KINGSWAY EAST LEISURE PARK - DUNDEE, DD4 8JX - PRIME LEISURE PARK INVESTMENT ANCHORED BY ODEON CINEMAS - Galbraith
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
K I N G SWAY E AST
L E I S U R E PA R K
DUNDEE, DD4 8JX
PRIME LEISURE PARK INVESTMENT ANCHORED BY ODEON CINEMAS
2 KINGSWAY EAST LEISURE PARK
EXECUTIVE SUMMARY
■■ Dundee is Scotland’s fourth largest city, situated in a stunning ■■ The tenant line-up includes Odeon, Fit4Less by Energie and
geographical location on the north bank of the Firth of Tay Domino’s Pizza – there are two units available to let.
on the east coast of the country. ■■ Odeon Cinemas Limited have recently committed to a 10
■■ Dundee is one of the UK’s most progressive cities and has year extension to their existing lease and have embarked on
a rolling investment programme. The largest regeneration a significant refurbishment programme at a cost of around
programme includes a £1 billion investment in Dundee’s £5 million to upgrade their cinema to the new format Luxe
Waterfront creating a mixed use, riverside urban quarter right concept.
in the heart of the city. ■■ Total income of £948,458 per annum (including guarantees).
■■ Kingsway East Leisure Park is located on the North East side ■■ Approximately 80% of the income is secured to Odeon
of the city.
Cinemas and benefits from RPI linked rent reviews.
■■ The Park is anchored by a 10-screen cinema as well as 4 ■■ WAULT of 15.01 years to expiry & 14.80 years to breaks.
additional units with nearby occupiers including Mecca
Bingo, B&M, Wickes, Pets at Home, Archers Sleepcentre, ■■ Heritable Interest.
McDonalds and Asda Superstore. ■■ Offers in excess of £12,500,000 exclusive, which reflects a
■■ The subjects extend to approximately 86,631 sq ft. net initial yield of 7.11%.
3 KINGSWAY EAST LEISURE PARK
TO CENTRAL BELT
TAY BRIDGE
A90
TO ABERDEEN
A90
CITY CENTRE KINGSWAY EAST
HAPPYHILLOCK
SHOPPING CENTRE
KINGSWAY EAST
RETAIL PARK
ES
SP 272
AC
386 SPACES
DOUGLAS ROAD
4 KINGSWAY EAST LEISURE PARK
LOCATION
• Trains to Edinburgh every 30 mins and
regular rail services to Glasgow and
Aberdeen
• Direct trains to London in under 6 hours
• Maximum drive time between points
within the city: 20 minutes
CONNECTIVITY
Edinburgh 70 miles 1hr 20mins
Glasgow 80 miles 1hr 25mins
Aberdeen 65 miles 1hr 20mins
Stirling 50 miles 1hr 15mins
INVERNESS
Perth 23 miles 30mins
INDICATIVE ODEON LUXE FIT-OUT
St Andrews 13 miles 35mins A9
ABERDEEN
A90
ABERDEEN TO
A9
FORFAR INVERNESS
KINGSWAY
A92
3 KINGSWAY WE A972 A90
ST
KINGSW
AY EAS
T
A90 DUNDEE
A92
PERTH A90
SOUTH ROAD ST ANDREWS
A9
STIRLING M90
A92 FIRTH OF FORTH
DUMFERMLINE
A90 (M90), A9 CITY CENTRE
M9
PERTH M80 FALKIRK
EDINBURGH FIFE
GLASGOW M8
GLASGOW EDINBURGH
BERWICK-UPON-
TAY RD BRIDGE TWEED
DUNDEE AIRPORT
TAY ESTUARY
RAIL BRIDGE M74 A1
5 KINGSWAY EAST LEISURE PARK
THE ONLY DESIGN
DUNDEE MUSEUM IN THE
RECOGNISED EXCELLENCE 90% OF SCOTLAND’S
UK OUTSIDE OF IN ACADEMIA AND POPULATION LIVE
LONDON RESEARCH WITHIN A 90 MINUTE
SCOTLAND’S FOURTH LARGEST DRIVE TIME FROM
CITY AND RECENTLY VOTED THE TWO WORLD-CLASS
SUNDAY TIMES BEST PLACE TO UNIVERSITIES IN THE CITY AND DUNDEE
UK’S HIGHEST UNIVERSITY OF ST ANDREWS
LIVE IN SCOTLAND
AVERAGE WITHIN A 25 MINUTE DRIVE
BROADBAND
SPEEDS
99% ACCESS TO SUPER-FAST
BROADBAND
GLOBALLY RECOGNISED ONE OF THE HIGHEST
THE THIRD-LARGEST REPUTATION FOR STUDENT:POPULATION
REGENERATION PROJECT DIRECT FLIGHTS TO TEACHING AND RATIOS IN THE UK WITH
IN THE UK LONDON STANSTED RESEARCH PARTICULAR REPUTATION
THE £1BN, 30-YEAR DUNDEE FROM DUNDEE AIRPORT (DAILY IN AREAS AS DIVERSE AS IN THE BIOTECHNOLOGY
WATERFRONT DEVELOPMENT EXC. SATURDAY) A 5 MINUTE BIOTECHNOLOGY AND AND GAMING INDUSTRIES
DRIVE FROM THE CITY CENTRE COMPUTER GAMING
AT 1:5, WITH 50,000 STUDYING
WITHIN 30 MINUTES OF THE CITY
UK’S FIRST UNESCO CITY CITY POPULATION
OF DESIGN OF 148,270 HOUSE PRICES ARE
JOINING THEIR CREATIVE CITIES
NETWORK OF GLOBAL CITIES
WITH APPROXIMATELY 306,300 MORE AFFORDABLE IN
INCLUDING SEOUL, KOBE,
YOUNG POPULATION PEOPLE LIVING WITHIN A 30 DUNDEE THAN IN ANY
MINUTE DRIVE TIME OF THE
MONTRÉAL, SINGAPORE, 43% OF THE POPULATION ARE CITY, MUCH OF WHICH IS
OTHER SCOTTISH CITY
SHENZHEN, BERLIN, BETWEEN THE AGES OF 15 & 45 RURAL POPULATION RELYING WITH AN AVERAGE HOUSE COST
BUENOS AIRES, WHICH STATISTICS SHOW IS THE ON DUNDEE FOR RETAIL AND OF £166,000: 43% LESS THAN
HELSINKI, BILBAO AGE RANGE ACCOUNTING FOR LEISURE FACILITIES EDINBURGH
AND OTHERS 63% OF ALL UK CINEMA VISITS
6 KINGSWAY EAST LEISURE PARK
SITUATION DESCRIPTION
Kingsway East Leisure Park is strategically located on the west side The property comprises a large building of steel frame construction
of Douglas Road approximately 1.5 miles north east of the city centre clad in a combination of facing brick at lower level with metal cladding
within close proximity to the A90 Kingsway East, the City’s main ring panels above and an element of feature glazing.
road, which in turn provides access throughout the city.
Internally, the building comprises four leisure units and cinema entrance
The Park is situated immediately to the north of Kingsway East Retail at ground floor level with a 10 screen multiplex cinema above.
Park and nearby occupiers include Mecca Bingo, Asda, B&M, Pets at
The site extends to approximately 6.25 acres and includes 386 surface
Home, Wickes and McDonald’s.
car spaces with a further 272 spaces provided within a two-storey
decked element.
INDICATIVE ODEON LUXE FIT-OUT
7 KINGSWAY EAST LEISURE PARK
ACCOMMODATION
UNIT SQ M SQ FT
Cinema 4,319.12 46,491
Unit 1 875.70 9,426
Unit 2 1,902.52 20,479
Unit 3 443.08 4,769
Unit 4 507.85 5,466
Total 8,048.22 86,631
INDICATIVE NEW BRANDING
UNIT 2
UNIT 4
UNIT 3 CINEMA UNIT 1
GROUND FLOOR PLAN INDICATIVE FIRST FLOOR PLAN - POST REFURBISHMENT
8 KINGSWAY EAST LEISURE PARK
TENURE
Heritable Interest.
DOMINO’S INTERIOR
TENANCY SCHEDULE
Unit Area Tenant Lease Start Next Review Next Break Lease Expiry Rent (£ Per Rental Rate ERV pa ERV sq ft Comments
Date Annum) (sq.ft.)
Cinema 46,491 Odeon Cinemas 10/10/2000 10/10/2020 - 09/10/2035 £737,600 £15.87 £737,600 £15.87 The rent will be reviewed 5 yearly to
Ltd RPI, collared and capped at 1% and 3%*
Unit 1 9,426 Vacant - 30/09/2021 £47,130 £5.00 £47,130 £5.00 2 year rent & service charge guarantee
Unit 2 20,479 Jag Leisure 24/05/2016 24/05/2021 - 13/09/2038 £100,000 £4.88 £102,395 £5.00 Rental deposit of £25,000 plus VAT
(Scotland)
Limited
Unit 3 4,769 DP Realty Ltd 22/07/2016 22/07/2021 22/07/2026 21/07/2036 £20,000 £4.19 £38,152 £8.00 T/A Dominos, rent is reviewed to the
lower of OMR or uncapped RPI
Unit 4 5,466 Vacant - 30/09/2021 £43,728 £8.00 £43,728 £8.00 2 year rent, rates service
charge guarantee
Property Total 86,631 £948,458 £10.95 £969,005
*The RPI uplift in 10/10/2020 is calculated as below:
New Rent = Current Rent * (RPI in Sept 2020) / (RPI in the month preceding the the first anniversary of the month of the Effective Date)
The Effective Date is the date of completion of works or 8 months’ after conclusion of missives, which is likely to be January 2020.
9 KINGSWAY EAST LEISURE PARK
THE CINEMA & LEISURE MARKET
Cinema attendances in the UK reached their highest level since 1970 in 2018 at 177 million, which is a 4% The first quarter of 2019 saw leisure spending off to a good start, up two percentage points from Q1
increase on the previous year (171 million). Operators are generally in good health, having been through 2018. Eating Out and Culture & Entertainment were two of the biggest beneficiaries with more than a
the massive capex of digitalisation and being less exposed to rising costs and consumer restraint than third of consumers aged between 18 and 34 stated they would treat themselves to experiences, such as
some other areas of the leisure and retail market. going out to restaurants, bars and the cinema instead of shopping for clothes or shoes.
New operator requirements continue across the UK. These requirements vary in size with the larger In Q2 net spending was also up or stable year-on-year. Eight out of 11 leisure categories saw quarter-on-
operators such as Odeon, Vue & Cineworld continuing to focus on the megaplex, with their flagships quarter spending either up or stable, with consumers enjoying more short breaks as well as affordable,
typically being 40,000 sq ft plus whilst The Light and Empire are focusing on 5–7 screen sites, and the everyday treats..
boutique operators (Curzon, Everyman, Picturehouse) on 3-5 screen sites.
TENANT COVENANTS
Odeon Cinemas Limited A summary of the most recent results for Odeon Cinemas
Limited is set out below:
Odeon Cinemas Limited operates under the Odeon brand as one part of the wider Odeon UK Group
which is a market leader in the UK operating 120 cinemas with 950 screens at the end of 2018. It also
forms a major part of Odeon Cinemas Group, Europe’s largest cinema exhibitor, operating in 13 countries. Year Ending 31 Dec 2018 31 Dec 2017 31 Dec 2016
The company has continued to invest to grow future earnings and enhance the high quality of the Turnover £230,543,000 £235,701,000 £220,136,000
existing estate. In terms of asset additions, £62.4m was invested in existing sites, other revenue-generating Pre-tax profit £9,769,000 £19,109,000 £9,884,000
projects and in capital maintenance of the estate.
Net Assets £139,635,000 £185,127,000 £210,478,000
Odeon Cinemas Limited have a D&B rating of 5A1 representing minimum risk.
A summary of the most recent results for DP Realty Limited is set
DP Realty Limited out below:
DP Realty Ltd have a D&B rating of 2A1 representing minimum risk and net assets of £4,370,000. For the Year Ending 31 Dec 2018 31 Dec 2017 31 Dec 2016
year ending 30 December 2018 the company had a turnover of over £26,000,000. We understand that
DP Realty is the company used by Dominos on the majority of their leasehold properties. Turnover £26,451,000 £25,569,000 £22,479,000
The company is ultimately owned by Dominos Pizza Group plc. Pre-tax profit £823,000 £531,000 £2,133,000
Net Assets £4,370,000 £3,709,000 £3,355,000
Jag Leisure (Scotland) Limited t/a Fit4Less by Energie
Hibri Fitness is a franchisee of Energie Fitness which has been providing fully supported gym franchise
packages since 2003. It has now become a recognised national brand with nearly 100 clubs throughout
the UK. Each franchise is supported with business planning and finance, supplier discounts, training,
operational guidance and centralised marketing.
10 KINGSWAY EAST LEISURE PARK
ASSET
MANAGEMENT
POTENTI
AL
• The significant refurbishment about to be LOCATIO
N
FOR FUTU
undertaken by Odeon will have a marked DEVELO RE
PMENT
impact on the entire park. The upgrade of the
cinema to introduce Odeon’s new Luxe concept
is part of a roll out which spans the country and
has had an extremely positive effect elsewhere.
In addition to the upgraded signage and both
internal and external appearance the Luxe
concept includes:
• New Premium Recliner seating throughout
DISUSED
CAR PA
• Large ISENSE 4K digital screens RK 272
SPACES
• Dolby® Atmos™ upgraded sound throughout
• Upgraded foyer experience and food & drink
range
The refurbishment works commenced in August
2019 and are due for completion by the end of
November 2019.
• Let the vacant units with the benefit of the
positive Odeon refurbishment and commitment
to the site.
• Reinstatement of the disused, decked car park
(272 spaces)
• Development of pods or drive-thru within the
existing large car park could provide significant
additional income (subject to obtaining the
necessary planning consents).
DISUSED DECKED CAR PARK11 KINGSWAY EAST LEISURE PARK
SERVICE CHARGE DATA-ROOM
The service charge on the Park operates at approximately £1.39 per sq ft. Data-room access will be provided to seriously interested parties.
ENERGY PERFORMANCE FURTHER INFORMATION
CERTIFICATE Interested parties are advised to note interest with the selling agents.
Viewings are by appointment only. For additional information please contact:
The EPCs for the property are available in the Data-room.
Jamie Thain Scott Howie
0131 240 6994 / 07798 647 620 0141 248 2055 / 07973 693 090
VAT jamie.thain@galbraithgroup.com scott.howie@inglishowie.com
Will Sandwell Peter McKeown
0131 240 6997 / 07801 266 373 0141 248 2066 / 07985 875 634
The exemption to VAT has been waived, accordingly VAT will be applicable, however, it is will.sandwell@galbraithgroup.com peter.mckeown@inglishowie.com
anticipated that any sale will be treated by way of a Transfer of a Going Concern (TOGC).
Jamie Addison-Scott 21 Blythswood Square
0131 240 2287 / 07824 435094 Glasgow
CAPITAL ALLOWANCES jamie.addison-scott@galbraithgroup.com G2 4BL
T: 0141 248 3355
59 George Street inglishowie.com
No capital allowances are available. Edinburgh
EH2 2JG
T: 0131 240 6960
PRICING
galbraithgroup.com
Offers are sought in excess of £12,500,000 (Twelve Million Five Hundred Thousand Pounds)
exclusive of VAT for our client’s heritable interest which, assuming purchaser’s costs of 6.71%,
reflects a Net Initial Yield of 7.11%.
The Agents for themselves and for the vendors or lessors of this property whose agents they are give notice that:
(i) the particulars are set out as a general outline only for the guidance of the intended purchasers or lessees and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, reference to condition and necessary permissions for use and occupation, and other details are
given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness
of each of them; (iii) no person in the employment of the Agents has any authority to make or give any representation or warranty whatever in relation to this property.
Galbraith is a trading name of CKD Galbraith LLP registered in Scotland number S0300208 with registered address 59 George Street, Edinburgh, EH2 2JG
Date of publication: October 2019You can also read
