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Middleton, Lancashire, M24 4TH Gva.Co.Uk/8375 EXECUTIVE SUMMARY

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Middleton, Lancashire, M24 4TH Gva.Co.Uk/8375 EXECUTIVE SUMMARY SECURE INCOME LEISURE INVESTMENT Middleton, Lancashire, M24 4TH gva.co.uk/8375 EXECUTIVE SUMMARY • Located within 2 miles of both the M60 and • Let to the strong covenant of Virgin Active • A purchase at this level would reflect a yield the M62 motorways and within 5 miles of Limited and Virgin Active Health Clubs Ltd for a profile, assuming GVA RPI forecasts and Manchester term of expiring 13th July 2036 acquisition costs of 5.80%, of :- • Situated within a densely populated area with • Rental income of £362,913.49 per annum, low Acquisition 6.35 over 2.8 million living within a 10 mile radius rental of £2.66 psf overall per annum 2017 6.59 • Strong location supported by favourable • Yearly reviews from July 2017 will be increased demographics in line with RPI subject to a collar of 1% and a cap 2018 6.80 of 4% pa 2019 7.01 • Flagship health and racquets club, providing 12,649.85 sq m (136,163 sq ft) of • Long Leasehold 2020 7.25 accommodation and associated car parking. 2021 7.53 9 indoor tennis courts, 5 outdoor tennis courts • Offers are sought in excess of £5,400,000 and 4 badminton courts (Five Million Four Hundred Thousand), subject 2026 8.94 to contract and exclusive of VAT 2031 10.64 • Over 3,700 members • The proposed price reflects a capital value per Average yield over term 9.15 sq ft of £46.72, which is below replacement cost for the club. 14 13 A587 A59 12 A583 M55 32 A671 M65 3 1 4 11 M6 10 9 A59 8 A583 A6 A666 31 7 6 Blackpool A584 Preston Blackburn A646 30 A646 5 A53 A59 29 29 3 4 Halifax A582 1 28 M65 A565 A56 A644 8 A666 Southport Huddersfield M6 1 M66 A58 Rochdale A629 Bury 21 M62 A6 Heywood 27 2 20 M6 Bolton 3 6 A58 19 M61 5 Wigan Middleton Oldham 4 3 4 A6 19 5 26 3 17SCOT20LAND M58 16 Prestwich A6 21 22 1 A576 A627 Worsley 25 A6 M60 7 M6 12 Manchester M57 24 1 M602 A628 A580 3 23 A580 A6010 6 11 23 10 4 St Helens M62 24 3 M6 A6 3 A5058 22 A5103 2 11 10 Glasgow A560 10 6 25 21A Edinbu26 rgh 1 Liverpool 9 5 27 5 M62 A56 A626 6 7 Stockport 1 4 2 A624 2 21 3 2 1 3 Altrincham A5300 A557 4 3 5 Widnes A50 A6 20 8 6 Speke 7 Manchester M56 Airport A561 A56 9 LLANDUDNO LOCATION 4 Liverpool SITUATION Newcastle John Lennon 10 M6 Airport A557 A34 11 A523 M53 COLWYN BAY River Mersey NORTHERN 12 19 Middleton is located within the Metropolitan5 6 Borough The club is locatedA59 in Middleton approximately 7 A533 of Rochdale, Greater Manchester. It is located8 5 miles 5 miles north of Manchester City Centre. The property is Ellesmere IRELAND A623 A55 A55 9 M56 A55 north eastHollywell of Manchester and 5 miles south westPort of situated off of Heywood Old Road (A6045)A537 which links A556 A548 10 14 A537 Rochdale. Manchester and Rochdale are linked via the on to Junction 19 of theBelfast M60 Manchester City Orbital A537 Flint 11 A664 which runs through Middleton. 15 Motorway or Junction 19 of the M62. A473 A5026 Northwich Macclesfield A6 A525 A41 M6 A548 A548 A556 A541 Middleton is a predominately residentialA5117 area which A34 12 serves as a great catchment area for a fitness club. A54 18 A54 A544 A494 Leeds The Middleton Bus Station is adjacent to theChester Middleton A513 A49 A51 Middlewich Arndale shopping centre. The majority of services A523 A53 A525serve destinations including Bury, Oldham,A55 Rochdale, Tameside and Manchester city. Middleton is located 17 Congleton A541 Dublin Manchester close to junctionA494 19 of theM62 motorway and, at Rhodes,A41 A50 A51 A34 junction 21 of the M60 motorway . Mills Hill railway A530 A534 station is on the eastern boundary of town, one mile A527 east of the town centre, with direct services to Rochdale, A534 IRELANA534D ManchesterA525 Victoria, Bolton, Wigan and Leeds. Crewe A53 16 A500 A494 A500 Wrexham A41 A49 A520 A51 A34 Birmingham Stoke A525 on-Trent 15 ENGLAND A50 A51 WALES A34 A520 A53 Cardiff Stone London A519 Bristol A5013 A518 A51 A34 A41 A519 14 Stafford A518 B5405 14 13 A587 A59 12 A583 M55 32 A671 3 1 4 M6 11 A59 10 M65 9 8 A583 A6 A666 31 7 Blackpool 6 A584 Preston Blackburn A646 30 A646 5 A53 A59 29 29 3 4 Halifax DEMOGRAPHICS1 A582 30mins 28 Middleton has a population of 42,972 (2011 M65 Census), extending to 778,289 persons within A565 A56 A644 a 30 minute drive time. The area benefits 8 from a an above average proportion of the A666 most affluent AB social group, and a higher proportion of adults aged between 25–34 Southport compared to the UK average, who traditionally A58 have a higher disposable income. Huddersfield M6 1 M66 15mins Rochdale MIDDLETON H A629 Bury 21 A6 M62 COMPETITOR J Heywood 27 K 2 ANALYSIS Bolton A58 20 M6 A58 3 5mins 6 I 19 A. Manchester Printworks Nuffield Health, M61 Manchester, M4 2BS 5 (Virgin Active) B. Bannatyne Health Club, Quay St, Wigan Middleton Oldham 4 3Manchester,4 M1 3NR A6 19 17 C. Bannatyne Health5 Club, Whitworth26 Street, 3 20 M58 16 Prestwich Manchester, M3 3JU A6 21 22 1 D. Bannatyne Health Club, 3 Chepstow St, A576 A627 Worsley Manchester M1 5FW 25 A6 M60 7 E. LA Fitness, 55 King St, Manchester M2 4LQ F. Pace Health Club & Nu Spa, 12 Manchester M57 24 1 M602 4 Cheetham Hill Road, Manchester, M4 4EW 3 23 A628 A-E A6010 6 A580 11 G G. David Lloyd Fitness,A580 Barton Embankment,23 4 Trafford Park, M17 8RH 10 St Helens M62 24 3 H. Fitness for Life, Caldershaw Business Centre,M6 OL11 1RY A6 3 I. DW Sports Fitness, Bolton, BL3 2NE 22 A5103 L A5058 2 11 J. 10Virgin Active, Bolton, BL1 8TS A560 10 6 25 Liverpool K. Total Fitness, Waters Meeting Rd, 21A 26 1 9 5 27 A626 5 Bolton, BL1 8TT M62 A56 6 7 Stockport A624 L. Kingfisher1 Health Club, Houldsworth Mill, 4 2 2 21 3 2 1 3 Stockport, SK5 6DA Altrincham A557 4 3 A5300 5 Widnes A50 20 8 6 A6 Speke 7 Manchester A56 M56 A561 9 Airport LLANDUDNO 4 Liverpool John Lennon 10 Airport M6 A34 Rhyl A557 11 A523 M53 COLWYN BAY River Mersey 12 19 5 6 Rhuddlan 7 A533 8 Ellesmere A623 A55 A55 9 M56 A537 A55 Hollywell Port A556 A59 A548 St. Asaph 10 14 A537 A537 Flint 11 15 A473 A5026 Northwich Macclesfield A6 A41 A525 A548 A548 A541 A5117 A556 A34 12 A54 A54 A494 18 A544 Chester A513 Denbigh A51 A49 Middlewich A523 A53 A55 A525 Congleton 17 A541 A41 A494 A50 A51 A34 A530 A534 M6 Crewe A527 A534 A534 A525 A53 16 A500 A494 A500 Wrexham A41 A49 A520 A51 A34 Stoke A525 on-Trent 15 A50 A51 A34 A520 A53 Stone A519 A5013 A518 A51 A34 A41 A519 14 Stafford A518 B5405 DESCRIPTION GROUND FLOOR FIRST FLOOR • Crèche • 3 treatment rooms The purpose built flagship health and fitness club • Beauty spa • Aerobic Studios comprises a modern steel framed construction with • Sports shop • Gym part steel and glazed elevations under a profile steel • Café (with Costa Coffee facilities) • Squash Courts barrel roof. Connecting the health and fitness club is • Function room a single storey tennis facility under a dome shaped • Indoor heated swimming pool EXTERNAL FACILITIES lightweight construction. • Sauna, steam room and spa • 9 indoor tennis courts • Heated swimming pool • 2 squash courts The Club caters for the following facilities:- • 5 external tennis courts • 4 Badminton Courts • Multi purpose court ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice (Sixth Edition) and has the following approximate gross internal floor areas: Accommodation Floor Area Sq M Area Sq Ft Ground Floor 2,900.22 31,218 Tennis, Squash and multi-purpose courts 8,075.25 86,922 First floor 1,674.38 18,023 Total 12,649.85 136,163 SITE TENANCY INFORMATION The site extends to an area of 3.71 acres. The property is let on a joint tenancy to Virgin Active Health Clubs Limited (01395346) and Virgin Active Ltd (company no 3448441) on Full Repairing and Insuring Terms expiring 7th May 2031. The lease is subject to yearly reviews in line with RPI from 13th TENURE July 2017, subject to a collar of 1% and a cap of 4% per annum. The property is held on long leasehold from the Rochdale Borough Council for a term of A reversionary lease is in situ extending the term to 13 July 2036. The commencing up to 108 years at a peppercorn rent. rent under the reversionary lease is to be the passing rent under the current lease at the lease expiry. The leasehold interest currently expires on 1 March 2096, however, the lessee benefits from an option to extend the long leasehold by a further 26 years. The property currently produces £320,790 per annum with a fixed review as at 13th July 2016 to £362,813.49 p.a. which equates to only £2.66 per sq ft. It is the vendor’s intention to top the rent up to this level on completion of the sale. COVENANT PROFILE ENERGY PERFORMANCE CERTIFICATE’S Since it was founded 14 years ago, Virgin Active has grown to become one of the largest global health club companies and now has 1.5 million members in 272 clubs Energy Performance Certificate’s (EPC’s) for the property is 58, which provides across the UK, Europe, South Africa and Australia.
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