High Street Leisure Investment
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HIGH STREET LEISURE INVESTMENT 23–26 HIGH ST NEWPORT ISLE OF WIGHT PO30 1SS 23–26 HIGH ST, NEWPORT, ISLE OF WIGHT PO30 1SS INVESTMENT SUMMARY > High street leisure investment > Let to the Hops Pub Company Limited – part of the Stonegate Pub Company Limited > Stonegate Pubs are one of the UK’s largest pub operators with over 660 locations > Extensively refurbished in 2018 > Trading as the national brand ‘Slug & Lettuce’ > Parent company guarantee from Town and City Pub Group Limited > 25 year lease with 7.7 years unexpired > Freehold > Total rental income of £82,000 per annum > Offers in excess of £1,100,000 (STC) > Net Initial Yield of 7.04% 23–26 HIGH ST, NEWPORT, ISLE OF WIGHT PO30 1SS NEWPORT Newport is the administrative and commercial centre of the Isle of Wight. It is located in the centre of the island, approximately 9 miles south west of Ryde and approximately 5 miles south of Cowes. The Solent divides the Isle of Wight from mainland England. The closest large towns to Newport are Portsmouth approximately 15 miles to the north east and Bournemouth, which is approximately 30 miles west. The Isle of Wight as a whole is well connected to the mainland. There is a car ferry from Fishbourne to Portsmouth (40 minutes crossing time), East Cowes to Southampton (55 minutes crossing time) and Yarmouth to Lymington (30 minutes crossing time). In addition, foot passengers also have the choice of using the Hovercraft Service between Ryde Esplande and Southsea (10 minutes crossing time) or two hi-speed catamaran services; the Fast Cat from Ryde Pier Head to Portsmouth Harbour (18 minutes crossing time) or the Red Jet from West Cowes to Southampton (23 minutes crossing time). PORTSMOUTH Being in the centre of the island, Newport is very well connected to all the surrounding towns. The two main dual carriageways converge in Newport with the A3020 running north and south and the A3054 running east and west. COWES EAST Furthermore, Newport bus station offers regular buses to Ryde, Cowes, COWES East Cowes, Allum Bay, Carisbrooke, Yarmouth and Totland amongst others. RYDE DEMOGRAPHICS YARMOUTH NEWPORT As of 2015, Isle of Wight has an estimated population of 140,000 (Isle of Wight Council), with the average age of the island standing at 44. BRADING More specifically, Newport itself is estimated to have a population ISLE OF WIGHT approximately 25,500. 2.36 MILLION SANDOWN However, even more impressive is that according to ‘Visit VISITORS TO SHANKLIN Isle of Wight’ data, the yearly number of visitors to the island THE ISLE OF stands at 2.36 million. This doesn’t include those arriving by private yacht or boat which is approximately a supplementary WIGHT PER 300,000 people. YEAR VENTNOR 23–26 HIGH ST, NEWPORT, ISLE OF WIGHT PO30 1SS RETAIL IN NEWPORT Being the premier retailing location in the Isle of Wight, Newport is very popular with national retailers. These retailers are primarily situated along three parallel roads, South Street, Pyle Street and High Street. These national occupiers include McDonalds, Next, Clinton Cards, Waterstones, Claire’s Accessories, Betfred, Iceland, H&M, Game, Age UK, Pizza Express, Ladbrokes and Lloyds Pharmacy amongst many others. Furthermore, in the town centre, there is a popular traditional Farmers’ Market on Fridays, as well as a multi-screen cinema, two theatres in the Quay Arts Centre. The vast number of tourists that visit the Isle of Wight has had a significant impact on the Island’s economy. Spending has increased by 17 per cent on last year and this upward surge doesn’t look like stopping as first-time ST MARY’S CROSS LANE visitors to the Island have also gone up 16 per cent. These visitors are HOSPITAL attracted not only by the unique nature of the island, but also by world famous events such as the music festival ‘Bestival’, Cowes Week Regatta and the International Classic Car Show. ISLE OF WIGHT COLLEGE HUNNY HILL RIVER MEDINA NEWPORT LEISURE IN NEWPORT CEMETERY HUNNY HILL Newport has a vibrant nightlife, supported by the varied mix of independent and chain bars, restaurants and pubs. Other leisure operators MEDINA WAY on the High Street include JD Wetherspoons, The Hogs Head, Calverts QUAY ARTS STAPLERS RD Bar, Prezzo and The Castle Inn which along with nearby Pizza Express, CENTRE STAPLERS Subway and other restaurants create a leisure core in the town centre. HIGH ST The edge of town Cineworld scheme with KFC and Pizza Hut 23–26 HIGH ST NEWPORT PYLE ST (8 minute’s walk) also acts as a draw to the town, and improves TOWN CENTRE HIGH ST A3020 parking provision. PROMINENT SOUTH ST ST JOHN’S RD The Slug & Lettuce is the only establishment with a licence HIGH STREET BARTON until 3am, and as such enjoys a dominant position in the late LOCATION B3323 night trade. VICTORIA RECREATION PAN MILL GROUND MEADOWS NEWPORT EAST NEWPORT NEWPORT ROMAN VILLA FOOTBALL CLUB SHIDE CARISBROOKE HIGH ST 23–26 HIGH ST BUS INTERCHANGE HIGH ST ST THOMAS SQUARE TOWN HALL NEWPORT RETAIL PARK Newport (Isle of Wight) Experian Goad Plan Created: 24/01/2019 Created By: Gerald Eve 50 metres Copyright and confidentiality Experian, 2015. © Crown copyright and database rights For more information on our products and services: 2015. Ordnance Survey 100017316 www.experian.co.uk/goad | [email protected] | 0845 601 6011 HIGH YIELDING REVERSIONARY 23–26 HIGH ST, NEWPORT, ISLE OF WIGHT PO30 1SS INDUSTRIAL INVESTMENT SITUATION The property is prominently located to the eastern end of the High Street, where there is an agglomeration of similar A3 operators, including Hogs Head Pub, Pasha Grill, Subway, Pizza Express and a number of popular independent operators. The property benefits from the high footfall generated by the significant retail provision, and the relatively small size of Newport allows this retail core to capture the large majority of the town’s shoppers. A number of edge of town retail warehouses including Morrisons, Matalan, Marks & Spencer and Cineworld Cinema, also draw people to the town and improve the towns parking provision. DESCRIPTION The property comprises a detached former cinema that we understand dates back to the 1920’s, before conversion to provide a ground floor public house/bar and ancillary accommodation on the first floor. The bar was extensively refurbished in 2018 to provide the tenants up to date ‘Slug & Lettuce’ format. The property has a gross frontage of approximately 22.82m (75 ft) to the High Street with two private alleyways giving access to the rear of the property. The building is constructed with brick or rendered elevations, with a front and rear portion under a felt roof while the main section is under a pitched roof. The majority of the upper floors have been sold on a long leasehold basis and are being used as a church, as outlined in the accommodation schedule. 23–26 HIGH ST, NEWPORT, ISLE OF WIGHT PO30 1SS ACCOMMODATION TENANCY The effective ownership of the property extends to a total of 6,620 sq The ground floor and part first floor public house is let to the Hops Pub ft, with the upper floors (occupied by the church) having been sold on a Company Limited on assignment from Yates Group PLC on an FRI basis long leasehold basis. for a term of 25 years commencing 29th September 2001, expiring 28th September 2026 (7.7 years unexpired). The lease is guaranteed by Town PUBLIC HOUSE and City Pub Company Limited, and currently trades under the popular brand name ‘Slug and Lettuce’. FLOOR AREA (SQ FT) AREA (SQM) The current rent of £80,500 per annum is reviewed on a 5-yearly basis to GROUND 5,382 500 open market rental value, with the last review from 28th September 2016 remaining outstanding. FIRST 1,238 115 The side road located on the eastern side of the building is also let by TOTAL 6,620 615 way of a licence granting a right of way to Ambercroft Properties for a sum of £1,500 per annum reviewed on a 5-yearly basis in line with RPI. UPPERS (SOLD OFF LONG LEASEHOLD) TENURE FLOOR AREA (SQ FT) AREA (SQM) The property is held Freehold (Title Number: IW13699). BASEMENT 861 80 The majority of the upper floors (as described in the accommodation section) have been sold on a long leasehold basis for a period of 999 GROUND 969 90 years at a peppercorn rent. FIRST (MEZZ) 861 80 SECOND 5,059 470 THIRD 1,399 130 FOURTH 807 75 TOTAL 9,957 925 23–26 HIGH ST EPC Energy performance certificates are available upon request. This is a print of the view of the title plan obtained from Land Registry showing the state of the title plan on 18 September 2013 at 08:44:55. This title plan shows the general position, not the exact line, of the boundaries. It may be subject to distortions in scale. Measurements scaled from this plan may not match measurements between the same points on the ground. See Land Registry Public Guide 19 - Title plans and boundaries. This title is dealt with by Land Registry, Weymouth Office. 23–26 HIGH ST, NEWPORT, ISLE OF WIGHT PO30 1SS COVENANT STATUS HOPS PUB COMPANY LIMITED TOWN AND CITY PUB GROUP LIMITED Hops Pub Company (company number 6457363) are a subsidiary of The lease is guaranteed by the Town and City Pub Group (company number Stonegate Pub Company Holdings Limited, a British public house operator 06433242), the parent company to Hops Pub Company and a further with over 660 pubs and bars. Stonegate operate under several well- subsidiary of Stonegate Pub Company Holdings Limited.