BOGNOR REGIS...2020/03/12 · Bognor Regis has a regular direct rail service to London Victoria (1 hour 40 mins). The station provides frequent services to Brighton with a journey

APPROXIMATELY 22.4 YEARS UNEXPIRED (17.4 YEARS TERM CERTAIN) WITH RPI LINKED REVIEWS. LET TO THE 5A2 COVENANT

OF BUTLINS SKYLINE LIMITED

ASHLEY HOUSE, 120 ALDWICK ROAD

BOGNOR REGISPO21 2PB

INVESTMENT CONSIDERATIONS ■ Unique opportunity to acquire a secure, long let, RPI

linked investment totalling approximately 21,527 sq ft (2,000 sq m)

■ Situated in the seaside resort of Bognor Regis on the south coast of England

■ Let to the 5A2 covenant of Butlins Skyline Limited

■ The property provides high quality affordable HMO staff accommodation for workers at Butlins

■ Total passing rent of £416,650 per annum

■ Butlins have recently completed the development of a £36 million leisure and splash pool

■ Long unexpired lease term of 22.4 years (17.4 years term certain)

■ FRI lease subject to five yearly RPI plus 2% linked rent reviews with a collar and cap of 112.5% to 122.5%

■ The first rent review date is 19 May 2022

■ Freehold

■ Butlins is a chain of large seaside resorts founded in 1936

Offers sought in excess of £7,810,000 (Seven Million, Eight Hundred & Ten Thousand Pounds) after allowing for purchaser’s costs of 6.67%. This reflects a net initial yield of 5%.

Reversionary Yield May 2022

Minimum 5.63%

Maximum 6.13%

Approximately 22.4 years unexpired (17.4 years term certain) with RPI Linked reviews Let to the 5A2 covenant of Butlins Skyline Limited



Site outline for identification purposes only.

BOGNOR REGISBognor Regis is located in the county of West Sussex on the south coast of England approximately 7 miles south east of Chichester, 25 miles east of Portsmouth and 55 miles south of London.

The town benefits from good transport communications being located on the A29, providing direct access to the A27 dual carriageway which runs across the south coast from Brighton in the east to Portsmouth in the west. The A27 also provides access to the A23 and A24 trunk roads which lead to the M23 and M25 motorways.

Bognor Regis has a regular direct rail service to London Victoria (1 hour 40 mins). The station provides frequent services to Brighton with a journey time of approximately 45 minutes and Chichester within 15 minutes, both requiring one change.

DEMOGRAPHICSThe total population within the Bognor Regis Primary Retail Market Area is 84,000, and the town is expected to see significantly above average growth in population over the period 2017-2022. The 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 in Bognor Regis are employed by the service sector and this has continued to rise over time.

HEATHROW

J12

J10

J10

J11

J7J8

J9

J9J9a

J6A331

A339

A303

A322

A264

A272

A31

A31

A34

A34

A33

A22

A27

A36

A22

A24

A23

A3

M4

M4

M3

M25

M271

M27

M25

M23

A3(M)

CROYDON

CRAWLEY

HORLEY

HORSHAM

HAYWARDSHEATH

WORTHINGLITTLEHAMPTON

COWES

RYDE

EASTLEIGH

ROMSEY

WINCHESTER

HAVANT

PETERSFIELD

ALDERSHOT

FARNBOROUGH

NEWBURY

READING

WOKINGHAM

BRACKNELL

ANDOVER

GODALMING

HASLEMERE

NEWPORT

FAREHAM

SELSEY

DORKING REIGATE

STAINES

WINDSOR

WOKINGEPSOM

CLAPHAM

WEYBRIDGE

RICHMOND

GATWICK

LONDON

PORTSMOUTH

SOUTHAMPTON

BASINGSTOKEGUILDFORD

BRIGHTONCHICHESTER

BOGNORREGIS

CHICHESTER – 7 MILESPORTSMOUTH – 25 MILESLONDON – 55 MILES

GATWICK AIRPORT – 45 MILES

CHICHESTER – 15 MINUTESBRIGHTON – 45 MINUTESLONDON VICTORIA – 1 HOUR 40 MINUTES

TRAVEL TIMES

ROAD

TRAIN

AIR




PR

OP

SE

D R

OA

DP

RO

PS

ED

RO

AD

A29 SHRIP

NEY

RO

AD

B2559 CHICHESTER ROAD

ROWAN WAY

B21

16

B2166

THE ESPLANADE

HA

WTH

ORN R

OA

D

A259 NORTH WAY BYPASS

A259 CHARLES PURLEY WAY

A29

B2259

B

2259

FELPHAM WAY

BOGNOR REGIS

TOWNCENTRE

INDUSTRIALPARK

UNIVERSITY OF CHICHESTERBOGNOR REGIS CAMPUS

RETAILPARK

COMMERCIALAND

INDUSTRIALESTATE

SALTBOX

ROWANPARK

OLDLANDSFARM

AIRFIELDPARK

2

4

3

1

5

For identification purposes only.

ASHLEY HOUSE

BUTLINS• Recently opened £36 million leisure and splash pool• Employing approximately 1,400 staff

ENTERPRISE BOGNOR REGIS• The Saltbox site within Enterprise Bognor Regis

has secured planning consent for a £34m business park offering over 323,000 sq ft of new floor space and the potential to create up to 1,000 new jobs in the area

• Rolls Royce have invested £70m in their Technology and Logistics centre totalling approximately 300,000 sq ft

UNIVERSITY OF CHICHESTER• The University’s new £36m Tech Park opened in

2018 and will bring an additional 1,500 students to the town by 2021

• The Park provides 63,500 sq ft of academic accommodation, up to 10,764 sq ft of facilities accessible to business and the local community. The park has created approximately 160 new jobs, delivering an estimated £176 million into the local and regional economy by 2023/24

TOWN CENTRE INITIATIVES• A Business Improvement District (BID) is in place

from April 2018 for 5 years

• The town centre has seen a growth in footfall figures in 2018

RAILWAY STATION• Recently completed £2m refurbishment

• Planning approval for The Track, a £1m creative digital hub/shared workspace in the station has been granted and is expected to open in 2019

BOGNOR REGIS REGENERATION

1

2

3

4

5




TRAVEL TIME TO BUTLINS

23 mins

5 mins



SITUATIONThe property is prominently positioned fronting Aldwick Road (B2166) with access to the rear from Nyewood Lane. The property is located in a predominantly residential area, 200m from the seafront.

The property is situated 1.7miles (23 minutes walk) from the Butlins campus. There is a bus stop approximately 50m from the property providing regular services to Butlins.

DESCRIPTIONThe property provides HMO staff accommodation for workers at Butlins and is arranged over ground and two upper floors with a secure garden area, four car parking spaces and a designated cycle store.

Internally the property comprises a total of 57 bedrooms, this is made up of the original building and a recently completed two storey extension.

The properties comprise a mix of single and twin ensuites benefitting from large communal spaces on both the ground and first floors. Floor plans are available in the dataroom.

SCHEDULE OF ACCOMMODATIONFloor Bedrooms Bedspaces Kitchens

Ground 26 51 7

Annex Ground 6 12 1

First 15 28 5

Annex First 6 12 1

Second 1 1 0

Annex Second 3 6 1

Total 57 110 15


TENUREFreehold.

TENANCYThe property is let in its entirety to Butlins Skyline Limited on a FRI lease expiring on 18 May 2042 therefore benefiting from an unexpired term certain of just under 22.4 years (17.4 years to break).

The passing rent is £416,650 per annum. The first rent review is dated 19 May 2022 and from then on five yearly.

The rent is revised to RPI plus 2% subject to Minimum Rent increase of 112.5% and Maximum Rent increase of 122.5%.

The lease is outside the protection of the Landlord and Tenant Act 1954.

Butlins Skyline Limited has total responsibility for the management of the property and all the required HMO licences have been issued directly to Butlins Skyline Limited by the Local Authority.



120 Aldwick Road, Bognor Regis, PO21 2PB

created on Plotted Scale - 1:1,250

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 constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars asto 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 inrelation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the instructing party are those contained and expressly referred to in the written contract for sale or agreement for lease between the instructing party and apurchaser 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 availableand 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.

ASHLEY HOUSE

© Crown Copyright, ES 100004106. For identification purposes only.


SITE AREA0.54 acres (0.218 hectares).




PLANNINGLocal Planning Authority: Arun District Council www.arun.gov.ukWe have been informed by the Local Planning Authority that the property is not Listed nor is it situated within a Conservation Area.

In August 2016 planning consent (REF: BR/100/16/PL) was granted for ‘change of use of Ashley House from a care home (Class C2 use) to a House of Multiple Occupation (HMO) to provide team member accommodation on behalf of Butlin’s Bognor Regis, together with external alterations to the building, two car parking spaces (one disabled space), a minibus parking space, a designated cycle store for in excess of 40 spaces, a designated bin store & associated landscaping.’

In December 2018 a further planning consent (BR/231/18/PL) was subsequently granted on the site to provide ‘Part 2 & part 3 storey extensions, relocation of bin store & new cycle stores.’

REFURBISHMENT WORKSIn May 2018, the vendor completed a comprehensive refurbishment and reconfiguration of Ashley House which was formerly used as a care home.

In November 2019, the vendor completed the construction of the new build extension on the west side of Ashley House.

All the works were completed to a high standard to ensure that all HMO licensing criteria were passed in terms of Health and Safety regulations as well as size and density standards.

The property has 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 within the main building at Ashley House. The entire property benefits from hardwired broadband/WiFi.

For a walk through of the extension follow the link below created by the architects, King and Drury:

https://www.youtube.com/watch?v=OkS9qK9EXjQ




BOGNOR REGISButlins Bognor Regis opened in 1960 and in 1999 it was renovated with the construction of a Skyline Pavilion. In 2005, a new £10m hotel called The Shoreline was developed and, in 2009, a second hotel, The Ocean, opened on the site. In July 2012 a third hotel, The Wave, opened to guests.

• A new £36m leisure and splash pool• £76m invested in the site• Approximately 1,400 staff• Welcoming approximately 350,000 guests

annually, each staying between 3-7 nights

COVENANT INFORMATIONButlins Skyline LimitedButlins was founded in 1936 and now operate from three seaside resorts; Bognor Regis, Minehead and Skegness 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 2016 31 Dec 2017 31 Dec 2018

Turnover £225,559,000 £229,682,000 £230,136,000

Pre-Tax Profit £26,833,000 £23,714,000 £20,254,000

Total Net Worth £55,376,000 £53,970,000 £51,281,000

Butlins Skyline Limited is a subsidiary of Bourne Leisure Holdings Limited, which also operate a number of other leisure brands including Warner Leisure Hotels and Haven Holidays. In 2018, the company posted a turnover of £1,057,797,000, pre-tax profit of £153,390,000 and a total net worth of £492,292,000.

PROPOSALOffers sought in excess of £7,810,000 (Seven Million, Eight Hundred & Ten Thousand Pounds) after allowing for purchaser’s costs of 6.67%. This reflects a net initial yield of 5%.

Reversionary Yield May 2022

Minimum 5.63%

Maximum 6.13%

EPCAvailable in the dataroom..

VATThe property has not been elected for VAT.

DATAROOMFurther information is provided in the dataroom. For access please register on the following website: https://datarooms.allsop.co.uk/register/AshleyHouse

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 01.20

For further information or to make arrangements for viewing please contact:

Scott Tyler020 7543 [email protected]

Adam Kerven020 7344 [email protected]

NATIONAL INVESTMENT RESIDENTIAL INVESTMENT AND DEVELOPMENT

Lottie Hayward020 7543 [email protected]

Anthony Dixon020 7344 [email protected] allsop.co.uk

Documents

BOGNOR REGIS...2020/03/12 · Bognor Regis has a regular direct rail service to London Victoria (1 hour 40 mins). The station provides frequent services to Brighton with a journey