A UNIQUE FULLY MANAGED RESIDENTIAL MOBILE HOME PARK INVESTMENT WITH POTENTIAL FOR 218 PLOT SALES
WEST SUSSEX CONTENTS
ASSET SUMMARY ...... 3
LOCATION ...... 4
LOCATION MAP ...... 5
THE INVESTMENT STRUCTURE ...... 6
CURRENT AND FORECAST REVENUE AND EXPENDITURE ...... 7
ALDINGBOURNE PARK ...... 8
BEECHFIELD PARK ...... 12
THE WILLOWS ...... 16
MARIGOLDS ...... 20
SILVER LAKES PARK ...... 24
ORCHARD PARK ...... 28
FUTURE OPPORTUNITIES ...... 32
PROPOSAL ...... 33
CONTACT ...... 34
2 ASSET SUMMARY
•• Well located Residential Mobile Home Park investment in West Sussex •• 218 pitches and one cottage across six parks THIS IS A RARE AND UNIQUE OPPORTUNITY •• Circa 14 .00 acres of land in West Sussex CONTAINING SIX WELL LOCATED RESIDENTIAL Fully let and managed investment with long term pitch agreements •• MOBILE HOME PARKS •• Majority of the running costs are reimbursed by the pitch holders including management costs THE INVESTMENT PROVIDES STRONG INCOME •• Annual park pitch fees reviewed to RPI AND LONG TERM ASSET MANAGEMENT •• Long term asset management opportunities for each site as sub leases expire OPPORTUNITIES ON EXPIRY OF SUBLEASES •• Commission for landlord when a Mobile Home is sold, based on 10% of price •• On expiry of pitch agreement freeholder can sell new home with new agreement •• Three plots to come back to freeholder in 2018 (potentially worth circa £375,000 to owner) •• Current net revenue £691,346 per annum (excludes possible future new sales) •• Offers in excess of £10,500,000 subject to contract •• Net initial yield 6 1. 7% (based on pitch fees and comissions) •• Up to £27,250,000 could be realised if all pitches sold with new home and agreement •• Price reflects £750,000 per acre •• Price reflects £50,000 per plot
3 LOCATION
WEST SUSSEX
West Sussex is a county in the south of England, bordering East Sussex (with Brighton and Hove) to the east, Hampshire to the west and Surrey to the north . Chichester is the county town of West Sussex,
West Sussex is the home of Rolls Royce who opened their 600,000 sq ft worldwide headquarters and production facility at Goodwood, Chichester in 2003 and a further 300,00 sq ft in 2016 in Bognor Regis . The excellent, year round leisure facilities include the world famous Chichester Festival Theatre, horse racing at glorious Goodwood, the Goodwood Motor circuit with its annual Festival of Speed and Revival Meeting, sailing in Chichester Harbour, and the wonderful South Downs National park .
4 TO GATWICK
A24
ARUNDEL
A27 TO GATWICK CHICHESTER TO BRIGHTON A27 ALDINGBOURNE PARK A24 THE WILLOWS
BEECHFIELD PARK ARUNDEL ORCHARD PARK A27 A259 WORTHING SILVERLAKES A29 CHICHESTER TO BRIGHTON A27 ALDINGBOURNE PARK THE WILLOWS LITTLEHAMPTON A259 TO PORTSMOUTH BEECHFIELD PARK ORCHARD PARK A259 WORTHING SILVERLAKES A29 LITTLEHAMPTON TO PORTSMOUTH A259 MARIGOLDS BOGNOR REGIS BOGNOR REGIS
5 THE INVESTMENT STRUCTURE
LEASEHOLD STRUCTURE
STRUCTURE FOR SALE All of the parks are owned freehold by the Vendor, Silver Lakes Property Investments Limited, who has set up a management company for each park and granted them a head lease . The management company then grants the individual pitch agreements for the land in line with the head lease . FREEHOLD The management companies are all controlled by the Vendor and each head lease will be assigned to the freeholder, together with the freehold . This structure means that the pitch holders do not have security of tenure and their right to stay on the pitch does not continue after the expiry of their Mobile Home agreement . HEAD LEASE In terms of continuity of income, because the pitch holders do not own the land, it is classed as rented accommodation . We are advised that the pitch holders may be able to claim housing benefit if they cannot afford to pay their pitch fee.
PITCH AGREEMENTS SUB LEASE Each park is fully managed and let on individual long term pitch agreements, with each occupier/tenant paying an annual pitch fee (payable on a monthly basis) which is reviewed annually in line with the Retail Price Index (RPI) . The majority of the running costs for each park are reimbursed by the occupiers via a service charge. Some of the pitch holders (44) pay a higher pitch fee to reflect that they PITCH AGREEMENT do not contribute to the service charge . If a pitch is sold by the occupier then the landlord receives a 10% commission based on the sale price . The resale prices for existing Mobile Homes and the assignment of a pitch agreement can range from £50,000 to £150,000 depending on the size and length of pitch agreement . Over the last three years the following commissions have been paid:
2017 . . . . £130,720 (TO DATE) 2016 . . . . £76,500 2015 . . . . £118 , 50 0
6 CURRENTASSET SUMMARY AND FORECAST REVENUE AND EXPENDITURE
NOV 2017 NOV 2018 NOV 2019 NOV 2020 NOV 2021 NOV 2022 NOV 2023 NOV 2024 NOV 2025 NOV 2026 NOTES REVENUE
Pitch fees £ 586,582 £ 598,313 £ 610,280 £ 622,485 £ 634,634 £ 647,634 £ 660,586 £ 673,798 £ 687,274 £ 701,019 (1) Commissions £ 130,720 £ 143,792 £ 158,171 £ 173,988 £ 191,387 £ 210,526 £ 231,578 £ 254,736 £ 280,210 £ 308,231 (2) TOTAL REVENUE £ 717,302 £ 742,105 £ 768,451 £ 796,473 £ 826,322 £ 858,159 £ 892,165 £ 928,534 £ 967,484 £ 1,009,250
EXPENDITURE
Inclusive agreements £ 14,548 £ 14,839 £ 15,136 £ 15,438 £ 15,747 £ 16,062 £ 16,383 £ 16,711 £ 17,045 £ 17,386 (3) Insurance £ 9,000 £ 9,180 £ 9,364 £ 9,551 £ 9,742 £ 9,937 £ 10,135 £ 10,338 £ 10,545 £ 10,756 (4) Park charges £ 2,408 £ 3,000 £ 3,000 £ 3,000 £ 3,000 £ 3,000 £ 3,000 £ 3,000 £ 3,000 £ 3,000 (5) Total Expenditure £ 25,956 £ 27,019 £ 27,499 £ 27,989 £ 28,489 £ 28,999 £ 29,519 £ 30,049 £ 30,590 £ 31,142
NET REVENUE £ 691,346 £ 715,086 £ 740,951 £ 768,484 £ 797,833 £ 829,161 £ 862,646 £ 898,485 £ 936,894 £ 978,108
THE ABOVE DOES NOT INCLUDE THE POTENTIAL PROFITS FROM THE SALE OF NEW HOMES ON NEW PITCH AGREEMENTS
(1) Assumes annual increase in RPI of 2% per annum . (2) Assumes commissions increase each year by 10% as expiries get closer . (3) Some agreements are inclusive of the service charge . Increasing costs have been built in each year based on 2% per annum . (4) Assumes increase at 2% per annum . (5) This relates to unrecoverable costs when a plot is vacant. Flat figure has been used for future expenditure.
7 ALDINGBOURNE PARK
HOOK LANE, ALDINGBOURNE, WEST SUSSEX PO20 3YR
8 ALDINGBOURNE PARK HOOK LANE, ALDINGBOURNE, WEST SUSSEX PO20 3YR
DESCRIPTION
Aldingbourne Park is located approximately four miles north of Bognor Regis and four miles east of Chichester. Aldingbourne Park and Beechfield Park are two separate parks which are situated next to one another . There are 33 pitches in total on 2 1. 9 acres of land .
LOCATION MAP
9 ASSETALDINGBOURNE SUMMARY PARK HOOK LANE, ALDINGBOURNE, WEST SUSSEX PO20 3YR
SITE PLAN
18
19
20
21
17 22
23 24 16 31
15 32 33
14 1 30 25 13 2
29 26 12 3
28 27 11 4
10 9 8 7 5 6
10 ALDINGBOURNE PARK HOOK LANE, ALDINGBOURNE, WEST SUSSEX PO20 3YR
ALDINGBOURNE PARK STRUCTURE
Aldingbourne Park is let to Aldingbourne Park Management Limited from 01 January 2016, expiring 01 November 2067 . The plots have then been subleased to Silk Tree Properties Limited from 02 November 2007, expiring 01 November 2027 .
THE FOLLOWING PITCH AGREEMENTS HAVE BEEN GRANTED:
PLOTS START EXPIRY RENT PA
1 to 32 30/9/2006 1/11/2027 £77,336 9. 9 33 30/9/2006 31/12/2045 £2,416 7.8
TOTAL £79,753.77
11 BEECHFIELD PARK
HOOK LANE, ALDINGBOURNE, WEST SUSSEX PO20 3YR
12 BEECHFIELD PARK HOOK LANE, ALDINGBOURNE, WEST SUSSEX PO20 3YR
DESCRIPTION
Beechfield Park is located approximately four miles north of Bognor Regis and four miles east of Chichester. Aldingbourne Park and Beechfield Park are two separate parks which are situated next to one another . There are 33 pitches in total on 2 1. 8 acres of land .
LOCATION MAP
13 ASSETBEECHFIELD SUMMARY PARK HOOK LANE, ALDINGBOURNE, WEST SUSSEX PO20 3YR
SITE PLANS
22
23
24 1
25
26
27 2 21 28 20 19 3 18 29
12 4 30 17
13 31 5 15 16
32 14 6
33 11 7 10 9 8
14 BEECHFIELD PARK HOOK LANE, ALDINGBOURNE, WEST SUSSEX PO20 3YR
BEECHFIELD PARK STRUCTURE
Beechfield Park is let to The Beaches Management Limited from 01 January 2016, expiring 01 November 2067 . The plots have then been subleased to Silk Tree Properties Limited from 01 November 2007, expiring 01 November 2027 .
PLOTS START EXPIRY RENT PA
1-10, 12-27, 29-33 30/9/2006 1/11/2027 £74,920 .20 11 3/9/1987 1/11/2027 £2,416 78. 28 27/11/2012 31/8/2051 £2,416 7.8
TOTAL £79,753.77
15 THE WILLOWS
FORD ROAD, FORD, ARUNDEL, WEST SUSSEX BN18 0BU
16 THE WILLOWS FORD ROAD, FORD, ARUNDEL, WEST SUSSEX BN18 0BU
DESCRIPTION
Ford is located approximately two miles south west of Arundel and four miles north of Littlehampton . Ford train station is across the road which provides regular services to Chichester, Brighton, Littlehampton, Worthing and London . The Willows comprises 43 pitches on 3 1. 6 acres of land .
LOCATION MAP
17 THE WILLOWS ASSETFORD ROAD, FORD,SUMMARY ARUNDEL, WEST SUSSEX BN18 0BU
SITE PLAN
42 41
43 30
29 27 26 28 21 40 5
31 20 38 37 6 19 36 24 32 4 7 35 18 3 8 39 25 17 23 33 2 1 10 22 16 9 12
14 34 15 11
13
18 THE WILLOWS FORD ROAD, FORD, ARUNDEL, WEST SUSSEX BN18 0BU
STRUCTURE
The Willows is let to The Willows General Management Limited from 01 January 2016, expiring 29 February 2084 . The plots have then been subleased to Silk Tree Properties Limited from 01 October 1991, expiring 31 October 2032 .
THE FOLLOWING PITCH AGREEMENTS HAVE BEEN GRANTED:
PLOTS START EXPIRY RENT PA
1-8, 10-12, 15-17, 19-34, 36 30/9/2006 31/10/2032 £89,460 .80 9 30/9/2006 31/12/2046 £2,410 94. 14 27/7/2009 7/7/2048 £2,410 94. 18 2/6/2003 1/11/2032 £3,135 10. 35 24/6/2003 31/10/2032 £3,135 10. 37-43 30/9/2006 1/3/2044 £16,876 56 .
TOTAL £117,429.44
*NET £106,443 44 . * After taking off irrecoverable expenses
19 ASSET SUMMARY
MARIGOLDS
SHRIPNEY ROAD, BOGNOR REGIS, WEST SUSSEX PO22 9PB
20 MARIGOLDS SHRIPNEY ROAD, BOGNOR REGIS, WEST SUSSEX
DESCRIPTION
Bognor Regis is located approximately seven miles south east of Chichester and seven miles west of Littlehampton . The park is situated three miles north of Bognor Regis town centre . Marigolds comprises 60 pitches on 3 .53 acres of land . There is also a 6 bedroom cottage at the entrance of the park .
LOCATION MAP
21 MARIGOLDS ASSETSHRIPNEY ROAD, SUMMARY BOGNOR REGIS, WEST SUSSEX PO22 9PB
SITE PLAN Conc Slab 54 45 56 43 38 40 36
53 59 51 55 46 44 57 60 42 58 37 4139 61 35 50
47 7 3 49 5 2 6 62 Marigold Cottage
33 30 29 34 32 31 28 27 8 4 1
Garage 9
10 26 11
12 14
25 15 16
17 18
24 19
22 21 20 23 PLOTS 13 AND 48 DO NOT EXIST ANYMORE
22 MARIGOLDS SHRIPNEY ROAD, BOGNOR REGIS, WEST SUSSEX PO22 9PB
STRUCTURE
Marigolds is let to Marigolds Management Limited from 01 January 2016, expiring 01 November 2077 . The plots have then been subleased to Silk Tree Properties Limited from 01 December 1995, expiring 01 November 2037 .
THE FOLLOWING PITCH AGREEMENTS HAVE BEEN GRANTED:
PLOTS START EXPIRY RENT PA
1, 3-7, 9-12, 14, 30/9/2006 31/10/2037 £127,424 .52 16-24, 26-40, 42-47, 50-56, 58, 60, 62 13, 25 24/8/2012 31/8/2051 £2,450 4. 7 8, 15, 41, 48, 49, 57, 59 30/9/2006 1/11/2044 £17,153 .30 Cottage 16/2/2010 holding over £14,400 .00
TOTAL £161,428.29
23 ASSET SUMMARY
SILVER LAKES PARK
DRAYTON LANE, OVING, WEST SUSSEX PO20 2EN
24 SILVER LAKES PARK DRAYTON LANE, OVING, WEST SUSSEX PO20 2EN
DESCRIPTION
Silver Lakes Park is located on Drayton Lane approximately two and half miles south east of Chichester and five miles north of Bognor Regis. There is pedestrian access to garden centre and cafe nearby . Silver Lakes Park comprises 21 pitches on 1 .28 acres of land .
LOCATION MAP
25 SILVER LAKES PARK ASSETDRAYTON LANE, SUMMARY OVING, WEST SUSSEX PO20 2EN
SITE PLAN
1
2
3
21
4
20
6
5
8
19
9
18
7
17
10
16
15
11
14
13
12
26 SILVER LAKES PARK DRAYTON LANE, OVING, WEST SUSSEX PO20 2EN
STRUCTURE
Sliver lakes Park is let to Silver Lakes Management Limited from 01 May 2007, expiring 30 April 2067 . The following plots 1-12 & 14-20 have been subleased to Sussex Mobile Homes Limited from 01 May 2007, expiring 30 April 2047 . Plot 13 has been subleased to Silver Lakes Mobile Homes Limited from 01 May 2007, expiring 30 April 2067 . Plot 21 has been subleased to West Sussex Mobile Homes Limited from 01 February 2007, expiring 06 November 2025 .
THE FOLLOWING PITCH AGREEMENTS HAVE BEEN GRANTED:
PLOTS START EXPIRY RENT PA
1, 2, 6, 12 £ 9,947 .59 3-5, 7-11, 14-20 12/6/2005 1/5/2047 £ 37,303 4. 6 13 25/7/2009 30/4/2067 £ 2,486 9. 0 21 9/2/2007 30/10/2035 £ 2,486 9. 0
TOTAL £ 52,224.84
27 ASSET SUMMARY
ORCHARD PARK
WORTHING ROAD, RUSTINGTON, WEST SUSSEX BN16 3PS
28 ORCHARD PARK WORTHING ROAD, RUSTINGTON, WEST SUSSEX BN16 3PS
DESCRIPTION
Rustington is located approximately two miles east of Littlehampton and eight miles west of Worthing . The site is surrounded by residential and a small junior school on one side . Orchard Park is located on Worthing Road (B2187) and comprises 28 pitches on 1 4. 0 acres of land .
LOCATION MAP
29 ORCHARD PARK WORTHINGASSET ROAD, SUMMARY RUSTINGTON, WEST SUSSEX BN16 3PS
SITE PLAN 22 23 25 24 21 26 27 28 20 9 8 7 2 1 19 18 17 15 16 14 6 13 12 3 11 10 5 4
30 ORCHARD PARK WORTHING ROAD, RUSTINGTON, WEST SUSSEX BN16 3PS
STRUCTURE
Orchard Park is let to Rustington Management Limited from 01 January 2016, expiring 30 October 2084 . The following plots 1, 4, 7, 10, 13, 16, 19, 22, 25, 28 have been subleased to West Sussex Mobile Homes Limited from 01 June1992, expiring 01 November 2032 . The following plots 2, 5, 8, 11, 14, 17, 20, 23, 26 have been subleased to Silver Lakes Mobile Homes Limited from 01 September 2007, expiring 01 November 2032 . The following plots 3, 6, 9, 12, 15, 18, 21, 24, 27 have been subleased to Sussex Mobile Homes Limited from 01 June1992, expiring 01 November 2032 .
THE FOLLOWING PITCH AGREEMENTS HAVE BEEN GRANTED:
AGREEMENT AGREEMENT PLOTS START EXPIRY RENT PA
1, 3-16, 18-19 21-25, 28 30/9/2006 1/11/2032 £78,263 .54 2, 17, 20, 26 £14,182 4. 3 27 30/9/2006 1/11/2044 £3,545 61 .
TOTAL* £95,991.57
NET £92,429 57 . * After taking off irrecoverable expenses
31 FUTURE OPPORTUNITIES
When the sub leases and/or Mobile Home agreement ends, so does the right for the pitch holder to remain on site . This leaves several opportunities for a buyer: 1. Sell the land or develop for alternative uses, such as residential (STP) . 2. Put new homes on the plots and sell with new pitch agreements . We are informed that these can be sold for around £175,000 (single) and £225,000 (twin) . The cost of putting a new home on site is around £50,000 (single) and £68,000 (twin) . This equates to £125,000 to £157,000 of additional profit per plot. 3. The table below summarises the potential capital return if every plot was sold with a new home and pitch agreement:
Park Sublease Expiry Unexpired Term Plots Profit per plot
Aldingbourne 2027 10 years 33 £4,125,000 Beechfield 2027 10 years 33 £4,125,000 The Willows 2032 15 years 43 £5,375,000 Marigolds 2037 20 years 60 £7,500,000 Silver Lakes 2025, 2047, 2067 8, 30, 50 years 21 £2,625,000 Orchard 2032 15 years 28 £3,500,000
* Assumes each plot is sold for £125,000 £27,250,000
4. When the new pitch agreement is granted, the annual pitch fee could also be increased . 5. We have been informed by our client that three plots will come back in 2018 . This could potentially produce a capital receipt/profit of around £375,000 which is not included in the forecast figures. 6. As expiries get closer, it is expected that there will be an increase in sales and therefore an increase in commissions . 7. Freehold sales of the individual plots to the respective pitch holders .
32 PROPOSAL
OUTGOINGS ENERGY PERFORMANCE CERTIFICATE (EPC)
In addition to the pitch fee and service charge, the individual pitch owners are responsible This transaction is exempt from the requirements for an EPC . for paying their own council tax bills and utilities .
V A T PLANNING There is no VAT applicable on the sale . We are advised that all of the parks have planning consent for full residential use, 12 months of the year . Interested parties should make their our enquiries with the local planning authority . DATA ROOM For login details please contact the agents . T E R M S
We have been instructed to seek offers in excess of £10,500,000 (Ten Million Five VIEWINGS Hundred Thousands Pounds) for the freehold interest and lease structure, which reflects For viewings, please contact the agents and do not attend any of the parks without a net initial yield of 6 1. 7% after normal purchasers cost of 6 .8% . This is based on the pitch contacting the agents first. fees and comission only, and does not reflect any new sales. The vendor would also consider selling the entirety of the shares in the managing companies that own the freehold . There would be a Stamp Duty saving in this regard .
NOV 2017 NOV 2018 NOV 2019 NOV 2020 NOV 2021 NOV 2022 NOV 2023 NOV 2024 NOV 2025 NOV 2026
NET REVENUE £ 691,346 £ 715,086 £ 740,951 £ 768,484 £ 797,833 £ 829,161 £ 862,646 £ 898,485 £ 936,894 £ 978,108
RUNNING NIY 6.17% 6.38% 6.61% 6.85% 7.11% 7.39% 7.69% 8.01% 8.35% 8.72%
THE ABOVE DOES NOT INCLUDE THE POTENTIAL PROFITS FROM THE SALE OF NEW HOMES ON NEW PITCH AGREEMENTS
33 ASSETCONTACT SUMMARY DETAILS
FOR FURTHER INFORMATION, PLEASE CONTACT THE SOLE AGENTS FLUDE COMMERCIAL:
MARK MINCHELL SEBASTIAN MARTIN 01243 929136 01243 929135 [email protected] [email protected]
Flude commercial for themselves and for the vendors or lessors of this property whose agents they are give notice that: i) these particulars are set out in good faith and are believed to be correct but their accuracy cannot be guaranteed and they do not form any part of any contract; ii) no person in the employment of flude commercial has any authority to make or give any representation or warranty whatsoever in relation to this property.
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