Long Income Investment Opportunity with Development Potential

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Long Income Investment Opportunity with Development Potential Long Income Investment Opportunity with Development Potential Litten Tree 8-20 Queen Street Blackpool FY1 1PD Investment Summary • Opportunity to acquire a long income leisure led investment with value add opportunities across the upper floors; • Prominently located on the main leisure circuit within Backpool town centre; • The property totals 22,615 sq ft with 6,422 sq ft of leisure space and 16,193 sq ft sq ft of office accommodation; • Total passing rent of £105,000 per annum with a potential reversionary income of £170,000 per annum, assuming a low ERV on the vacant space of £5.00 per sq ft; • Ground floor public house let to Hops Pub Company Limited (part of the Stonegate Pub Company) until 24 March 2037 (19 years unexpired) at a passing rent of £80,000 per annum; • The asset provides investors with two distinct value add opportunities; - refurbish and let vacant offices - convert the upper floors to hotel, hostel or residential uses, subject to planning; • Freehold Offers are sought in the region of £1,100,000 (One Million, One Hundred Thousand Pounds) reflecting anet initial yield of 9.02% and a highly reversionary yield of 14.98%, and assuming purchaser’s costs of 5.85%. This reflects a low capital value of £49 per sq ft. Blackpool Burnley Location Preston Huddersfield Blackpool is a popular seaside town located on the Lancashire coastline, approximately 27 miles (43 km) north of Liverpool and 40 miles (64 km) Bolton north-west of Manchester. Wigan Blackpool benefits from an extensive The town benefits from excellent road, retail and leisure offering in the town rail, tram and sea communication links. Manchester centre. The town boasts a number of By road, the town centre is a short drive famous attractions and events which from the M55 Motorway which links Liverpool Warrington support its strong tourism industry directly with J32 of the M6. By rail, four and vibrant nightlife. Major attractions stations provide regular services locally include Blackpool Piers, Blackpool Tower, and by main line to London, Liverpool and The Pleasure Beach, Madame Tussauds, Manchester. Blackpool Zoo and its extensive beaches. Chester Location Situation Blackpool North Funny Girls Sainsbury’s The opportunity is situated on Queen Street in the heart of Blackpool Flamigo town centre. Queen Street lies within a popular leisure / nightlife destination with a number of national and local operators within close The Litten Tree proximity. Walkabout North Pier Tramway Established neighbouring occupiers Blackpool North train station, Blackpool include JD Wetherspoons, Walkabout, Bus Interchange and North Pier Tramway JD Wetherspoon Reflex Bar, Funny Girls and Flamingo are all within a short walk of the property. Nightclub. On street parking is available on the Winter Gardens surrounding streets. Debenhams Blackpool Tower Blackpool Bus Interchange Litten Tree 8-20 Queen Street Blackpool FY1 1PD Sea Life Center Madame Tussauds Situation Description The opportunity comprises a three storey mid terrace building which is split to provide ground floor leisure space and office accommodation over the ground and upper floors. The leisure space trades as a Stonegate The office accommodation is located on branded public house with basement part ground and the three upper floors. ancillary accommodation. The space is arranged across a number of stonegatepubs.com/lt-blackpool suites and can either be altered to create open plan space or capable of further sub- division. Accommodation Floor Use Floor Areas Basement* Public House c.139 c.1,500 Ground Public House 596.7 sq m 6,422 sq ft Offices 308 sq m 3312 sq ft First Offices - Vacant 496 sq m 5,340 sq ft Second Offices - Vacant 488.30 sq m 5,256 sq ft Third Offices - Vacant 212.30 sq m 2,285sq ft Total 2,101 sq m 22,615 sq ft Litten Tree 8-20 Queen Street Blackpool FY1 1PD Tenancy The property is producing a total income of £105,000 per annum with a potential reversionary income of £170,000 per annum. This assumes a low ERV on the vacant office space of £5.00 per sq ft. The public house is let to Hops Pub Covenant Information Company Limited at a rent of £80,000 per Hops Pub Company Limited forms part annum, on a 35-year full repairing and of the Stonegate Group. Stonegate Pub insuring lease expiring on 24 March 2037 Company, which was established in (19 years term certain). 2010 by TDR Capital in order to acquire a portfolio of 333 pubs from Mitchells The lease is subject to 5 yearly 5 yearly and Butlers Plc. Stonegate operate over upwards only market reviews. There is an 690 pubs and bars across the UK, within outstanding rent review from March 2017. a wide a variety of formats, including a The ground floor office accommodation number of recognised brands such as Slug is let on a new lease to John Sisk and & Lettuce, Yates and Walkabout. Sons (Holdings) Limited for £25,000 stonegatepubs.com per annum inclusive reflecting £7.50 per sq ft. The lease is held until 31 December 2020 with a tenant option to break in July 2019 and two monthly option to break after 1 January 2020. Asset Management Opportunities The asset provides potential investors with two distinct value add opportunities for the vacant office accommodation. • Refurbish and let vacant office to appeal to a range of local and accommodation at a Market Rent of national operators. An indicative £5.00 per sq ft. massing exercise suggests the site could accommodate 56 dormitory style • Convert the upper floors to hotel, rooms. Further details can be made hostel or residential uses, subject available on request. to planning. The asset occupies a popular leisure location and is likely Subject to planning and consents. Summary Tenure Freehold. EPC Energy Performance Certificates (EPCs) are available upon request. VAT We understand that the property is currently elected for VAT. It is anticipated that the sale will be structured as a ‘Transfer of a Going Concern (TOGC)’ and as such VAT will not be payable. Proposal Offers are sought in the region of £1,100,000 (One Million, One Hundred Thousand Pounds) reflecting a net initial yield of9.02% and a highly reversionary yield of 14.98%, and assuming purchaser’s costs of 5.85%. This reflects a low capital value of £49 per sq ft. Contact For further information or to arrange a viewing, contact: IMPORTANT NOTICE. These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in Tom Dawson Mike Pochin the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and accordingly any information given E: [email protected] E: [email protected] is entirely without responsibility on the part of the agents, seller(s) or lessor(s). Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. Regulations etc: Any T: 0161 833 7717 T: 0161 833 7692 reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. None of the services or appliances have been tested and no warranty is given or is to be implied that they are in working order. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is M: 07468 727 122 M: 07856 584 523 correct. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered offices 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names. August 2017..
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