Long Dated Investment Opportunity Annual Rpi Uplifts

LONG DATED INVESTMENT OPPORTUNITY ANNUAL RPI UPLIFTS

Stockport Sports Village 20 acres

Lambeth Grove, Woodley, Stockport, SK6 1QX STOCKPORT SPORTS VILLAGE & & & &

EXECUTIVE SUMMARY

• Stockport Sports village opened in 2012 following a £9m investment.

• Modern, bespoke, purpose built first class sports and leisure complex on approximately a 20 acre site.

• Let to Stockport Sports Trust Limited on a 25 year term from 1 September 2012 (Stockport MBC backed).

• Base rent of £585,291 pa with additional rent based on tenant turnover. The base rent benefits from annual uplifts in-line with RPI.

• Offers in excess of £9,000,000 (Nine Million Pounds) are invited for our clients freehold interest. An acquisition at this level would reflect an attractive net initial yield of 6.15%, a reversion of 10.32% and a true equivalent yield of 7.84% (based on base rent only) and net of purchaser’s costs.

• Our client will consider a sale of the SPV holding Company. 14 13 A587 A59 12

A583 M55 32 A671 3 1 4 11 M6 10 A59 M65 9 A583 8 A6 A666 Blackpool 31 7 A584 STOCKPORTPreston 6

Blackburn & A646 & & & SPORTS VILLAGE30 A646 5 29 A53 A59 29 4 Halifax 1 3 A56 A582 28 M65 A565 A644 LOCATION8 SITUATION Southport Huddersfield M6 1 Stockport comprises a major satellite town A58 Woodley comprises a predominantly residential suburb of Stockport within the Greater Manchester conurbation, M66 located 3 miles north east of the town centre, approached from M62 A629 and is located approximately 6 miles south Bury the main A560 arterial route. Woodley lies within close proximity to A6 A666 A58 21 of Manchester27 City Centre, approached 2 Manchester’s M60 Orbital motorway joined at Bredbury approximately from the same by the main A6 arterial Bolton 20 1½ miles to the west. M6 3 route. Stockport has a district population6 of A58 19 approximately 283,300, with an estimatedM61 The property lies just off the northern side of the A560, along Lambeth 5 population within 10Wiga km of then centre in Oldham Road in a predominantly residential area. The immediate area 4 3 4 an excessive 785,000. A6 19 comprises of high density residential properties and adjoining the 5 26 3 17 20 M58 16 A6 21 A627 site’s curtilages to its northern boundary is primarily open countryside. A576 22 1 The town is well served by transport infrastructure,25 and adjoins Manchester’s M60 Manchester 7 M60 orbital motorway network and links to A6 12 M57 24 A580 the wider regional and national motorway 1 M602 3 A6010 23 A628 6 A580network via the M56, M62, M61 and M66. 11 23 4 The M6 can be easily accessed via the M56 10 St Helens M62 24 3 and M62 motorways. M6 3 22 A5103 A5058 A6 d 102 In addition to the excellent road 11 M60 a 10 6 25 o e

21A A560 R v 26

1 Liverpool communications, Stockport enjoys a direct 27 o 9 n 5 r

M62 o

5 t Bredbur y Park link between London Euston with journey G

6 7 A624 h

A56 4 2 Stockport s 1 21 3 Industrial Estate h

2 3 2 1 t times under 2 hours as well as being only 15 A626 A

minutes from Manchester International airport. 7 b 1 A557 4 m 0 M 3 A5300 A50 il a 5 6 l L L Widnes A Speke 20 8 6 A6 a 7 Manchester n A56 M56 A561 Airport e 9 A523 LLANDUDNO 4 Liverpool John Lennon 10 Airport M6 A557 A34 Rhyl 11 M53 COLWYN BAY River Mersey 12 19 25 5 6 7 A533 60 Rhuddlan 7 1 McDonald ’s A5 8 0

Ellesmere 6 A623

A55 A55 9 M56 A537 A A55 Hollywell Port A556 Morrisons Bredbury W t Rd A548 14 A59 A537 A537 por 10 tock A St. Asaph S 6 Flint 0 11 17 A473 A5026 15 Northwich Macclesfield A6 A41 A525 A548 A548 A541 A5117 A556 A34 12 A54

18 A54 A544 A494 Chester A513 Denbigh A51 A49 Middlewich A523 A53 A55 A525 Congleton A541 17 A41 A494 A50 A34 A51 A530 A534 M6 Crewe A527 A534 A525 A534 A53 16 A494 A500 A500 Wrexham A41 A49 A520 A51 A34 Stoke A525 on-Trent

15 A50 A51 A34 A520 A53

A519 Stone

A5013 A51 A518 A34 A41 A519 14 Stafford A518 B5405 STOCKPORT SPORTS VILLAGE & & & & STOCKPORT SPORTS VILLAGE & & & &

DESCRIPTION

Occupying a 20 acre site and built in 2012, the property The sports centre facility has recently been completed comprises a modern, bespoke, first class sports and leisure to incorporate a modern two storey building linking into complex and is home to many local junior and senior the existing stand/terrace. This provides mixed sports, football clubs and leagues. The complex includes a full size, recreational and ancillary facilities including: flood lit synthetic football pitch with spectator stand/terrace and ancillary accommodation, together with adjoining • Gymnasium sports and leisure complex with outdoor tennis courts • Fitness / Dance / Spin Studio and football pitches. The property benefits from the • Sauna following facilities: • Conference Facilities • Full size grass football pitch • Treatment/physio rooms • Two full size 3G floodlit synthetic pitches • Learning resource area including classrooms • Five, floodlit 5 aside 3G pitches • Beauty salon • Four, floodlit 7 aside 3G pitches • Crèche • Five tennis courts (Savannah Grass) • Changing rooms • Bowling green and adjoining pavilion • Showers/toilet facilities • Cafe/kitchens • Function Room with Fully Licensed Bar • Staff rooms

The built facility also includes car parking accommodating approximately 235 vehicles located to either side of the complex, and adjoining the main building perimeter. Parking includes 5 coach park spaces. STOCKPORT SPORTS VILLAGE & & & &

ACCOMMODATION

The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) on a gross internal area basis (GIA) and we calculate that the property has the following areas:

Areas Floor Sq m Sq ft

Ground 1,248.6 13,440 1st floor 1,225.0 13,186 Total 2503.6 26,626

The site extends to approximately 20 acres.

TENURE

The property is held Freehold. STOCKPORT SPORTS VILLAGE & & & &

SITE PLAN STOCKPORT SPORTS VILLAGE & & & &

TENANCY INFORMATION COVENANT INFORMATION

The sports complex is leased in its entirety Stockport Sports Trust Limited (trading as Life Leisure) is a vehicle Life Leisure currently run 15 facilities and they are located to Stockport Sports Trust Limited on a 25 year which has been set up with the support and backing of Stockport throughout Stockport. They range from small community recreation term from 1 September 2012. The lease is MBC in order to operate all of Stockport’s sport and leisure facilities. centres to large multi-use state of the art centres. Stockport Sport drafted on full repairing and insuring terms Prior to the transfer to Stockport Sports Trust all the facilities were Village is Life Leisure’s primary and flagship site providing the with a current base rent of £585,291 per directly funded, managed and operated by the Council. The best facilities throughout their portfolio with only two other centres annum. The base rent is reviewed annually vehicle was specifically set up to transfer the running of these having outdoor football pitches (Bramhall has two and Werneth has in line with RPI, capped at a maximum of facilities from the public sector into the private sector. Whilst one). 10% in any one year. Stockport Sports Trust is independent from the Council, they work in partnership in order to develop mutual strategic aims and Stockport Sports Trust last three year’s financial accounts are as An additional annual top up rent, based upon objectives. The Trust continues to receive support from the Council. follows: 40% of complex turnover above £1,250,000 per annum, is also applicable. Further Stockport Sports Trust commenced trading on 1 April 2003 and was information can be provided. set up as a company limited by guarantee and as a non-profit Year Ending Year Ending Year Ending distributing organisation with a charitable status. Stockport Sports 31/03/14 31/03/13 31/03/12 Trust is a “not for profit” social enterprise company whose aim is to Turnover provide a best value service in all areas in which they operate, by £11,521,684 £11.015,990 £9,699,727 investing every penny they make back into the local community, Pre-tax Profit £223,738 £256,415 £327,638 making it a better place to live whilst providing a high quality sports Net Worth £1,652,196 £978,458 £851,043 provision. Net current Assets £699,687 £554,657 £726,143

The Trust operates through a Board of voluntary Trustees who play a leading role in developing and ensuring the Trust is a strong and Stockport Sports Trust has a D&B rating of 2A1. commercially viable business organisation and that their charitable Further information can be found at purpose continues to be discharged effectively. The Trustees bring a vast range of experience and expertise with them which www.woodleysportscentre.co.uk include competencies in: sport development, legal, financial and www.lifeleisure.net marketing, success in local and international business and political www.stockportsportsvillage.com awareness.

STOCKPORT SPORTS VILLAGE & & & &

VAT

The prices quoted are exclusive but may be subjective to VAT.

ENERGY PERFORMANCE CERTIFICATE

An Energy Performance Certificate (EPC) is available upon request or downloaded from our website www.gva.co.uk/8219 STOCKPORT SPORTS VILLAGE & & & & STOCKPORT SPORTS VILLAGE & & & &

PROPOSAL

Offers in excess of £9,000,000 (Nine Million Pounds) are invited for our clients freehold interest, subject to contract Year Yield and exclusive of VAT. Yr 5 (Sep 2017) 6.46% An acquisition at this level would reflect an attractive net initial yield of 6.15%, a reversionary yield of 10.32% Yr 10 (Sep 2022) 7.31% and a true equivalent yield of 7.84%. These figures assume that there is no additional “turnover rent” and Yr 15 (Sep 2027) 8.07% that RPI increases at 2.5% pa. The above assumes usual Yr 20 (Sep 2032) 9.12% acquisition costs of 5.80%.

The yield profile is as follows: Yr 25 (Sep 2037) 10.32%

FURTHER INFORMATION

A video showing the complex’s facilities in more detail is available on our website at

Adam Wildig Mark Rawstron GVA, Norfolk House Tel: 0161 956 4029 Tel: 0161 956 4100 7 Norfolk Street Email: [email protected] Email: [email protected] Manchester M2 1DW

Subject to Contract. January 2016. For any other investment sales please visit: gva.co.uk/investment London West End

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GVA is the trading name of GVA Grimley Limited and is a principal shareholder of GVA Worldwide, an independent partnership of property advisers operating globally gvaworldwide.com

GVA Grimley Limited Conditions under which Particulars are issued GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that:1.) The particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. 2.) All descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details, are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. 3.) No person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. 4.) All rentals and prices are quoted exclusive of VAT. Reproduced by courtesy of the Controller of HMSO. Crown Copyright reserved. Licence No 774359. If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co Ltd and/or The Automobile Association. For identification purposes only.