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Bognor Regis Po21 2Pb

Bognor Regis Po21 2Pb

ASHLEY HOUSE, 120 ROAD PO21 2PB

21.7 YEARS TERM CERTAIN, RPI LINKED REVIEWS LET TO THE 5A2 COVENANT OF SKYLINE LIMITED

RENT PAID THROUGHOUT LOCKDOWN ASHLEY HOUSE, 120 ALDWICK ROAD BOGNOR REGIS 21.7 years term certain with RPI Linked reviews PO21 2PB Let to the 5A2 covenant of Butlins Skyline Limited

Site outline for identification purposes only.

INVESTMENT CONSIDERATIONS

■ Unique opportunity to acquire a secure, long let, RPI ■ Butlins have paid their rent throughout Lockdown ■ Butlins is a chain of large seaside founded in 1936 linked investment totalling approximately 21,527 sq ft ■ Butlins have recently completed the development Offers sought in excess of£7,810,000 (Seven Million, (2,000 sq m) of a £36 million leisure and splash pool Eight Hundred & Ten Thousand Pounds) after allowing for ■ Situated in the seaside of Bognor Regis on the ■ purchaser’s costs of 6.67%. This reflects anet initial yield of 5%. south coast of Long unexpired lease term of 21.7 years Reversionary Yield May 2022 ■ Let to the 5A2 covenant of Butlins Skyline Limited ■ FRI lease subject to five yearly RPI plus 2% linked rent reviews with a collar and cap of 112.5% to 122.5% Minimum 5.63% ■ The property provides high quality affordable Maximum 6.13% HMO staff accommodation for workers at Butlins ■ The first rent review date is19 May 2022

■ Total passing rent of £416,650 per annum ■ Freehold ASHLEY HOUSE, 120 ALDWICK ROAD BOGNOR REGIS 21.7 years term certain with RPI Linked reviews PO21 2PB Let to the 5A2 covenant of Butlins Skyline Limited

HEATHROW WINDSOR READING M25 RICHMOND CLAPHAM M4 STAINES M4 BRACKNELL NEWBURY J12 WOKINGHAM A322 WEYBRIDGE CROYDON

A339 A33 EPSOM M3 WOKING J10

A34 J9 A22 FARNBOROUGH BASINGSTOKE A331 M25 J8 J7 J6 ALDERSHOT REIGATE GUILDFORD A31 ANDOVER HORLEY A303 GODALMING

GATWICK J9a J9 A264 A34 J10 HASLEMERE M23 A31 J11 WINCHESTER A3 A22

HAYWARDS PETERSFIELD HEATH ROMSEY A272 A36 EASTLEIGH

M271 A23 SOUTHAMPTON A3(M) A24 M27 FAREHAM A27

COWES

SELSEY BOGNOR RYDE REGIS NEWPORT

TRAVEL TIMES

CHICHESTER – 7 MILES ROAD PORTSMOUTH – 25 MILES LONDON – 55 MILES

CHICHESTER – 15 MINUTES TRAIN BRIGHTON – 45 MINUTES LONDON VICTORIA – 1 HOUR 40 MINUTES

AIR GATWICK AIRPORT – 45 MILES

BOGNOR REGIS DEMOGRAPHICS Bognor Regis is located in the county of West on the south coast of England The total population within the Bognor Regis Primary Retail Market Area approximately 7 miles south east of Chichester, 25 miles east of Portsmouth and 55 is 84,000, and the town is expected to see significantly above average miles south of London. growth in population over the period 2017-2022. The town includes a The town benefits from good transport communications being located on the A29, high proportion of the retired, aged 65 and over. providing direct access to the A27 dual carriageway which runs across the south The drive for economic growth in Bognor Regis is centred on tourism, coast from Brighton in the east to Portsmouth in the west. The A27 also provides retail and service industries. Over 65% of employees in Bognor Regis are access to the A23 and A24 trunk roads which lead to the M23 and M25 motorways. employed by the service sector and this has continued to rise over time. Bognor Regis has a regular direct rail service to London Victoria (1 hour 40 mins). The station provides frequent services to Brighton with a journey time of approximately 45 minutes and Chichester within 15 minutes, both requiring one change. A 2 ASHLEY HOUSE, 120 ALDWICK ROAD 9

BOGNOR REGIS 21.7 years term certain with RPI Linked reviews PO21 2PB Let to the 5A2 covenant of Butlins Skyline Limited

ES PURLEY ARL WAY CH 59 A2 BOGNOR REGIS TH WAY B OR YPA 9 N SS 25 REGENERATION A SALTBOX 2 BUTLINS ROWANOLDLANDS 1

PARK FARM • Recently opened £36 million leisure and splash pool • Employing approximately 1,400 staff COMMERCIAL AN WAY AND AIRFIELD OW R INDUSTRIAL PARK ENTERPRISE BOGNOR REGIS ESTATE 2 • The Saltbox site within Enterprise Bognor Regis

D has secured planning consent for a £34m business

A park offering over 323,000 sq ft of new floor O

R space and the potential to create up to 1,000 new D jobs in the area E

S

P

RETAIL D P

• Rolls Royce have invested £70m in their O

PARK A O R

INDUSTRIAL O R Technology and Logistics centre totalling P R P PARK Y approximately 300,000 sq ft E

N IP R H S

9 3 2 A • The University’s new £36m Tech Park opened in

2018 and will bring an additional 1,500 students to B25

59 C the town by 2021 HIC HE S D T • The Park provides 63,500 sq ft of academic E A R O accommodation, up to 10,764 sq ft of facilities

R R O accessible to business and the local community. N A ELPHAM WAY R F D 9 The park has created approximately 160 new jobs, O 5 H 2 T 2 delivering an estimated £176 million into the local B W and regional economy by 2023/24

A H

UNIVERSITY OF CHICHESTER

BOGNOR REGIS CAMPUS

TOWN CENTRE INITIATIVES 4

• A Business Improvement District (BID) is in place 3 6 B 1 2 from April 2018 for 5 years 1 25 2 9 B • The town centre has seen a growth in footfall figures in 2018 5 BOGNOR REGIS

TOWN 5 RAILWAY STATION ASHLEY CENTRE • Recently completed £2m refurbishment TRAVEL TIME 1 HOUSE TO BUTLINS 4 • Planning approval for The Track, a £1m creative digital hub/shared workspace in the station has 23 mins been granted and is expected to open in 2019 ADE 5 mins LAN ESP THE B21 66

For identification purposes only. ASHLEY HOUSE, 120 ALDWICK ROAD BOGNOR REGIS 21.7 years term certain with RPI Linked reviews PO21 2PB Let to the 5A2 covenant of Butlins Skyline Limited

SITUATION The property is prominently positioned fronting Aldwick Road (B2166) with access to the rear from Nyewood Lane. The property is located in a predominantly residential area, 200m from the seafront. The property is situated 1.7miles (23 minutes walk) from the Butlins campus. There is a bus stop approximately 50m from the property providing regular services to Butlins.

DESCRIPTION The property provides HMO staff accommodation for workers at Butlins and is arranged over ground and two upper floors with a secure garden area, four car parking spaces and a designated cycle store. Internally the property comprises a total of 57 bedrooms, this is made up of the original building and a recently completed two storey extension. The properties comprise a mix of single and twin ensuites benefitting from large communal spaces on both the ground and first floors. Floor plans are available in the dataroom.

SCHEDULE OF ACCOMMODATION Floor Bedrooms Bedspaces Kitchens Ground 26 51 7 Annex Ground 6 12 1 First 15 28 5 Annex First 6 12 1 Second 1 1 0 Annex Second 3 6 1 Total 57 110 15 120 Aldwick Road, Bognor Regis, PO21 2PB

ASHLEY HOUSE, 120 ALDWICK ROAD BOGNOR REGIS 21.7 years term certain with RPI Linked reviews PO21 2PB Let to the 5A2 covenant of Butlins Skyline Limited

ASHLEY HOUSE

© Crown Copyright, ES 100004106. For identification purposes only.

created on Plotted Scale - 1:1,250 TENURE SITE AREA Freehold. 0.54 acres (0.218 hectares).

TENANCY The property is let in its entirety to Butlins Skyline Limited on a FRI lease expiring on 18 May 2042 therefore benefiting from an unexpired term certain of Misrepresentation Act: 1. Allsop LLP on their own behalf and on behalf of the instructing party, whose agents Allsop are,approximately gives notice t ha21.7t: (a) years. these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the instructing party does not make or give, and neither Allsop nor any of their members nor any person in their employment has any authority to make or give, any representation or warranty whatsoever in The passing rent is £416,650 per annum. The first rent relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the instructing party are those contained and expressly referred to in the written contract for sale or agreement for lease between the instructing party and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctnessreview is of dated each statement 19 May 2022 contained and infrom these then particulars; on five (b) yearly. inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e)The carry rent out is all revised necessary to RPIsearches plus and2% subjectenquiries. to Allsop Minimum is the trading name of Allsop LLP. Rent increase of 112.5% and Maximum Rent increase of 122.5%. The lease is outside the protection of the Landlord and Tenant Act 1954. Butlins Skyline Limited has total responsibility for the management of the property and all the required HMO licences have been issued directly to Butlins Skyline Limited by the Local Authority. ASHLEY HOUSE, 120 ALDWICK ROAD BOGNOR REGIS 21.7 years term certain with RPI Linked reviews PO21 2PB Let to the 5A2 covenant of Butlins Skyline Limited

PLANNING REFURBISHMENT WORKS Local Planning Authority: Council www.arun.gov.uk In May 2018, the vendor completed a comprehensive refurbishment and reconfiguration of Ashley House which was We have been informed by the Local Planning Authority that the property is not Listed formerly used as a care home. nor is it situated within a Conservation Area. In November 2019, the vendor completed the construction of the new build extension on the west side of Ashley House. In August 2016 planning consent (REF: BR/100/16/PL) was granted for ‘change of use of All the works were completed to a high standard to ensure that all HMO licensing criteria were passed in terms of Health Ashley House from a care home (Class C2 use) to a House of Multiple Occupation (HMO) and Safety regulations as well as size and density standards. to provide team member accommodation on behalf of Butlin’s Bognor Regis, together with The property has been fitted with new kitchens, shower rooms, heating systems and are double glazed throughout. external alterations to the building, two car parking spaces (one disabled space), a minibus parking space, a designated cycle store for in excess of 40 spaces, a designated bin store & Works also included rewiring and the installation of a new plumbing system within the main building at Ashley House. associated landscaping.’ The entire property benefits from hardwired broadband/WiFi. In December 2018 a further planning consent (BR/231/18/PL) was subsequently granted on For a walk through of the extension follow the link below created by the architects, King and Drury: the site to provide ‘Part 2 & part 3 storey extensions, relocation of bin store & new cycle stores.’ https://www.youtube.com/watch?v=OkS9qK9EXjQ ASHLEY HOUSE, 120 ALDWICK ROAD BOGNOR REGIS 21.7 years term certain with RPI Linked reviews PO21 2PB Let to the 5A2 covenant of Butlins Skyline Limited

BOGNOR REGIS opened in 1960 and in 1999 it was renovated with the construction of a Skyline Pavilion. In 2005, a new £10m hotel called The Shoreline was developed and, in 2009, a second hotel, The Ocean, opened on the site. In July 2012 a third hotel, The Wave, opened to guests. • A new £36m leisure and splash pool • £76m invested in the site • Approximately 1,400 staff • Welcoming approximately 350,000 guests annually, each staying between 3-7 nights

COVENANT INFORMATION Butlins Skyline Limited Butlins was founded in 1936 and now operate from three seaside resorts; Bognor Regis, and employing approximately 3,800 staff and hosting more than 1.5 million guests each year. The company recorded the following accounts for the past 3 years:

31 Dec 2016 31 Dec 2017 31 Dec 2018 Turnover £225,559,000 £229,682,000 £230,136,000 Pre-Tax Profit £26,833,000 £23,714,000 £20,254,000 Total Net Worth £55,376,000 £53,970,000 £51,281,000

Butlins Skyline Limited is a subsidiary of Holdings Limited, which also operate a number of other leisure brands including and . In 2018, the company posted a turnover of £1,057,797,000, pre-tax profit of £153,390,000 and a total net worth of £492,292,000. EPC Available in the dataroom..

VAT The property has not been elected for VAT.

DATAROOM Further information is provided in the dataroom. For access please register on the following website: https://datarooms.allsop.co.uk/register/AshleyHouse

PROPOSAL Offers sought in excess of£7,810,000 (Seven Million, Eight Hundred & Ten Thousand Pounds) after allowing for purchaser’s costs of 6.67%. This reflects anet initial yield of 5%.

Reversionary Yield May 2022 Minimum 5.63% Maximum 6.13%

For further information or to make arrangements for viewing please contact:

NATIONAL INVESTMENT RESIDENTIAL INVESTMENT AND DEVELOPMENT

Scott Tyler Lottie Hayward Adam Kerven Anthony Dixon 020 7543 6719 020 7543 6750 020 7344 2628 020 7344 2625 [email protected] [email protected] [email protected] [email protected] allsop.co.uk

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 09.20

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