Ryze Adventure Parks 23 MAYFIELD INDUSTRIAL ESTATE, DALKEITH, MIDLOTHIAN EH22 4AD
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Ryze Adventure Parks 23 MAYFIELD INDUSTRIAL ESTATE, DALKEITH, MIDLOTHIAN EH22 4AD FOR SALE | PRIME LEISURE INVESTMENT INVESTMENT SUMMARY Opportunity to acquire a prime leisure investment 69% let to Ryze Edinburgh Ltd – a firmly established and popular trampoline park operator WAULT to expiry 9 years (no breaks) Total passing rent roll of £289,479.01 Extends to an approximate GIA of 4,978 sq m (52,563 sq ft) Situated only 9 miles from Scotland’s capital city We are instructed to seek offers in excess of £2,750,000 exclusive of VAT, for our client’s heritable interest subject to and with the benefit of the existing leases. A purchase at this level would reflect an attractive net initial yield of 9.90% FOR SALE | PRIME LEISURE INVESTMENT ALLIED SURVEYORS SCOTLAND | 2 LOCATION Located in Dalkeith, Midlothian, some 7 miles south-east of Scotland’s capital city, Edinburgh. With a population reach in excess of 500,000 within 30 minutes, it is the administrative centre for Midlothian Council. It lies only a short distance from such as Galashiels and Stow easily a major interchange on the A720 accessible. The former mining villages Edinburgh City Bypass, the Sheriffhall of Newtongrange and Easthouses Roundabout, thereby offering border Mayfield which enjoys excellent road connectivity to locals elevated views to the Pentland Hills and businesses alike. The A1 trunk and Edinburgh beyond. road is less than 3 miles to the east Rail connectivity has been greatly providing access to towns in East improved in recent years with the Lothian, such as Musselburgh, opening of the Borders Railway Haddington and North Berwick, with connecting Galashiels with Edinburgh the M8 interchange at Hermiston Gait Waverley. The nearest station to 10 miles westwards. Mayfield is at Newtongrange, less Mayfield, meanwhile, is approximately than 2 miles away, with a further stop 2 miles to the south west of Dalkeith at Eskbank only slightly further afield. situated between the A68 and A7. Bus connections are also readily Both of these roads are principal links available providing connections into to the Scottish Borders making towns the city centre. FOR SALE | PRIME LEISURE INVESTMENT ALLIED SURVEYORS SCOTLAND | 3 SITUATION A720 EDINBURGH EDINBURGH CITY BYPASS NEWBATTLE DALKEITH HIGH SCHOOL ESKBANK MAYFIELD B6892 A7 SALTIRE SOFT PLAY & SOCCER CENTRE NEWTONGRANGE NSD STATION INTERNATIONAL THE NWH NEWTONGRANGE GROUP SCOTTISH AMBULANCE SERVICE STARLIGHT COATINGS The subjects occupy a The surrounding area is principally There are however a number of substantial site on Mayfield residential in nature as the thriving commercial and industrial occupiers local community continues to expand situated on the industrial estate including Industrial Estate, a firmly and become an increasingly popular Interflex Group, NWH Construction established location just off the commuter belt for Edinburgh. Evidence Services, Scottish Ambulance Service, B6482 which runs through the of this growth is visible at the state-of- Saltire Soccer Centre, NSD International middle of Mayfield itself. the-art Newbattle High School which was and Lloyds Pharmacy. The National officially opened in November 2018 and Mining Museum of Scotland, meanwhile, forms part of a £38 million Community is only a few minutes’ drive away in Campus. neighbouring Newtongrange. FOR SALE | PRIME LEISURE INVESTMENT ALLIED SURVEYORS SCOTLAND | 4 ACCOMMODATION DESCRIPTION The subject property extends to an for events and pilates classes. The approximate gross internal area of ground floor of the former office block SKATEPARK SPACE 52,563 sq ft and comprises a large (23D) is occupied by an expanding Floorplan16 detached single storey industrial unit on gym operator and also provides toilet C B A R A M P a regular rectangular shaped site. It is accommodation for customers of the R A M P of steel framed construction and is clad trampoline park. G SKATEPARK SPACE externally with profile metal sheeting. 16 E To the north and east elevations there There is also a small section of two C B is a large tarmac car park providing A R A M P storey offices attached to the west R A M P spaces for up to 130 vehicles. There is elevation with a mix of brickwork and First floor & timber cladding. We understand the an area of expansion land to the south G mezzanine E property was constructed circa 1985 of the property partially formed in a but has since received a significant mix of grass and unmade ground. The amount of capital investment by the area of land to the west of the subjects, current owners to suit the current use. meanwhile, is being retained by the vendor. Internally, the main warehouse accommodation has been subdivided A Ryze Edinburgh Ltd into three main sections. The principal The Site A B F space (23A) is occupied by Ryze The subject property has an B Ryze Edinburgh Ltd H trampoline park with dozens of approximate site area of 1.52 hectares C Sky High Cafe interconnecting trampolines raised (3.75 acres). from floor level. Access is provided by A B D G B D Level Ten Fitness Ltd a set of steps at the front of a central F A Ryze Edinburgh Ltd E Ryze UK Leisure LtdH reception area. The middle section Ground floor T D (23B) consists of additional trampolines B Ryze DEdinburgh Ltd F Meadowbank Gymnastics Club El Sub Sta whilst the final ground floor area (23 F) B D G 23 C Sky High Cafe G Ryze Edinburgh Ltd is occupied by a gymnastics club. 14 15 16 D Level Ten Fitness Ltd H Ryze Edinburgh Ltd 17 A mezzanine area, accessed via stairs 18 T 19 D D Midlothian - 21 and a disabled access lift, provides Adventure A Ryze Edinburgh Ltd E Ryze UK Leisure Ltd Communal Areas Park accommodation for Sky High Café 22 (23C), seating area and party rooms B Ryze Edinburgh Ltd F Meadowbank Gymnastics Club (23E). It connects with the original C Sky High Cafe G Ryze Edinburgh Ltd office block which has been converted 24 to provide additional party rooms D Level Ten Fitness Ltd H Ryze Edinburgh Ltd and office space. There is also an E Ryze UK Leisure Ltd Communal Areas open plan room (23G) which is let out Tanks F Meadowbank Gymnastics Club 0m 10m 20m 30m G Ryze Edinburgh Ltd Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250 FOR SALE | PRIME LEISURE INVESTMENT H Ryze Edinburgh Ltd ALLIED SURVEYORS SCOTLAND | 5 Communal Areas TENANCY SCHEDULE Monthly Start Floor Area Address Tenant Rent Per Annum Expiry Rent Review Comment Rent Date (GIA) Minute of Variation to extend lease by 3 years 23A,B, G & H 16/11/22 and 142 days to 16/11/27. Tenant option to Ryze Edinburgh Mayfield Industrial £13,528.98 £164,347.70 17/11/17 16/11/27 5% cap and 36,522 sq ft extend for a further 5 years with no less than Ltd Estate 10% collar 6 months’ notice. 5 yearly rent reviews. Rent Guarantee from Case Lawrence. The base rent is £25,000 per annum. In addition, there is turnover top-up of 20% 16/11/22 of any turnover in excess of £125,000 in a 23C Mayfield Reviewed to RPI turnover year. Rent income is expected to Sky High Café £4,166.67 £50,000 17/11/17 16/11/27 2,619 sq ft Industrial Estate 5% collar and be £50,000 per annum. Tenant has option to 10% cap extend for a further 5 years with no less than 6 months’ notice. 5 yearly rent reviews. Subject to Schedule of Condition. 16/11/22 Tenant option to extend for a further 5 years 23D Mayfield Level Ten Fitness £2,916.66 £34,999.92 17/11/17 16/11/27 Reviewed to 5% 1,827 sq ft with no less than 6 months’ notice. 5 yearly Industrial Estate cap and 10% collar rent reviews. 16/11/22 License Agreement. Tenant option to extend 23E Mayfield Ryze UK Leisure Reviewed to RPI £187.95 £2,255.39 17/11/17 16/11/27 564 sq ft for a further 5 years with no less than 6 Industrial Estate Ltd 5% cap and months’ notice. 5 yearly rent reviews. 10% collar 1/11/24 23F Mayfield Meadowbank £3,323.00 £39.876 1/11/19 1/09/34 Reviewed to 5% 11,031 sq ft 5 yearly rent review pattern Industrial Estate Gymnastics Club cap and 10% collar 4,883.94 sq m Total £289,479.01 (52,563 sq ft) FOR SALE | PRIME LEISURE INVESTMENT ALLIED SURVEYORS SCOTLAND | 6 ABOUT RYZE ADVENTURE PARKS Dundee Glasgow Edinburgh RYZE DUNDEE Ryze opened in May 2014 and was the first trampoline park on Scotland’s east coast. The Ryze brand is the UK arm of Covenant Information Circus Trix who are the largest trampoline park operator in the world. Ryze Edinburgh Limited has invested Circus Trix, which was founded in the nearly £1.3m since first opening in USA in 2011, now have over 300 parks 2014. Turnover for the last 3 years has globally, including two further Ryze been £1.33m in 2015; £1.24m in 2016 RYZE GLASGOW locations in Scotland – Glasgow and and £1.0m in 2017. Dundee. The most recent of these, a The reduction in sales has been due to 37,000 sq ft facility, opened in Dundee an increased level of competition from following a £1.5 million investment. other park operators. Turnover for With three parks now in full operation 2019, however, is forecast to be £1.1m it gives Ryze the opportunity to reach with a steady increase year-on-year 90% of communities in Scotland.