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DW FITNESS CLUB & SMYTHS TOYS UNIT VICARAGE LANE, , , FY4 4NB SECURE, LONG LET LEISURE AND RETAIL WAREHOUSE INVESTMENT WITH FIXED UPLIFTS DW FITNESS CLUB & SMYTHS TOYS UNIT VICARAGE LANE, BLACKPOOL, LANCASHIRE, FY4 4NB SECURE, LONG LET LEISURE AND RETAIL WAREHOUSE INVESTMENT WITH FIXED UPLIFTS

INVESTMENT CONSIDERATIONS ■ City Fringe Gym Investment and Retail Warehouse ■ Total area of 54,857 sqft (5,096.2 sq m) ■ Site area of 4.3 acres (1.74 hectares) Investment situated on the busy Vicarage Lane ■ Fully let to the strong covenants of Dave Whelan ■ The vendor is seeking offers in excess of£4,750,000 within close proximity to Blackpool city centre Sports Limited and Smyths Toys UK Limited (Four Million Seven Hundred and Fifty Thousand ■ The town has an extensive catchment population ■ Attractive average weighted unexpired lease term Pounds) subject to contract and exclusive of VAT. and benefits fromexcellent accessibility with the of 14.4 years (12.8 years to break) Based on this level of pricing, the net initial yield A583 & A5230 linking Blackpool to the M55 and reflects 7.5%, assuming standard purchasers costs. ■ A584 coast road, which connects the city to the Producing a total rent of £377,257 pa, equating affluent Lytham St. Anne’s. to a low passing rent of £6.88 psf YIELD PROFILE ■ Freehold April 2021 8.57% April 2026 9.87% ■ Benefits from on-site car parking for approximately 200 cars. *based on forecast RPI at 2.5% Pen Av e A R E E R T R R E DW FITNESS CLUB & SMYTHS TOYS UNIT VICARAGE LANE, BLACKPOOL, LANCASHIRE, FY4 4NB SECURE, LONG LET LEISURE AND RETAIL WAREHOUSE MacadamsINVESTMENT Blackpool WITH FIXED UPLIFTS C

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o H L n M6 Leeds/ Bradford BLACKPOOL BLACKPOOL LEEDS M55 BLACKPOOL REGENERATION BRADFORD M1 Blackpool M65 International M621 Airport M606 A1(M) HULL Warton Blackpool is set for the biggest single investment for more Aerodrome

M62 thanPontefract a century. £300m has been earmarked for the ‘Blackpool M62 M6 M66 HUDDERSFIELD M61 M1 ’ development. This development will include, new SCUNTHORPE M18 M180 M181 Airport GRIMSBY hotels, restaurants, a food market, event square, residential A1(M) M60 DONCASTER apartments and multi-storey parking. Furthermore, a range

M60 M67 M18 M62 Glossop of indoorA1(M) attractions will be built, including the world’s first Rotherham L in M62 c P o ea Gainsborough ln k s D SHEFFIELD multimedia exhibition of its kind, theh UK’s first flying theatre ist i M58 ric re Manchester t Na W Liverpool International ti Airport on o al and the most advanced virtual realityld experience. Airport P s M53 ar M58 k Worksop M1 M6 In addition, improvement works on the current Central Station Chesterfield LINCOLN Chester site in the heart of the town is expected to start in 2020. Hawarden Airport estimate that this regenerationSkegness will attract LOCATION 600,000 additional visitors a year with a combined annual spend of £75m. They also believe it will also create 1,000 new The well known seaside town of Blackpool is situated in the county turn links to the national motorway network. In addition, the A584 jobs for people in Blackpool. of Lancashire and is a within the North West of on the coast road connects the city with Lytham St Anne’s to the coast. It has a district population of approximately 142,065 and , and to the north. Blackpool Rail (2011 Census). station provides a direct service to Preston with a journey time of INFRASTRUCTURE IMPROVEMENTS approximately 25 minutes and an indirect service to Euston The town is on the between the Ribble and Wyre estuaries, Lancashire Enterprise Partnership, in conjunction with Blackpool with a journey time of approximately 2 hours 50 minutes. approximately 29 km (18 miles) west of Preston, 40 km (25 miles) south Council, commenced work in July 2019 on a £7m ‘facelift’ of of Lancashire and 54 km (86 miles) north west of Manchester. There is situated 2.5miles south west of the property, key roads and infrastructure around Blackpool town centre. are a number of tourist attractions within the city including Blackpool with Manchester International Airport is situated approximately These improvements include, resurfacing pavements and roads, Tower and the ‘Golden Mile’, which is dominated by funfair attractions 93.2 km (57.9 miles) to the south east of Blackpool. planting new trees, benches and bin as well as improved. The town benefits from good road communications with the A583 Furthermore, in April 2020, demolition begins on the Wilko’s and A5230 providing direct access to the , which in store site on Talbot road, to then develop a new car park, Holiday Inn hotel, an underpass leading to Blackpool North Station as well a new terminus. DW FITNESS CLUB & SMYTHS TOYS UNIT VICARAGE LANE, BLACKPOOL, LANCASHIRE, FY4 4NB SECURE, LONG LET LEISURE AND RETAIL WAREHOUSE INVESTMENT WITH FIXED UPLIFTS

SITUATION The subject property is situated on the corner of Sanderson Way and the north eastern side of the prominent Vicarage Lane which links to the A5073 and in turn the A583 approximately 1.1 km (0.7 miles) to the north. Vicarage Lane is located on the outskirts of Blackpool town centre, which is situated approximately 4.8 km (3 miles) to the north. The north eastern side of Vicarage Lane, where the subject property is situated, is an established commercial location with a number of industrial buildings and retail and trade counter occupiers including an Asda Superstore, Home Bargains, Tool Station and Peter Jones Flooring. Directly opposite the subject property, on the southern side of Vicarage Lane, is Blackpool Trade Park, which is home to occupiers such as Topps Tiles, Halfords, Screwfix and Euro Car Parts. Adjacent to this estate is a stand-alone B & M store. DW FITNESS CLUB & SMYTHS TOYS UNIT VICARAGE LANE, BLACKPOOL, LANCASHIRE, FY4 4NB SECURE, LONG LET LEISURE AND RETAIL WAREHOUSE INVESTMENT WITH FIXED UPLIFTS

DESCRIPTION The subject property comprises two single storey semi- detached retail warehouse Units. One of the units has been converted to provide a gymnasium, with a swimming pool and other facilities. The the other is arranged to provide a Toy Store.

DW UNIT The unit occupied by DW is accessed via a protruding single storey entrance lobby. The lobby leads into a reception area with a custom built reception desk and barrier entrance gates which lead further into the gym. Within this area there is a customer café with associated seating areas. The reception area leads to the main open plan gym which has been zoned into a cardio area and free weights area. There is a studio which is utilised for classes such as spinning, Les Mills group fitness and yoga. Beyond the gym area are male and female open and cubicle changing rooms and WC facilities which themselves provide access to the swimming pool area. The pool area incorporates a swimming pool together with a Jacuzzi and steam room. There is a plant room housed in an extension at the rear of the building. There is a small yard area to the rear of the unit which is accessed off Sanderson Way.

SMYTHS TOYS This unit is accessed directly from the car park via two sets of double glazed entry doors. Internally it comprises an open plan retail unit with fitted with racking / display stands. To the rear of the unit is a store room and staff room / office area. This unit benefits from a roller shutter door which leads to a rear servicing area. This area is accessed directly from Sanderson Way. To the front of the unit there is a trolley bay for storage of shopping trolleys. Externally the property sits on a large site which benefits from approximately 200 marked car parking spaces to the front and side elevations. The car park is free to use. There is a freestanding totem sign which faces Vicarage Lane.

SITE AREA 4.2985 acres (1.738 hectares). DW FITNESS CLUB & SMYTHS TOYS UNIT VICARAGE LANE, BLACKPOOL, LANCASHIRE, FY4 4NB SECURE, LONG LET LEISURED W Sports AND Fitness, RETAIL Sandersons WAREHOUSE Way, Blackpool, FY4 INVESTMENT 4NB WITH FIXED UPLIFTS

created on © Crown Copyright, ES 100004106. For identification Plottedpurposes Scale - 1:1,803only.

Misrepresentation Act: 1. Allsop LLP on their own behalf and on behalf of the instructing party, whose agents Allsop are, gives notice that: (a) these particulars do not SCHEDULE OF ACCOMMODATION & TENANCY constitutePLANNING 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 relation to the property. The only representations, warranties, undertakings and contractualDW obligations Store to be – given as or perundertaken planning by the instructing application party are those contained number and expressly 10/0794: referred to in the writtenthe contract retail for sale or agreement for Unit Tenant Trading Sq Ft Sq M Lease Lease End Rent Unexpired Rent Rent Comment 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 correctness of each statementelement contained shall in these particulars;be restricted (b) inspect the property to the and the sale neighbouring of area;sports (c) ensure goods that any items and expressed related to be included are available and in Name Start (Break) Term (Break) psf Review 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 tradingproducts; name of Allsop LLP.and shall only be operated by the fitness club operator. Gym Dave DW 31,553 2,931.3 01/04/2011 30/03/2036 £262,257 pa 16.25 years £8.31 01/04/2021 Fixed uplifts at review: Smyths Toys – as per planning application number 15/0586: The retail use Whelan Fitness 01/04/2026 01/04/2021 - £304,028 pa hereby permitted shall be operated only by Smyth’s Toys Limited and the Sports 01/04/2031 01/04/2026 - £352,452 pa Limited 01/04/2031 - £408,589 pa premises shall be used for the sale of toys, children’s sports goods and equipment, bicycles and associated equipment, play equipment, baby Toy Smyths Smyths 23,304 2,164.9 11/01/2016 10/01/2031 £115,000 pa 11 years £4.93 10/01/2021 Break subject to 9 months equipment and products, electronic games and equipment and either Store Toys Toys (10/01/2026) (6 years) 10/01/2026 notice Rent reviews products associated with toys and children’s entertainment and for no Limited based on: upward only other purpose. open market capped at 2.5% compounded. Further information on planning can be found in the dataroom. Rent expected to rise to £130,000 at next review TENURE Total 54,857 5,096.2 £377,257 pa Freehold. DW FITNESS CLUB & SMYTHS TOYS UNIT VICARAGE LANE, BLACKPOOL, LANCASHIRE, FY4 4NB SECURE, LONG LET LEISURE AND RETAIL WAREHOUSE INVESTMENT WITH FIXED UPLIFTS

GYMNASIUM INVESTMENT COMPARABLES Property Sale Date Tenant Earliest Determination NIY Sale Price Timber Road, Sunderland June 19 DW Fitness 16.5 years 6.50% £2,600,000 Tritton Road, Lincoln May 19 DW Fitness 14.5 years 5.90% £2,900,000 Ranelagh Road, Ipswich April 19 DW Fitness & Orwell Motorcycles 16 years 7.00% £4,650,000 125 Copenhagen Way, Jan 19 Pure Gym 15 years 6.00% £2,500,000 43 Peninstone Road North, Sheffield Aug 18 Greenwich Leisure 12 years 6.10% £2,545,000 The Pentagon, Aug18 Nuffield Health 25 years 5.48% £9,850,000

COVENANT

Dave Whelan Sports Ltd The Group completed its disposal programme of non-core Fitness Smyths Toys UK Ltd First Clubs and they continued its store and club refurbishment. Established in 2009, DW has grown exponentially to become the second Since it’s inception in 1986, Smyth’s Toys has grown exponentially. Founded largest operator of gyms in the UK. This leading leisure and retail business During 2019, Net Cash Inflow into the business was strong at £12.95m with by the four Smyth brothers in , the Smyths Group now operates Health and Fitness membership numbers increasing by 1.5%. currently operates 78 retail stores across the UK stocking a wide range of globally across 200 stores, in the UK, Ireland, Germany, Austria and authentic sports performance brands, as well as 121 gym clubs providing Furthermore, the Whelan family loans are quasi equity and total £44.7m, Switzerland. extensive facilities for members including large gym floor and functional which when added to Net Assets provides Shareholder Funds of £100m. This multinational chain specialises in toys, baby products as well as gaming training areas, member cafes, swimming facilities and a wide range of In addition, Health & Fitness revenues increased from £134m to £137m and and entertainment products. group exercise classes. DW have reduced their exposure to retail sales now at £84m with the 13 loss Despite struggles in the retail sector as whole, Smyths Toys has making store closures. continued to grow last year In September 2016, DW Sports acquired Fitness First UK, which added an increasing their revenue by over £100m Dave Whelan Sports Ltd reported the following results over the last 3 years: and profits by c. 30%. additional 45 Fitness First Clubs. This acquisition expanded DW’s market share into the south-east market giving an even greater nationwide presence. 31/03/2019 31/03/2018 31/03/2017 Smyths Toys UK Ltd reported the following results over the last 3 years:

For the year ended March 2019, Dave Whelan Sports Limited has Sales Turnover £222,223,000 £222,961,000 £203,528,000 30/12/2018 30/12/2017 30/12/2016 continued to streamline its business. They have reported a level of Sales Turnover £581,570,000 £475,741,000 £396,490,000 turnover in line with last year, with an adjusted EBITDA figure of £14.2m. EBITDA £14,271,000 £18,274,000 £18,582,215 This drop in EBITDA from March 2018 is a result of the closure of 13 loss Pre-Tax Profit (£18,128,000) (£8,925,000) (£7,987,398) Pre-Tax Profit £14,532,000 £11,884,000 £10,100,000 making stores resulting in a £4.25m impairment, however total revenue Shareholders Funds £55,051,000 £68,230,000 £55,943,000 Shareholders Funds £43,800,000 £32,578,000 £23,739,000 levels have been maintained at £222m. EPC PROPOSAL DW Sports Fitness, Vicarage Lane - available on the dataroom. Smyths Toys, Vicarage Lane - available on the dataroom. The vendor is seeking offers in excess of£4,750,000 (Four Million Yield Profile Seven Hundred and Fifty Thousand Pounds) subject to contract April 2021 8.57% VAT and exclusive of VAT. Based on this level of pricing, the net initial April 2026 9.87% The purchase will be subject to VAT and it is our client’s yield reflects 7.5%, assuming standard purchasers costs. intention to sell the property by way of a TOGC. *based on forecast RPI at 2.5% 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/dwsmythsblackpool 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 02.20