H O U S E DERRY’S CROSS, , PL1 2SW

PRIME CITY CENTRE LEISURE INVESTMENT H O U S DERRY’S CROSS, PLYMOUTH, PL1 2SW PRIME CITY CENTRE LEISURE INVESTMENT E

H O U S E

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1. Sutton Harbour 7. Civic Centre Development 13. Colin Campbell Court Development 2. Drake Circus Leisure Scheme 8. Theatre Royal Plymouth 14. Western Approach Development 3. University of Plymouth 9. Crescent Point Student Residences 15. Plymouth Pavilions Arena/Ice Rink 4. Mayflower Steps 10. Derrys Cross Leisure 16. Millbay Pier 5. Beckley Point 11. Plymouth Cross Redevelopment 6. The Hoe 12. Plymouth Bus Station Outline for indicative purposes only. H O U S DERRY’S CROSS, PLYMOUTH, PL1 2SW PRIME CITY CENTRE LEISURE INVESTMENT E

INVESTMENT CONSIDERATIONS ■■ Exceptionally prominent city centre leisure investment ■■ Neighbouring occupiers include Travelodge, Revolution, ■■ The surrounding area is undergoing a major transformation totalling 33,886 sq ft Wildwood, Bella Italia, Wetherspoons and Theatre Royal with a large number of commercial, student and residential ■■ Highly visible and modern building, constructed in 2002, ■■ Total rent received of £463,905 per annum, developments under construction or recently completed located in the primary leisure pitch reflecting £13.69 per sq ft overall ■■ We are instructed to seek offers in excess of £5,800,000 (Five Million and Eight Hundred Thousand Pounds), for our client’s ■■ Primary Retail Population of 458,000 ■■ Attractive WAULT of 9.47 years to earliest determination freehold interest, subject to contract and exclusive of VAT. (Source PROMIS) ■■ Immediate access to significant local car parking provision, ■ ■■ Occupied by national and well-regarded brands including including a 200 space car park to the rear of the property and ■ A purchase at this level would reflect aNet Initial Yield Grosvenor Casinos, Walkabout and Sizz All the 612 space Theatre Royal multi-storey car park behind of 7.50% and an attractive capital rate of £171 per sq ft, Derry’s Cross assuming purchaser’s costs of 6.62%. H O U S DERRY’S CROSS, PLYMOUTH, PL1 2SW PRIME CITY CENTRE LEISURE INVESTMENT E

A(M) YR ● EES BACP ● ● M55 M56 H ● M62 M6 GRIMSBY M M80 M8 ● MANCHESTER IERP ● ● M56 Plymouth is the second largest SHEFFIE ● INCN ● M city in the South West NTTINGHAM BSTN M6 ● ●

GHBRGH ●

NRWICH ● M42 EICESTER ● PETERBRGH BIRMINGHAM ● ● A(M) M6 300 miles

NRTHAMPTN BRY ST M5 ● CAMBRIGE EMNS ● ● M BEFR WRCESTER ● ● MITN EYNES M6 M50 ● A(M)

200 miles CHEMSFR FR ● ● M25 SWANSEA M48 ● PAINGTN M4 M4 CARIFF ● M32 NN BRIST BATH M2 ● M25 MAISTNE M20 M3 ● M5 M23 FSTNE 100 miles ●

M2 ● STHAMPTN A3(M) BRIGHTN ● ● EETER PRTSMTH WEYMTH ● PYMTH

TRR ● PENANCE FAMTH ● ●

LOCATION Plymouth is the second largest city in the South West and is Plymouth is situated on the South Main Line, ROAD RAIL AIRPORT widely renowned for its maritime history and its association a major route from London to , Exeter 45 miles Exeter 55 mins Newquay 45 miles with being an international seaport. The city is situated via the . Plymouth Railway approximately 45 miles south west of Exeter, 112 miles Station is on the northern edge of the city centre, Truro 55 miles Penzance 1hr 48 mins Exeter 55 miles south west of and 220 miles south west of London. approximately a 15 minute walk from the property. Bristol 112 miles Bristol 1hr 51 mins Bristol 112 miles Plymouth city centre is located 2.8 miles to the south The station is the second busiest interchange in London 220 miles London Paddington 3hr 07 mins London Gatwick 220 miles of the A38 Devon Expressway connecting the M5 Devon providing a wide range of regular regional at Exeter to the north east with via the A390 and Inter-City services operated by Great Western & A30 arterial roads. Rail (GWR) and CrossCountry. H O B3250 U S DERRY’S CROSS, PLYMOUTH, PL1 2SW PRIME CITY CENTRE LEISURE INVESTMENT E

PLYMOUTH Plymouth is the second largest city in the South West of , providing the commercial and administrative hub for the County of Devon. It is the largest port city on the south coast of England with a resident population of 259,200 (ONS 2013), making it the 15th largest city by population in the UK. IPSN AE PLYMOUTH In addition to a large commercial and ferry port, A386 Plymouth hosts the largest military naval base B3250 in Western Europe, stationing over 2,500 armed forces personnel and significant manufacturing and IPSN engineering supporting sectors. Plymouth Science Park is the region’s largest science and technology park with over 140,000 sq ft of office B3238 and laboratory space. Plymouth University is the 9th largest in the UK with 21,000 students enrolled, which is supplemented by B3214 the University of St Mark & St John and the international language school who have a further 3,000 students.

A374 Plymouth’s relatively isolated location has resulted in very little competition from surrounding retail centres H O U S and the city has seen a number of new retailers opening E stores, including Jack Wills, Joules and White Stuff. ST ES City centre retail floorspace in Plymouth is estimated at 1.55 million sq ft, provided by two covered shopping A379 centres and numerous high street shops situated on New George Street, Old Town Street, Cornwall Street and Armada Way. There are also three department stores; Marks & Spencer, Debenhams and House of Fraser. B3240 BARBICAN STTN Drake Circus and The Armada Centre are the two HARBR shopping centres in the city centre, providing 735,000 sq ft of retail and leisure accommodation. Drake Circus is the primary shopping destination, providing 560,000 THE HE MIBAY sq ft in 72 shops and restaurants, anchored by Primark (66,000 sq ft) and Marks & Spencer (124,000 sq ft). It has 1,270 parking spaces and is arranged over three WEST HE CSIE trading levels. The centre opened in 2006 and has an annual footfall of around 17 million shoppers. The Armada Centre is located in a secondary retail location, comprising 175,000 sq ft of retail accommodation with occupiers including Wilkinson, Peacocks, Laura Ashley and Sainsbury’s. H O U S DERRY’S CROSS, PLYMOUTH, PL1 2SW PRIME CITY CENTRE LEISURE INVESTMENT E

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SITUATION 3 The property is prominently located in the city centre’s main leisure pitch, on the south western edge of Plymouth city centre, with frontage onto Derry’s Cross roundabout. 1 All units are highly visible and benefit from footfall generated by the property’s 6 excellent position on a major thoroughfare from Union Street to the main city centre retailing provision, located directly to the north east. The property is adjacent to a number of national leisure occupiers in the neighbouring purpose-built Derry’s Cross scheme, comprising 85,711 sq ft of leisure floorspace including a 96 bedroom Travelodge, The Gym, Bella Italia, Revolution Bar and Wildwood. The property benefits from immediate access to significant local car parking provision, including a 200 space car park to the rear of the property, accessed 7 via Derry’s Cross. There are a further 612 spaces in the multi-storey car park adjacent to the Theatre Royal. 10 Local transport links are excellent with numerous local bus services available on Union Street, Derry’s Cross and Royal Parade. Plymouth Railway Station is 8 situated a 15 minute walk to the north.

1. Western Approach Development 6. Plymouth Cross Redevelopment 2 2. Plymouth Pavilions Arena/Ice Rink 7. Theatre Royal Plymouth 3. Colin Campbell Court Development 8. Derrys Cross Leisure Scheme 4. Plymouth Market 9. Crescent Point Student Residences 5. Plymouth Bus Station 10. Civic Centre Development 9

Blue Line - Freehold Title Boundary H O U S DERRY’S CROSS, PLYMOUTH, PL1 2SW PRIME CITY CENTRE LEISURE INVESTMENT E

DESCRIPTION The property comprises a modern three storey building constructed in 2002, providing leisure accommodation on ground and two upper floors. The ground floor comprises two bar/restaurant units as well as the entrance to the casino. The two upper floors accommodate the casino on the first floor and staff and ancillary provision on the second floor. The property is of steel frame construction which supports composite profiled metal and cast concrete floor and roof decks. Given the sloping nature of the site, ground floor areas to the rear are below ground level and are formed with a concrete retaining wall. Internally the units have been fitted out by the tenants to suit their occupational requirements; including a casino fit out at first floor and a restaurant and pub at ground floor. Servicing is via the rear of the property, accessed from Derry’s Cross. Due to the sensitivity of the tenant’s operations, all employees and members of the public vacated the building for photography. H O U S DERRY’S CROSS, PLYMOUTH, PL1 2SW PRIME CITY CENTRE LEISURE INVESTMENT E

ACCOMMODATION & TENANCIES

UNIT TENANT NAME DEMISE GIA AREA GIA AREA LEASE LEASE RENT RENTS RECEIVED CONTRACTED RENTS RECEIVED COMMENTS (SQ FT) (SQ M) START EXPIRY REVIEW (£ PA) RENT (£ PA) (£ PSF) Unit 1 Eldridge & Pope & Co. Ltd GF Restaurant 6,605 613.6 25/03/2003 24/03/2028 25/03/2018 £125,000 £125,000 £18.93 The rent demand is addressed to and paid by (Sub-let to Sanshui Ltd) 25/03/2023 Marston’s Plc. [t/a Sizzall] The unit was underlet to San Shui Ltd (t/a Sizz All) Mezzanine 4,388* 407.7* on 29 May 2008 and expires on 21 March 2028. The tenant did not exercise their break option Sub-Total 6,605 613.6 dated 21 March 2018. *Mezzanine is part of tenant fit out.

Unit 2 Intertain (Bars) Ltd GF Bar 8,214 763.1 25/03/2003 24/03/2028 25/03/2018 £115,000 £121,000 £14.00 Contracted rent is £121,000 pa, with concessionary [t/a Walkabout] 25/03/2023 rent received of £115,000 pa payable monthly. Mezzanine 2,996* 278.3* *Mezzanine is part of tenant fit out. Sub-Total 8,214 763.1 Casino Grosvenor Casinos Ltd GF Reception 824 76.6 25/03/2003 24/03/2028 25/03/2018 £223,905 £223,905 £11.74 Tenant agreed to remove the break option in 25/03/2023 March 2018, in lieu of 15 months’ rent free. F1 Casino 15,025 1,395.9 F2 Casino 3,219 299.1 Sub-Total 19,068 1,771.5 Total 33,887 3,148.2 £463,905 £469,905 £13.69 Total (inc tenant mezzanine) 41,271* 3,834.2* H O U S DERRY’S CROSS, PLYMOUTH, PL1 2SW PRIME CITY CENTRE LEISURE INVESTMENT E

TENURE Freehold.

COVENANT INFORMATION Grosvenor Casinos Limited (48% of income) Grosvenor Casinos is the UK’s largest multi-channel casino operator, providing gaming and restaurant facilities for members. The company was established in 1970 and is a UK based chain of 52 casinos located in major towns and cities across the UK. It is owned by The Rank Group who operate exclusively in the casino, bingo and online gaming industries across Belgium, Spain and the UK. The Grosvenor Casinos Network currently employs over 6,300 employees across the UK. The Company currently has a Dun & Bradstreet rating of 5A1.

Intertain (Bars) Limited (25% of income) Intertain (Bars) Limited operate large scale bars, most of which are focused on eating and sports viewing. 25 of the 30 bars operated under the Australian themed Walkabout brand were acquired by Stonegate Pub Company for £39.5M in 2016, one of the largest pub owners and operators in the UK with brands including Slug & Lettuce, Venues, Yates, Common Room, Classics Inns and Town Pub & Kitchen. In July 2018, Stonegate Pub Company announced the acquisition of Be At One, the cocktail bar operator for c.£50M and 15 London bars from Novus Leisure for c.£30M, increasing the portfolio to 739 pubs and bars, and underlying earnings of £125M. We understand there are plans to undertake a full refurbishment of the unit as part of a portfolio wide improvement strategy following a £595M refinancing facility approved in March 2017.

Eldridge Pope & Co Limited (27% of income) Eldridge Pope & Co Limited (52308) has a Dun & Bradstreet Rating of H-. Eldridge and Pope is a wholly owned subsidiary of Marston’s Plc which has a market capitalisation of £633.5m and in the year ending 30 September 2017 reported a tax profit of £100.3m. The unit is underlet to San Shui Limited (t/a Sizz All), who have traded from the premises since 2008 and did not exercise their break clause in 2018.

Due to the sensitivity of the tenant’s operations, all employees and members of the public vacated the building for photography. B3250

H O U S DERRY’S CROSS, PLYMOUTH, PL1 2SW PRIME CITY CENTRE LEISURE INVESTMENT E

IPSN AE

A386 1 2 B3250 IPSN

B3238 NIERSITY 3 4 8 F PYMTH LOCAL DEVELOPMENT ANALYSIS B3214 DEVELOPMENTS UNDER CONSTRUCTION/ 7. Old Town Street CONSTRUCTED • Remodelling existing buildings with new fully glazed A374 shop fronts 1. Crescent Point • Improving connectivity between Drake Circus & new 10 • 14 storey tower / 348 student units / leisure scheme Completed September 2018 • Public realm upgrade by Council under consultation RAES CIRCS 2. Drake Circus Leisure • Pedestrianisation of Old Town Street and New SHPPING CENTRE ST ES • 100,000 sq ft leisure scheme, arranged over three levels - George Street (east) 420 car parking spaces • Introducing standalone street kiosks 9 8 3 6 7 • 12 screen, 2,143 seats pre-let to Cineworld 2 • 13 café, restaurant and bar units arranged over 8. Colin Campbell Court A379 ground and lower ground floors, pre-lets Zizzi & & Western Approach Frankie & Benny’s • LPA Masterplan site identified for future development 4 • Completion is expected by October 2019 • Transformation of the Western edge of the City Centre 1 5 3. Former Derry’s Department Store • Proposed new landmark and larger scale buildings BARBICAN • 110 bedroom Premier Inn / 500 student units / • Over 50,000 sq ft of retail/leisure accommodation B3240 Scheduled to complete in 2019 proposed STTN H • Additional potential for office, hotel and student O U S DEVELOPMENTS IN PIPELINE accommodation identified E HARBR 4. Civic Centre • 303 residential units with significant City Centre • Former Council offices parking provision • Grade II listed since 2007 THE HE • 14 storeys, 144 apartments 9. Toys R Us MIBAY • 50,000 sq ft offices, shops & leisure floorspace • Part of the Colin Campbell Court scheme • Urban Splash held public consultation in June • Plan for 300 new homes, cafes, studios and restaurants 5. Reel Cinema Art-deco building • To include a range of 4 and 6 storey buildings WEST HE • PRS scheme - Under consultation CSIE 6. House of Fraser 10. Mayflower House • HoF to downsize to 80,000 sq ft • 490 student bed development • British Land considering hotel proposals • 22,500 sq ft of office space and A1/A3 space H O U S DERRY’S CROSS, PLYMOUTH, PL1 2SW PRIME CITY CENTRE LEISURE INVESTMENT E

OCCUPATIONAL MARKET COMMENTARY Plymouth city centre was extensively redeveloped in the 1950s following damage sustained during the Second World War to form a grid iron layout. The south-western section of the city centre has attracted a significant concentration of leisure uses, largely located around Derry’s Cross and Union Street. The city has only one cinema anchored leisure park, namely Barbican Leisure Park, which opened in May 1999. It’s a short distance from the city centre on the east side of Sutton Harbour, however, due to its convoluted access it is effectively divorced from the main retail pitch. Despite this VUE cinema at Barbican Leisure Park is very dominant with 15 screens and 3,314 seats, serving a large catchment population extending into Cornwall. The under-supply of modern cinema screens led Cineworld and Odeon to compete for a second multiplex cinema in Plymouth with Cineworld committing to a new 12 screen (including IMAX) cinema at British Land’s leisure development opposite Drake Circus Shopping Centre. It is currently under construction and scheduled to open towards the end of 2019. Outside the core city centre, leisure areas have been established in attractive waterfront locations with clusters of successful restaurants and bars. These popular destinations being Royal William Yard, a residential led development of Grade I listed military buildings and the tourist area of Barbican & Sutton Harbour, one of the few parts of the city to escape the destruction of the Second World War and home to Mayflower Steps & Plymouth Gin Distillery.

Leisure Food & Beverage The UK cinema occupational market remains very In terms of food & beverage, small to medium sized strong and has traditionally been dominated by the “big chains are currently active in the restaurant market. three” operators; Cineworld, Odeon and VUE. However, Operators such as Franco Manca, The Real Greek, there has been rapid growth in a new generation of Pho, Turtle Bay, Loungers, Five Guys and TGI Friday’s smaller challenger brands such as Empire, Everyman, are all acquisitive albeit are highly selective in terms of Curzon, The Light and a string of small independents location. The bar market, which has seen a resurgence who are all keen to capitalise on continuing rapid growth over the past 18 months, is also particularly active at in the cinema sector which has seen box office sales present with a number of operators such as Revolution increase by 17% since 2014. Bar Group, The New World Trading Company, The health and fitness sector is experiencing similar Alchemist, Arc Inspirations, Burning Night Group and dynamics to that of the cinema sector, with a wide Stonegate Pub Company all seeking new sites. differential in the size of occupational requirements In terms of rental trends, we set out below a number and rents being achieved. The strongest segment of of key rental transactions from Plymouth: the market in recent years has been the budget sector Drake Circus Leisure – pre-let to Zizzi at a headline with expansion of operators such as Pure Gym (now the base rent of £42.00psf, due to complete in Q4 2019 largest gym operator in the UK), The Gym and Easygym. Drake Circus Leisure – pre-let to Frankie & Benny’s Bowling is experiencing a resurgence following at a headline base rent of £42.00psf, due to complete consolidation in the market with new acquisitions from in Q4 2019 existing operators like Ten Pin and Hollywood Bowl, in Unit 37 Drake Circus – open market letting to Bill’s addition to boutique brands such as All Star Lanes & DEVELOPMENT POTENTIAL at a net effective base rent of £32.72psf in Q3 2017 Lane7 acquiring sites. We consider given the location and Council’s recreational facilities; residential values are 13-17 New George St – McDonalds rent review The adventure golf sector is growing rapidly in city policy to consider tall buildings, that the currently achieving around £350 per sq ft. documented at a rent of £37.00psf in Q2 2017 property could accommodate additional The property is situated in a popular student centre locations with Adventure Leisure & Paradise 5 St Andrews Cross – open market letting to Turtle Bay height to deliver residential, PRS, student or residential area and adjacent to the newly Island leading the way. In 2018, Adventure Leisure will at a net effective rent of £18.67psf in Q2 2017 hotel use, subject to necessary consents. developed Crescent Point, a 14 storey 348 bed be opening new sites in Newcastle, Milton Keynes, The central Plymouth residential market student scheme constructed by Mears Student Bournemouth & Birmingham. Royal William Yard – open market letting to Wildwood is experiencing good demand for well Life. Rents ranging between £128 and £176 There has also been notable growth in ‘competitive at a net effective rent of £29.69psf in Q1 2015 located apartments, coupled with excellent per week based upon 51 week lets, are being socialising’ with brands such as Swingers, Flight Club Royal William Yard – Loungers rent review documented transport links and extensive retail and targeted dependent upon room type/product. and Bounce capitalising on consumers increasing at a rent of £29.00psf in Q4 2014 preference for experience over consumption. H O U S E VAT EPC DERRY’S CROSS, PLYMOUTH, PL1 2SW The property has been elected for VAT. An Energy Performance Certificate It is anticipated that the sale will be treated is available upon request and as a Transfer of Going Concern (TOGC). provides a rating of D (90).

Dataroom For access to the Allsop Marketing Data Room please use the following link: https://datarooms.allsop.co.uk/register/drakehouse

Proposal We are instructed to seek offer in excess of£5,800,000 (Five Million and Eight Hundred Thousand Pounds), for our client’s freehold interest, subject to contract and exclusive of VAT. A purchase at this level would reflect aNet Initial Yield of 7.50% and an attractive capital rate of £171 per sq ft, assuming purchaser’s costs of 6.62%.

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

Jeremy Hodgson Tom Dales Nick Allan Spencer Wilson 020 7543 6709 020 7543 6866 0117 910 5282 0117 910 5271 [email protected] [email protected] [email protected] [email protected]

www.allsop.co.uk www.cushmanwakefield.com

IMPORTANT NOTICE: Allsop and Cushman & Wakefield on their own behalf and on behalf of the instructing client give notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property, but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement of representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property what are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an option and not by way of statement of fact. Allsop is the trading name of Allsop LLP. Cushman & Wakefield is the trading name of Cushman & Wakefield Debenham Tie Leung Limited. Design: Command D - www.commandhq.co.uk 10.18