DW SPORTS STORE THE ROUND HOUSE, 19 GLOUCESTER ROAD, CHELTENHAM, GL51 8NE LONG LET DW STORE WITH RPI UPLIFTS ON A LARGE SITE (1.15 ACRES) WITH DEVELOPMENT POTENTIAL DW SPORTS STORE THE ROUND HOUSE, 19 GLOUCESTER ROAD, CHELTENHAM, GL51 8NE LONG LET DW STORE WITH RPI UPLIFTS ON A LARGE SITE (1.15 ACRES) WITH DEVELOPMENT POTENTIAL

INVESTMENT CONSIDERATIONS ■■ Securely let retail investment in the affluent town ■■ Current passing rent of £250,846 pa with a ■■ The vendor is seeking offers in excess of of Cheltenham guaranteed rental uplifts to £284,782 pa in £3,500,000 (Three Million Five Hundred Thousand ■■ Located in a prominent position on the busy March 2022 and £322,204 pa in March 2027 Pounds) subject to contract and exclusive of VAT. Gloucester Road adjacent to a Tesco Superstore (based on a forecast RPI uplifts of 2.5%) Based on this level of pricing, the Net Initial Yield ■ reflects6.73% , assuming purchaser’s costs of 6.50%. ■■ Let to Dave Whelan Sports Ltd on a 15-year ■ Freehold lease from 10th March 2017 (exp. March 2032 – ■■ Benefits fromon-site car parking for YIELD PROFILE 12.7 years unexpired) approximately 75 cars March 2022 7.64% ■■ Site area of 0.465 hectares (1.149 acres) March 2027 8.64% ■■ Longer term development potential for residential, *based on forecast RPI uplifts of 2.5% care home or assisted living etc (STP) DW SPORTS STORE THE ROUND HOUSE, 19 GLOUCESTER ROAD, CHELTENHAM, GL51 8NE LONG LET DW STORE WITH RPI UPLIFTS ON A LARGE SITE (1.15 ACRES) WITH DEVELOPMENT POTENTIAL

M42 Royal M45 Redditch Leamington ■ Spa ■ NORTHAMPTON M5 ■ M1 WORCESTER M40 A49 ■

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Evesham A508 ■ Hereford A429 Banbury A43 Milton A438 ■ NE ■ A422 Keynes ARN LANE ■ ARLE A46 A465 M50 A421 A449 ChippingLOCATION A A424 4 103 1 A49 A4 09 Pitville Park Norton

■ Cheltenham is an attractive and prosperous spa town located A A417

R Gloucestershire in GloucestershireA44 in the heart of the Cotswolds. The town is PITVILLE M Airport CHELTENHAM

A A40 located approximately 38 miles north east of Bristol, 41 miles E Oxford A V ■ A41 4 E A south of BirminghamAirport and 88 miles west of London. 10 A436 9 5 R 3 4 R GLOUCESTER A34 A T Monmouth Cheltenham benefits from excellent road connections with RE ■ P AN A Junction 5 of the M5 motorway 3 miles west of the town centre, 4 A429 6 6 A 4 A417 A providing easy access to the southA418 west and West of England. R OXFORD Stroud R ■

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CENTRE E A L R Bristol Temple Meads, Birmingham New Street and London E A419 E L A4 6 A Paddington, with fastest journey times of 41 minutes, 42 minutes 15 M48 A433 CHELTENHAM 0 5 7 4 0 SPA A A NEWPORT and 2 hours 2 minutes respectively. R 4 4 R 3 B E 5 ■ L A429 T E SWINDON L A34 A A N 40 L L M4 Bristol International Airport and Birmingham International Airport AN ■ N R A C M49 AN N A404 R A46 are both approximately a one hour drive time from Cheltenham. LANN R 0 R A 4 A M4

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A339 A338 M3 DW SPORTS STORE THE ROUND HOUSE, 19 GLOUCESTER ROAD, CHELTENHAM, GL51 8NE LONG LET DW STORE WITH RPI UPLIFTS ON A LARGE SITE (1.15 ACRES) WITH DEVELOPMENT POTENTIAL

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Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 100022432. Plotted Scale - 1:1055 FLOOR AREAS DESCRIPTION The subject property comprises a detached octadecagon (18 The ground floor provides primarily open plan sales Floor Use Sqm Sq Ft sided) shaped building arranged to provide a retail store. accommodation and part storage/staff accommodation. There is Ground Floor Retail/Ancillary 1,822.6 19,618 The building is of steel portal frame construction with part also a smaller mezzanine area which provides entirely ancillary brick and part clad elevations under a shallow pitched roof with accommodation and is accessible via a single staircase. The Mezzanine Ancillary 247.1 2,660 mezzanine has been partitioned into numerous rooms, many of profile metal cladding incorporating translucent panels. Total 2,069.7 22,278 which are not utilised by the current tenant. To the front of the building there is a protruding single storey entrance lobby. The sales accommodation has carpeted flooring, ceiling suspended lighting and hot air blowers. WC facilities are located The building is accessed via the entrance lobby from the car at mezzanine level. parking area. The lobby leads into a large open retail area which SITE AREA TENURE is fitted out as DW Sports Store. Externally the property sits on a larger site which benefits from approximately 75 car parking spaces. The car park is free to use. 0.465 hectares (1.149 acres). Freehold. DW SPORTS STORE THE ROUND HOUSE, 19 GLOUCESTER ROAD, CHELTENHAM, GL51 8NE LONG LET DW STORE WITH RPI UPLIFTS ON A LARGE SITE (1.15 ACRES) WITH DEVELOPMENT POTENTIAL

COVENANT Dave Whelan Sports Ltd Established in 2009, DW has grown exponentially to become the second largest operator of gyms in the UK. This leading leisure and retail business currently operates 90 retail stores across the UK stocking a wide range of authentic sports performance brands, as well as 120 gym clubs providing extensive facilities for members including large gym floor and functional training areas, member cafes, swimming facilities and a wide range of group exercise classes. In September 2016, DW Sports acquired Fitness First UK, which added an additional 45 Fitness First Clubs. This acquisition expanded DW’s market share into the south-east market giving an even greater nationwide presence. For the year ended March 2018, the new emerged group of companies reported a record level of turnover of £223m with an adjusted EBITDA figure of £18.2m. The Group completed its disposal programme of non-core Fitness First Clubs and they continued its store and club refurbishment, which in part has resulted in the accounts showing a pre- TENANCY tax loss, predominantly due to a higher depreciation charge of £18.37m The property is let in its entirety to Dave Whelan Sports and goodwill amortisation, acquisition and integration costs of £5.245m. Limited (trading as DW Sports Store) on a 15 year The EBITDA remains strong at £18.27m. During 2018, DW’s turnover effectively FRI lease from 10th March 2017 (lease expiry rose by £19.4m, membership numbers grew by 3% and net assets March 2032) at a current rent passing of £250,000 per increased from £55.9m to £68.2m. annum, which equates to a rent of £11.20 psft. Dave Whelan Sports Ltd reported the following results over the last The lease provides 5 yearly upwards only rent reviews 3 years: that are linked to RPI subject to 1% pa collar and 3% pa 31/03/2018 31/03/2017 27/03/2016 cap. The property therefore has the following uplifts: 10th March 2022: £284,782 pa Sales Turnover £222,961,000 £203,528,000 £159,585,620 10th March 2027: £322,204 pa EBITDA £18,274,000 £18,582,215 £14,753,942 *Based on forecast RPI of 2.5% Pre-Tax Profit (£8,925,000) (£7,987,398) £3,565,691

Total Net Worth £68,230,000 £55,943,000 £51,803,631 DW SPORTS STORE THE ROUND HOUSE, 19 GLOUCESTER ROAD, CHELTENHAM, GL51 8NE LONG LET DW STORE WITH RPI UPLIFTS ON A LARGE SITE (1.15 ACRES) WITH DEVELOPMENT POTENTIAL

LONG TERM ENVIRONMENTAL DEVELOPMENT The historical maps indicate that the Site 1988 although the Site had remained as Taking into account all the residential was occupied by residential properties a gas holder station until 2006 when it developments that have occurred in though in 1903, the west of the site was was redeveloped for commercial use. the immediate vicinity, we are of the redeveloped into a gas holder forming We have commissioned Argyll opinion that the subject property may part of the wider gas works. Environmental to carry out further lend itself to long term redevelopment The east of the Site was cleared and investigation to ensure that the site was for residential, care home or assisted filled between 1971 and 1977 continuing remediated to the satisfaction of the living etc (STP). in association with the wider gas works. Environmental Agency. A copy of this These wider gas works ceased to exist in report will be available in the Data Room. EPC PROPOSAL DW Sports Store, The Round House, 19 Gloucester Road, rated 66 (Grade C). The vendor is seeking offers in excess of£3,500,000 (Three Million Yield Profile Five Hundred Thousand Pounds) subject to contract and exclusive March 2022 7.44% VAT of VAT. Based on this level of pricing, the Net Initial Yield reflects March 2027 8.64% The purchase will be subject to VAT and it is our client’s 6.73%, assuming purchaser’s costs of 6.50%. intention to sell the property by way of a TOGC. For further information or to make arrangements for viewing please contact:

DATAROOM PRIVATE CLIENT TEAM For access to Allsop Dataroom please use the following link: Ronnie Morgan Alex Butler https://datarooms.allsop.co.uk/register/dwcheltenham 020 7543 6808 020 7543 6722 [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 09.19