Ryze Adventure Parks 23 MAYFIELD INDUSTRIAL ESTATE, DALKEITH, MIDLOTHIAN EH22 4AD FOR SALE | PRIME LEISURE INVESTMENT INVESTMENT SUMMARY Opportunity to acquire a prime leisure investment 73% let to Ryze Edinburgh Ltd – a firmly established and popular trampoline park operator WAULT to expiry 8.16 years (no breaks) Total passing rent roll of £283,478 Extends to an approximate GIA of 4,978 sq m (53,582sq ft) Situated only 9 miles from Scotland’s capital city We are instructed to seek offers in excess of £2,750,000 exclusive of VAT, for our client’s heritable interest subject to and with the benefit of the existing leases. A purchase at this level would reflect an attractive net initial yield of 9.75% allowing for purchasers costs of 6.13%. FOR SALE | PRIME LEISURE INVESTMENT ALLIED SURVEYORS SCOTLAND | 2 LOCATION Located in Dalkeith, Midlothian, some 7 miles south-east of Scotland’s capital city, Edinburgh. With a population reach in excess of 500,000 within 30 minutes, it is the administrative centre for Midlothian Council. It lies only a short distance from such as Galashiels and Stow easily a major interchange on the A720 accessible. The former mining villages Edinburgh City Bypass, the Sheriffhall of Newtongrange and Easthouses Roundabout, thereby offering border Mayfield which enjoys excellent road connectivity to locals elevated views to the Pentland Hills and businesses alike. The A1 trunk and Edinburgh beyond. road is less than 3 miles to the east Rail connectivity has been greatly providing access to towns in East improved in recent years with the Lothian, such as Musselburgh, opening of the Borders Railway Haddington and North Berwick, with connecting Galashiels with Edinburgh the M8 interchange at Hermiston Gait Waverley. The nearest station to 10 miles westwards. Mayfield is at Newtongrange, less Mayfield, meanwhile, is approximately than 2 miles away, with a further stop 2 miles to the south west of Dalkeith at Eskbank only slightly further afield. situated between the A68 and A7. Bus connections are also readily Both of these roads are principal links available providing connections into to the Scottish Borders making towns the city centre. FOR SALE | PRIME LEISURE INVESTMENT ALLIED SURVEYORS SCOTLAND | 3 SITUATION A720 EDINBURGH EDINBURGH CITY BYPASS NEWBATTLE DALKEITH HIGH SCHOOL ESKBANK MAYFIELD B6892 A7 SALTIRE SOFT PLAY & SOCCER CENTRE NEWTONGRANGE NSD STATION INTERNATIONAL THE NWH NEWTONGRANGE GROUP SCOTTISH AMBULANCE SERVICE STARLIGHT COATINGS The subjects occupy a The surrounding area is principally There are however a number of substantial site on Mayfield residential in nature as the thriving commercial and industrial occupiers local community continues to expand situated on the industrial estate including Industrial Estate, a firmly and become an increasingly popular Interflex Group, NWH Construction established location just off the commuter belt for Edinburgh. Evidence Services, Scottish Ambulance Service, B6482 which runs through the of this growth is visible at the state-of- Saltire Soccer Centre, NSD International middle of Mayfield itself. the-art Newbattle High School which was and Lloyds Pharmacy. The National officially opened in November 2018 and Mining Museum of Scotland, meanwhile, forms part of a £38 million Community is only a few minutes’ drive away in Campus. neighbouring Newtongrange. FOR SALE | PRIME LEISURE INVESTMENT ALLIED SURVEYORS SCOTLAND | 4 ACCOMMODATION DESCRIPTION The subject property extends to an additional party rooms and office approximate gross internal area of space. There is also an open plan room 53,582 sq ft and comprises a large (23G) which is let out for events and Floorplan detached single storey industrial unit pilates classes. The ground floor of the on a regular rectangular shaped site. former office block (23D) is occupied It is of steel framed construction and by an expanding gym operator and is clad externally with profile metal also provides toilet accommodation for sheeting. There is also a small section of customers of the trampoline park. two storey offices attached to the west To the north and east elevations there elevation with a mix of brickwork and First floor & is a large tarmac car park providing timber cladding. We understand the mezzanine property was constructed circa 1985 spaces for up to 130 vehicles. There is but has since received a significant an area of expansion land to the south amount of capital investment by the of the property partially formed in a current owners to suit the current use. mix of grass and unmade ground. The area of land to the west of the subjects, Internally, the main warehouse meanwhile, is being retained by the accommodation has been subdivided vendor. A Ryze Edinburgh Ltd into three main sections. The principal space (23A) is occupied by Ryze The Site B Ryze Edinburgh Ltd trampoline park with dozens of The subject property has an approx. C Ryze Edinburgh Ltd interconnecting trampolines raised from site area of 1.52 hectares (3.75 acres). floor level. Access is provided by a set of D Level Ten Fitness Ltd steps at the front of a central reception A Ryze Edinburgh Ltd E Ryze UK Leisure Ltd area. The middle section (23B) consists Ground floor of additional trampolines whilst the final B Ryze Edinburgh Ltd F Meadowbank Gymnastics Club El Sub Sta third (23F) has been fitted out as a skate 3 2 4 park with various ramps and jumps. 1 C Ryze Edinburgh Ltd G Ozone Lothian Ltd 5 1 6 These facilities are due to be stripped 1 7 1 D Level Ten Fitness Ltd H Meadowbank Gymnastics Club Container 8 1 1 2 o out, however, in preparation for a new t 9 Midlothian 1 Adventure A Ryze Edinburgh Ltd E Ryze UK Leisure Ltd I Ryze & Roll C.I.C 2 tenancy starting in 2019. Park 2 A mezzanine area, accessed via stairs B Ryze Edinburgh Ltd F Meadowbank Gymnastics Club J Ryze & Roll C.I.C Container and a disabled access lift, provides C Ryze Edinburgh Ltd G Ozone Lothian Ltd Communal Areas 4 accommodation for a café (23C), 2 seating area and party rooms (23E). It D Level Ten Fitness Ltd H Meadowbank Gymnastics Club Container connects with the original office block E Ryze UK Leisure Ltd I Ryze & Roll C.I.C which has been converted to provide Tanks F Meadowbank Gymnastics ClubJ Ryze & Roll C.I.C Container 0m 10m 20m 30m G Ozone Lothian Ltd Communal Areas Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250 FOR SALE | PRIME LEISURE INVESTMENT H Meadowbank Gymnastics Club Container ALLIED SURVEYORS SCOTLAND | 5 I Ryze & Roll C.I.C J Ryze & Roll C.I.C Container Communal Areas TENANCY SCHEDULE Start Tenant Rent Floor Area Address Tenant Rent Per Annum Expiry Comment Date Break Review (GIA) Minute of Variation to extend lease by 3 years and 142 days to 16/11/27. Tenant option to extend for 23A Mayfield Ryze Edinburgh Ltd £91,456.21 27/06/14 26/06/24 n/a 02/06/19 36.522 sq ft a further 5 years with no less than 6 months’ notice. Industrial Estate 5 yearly rent reviews. Rent Guarantee from Case Lawrence. Tenant option to extend for a further 5 years with 23B Mayfield Ryze Edinburgh Ltd £70,891.46 17/11/17 16/11/27 n/a 17/11/22 no less than 6 months’ notice. 5 yearly rent reviews. Industrial Estate Subject to a Schedule of Condition. The base rent is £25,000 per annum. In addition, there is turnover top-up of 20% of any turnover in excess of £125,000 in a turnover year. Rent income 23C Mayfield is expected to be £50,000 per annum. Tenant has Ryze Edinburgh Ltd £50,000.00 17/11/17 16/11/27 n/a 17/11/22 2,619 sq ft Industrial Estate option to extend for a further 5 years with no less than 6 months’ notice. 5 yearly rent reviews. The base rent is reviewed to RPI with 5% collar and 10% cap. Subject to Schedule of Condition. 23D Mayfield Tenant option to extend for a further 5 years with no Level Ten Fitness £28,999.00 17/11/17 16/11/27 n/a 17/11/22 1,827 sq ft Industrial Estate less than 6 months’ notice. 5 yearly rent reviews. License Agreement. Tenant option to extend for a 23E Mayfield further 5 years with no less than 6 months’ notice. Ryze UK Leisure Ltd £2,255.39 17/11/17 16/11/27 n/a 17/11/22 564 sq ft Industrial Estate 5 yearly rent reviews. Rent reviewed to RPI with 5% collar and 10% cap. 23F & H Mayfield Meadowbank Gymnastics Club £33,876.00 01/03/19 31/04/29 n/a 01/03/24 9,621 sq ft Lease to start in March 2019. Industrial Estate There is no formal lease in place. Ad hoc rental is 23G Mayfield n/a n/a n/a n/a n/a n/a 1,019 sq ft accrued through letting the space for business Industrial Estate events and/or additional fitness space. 23 I & J Mayfield Ryze & Roll C.I.C. £6,000.00 01/03/19 31/04/29 n/a 01/03/24 1,410 sq ft Lease to start in March 2019. Industrial Estate 4,978 sq m Total £283,478 (53,582 sq ft) FOR SALE | PRIME LEISURE INVESTMENT ALLIED SURVEYORS SCOTLAND | 6 ABOUT RYZE ADVENTURE PARKS Dundee Glasgow Edinburgh RYZE DUNDEE Ryze opened in May 2014 and was the first trampoline park on Scotland’s east coast. The Ryze brand is the UK arm of Covenant Information Circus Trix who are the largest trampoline park operator in the world.