DW FITNESS CLUB - Allsoppredominantly due to a higher depreciation charge of £18.37m and goodwill...

DW FITNESS CLUBCROSS STREET, WIDNES, WA8 6LXFREEHOLD LEISURE & RETAIL INVESTMENT OPPORTUNITY

INVESTMENT CONSIDERATIONS ■ Modern warehousing unit built in 2003 with

planning for both leisure and retailing use

■ Let to Dave Whelan Sports Ltd with over 9 years unexpired

■ Comprises a well presented ground floor gym and swimming pool with a large open plan retailing unit to the first floor

■ DW Sports is the UK’s second largest gym operator with over 120 gyms and 90 retails stores

■ Prominent location on Bradley Way (B5178), just north of the city centre

■ Current rent passing of £315,000 pa which reflects a low current passing rent of £6.21 psf

■ Freehold

■ Large site area of approximately 2.13 acres (0.86 ha) benefitting from a large car park for 161 cars

■ Offers sought in excess of £4,220,000 (Four Million, Two Hundred and Twenty Thousand Pounds) reflecting an attractive net initial yield of 7% assuming purchaser’s costs at 6.56%.

DW FITNESS CLUB CROSS STREET, WIDNES, WA8 6LX FREEHOLD LEISURE & RETAIL INVESTMENT OPPORTUNITY

LOCATIONWidnes is a well-established commuter town located on the north bank of the River Mersey, approximately 12.3 miles east of Liverpool, 24.7 miles south west of Manchester, 13.5 miles north west of Northwich and 31.5 miles south of Preston.

The town is very well connected, with the M62 located 4 miles north, accessed by the A557, and the M56 4 miles south, accessed using the A533. The A561 dual carriageway is located to the west of Widnes and offers a direct route into Liverpool.

Widnes benefits from excellent railway communications with Widnes rail station 1 mile north of the town centre and Runcorn Rail Station 4 miles south. Widnes Railway station offers direct routes to both Liverpool and Manchester Piccadilly in journey times of 24 minutes and 31 minutes respectively. Runcorn Railway Station offers a direct service to London Euston with a journey time of 2 hours 15 minutes.

Liverpool John Lennon and Manchester Airport are situated six miles to the west and 25 miles east respectively.

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BlackpoolInternationalAirport

WartonAerodrome

LiverpoolJohn LennonAirport

HawardenAirport

ManchesterInternationalAirport

Humberside Airport

M6

M6

M6

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M1

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M6

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M180

M181

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M18

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Blackpool

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Southport

Preston

LIVERPOOL

MANCHESTER

SHEFFIELD

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Gainsborough

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Skegness

SCUNTHORPE

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Doncaster

Rotherham

BRADFORD LEEDS

YORK

HULL

Bolton

Wigan

St. Helens

Warrington

Chester

Longridge

FormbyOrmskirk

Bootle

Birkenhead

WIDNESStockport

OldhamBarnsley

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Castleford

Wetherby

Harrogate

Tadcaster

StamfordBridge

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Macclesfield Buxton

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Mansfield

Blackburn

Burnley

RochdaleHuddersfield

Halifax

Bingley

Skipton

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Accrington

Chorley

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Yorkshire Dales National Park Authority

Peak District National Park

Lincolnshire Wolds

The Mersey Gateway Wickes Market Hall

Green Oaks Shopping Centre

Widnes Shopping

Park

Albert Road

SITUATIONThe property is prominently situated on the eastern side of Cross Street, close to its junction with B5178. The B5178 forms the link road to Watkinson Way (A557), an A-Road that runs north towards the M62 Motorway, the primary means of communications between Liverpool and Hull via Manchester and Leeds. Widnes Train Station is located 1.2 miles to the north west, operating regular services to Manchester, Liverpool and Norwich.

The subject property is situated just north of the towns retail hub, a short 5 minute walk (0.2 miles) south east towards Morrisons Supermarket and Widnes Market Hall. Albert Square Shopping centre is positioned c. 0.3 miles to the south west and benefits from a mix of tenants including WH Smith, Lloyds Bank and several independent retailers and restaurants. In addition, Widnes Shopping Park is located 0.4 miles to the south west, which boasts a number of national occupiers including Marks & Spencer’s, Next, Halfords, Costa Coffee and Topshop. Other occupiers within the immediate vicinity include Asda, Aldi, Travelodge and the Hive Leisure Park, which includes a Planet Ice, Superbowl UK and Reel Cinema.

Widnes Town Centre is located 1.0 miles to the south of the property, and forms a densely populated industrial town with a catchment of c. 683,000 people within a c. 8 mile radius.

DESCRIPTIONThe property comprises a modern, self-contained leisure warehouse unit arranged over two floors. The ground floor consists of a café and reception area, open-plan gym, spin studio and male and female demised changing and shower facilities. To the rear of the property, an 18m swimming pool with 2 jacuzzi pools and a steam room. A large studio, positioned on the first floor can be accessed via a stairwell located at the far end of the fitness studio.

The first floor retail unit is accessed via an escalator, passenger lift and stairway located to the right the fitness studios reception area. The unit presents in a basic but good order with an open-plan sales area, carpeted floors and suspended industrial pendant lighting.

The property benefits from a large members car park situated to the front and along the eastern elevation of the unit with c. 150 spaces and 4 disabled parking spaces. There is additional parking situated on the eastern side of Cross Street, directly opposite the Fitness Centres entrance.


Ground Floor Cafe

Site outline for identification purposes only.


FLOOR AREAS

Floor Use Sqm Sq Ft

Ground Floor Gymnasium 2,353 25,327

First Floor Retail Area/Fitness Studio 2,362 25,425

Total 4,715 50,752

First Floor Retail Unit

SITE AREA0.86 Hectares (2.13 acres)

TENUREFreehold

TENANCYThe property is let in its entirety to Dave Whelan Sports Limited by way of an assignment from JJB Sports Plc on an FRI lease expiring 28 September 2028 (9.3 years unexpired) at a current rent passing of £315,000 per annum, which equates to a rent of £6.21 psft.

The lease provides 5 yearly upward only open market rent reviews.

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

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Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250


FITNESS HEALTH CLUB BOOMIn light of the rising global trend of the health-conscious consumer, the UK fitness industry has become the fastest growing sector as of 2018, increasing in value at an exponential rate of 2% year-on-year with a current estimated worth of £4.9 billion.

The market has continued to attract a range of occupiers, with a particular focus on the budget and mid-market gym operators, who penetrate the market with their competitive pricing tactics and aggressive growth strategies.

With 9.9 million gym users across the UK, and counting and c. 1 in 7 people owning a gym membership, the trend is forecasted to continue, driven by several key factors including an increasing awareness of the health benefits of a fit and active lifestyle, a rising popularity in gym culture and greater focus on convenience gymming.


COVENANTDave 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-tax loss, predominantly due to a higher depreciation charge of £18.37m and goodwill amortisation, acquisition and integration costs of £5.245m. The EBITDA remains strong at £18.27m. During 2018, DW’s turnover rose by £19.4m, membership numbers grew by 3% and net assets increased from £55.9m to £68.2m.

Dave Whelan Sports Ltd reported the following results over the last 3 years:

31/03/2018 31/03/2017 27/03/2016

Sales Turnover £222,961,000 £203,528,000 £159,585,620

EBITDA £18,274,000 £18,582,215 £14,753,942

Pre-Tax Profit (£8,925,000) (£7,987,398) £3,565,691

Total Net Worth £68,230,000 £55,943,000 £51,803,631

GYMNASIUM INVESTMENT COMPARABLE EVIDENCE

Property Sale Date

Tenant Earliest Determination

NIY Sale Price

Tritton Road, Lincoln

May 19 DW Fitness 14.5 years 5.90% £2,900,000

125 Copenhagen Way, Norwich

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

20 Ashbrook Drive, Birmingham

June 18 Nuffield Health 6 years 7.00% £4,925,000

The Pentagon, Nottingham

Aug 18 Nuffield Health 25 years 5.48% £9,850,000

PROPOSALThe vendor is seeking offers in excess of £4,220,000 (Four Million, Two Hundred and Twenty Thousand Pounds) reflecting an attractive net initial yield of 7% assuming purchaser’s costs at 6.56%.

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

allsop.co.uk

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

Florence Rothwell020 7543 [email protected]

Liam Stray020 7543 [email protected]

Ronnie Morgan020 7543 [email protected]

EPCDW Sports Fitness Club, Cross Street, Widnes rated 44 (Grade B).

VATThe purchase will be subject to VAT and it is our client’s intention to sell the property by way of a TOGC.

DATAROOMFor access to the Allsop Dataroom please use the following link: https://datarooms.allsop.co.uk/register/dwwidnes

DW FITNESS CLUB - Allsoppredominantly due to a higher depreciation charge of £18.37m and goodwill...

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