focus on one particular exercise, providing with long leases to strong covenants, health prices leaves space to be contested classes throughout the day. The classes are and fitness has become a very attractive between the mid-market brands, including taught by qualified instructors using high alternative property investment. Nuffield Health, Virgin Active and Third intensity interval training (HIIT), promising to Space; a luxury operator which operates achieve faster results than a standard gym It is a specialist sector, so it pays to take four substantial London sites in Soho, workout. Customers can buy passes which expert advice. Fleurets is regularly involved Marylebone, Canary Wharf and the most enable access across a host of different with rent reviews, lettings, valuations and recent opening at Tower Bridge. studios, offering flexibility and no longer investment transactions of health and restricting members to one site. fitness property, advising occupiers and Founded in 2003, Gymbox is another mid- investors. market operator which promotes itself as In central London, the diverse range of the ‘antidote to boring gyms’. By stripping operators includes spin studios Psycle in the
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