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Grand Parade, Skegness, Lincolnshire, PE25 2UE One of The Skegness Pier one of the UK’s best-known, multi-faceted family entertainment attractions Grand Parade, Skegness, Lincolnshire, PE25 2UE Table Of Contents Executive Summary ........................... 3 Investment Highlights ........................ 4 Asset Overview .......................................... 5 Structure of Sale .......................................... 13 Christie Finance – Funding Overview .... 14 Process and Contacts ....................................... 15 2 Executive Summary Following the owner’s decision to retire, Christie & Co is delighted to bring to the market for the first time in nearly 45 years, one of the UK’s best-known, multi-faceted family entertainment centre attractions – Skegness Pier. In the same family ownership since the mid-1970s, Skegness Pier presents an exceptional opportunity to acquire a high-profile visitor attraction, in one of the UK’s busiest seaside resorts. The Pier comprises three landward, dual-level decks, together with a traditional open-air beach deck which was part of a multi-million-pound development plan some years ago. Skegness Pier has received considerable investment over the last six years with the installation of new Qubica AMF Bowling Lanes and Hollywood Bar & Diner in 2014. Four Escape Rooms were added in 2017 and 2018, whilst a new Beach Bar and extension complete with a new toilet block was developed in 2018 and 2019. A state of the art “Hologate” Virtual Reality system was installed during 2019. In addition, planning permission has been granted for the development of an outside high-level decked extension restaurant area over the existing beach bar exterior seating and stage areas. The new extension affords spectacular views over the sea towards Hunstanton. The business operates entirely under management without the day to day involvement of the owners. As well as being an exceptionally popular tourist destination, the pier is very well utilised by the local community, being popular for children’s birthdays and all year round parties (soft play area/Bowling/Laser quest/Escape rooms/Hologate VR), for Christmas parties and charity events (Bowl/Licensed Bar) whilst the beach bar is also available for private hire. Skegness Pier is ideally suited to corporate/multi-site operators in the leisure and wider visitor-attraction sectors as well as owner operators looking for a cash generative business offering further scope for development and investment. 3 Investment Highlights High profile, multi-faceted Family Incorporates two Adult Gaming Existing planning consent for Entertainment Centre attraction Centres (“AGCs”) and valuable decked restaurant extension over premises license permitting nine the beach bar category B3 gaming machines and 31 Category C machines. Majority of built structure “Celebratory Plaques” busines developed on landward setting Total income for the year-end line launched August 2020 December 2019 of £2.127m net of VAT (£2.157m 2018, £2.105m 2017) Considerable investment made over the past six years Valuable concession income of Majority of equipment and c. £80,000 per annum machines owned outright and included with the sale Ideal strategic acquisition Includes additional landholdings Adjusted net profits ranging from c. £370,000 - £470,000 opportunity for multi-site leisure either side of the pier offering business, owner operator or investor scope for development (between 2017 and 2019) 4 Asset Overview Skegness Pier, Grand Parade, Skegness, Lincolnshire, PE25 2UE Situation and Location York With its prestigious Blue Flag award beach, Skegness was one of the UK’s first seaside resorts, growing from a small fishing village into a Victorian holiday and day- Leeds visitor destination within a few years following the arrival Hull of the railway to Skegness in 1872. The area is synonymous with the Butlins holiday business which opened its first UK resort adjacent to the pier in 1936, before relocating during the early Grimsby 1960s to its current destination in Ingoldmells Sheffield Mablethorpe Today, Skegness, Ingoldmells and the surrounding area is a thriving holiday and day visitor destination, with over 4.5m visitors annually and the surrounding area Lincoln houses the largest concentration of permanent sited caravan and holiday homes in Europe. Skegness Pier The value of tourism to the area has increased 30 Minutes considerably following the surge in popularity of Nottingham Boston staycations over the last decade and is estimated to Derby be worth approaching £600m, of which nearly 85% is 60 Minutes attributed to visitors taking holidays and 15% being day visitors. Leicester Skegness is situated approximately 43 miles east of 90 Minutes Norwich Lincoln, 22 miles north east of Boston and 39 miles Peterborough south of Grimsby and Cleethorpes with a resident population in the region of 21,000. During the season 120 Minutes this number swells to some 250,000. Birmingham The Property occupies a prime trading location in a central position within the resort between the Grade II listed Clocktower and Tower Gardens and is flanked Northampton by the Pleasure Beach fairground and a recently developed Premier Inn hotel. Indicative Drive Times 5 5 Description Skegness Pier was officially opened on 4 June 1881 by the then Duke of Edinburgh following a nationwide design competition won by Messrs. Clarke and Pickwell of Hull. The original pier was 1,817 ft long with a deck width of 25ft and was typical of designs for the era. Following many years of evolution, Skegness Pier today comprises a three-deck structure situated on the mainland, together with an external 100m pier deck running out over the beach. 66 The accommodation is arranged as follows: Deck 1 • Split level amusement hall • Two Adult Gaming Centres (including 9 x B3 gaming machines), one of which has the benefit of grandfather rights) together with 31 Category C machines • Feature “Hologate” Virtual Reality Game Centre • Mezzanine floor with Pool tables and offices 7 Feature “Hologate” Virtual Reality Game Centre 8 Deck 2 • Captain Kids Adventure World children’s play area • Coffee lounge • A large variety of redemption machines and redemption prize shop • Feature - “Arabian Derby” Camel Racer multi-player game 9 Feature Arabian Derby Camel Racer 10 Deck 2 (continued) • Laser quest • Four Escape Rooms: Carnival of Curiosities Prison Break Out Escape of the Seven Seas Witchcraft Wizardry 11 Deck 2 (continued) • Skegness (AMF) Bowl with 10 lanes having both conventional and “Glow” lighting at lower level • American “Hollywood” diner and Licensed Bar 12 Beach bar (External) Deck 3 • “Teddy Kave” and café concessions • A wide variety of amusement machines • Over 18’s gaming area • Beach Bar at lower level 13 Outside • Pier Deck – 100m in length and incorporating a number of concessions and providing direct access to the beach/promenade • Beach Bar - external seating area and stage • Car park for approximately 20 staff vehicles • Additional grassed areas to the south Concessions and sub-lettings Car Park Lease - additional land to the north of the pier is leased to the local council, for use as part of their Pierside pay and display car park. The lease is for a period of 25 years from 22 July 1996, at an annual rent of £00.05 (if demanded) without review. The business benefits from 17 concession agreements with third party operators (both indoor and outdoor) who collectively contribute approximately £80,000 of income per annum to the business. 14 Financial Overview Skegness Pier 2019 2018 2017 Company Ltd £ % £ % £ % Arcade 1,210,744 56.92% 1,254,829 58.15% 1,333,608 63.35% Adventure Play 207,428 9.75% 212,858 9.86% 199,702 9.49% Pier Bowl 404,992 19.04% 459,505 21.29% 487,844 23.17% Laser Quest 39,205 1.84% 45,931 2.13% 44,169 2.10% Escape Room 100,162 4.71% 73,283 3.40% 30,794 1.46% Beach Bar 121,584 5.72% 101,116 4.69% 0 0.00% Virtual Reality 29,359 1.38% 0 0.00% 0 0.00% Admin Sales 8,772 0.41% 0 0.00% 0 0.00% Admin other income 4,979 0.23% 10,342 0.48% 9,148 0.43% TOTAL INCOME 2,127,225 100.00% 2,157,864 100.00% 2,105,265 100.00% ADJUSTED NET 368,906 17.34% 373,740 17.32% 471,842 22.41% PROFIT* *Earnings before interest, tax, depreciation amortisation and owner drawings not associated with the business operation Tenure Freehold (subject to a crown rent of one shilling in favour of The Queen’s Most Excellent Majesty (never demanded nor paid). Guide Price Offers are sought for the fully equipped freehold going concern (exclusive of cash float, and those fixtures, fittings and equipment subject to loan, hire or profit share arrangements) Structure of Sale Skegness Pier is available by way of an asset sale. The business may also be available by means of the acquisition of 100% of the issued share capital in the business. 1515 Christie Finance – Funding Overview Christie Finance have over 40 years’ experience in funding leisure sector projects and have produced a guide below, providing an outline as to what may be achievable in terms of “debt” funding for Skegness Pier. The precise terms that may be provided will ultimately be dependent upon the individual borrower’s circumstances and subject to independent valuation. Proposed Debt Facility: • Purchase will be by way of Asset Sales or by “Share Transfer” (100% issued share capital) • Security is a charge on each of the freehold/leases and/or company debenture/s (cross collateralised if structure features a holding company and an operating company or similar) • Debt to be structured over a 10 - 15 year term. • Funding up to 60% of valuation
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