ST JOSEPHS VILLAGE ALBERT ROAD, PO21 1NJ A FREEHOLD ESTATE PROVIDING HIGH QUALITY ACCOMMODATION FOR STAFF WORKING AT APPROXIMATELY 23.75 YEARS (18.75 YEARS TERM CERTAIN) WITH RPI LINKED REVIEWS LET TO THE SECURE COVENANT OF BUTLINS SKYLINE LIMITED

Outline for indicative purposes only. ST JOSEPHS VILLAGE, ALBERT ROAD, PO21 1NJ APPROXIMATELY 23.75 YEARS (18.75 YEARS TERM CERTAIN) WITH RPI LINKED REVIEWS BOGNOR REGIS LET TO THE SECURE COVENANT OF BUTLINS SKYLINE LIMITED

WALTON WALLS

ESSEX HOUSE

WALTON HOUSE ST JOSEPHS

BLACKBIRD COTTAGE

LAS ARENAS BEACH LODGE

5 MINS WALK TO BUTLINS

Outline for indicative purposes only.

INVESTMENT CONSIDERATIONS

• Unique opportunity to acquire a secure, long let, • Long unexpired lease term of 23.75 years • Butlins have recently completed the development of index linked investment arranged over 7 buildings (18.75 years term certain) a £36 million leisure and splash pool the properties total approximately 29,900 sq ft • FRI lease subject to five yearly RPI plus 2% • Offers sought in excess of £10,800,000 (2,780 sq m) linked rent reviews with a collar and cap of (Ten Million, Eight Hundred Thousand Pounds) • Situated in the seaside of Bognor Regis on the 112.5% to 122.5% after allowing for purchaser’s costs of 6.71%. south coast of England • Large site area of approx. 1 acre offering long This reflects a net initial yield of5.25% . • Let to the 5A1 covenant of Butlins Skyline Limited term large scale redevelopment potential Reversionary Yield March 2023 • The property provides high quality affordable • Freehold Forecast based on OBR 6.18% HMO staff accommodation for workers at Butlins • Butlins is a chain of large seaside founded Minimum 5.91% • Total passing rent of £605,360 per annum in 1936 Maximum 6.39% ST JOSEPHS VILLAGE, ALBERT ROAD, PO21 1NJ APPROXIMATELY 23.75 YEARS (18.75 YEARS TERM CERTAIN) WITH RPI LINKED REVIEWS BOGNOR REGIS LET TO THE SECURE COVENANT OF BUTLINS SKYLINE LIMITED

M4 M4 M4 HEATHROW FULHAM WINDSOR HOUNSLOW READING M25 RICHMOND CLAPHAM M4 STAINES M4 BRACKNELL BROMLEY NEWBURY J12 WOKINGHAM A322 BOGNOR REGIS WEYBRIDGE CROYDON

A339 A33 EPSOM M3 Bognor Regis is located in the county of West Sussex on the south WOKING J10 BIGGIN HILL A34 J9 A22 coast of England approximately 7 miles south east of Chichester, FARNBOROUGH BASINGSTOKE A331 M25 J8 J7 J6 25 miles east of and 55 miles south of London. ALDERSHOT REIGATE GUILDFORD DORKING A31 ANDOVER The town benefits from good transport communications being located HORLEY EDENBRIDGE GODALMING on the A29, providing direct access to the A27 dual carriageway which A303 GATWICK J9a J9

J10 A264 EAST runs across the south coast from in the east to Portsmouth in the A34 GRINSTEAD CRAWLEY west. The A27 also provides access to the A23 and A24 trunk roads HASLEMERE M23 A31 J11 A3 which lead to the M23 and M25 motorways. WINCHESTER HORSHAM

BILLINGSHURST Bognor Regis has a regular direct rail service to London Victoria HAYWARDS PETERSFIELD ROMSEY A272 HEATH (1 hour 40 mins). The station provides frequent services to Brighton A36 EASTLEIGH BURGESS HILL with a journey time of approximately 45 minutes and Chichester M271 A23 within 15 minutes, both requiring one change. SOUTHAMPTON A3(M) A24 M27 LEWES HAVANT FAREHAM A27 BRIGHTON DEMOGRAPHICS WORTHING PORTSMOUTH CHICHESTER LITTLEHAMPTON GOSPORT NEWHAVEN The total population within the Bognor Regis Primary Retail Market BOGNOR COWES REGIS Area is 84,000, and the town is expected to see significantly above RYDE SELSEY average growth in population over the period 2017-2022. The NEWPORT town includes a high proportion of the retired, aged 65 and over. The drive for economic growth in Bognor Regis is centred on tourism, retail and service industries. Over 65% of employees TRAVEL Chichester – 7 miles Chichester – 15 minutes in Bognor Regis are employed by the service sector and this TIMES Portsmouth – 25 miles Brighton – 45 minutes Gatwick Airport – 45 miles has continued to rise over time. London – 55 miles London Victoria – 1 hour 40 minutes ST JOSEPHS VILLAGE, ALBERT ROAD, PO21 1NJ APPROXIMATELY 23.75 YEARS (18.75 YEARS TERM CERTAIN) WITH RPI LINKED REVIEWS BOGNOR REGIS LET TO THE SECURE COVENANT OF BUTLINS SKYLINE LIMITED

BOGNOR REGIS REGENERATION A2 59 CHAR A LE S 2 PU 9 RL EY W A Y RTH WAY B 1 BUTLINS NO YPA 59 SS A2 • Recently opened £36 million leisure and splash pool SALTBOX 2

• Employing approximately 1,400 staff ROWAN OLDLANDS PARK FARM

COMMERCIAL AND 2 ENTERPRISE BOGNOR REGIS WAN WAY AIRFIELD RO INDUSTRIAL PARK • The Saltbox site within Enterprise Bognor Regis has secured planning ESTATE consent for a £34m business park offering over 323,000 sq ft of new D floor space and the potential to create up to 1,000 new jobs in the area A O

R

D

• Rolls Royce have invested £70m in their Technology and Logistics E

S

RETAIL P O

centre totalling approximately 300,000 sq ft O R

PARK R P INDUSTRIAL D P

PARK A O R Y E N IP

R UNIVERSITY OF CHICHESTER H 3 S 9 2 A • The University’s new £36m Tech Park opened in 2018 and will bring

an additional 1,500 students to the town by 2021 B255 9 CH IC H

• The Park provides 63,500 sq ft of academic accommodation, up to E ST 10,764 sq ft of facilities accessible to business and the local community. ER D R A O B2259 FELPHAM WAY The park has created approximately 160 new jobs, delivering an O A R D N estimated £176 million into the local and regional economy by 2023/24 R O H T W A UNIVERSITY OF CHICHESTER H

BOGNOR REGIS CAMPUS

4 TOWN CENTRE INITIATIVES 3 6 1 • A Business Improvement District (BID) is in place from April 2018 1 2 B 225 for 5 years B 9 • The town centre has seen a growth in footfall figures in 2018 5 BOGNOR REGIS

TOWN 1 5 RAILWAY STATION CENTRE ST JOSEPHS 4 VILLAGE

• Recently completed £2m refurbishment E NAD SPLA • Planning approval for The Track, a £1m creative digital hub/shared THE E workspace in the station has been granted and is expected to open in 2019

For identification purposes only. ST JOSEPHS VILLAGE, ALBERT ROAD, PO21 1NJ APPROXIMATELY 23.75 YEARS (18.75 YEARS TERM CERTAIN) WITH RPI LINKED REVIEWS BOGNOR REGIS LET TO THE SECURE COVENANT OF BUTLINS SKYLINE LIMITED

SITUATION The site is bound by road on all sides, except to the south, where it is neighboured by a six storey block of flats, The Espalande Grande, which adjoins the seafront. The Properties are accessed from and bounded by Albert Road to the west, Walton Road to the north and Walton Avenue to the east. The site is square in shape save for the omission of a building (known as Pearlfishers) on the eastern side of the site, fronting Walton Avenue. The properties are situated 0.5 miles (5 minute walk) from the Butlins campus.

DESCRIPTION The property provides HMO staff accommodation for workers at Butlins and comprises seven buildings arranged over ground, first and second floors. Internally the buildings provide a total of 84 rooms (151 bed spaces) across a mix of single, twin and double rooms, together with communal kitchens and shower room facilities and manager accommodation. The properties benefit from communal gardens and a large conservatory. Please refer to the Schedule of Accommodation and Floor plans for a full breakdown of the accommodation provided within each property.

M R

a O r i A

a

SCHEDULE OF ACCOMMODATION D 5

Property Floor Bedrooms Bedspaces Area sqm Area sqft 1 to 7 D OA N R WALTON HOUSE LTO Ground Floor 15 30 533 5,737 WA K AL First Floor 11 20 272 W 2,928 Sabey OP ISL Court

St Josephs Second Floor 3 6 80 861 1 0 TENURE 5 Third Floor 82 883 1 to

Walton Court 1 Freehold. Total 29 56 967 10,409 Wellesley 3

Court 7

1

t

o Allestree Court

Ground 2 1026 1,098 AD

Walton Walls First 2 100 1,076 RO 2 SITE AREA 9 N 4 LTO

Total 4 202 2 ,174 WA 2 0.96 acres (0.39 hectares).

Ground 8 14 158 1,701 1 WALTON WALLS El Office 24 Hatherleigh258 Blackbird Sub TENANCY Cottage First 5 9 13 8 1,485 PEARL FISHERS Sta nds hla W eac The properties are let on two leases to Butlins Skyline Limited from 23 Total 13 23 296 3,186B ST JOSEPHS ESSEX HOUSE A L T March 2018 and 13 June 2019 on full repairing and insuring lease terms. Ground 10 19 266 2,863 O N

A First 8 15 201 2,164 V The leases expire coterminously on 22 March 2043 with a tenant break Essex House E vila A N Second 3 4 128 A 1,378 L U BE E option on 23 March 2038. Therefore an unexpired term of approximately BLACKBIRD COTTAGE Total 21 38 595 6,405ley R om T 23.75 years term certain (18.75 years to break). R R WALTON HOUSE O 5 Ground 2 4 100 1,076 LAS ARENAS 1 to 2 A oint D The passing rent of £594,360 pass P is reviewed five yearly to RPI plus 2% Las Arenas First 2 4 11 0 1,184 ompa f BEACH LODGE C rtre 28 Ca with a collar14 to and cap of 112.5% to 122.5%. Total 4 8 210 2,260 s land 2 ast to 1 Ground 3 6 97 1,044E Walton1 Walls is let on a separate lease with a passing rent of £11,000pa. The rent ank reb Beach Lodge First 3 6 81 872 Sho review provisions are the same with the next review being on 23 March 2023. King's Court Total 6 12 178 1,916 rey Sur 1 to 51 The total passing rent is £605,360 pa. ge Ground 4 8 135 1,453 Lod Esplanade Grande 4.0m Walton House First 3 6 11 0 1,184 The leases are outside theDE protection of the Landlord and Tenant Act 1954. LANA ESP Total 7 14 245 2,637 Butlins SkylineTHE Limited has total responsibility for the management LB Conservatory 63 678 of the properties and all the required HMO licences have been 84 151 2,780 29,924 issued directly to Butlins Skyline Limited by the Local Authority. © Crown Copyright, ES 100004106. For identification purposes only. 1 to 52 Berkeley Court 4.3m Foreshore Station 0m 10m 20m 30m PC PC Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 100022432. Plotted Scale - 1:1063 ST JOSEPHS VILLAGE, ALBERT ROAD, PO21 1NJ APPROXIMATELY 23.75 YEARS (18.75 YEARS TERM CERTAIN) WITH RPI LINKED REVIEWS BOGNOR REGIS LET TO THE SECURE COVENANT OF BUTLINS SKYLINE LIMITED

ST JOSEPHS, LAS ARENAS & BEACH LODGE

RESIDENTIAL OCCUPATIONAL LEASES There are four residential leases in place, two at Las Arenas and two at Walton Walls. The leases were granted between 2000 - 2007 by The Trustees for the Grace and Compassion Beneditines (Registered Charity) and are each for a term of 70 years at a peppercorn ground rent. We understand that the lessees do not have any rights to extend their leases and they cannot be assigned or passed to any successor in title. The leases with Butlins states that the tenant shall, as agent for the Landlord, provide and carry out all services that the landlord is obliged to carry out on behalf of these residential lease and manage the building and the common parts. We understand that the lessees are required to pay an annual service charge contribution towards the building which is payable to Butlins. A copy of each lease is available within the dataroom.

ESSEX HOUSE & ST JOSEPHS ST JOSEPHS VILLAGE, ALBERT ROAD, PO21 1NJ APPROXIMATELY 23.75 YEARS (18.75 YEARS TERM CERTAIN) WITH RPI LINKED REVIEWS BOGNOR REGIS LET TO THE SECURE COVENANT OF BUTLINS SKYLINE LIMITED

LAS ARENAS

WALTON WALLS

COMMUNAL AREA

ASSET MANAGEMENT POTENTIAL • Opportunity to increase the passing rent when the four occupational leases expire by converting them into additional HMO accommodation • Subject to future negotiation acquire ‘Pearlfishers’ on Walton Avenue to form a completely unbroken rectangular Freehold site. • Large site area of approximately 1 acre offering long term, large scale re-development potential. BLACKBIRD COTTAGE ST JOSEPHS VILLAGE, ALBERT ROAD, PO21 1NJ APPROXIMATELY 23.75 YEARS (18.75 YEARS TERM CERTAIN) WITH RPI LINKED REVIEWS BOGNOR REGIS LET TO THE SECURE COVENANT OF BUTLINS SKYLINE LIMITED

PLANNING Local Planning Authority: Arun District Council www.arun.gov.uk We have been informed by the Local Planning Authority that the properties are not Listed or nor are they situated within a Conservation Area. The site was previously owned by Grace and Compassion Benedictines. St Josephs was historically used as a care home and Essex House was used to accommodate staff with classrooms on the upper floors while the remaining buildings were used as residential accommodation to house the sisters and their associates. In March 2017 planning consent (REF: BR/348/16/PL) was granted for change of use of St Josephs, Essex House (1 & 2 Walton Road) & Blackbird Cottage including on-site stand alone conservatory building, from a care home (Class C2 use) to a House in Multiple Occupation (HMO) to provide team member accommodation for Butlins staff. This was subsequently varied in January 2018 (REF: BR/341/17/PL) to increase the number of bed spaces from 91 to 102. In July 2017 consent was granted (REF BR/99/17/PO & ST JOSEPHS BR/100/17/PO) and a deed of discharge was agreed to remove the previous age restriction on the residential properties at 3 Walton Road (Essex House) and Beach Lodge. Further building regulation consents were obtained in June 2017 for the refurbishment of the existing residential properties Walton House and Las Arenas to provide additional HMO accommodation. The site therefore provides a total of 181 bedspaces occupied by Butlins staff and four residential flats (located within Walton Walls and part of Las Arenas) subject to occupational leases.

REFURBISHMENT WORKS In March 2018, the vendor completed a comprehensive programme of refurbishment and reconfiguration works. All the works were completed to a high standard to ensure that all HMO Licencing criteria were passed in terms of Health and Safety regulations and size and density standards. The properties have been fitted with new kitchens, shower rooms, heating systems and are double glazed throughout. Works also included rewiring and the installation of a new plumbing system and each building has the benefit of new hardwired broadband/WiFi.

WALTON HOUSE ST JOSEPHS VILLAGE, ALBERT ROAD, PO21 1NJ APPROXIMATELY 23.75 YEARS (18.75 YEARS TERM CERTAIN) WITH RPI LINKED REVIEWS BOGNOR REGIS LET TO THE SECURE COVENANT OF BUTLINS SKYLINE LIMITED

INTERNALS GALLERY ST JOSEPHS VILLAGE, ALBERT ROAD, PO21 1NJ APPROXIMATELY 23.75 YEARS (18.75 YEARS TERM CERTAIN) WITH RPI LINKED REVIEWS BOGNOR REGIS LET TO THE SECURE COVENANT OF BUTLINS SKYLINE LIMITED

BOGNOR REGIS opened in 1960 and in 1999 it was renovated with the construction of a Skyline • A NEW £36M LEISURE AND SPLASH POOL • WELCOMING APPROXIMATELY 350,000 Pavilion. In 2005, a new £10m hotel called The Shoreline was developed and, in 2009, a second hotel, • £76M INVESTED IN THE SITE GUESTS ANNUALLY, EACH STAYING The Ocean, opened on the site. In July 2012 a third hotel, The Wave, opened to guests. • APPROXIMATELY 1,400 STAFF 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 2015 31 Dec 2016 31 Dec 2017 Turnover £218,232,000 £225,559,000 £229,682,000 Pre-Tax Profit £19,752,000 £26,833,000 £23,714,000 Total Net Worth £57,171,000 £55,376,000 £53,970,000

Butlins Skyline Limited is a subsidiary of Ltd, which also operate a number of other leisure brands including and . In 2016, the company posted a turnover of £996,559,000, pre-tax profit of £143,886,000 and a total net worth of £354,625,000. EPCs VAT PROPOSAL Available in the dataroom. The property is elected for VAT and we would anticipate the transaction to be treated as a Transfer of a Going Concern (TOGC). Offers sought in excess of £10,800,000 Reversionary Yield March 2023 DATAROOM (Ten Million, Eight Hundred Thousands Pounds) Forecast based on OBR 6.18% Minimum 5.91% Further information is provided in the dataroom. For access please register on the following website: after allowing for purchaser’s costs of 6.71%. https://datarooms.allsop.co.uk/register/StJosephsVillage This reflects a net initial yield of5.25% . Maximum 6.39%

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 06.19