Freehold Ground Rent Investment

Devon Cliffs Holiday Park

VER 48 YEARS UNEXPIRED Sandy Bay, Exmouth, EX8 5BT O LEASE EXPIRY WITH RPI RENT REVIEWS AT POTENTIAL SUPER REVERSION Investment Summary Investment Rationale Location •Devon Cliffs Holiday Park is located The investment rationale for this opportunity is one of Devon Cliffs Holiday Park includes Sandy Bay and is on Sandy Bay near Exmouth, Devon. security of income and long term wealth creation. approximately 3 miles to the east of Exmouth, 3 miles west Although the income return over the short term is low, of Budleigh Salterton and 8 miles to the west of Sidmouth. The entire site extends to approximately the anticipated future uplift in value at lease expiry will be Sandy Bay is a long sand beach backed by the famous 200 acres of land and includes Sandy Bay beach significant. This will be by virtue of either renegotiation Jurassic Devon Cliffs, which connects directly to Exmouth to the low tide mark (usual form of ownership with the existing leaseholder or through gaining full control beach. is only to high tide mark) and part of Budleigh of the site at lease expiry and development of the land. Bay to the high tide mark. The and East Devon Coast World Heritage Site is There is further opportunity for the purchaser to negotiate ’s first natural World Heritage Site – known as with the current leaseholder whereby as the term of the The Jurassic Coast. It covers 95 miles of truly stunning • The Park is one of the largest in the UK and lease diminishes, the leaseholder may seek to negotiate an coastline from East Devon to Dorset, with rocks recording Western Europe and benefits from its location extension to the lease partway through the term in 185 million years of the Earth’s history. exchange for a premium payment. on part of the Jurassic Coast World Heritage World Heritage status was achieved because of the site’s Site. unique insight into the Earth Sciences as it clearly depicts a geological ‘walk through time’ spanning the Triassic, Jurassic • The site is offered on a freehold – ground rent and Cretaceous periods. More information can be found at investment basis. www.jurassiccoast.com. Exmouth is connected by national rail and coach stations • The site has been in the same ownership since and is approximately 8 miles south of the M5 – Junction 30, thus providing easy access to Taunton, Bristol, Gloucester, 1950. Worcester and Birmingham and also connects to the M4 which leads directly into London (115 miles). • The site is entirely let to Haven Leisure Ltd Exmouth Rail Station is situated 3 miles from the park. until 30th November 2060. (Approximately Exeter International Airport is situated 13 miles to the 48.5 years unexpired) north of the Park, offering flights to 48 destinations.

• The current passing rent of £18,452 per annum exclusive is subject to uncapped upward only rent reviews on a 17 yearly basis in line with 100% of the retail price index.

• The lease has been contracted outside of the protection of the 1954 Act.

• Offers Invited. THE SITE

These plasn are published for convenience of identification. Any boundaries shown are indicative only and should be checked against the Title Deeds. These plans are based upon Ordnance Survey Map with the Situation SAT NAV: Post Code: EX8 5BT Driving Directions Take Junction 30 off the M5, then take the A376 signposted to Exmouth. As you come into the outskirts of Exmouth take the left turn at the traffic lights to follow signs for Budleigh Salterton/Littleham/Sandy Bay, this will bring you directly to Devon Cliffs Holiday Park. Description Devon Cliffs Holiday Park is one of the largest and most profitable parks within The Haven portfolio. The Park is one of Haven’s flagship sites set overlooking Sandy Bay on one side and with the picturesque Budleigh Bay on the other side. The site is located on a cliff top with sea views from almost all plots, set within 200 acres of rural land. According to our investigations, Devon Cliffs can house up to 8,000 tourists at the height of the season with over 1,700 caravan pitches. The majority of these are privately owned. have planning permission to increase capacity to over 2,000. Sandy Bay is one of the largest employers in the local area. The site employs circa 100 permanent employees with numbers rising to roughly 500 staff at the height of the season. Haven Holidays are continually improving The Park having invested significant funds since 2000. The site houses a number of food and beverage providers that operate under franchise agreements including Starbucks, Burger King, Papa John’s and Spar, whilst the foodhall is currently undergoing extension work due to higher than anticipated customer levels. Haven Holidays also operate two show bars; Capone’s and Bugsy’s which can each house over 1,000 customers. The site has a wide range of facilities including indoor/ outdoor swimming pool, luxury spa, paintballing facilities, crazy golf and an abseiling wall. The site also benefits from close proximity to a number of tourist attractions including World of Country Life, Crealy Adventure Park, Bicton Park Botanical Gardens, Woodbury Common, the Jurassic Coastline and Exeter Cathedral. Te n u r e Tenant Profile Freehold. Haven Holidays are Britain’s largest provider of domestic Summary of some of Haven Leisure’s Parks holidays, owning and operating 35 award winning parks UK Parks throughout the UK. Haven Holidays forms part of the • Scotland – Seton Sands, Craig Tara Tenancy portfolio which also includes Warner The Park is entirely let to Haven Leisure Limited (01968698) Leisure Hotels and Resorts. Bourne acquired Rank • – Berwick, Haggerston Castle on a full repairing and insuring lease expiring Group Holidays Division in 2000. This deal also included • – Blue Dolphin, Primrose Valley, Reighton Sands 30th November 2060 with approximately 48.5 years the Haven brand forming the largest privately owned • – Thorpe Park, Golden Sands unexpired. The current passing rent is £18,452 per annum. holiday operator in the UK. Haven Holidays serves over The lease provides for the rent to be reviewed 17 yearly in 2.4 million holidaymakers every year. • – Caister, Hopton Seashore, Wild Duck line with the Retail Price Index (RPI) on an upward only basis Haven Holidays was recognised by the British Travel • – Orchards with the next review being on 13th November 2019. Awards 2009 as the ‘Large Tour Operator of the Year’. • – Allhallows-on-Sea The lease is excluded from the provisions of Sections This was followed by the accolade of the Best Domestic • – Combe Haven, Church Farm 24 to 28 of the Landlord and Tenant Act 1954. At Operator of the Year in 2010 by TTG Travel Awards. lease expiry the tenant will not have a legal right to •Dorset – Rockley Park, Little Sea, Seaview, Weymouth Bay renew or extend the lease unless agreed prior with • Devon – Devon Cliffs the landlord. • – Riviere Sands, Perran Sand The advantage of the lease being outside the Act • – Doniford Bay, Burnham on Sea provides the future Landlord with control of the site. Given that the land has existing development on it, • South Wales – Lydstep Beach, Kiln Park, Quay West this would indicate a high likelihood of securing •North Wales – Greenacres, Hafan y Mor, Presthaven Sands favourable alternative development uses. • – Marton Mere, Cala Gran • Lake District – Lakeland A summary of the financial performance for Haven Leisure Limited over the last 3 years is as follows:

31st Dec 31st Dec 31st Dec 2008 2009 2010

Turnover £251,060,000 £265,514,000 £271,078,000

Pre-Tax Profit £29,197,000 £28,505,000 £35,185,000

Total Net Worth (excludes intangible £166,904,000 £162,738,000 £168,346,000 fixed assets) Proposal Additional Land INVESTMENT SALES Offers Invited. There is a further parcel of land which adjoins the site and GROUP CONTACTS amounts to approximately 12.69 acres and is also let to Haven on a separate but coterminous lease term to the VAT subject site at an annual peppercorn rent. Haven have We do not believe that The Park has been elected for recently secured planning for further caravans to be located Devon Cliffs Holiday Park VAT. on the site and purchasers may also be offered the opportunity to submit a separate offer for this additional Sandy Bay, Exmouth Plant and Machinery land (as hatched in blue on the aerial plan). More information can be supplied on request. Devon EX8 5BT None of the systems or equipment in the property have been tested by Cushman & Wakefield LLP to check that For further information or to arrange they are in working order and purchasers may wish to Planning an inspection please contact: make their own investigations. The site benefits from a planning consent (Ref: 85/P1312 Energy Performance Certificates for The Park are available and 85/P1313) granted by East Devon Council on 22nd July MIKE BURDEN to download from the Property Website. 1985, allowing for the entire site to be used as a static Tel: 020 7152 5086 holiday caravan site. Email: [email protected] The additional land also received planning consent DAVID ESTERKIN (Ref: 10/1210/MFUL) approved on 17th November 2011 Tel: 020 7152 5370 comprising redevelopment, relocation and upgrading of Email: [email protected] accommodation. This includes change of use of land for siting of caravans, overall landscape enhancement together NICK DUFEU with refreshment kiosk and toilets. Tel: 020 7152 5069 Email: [email protected]

Cushman & Wakefield LLP 43/45 Portman Square London W1A 3BG www.cushmanwakefield.com April 2012

MISREPRESENTATION ACT 1967 and PROPERTY MISDESCRIPTIONS ACT 1991 Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors or lessors of this property whose agents they are, give notice that: (1) The particulars are produced in good faith, are set out as a general guide only and do not constitute any part of a contract. (2) No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatever in relation to this property. (3) This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing in these particulars should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. (5) Unless otherwise stated, no investigations have been made regarding pollution or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required. Photography, Print & Design by Plus Art Ltd 0115 972 4000 Energy Performance Certificate https://www.ndepcregister.com/direct/report/0391-0732-3109-2494-1002 www.cushmanwakefieldinvestmentsales.co.uk/cw/devoncliffs