PRIME LONG LET HOTEL INVESTMENT WITH INDEXATION - PREMIER INN FLEMINGATE BEVERLEY EAST RIDING OF YORKSHIRE HU17 0NR - Carrick Real Estate.
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PREMIER INN
FLEMINGATE • BEVERLEY • EAST RIDING OF YORKSHIRE • HU17 0NR
PRIME LONG LET
HOTEL INVESTMENT
WITH INDEXATION
PREMIER INN
FLEMINGATE • BEVERLEY • EAST RIDING OF YORKSHIRE .two
INVESTMENT SUMMARY.
• Beverley is an affluent Georgian Yorkshire town •T
his reflects a highly reversionary room rate. The
• 80 bed Premier Travel Inn Hotel and 2,012 sq.ft let current rent equates to only £4,063 pax per bed.
to One Stop, situated at the Flemingate development •P
remier Inn have paid the full rent in full
close to the centre of Beverley. throughout the pandemic period, including
• Flemingate is a successful, significant mixed-use September quarter day.
development which includes a 6 screen cinema, •T
he hotel has an exceptional occupancy rate,
130 homes, East Riding College, large number of the post lockdown occupancy rate is 93%.
retailers including Debenhams, H&M and River • Ground
floor retail unit let to One Stop Stores
Island, various restaurants and bars and a 500 Limited (Part of Tesco PLC) on a new 15 lease with
space multi storey public car park. a break at year 10 and 5 at a rent of £24,144 pa.
• Hotel let to Premier Inn Hotels Limited on a 25 year •T
otal rent passing £349,215 per annum
FRI lease from 29th April 2016 to 28th April 2041
• Long Leasehold - 250 years at a peppercorn
(20 years 6 months term certain) with a break option
in 29th April 2036 (15 years 6 months term certain). ffers are sought in excess of £6,550,000 (Six
•O
Million, Five Hundred and Fifty Thousand Pounds)
• The lease is subject to 5 yearly rent increases to CPI
subject to contract and exclusive of VAT.
capped at 5% per annum compound. The next rent
review is 29 April 2021. •A
purchase at this level reflects the following yield
profile (assuming purchasers’ costs at 6.64%)
• The hotel will be sold via a ‘topped up’ passing rent
of £325,071 per annum. The top up has been
calculated using the CPI Index to March 2020.
Rent
Date NIY %
Premier Inn Retail Unit Total
PRIME
Topped Up Passing Rent (as March 2020) £325,071 £24,144 £349,215 5.00%
Forecast (assuming 2% pa CPI)
INVESTMENT OPPORTUNITY
2021 £331,572 £24,144 £355,716 5.13%
2026 £366,083 £24,144 £390,227 5.63%
2031 £404,185 £24,144 £428,329 6.18%
2036 (break option) £446,253 £24,144 £470,397 6.79%
PREMIER INN
FLEMINGATE • BEVERLEY • EAST RIDING OF YORKSHIRE .three
TOUR DE YORKSHIRE HUMBERSIDE AIRPORT
BRIDLINGTON
A1035 A1035
LOCATION.
Beverley founded in the 7th century is a historic and
HARROGATE A165
YORK A1035 prosperous market town located approximately 8
A1079
HORNSEA miles north of Kingston upon Hull, 32 miles south
A1(M)
MARKET
WEIGHTON east of York and 56 miles east of Leeds. Beverley is
A19 A1079 BEVERLEY the County Town of the east Riding of Yorkshire and
LEEDS
M1 SELBY A165 A1174 PREMIER has a resident population in the region of 30,800.
M62
A63
HULL WITHERNSEA
BEVERLEY INN The town benefits from excellent road
A1079 A164 communications with the A164 and A63 linking
Riv
M62
er
A15 to Junction 38 of the M62 approximately 14 miles
Hu
FLEMINGATE
mb
A1 M18 BEVERLEY
A19 Humberside to the west.
er
WAKEFIELD SCUNTHORPE Airport WESTWOOD
M180 BEVERLEY
M180 GRIMSBY
MINSTER B1230 Beverley’s main train station is situated within a 2
M1 DONCASTER
minute walk from Flemingate with services across the
B1230 UK. By train, Hull is only a 15 minute journey with
A15 MINSTER WAY
M18 A1(M) A159 Leeds and Manchester Piccadilly accessible in 1.5
GAINSBOROUGH A1079 A164 hours and 2.5 hours respectively. The direct London
SHEFFIELD train journey is 3 hours 11 minutes. Humberside
M1
A1 Woodmansey Airport is the closest airport to Beverley, located 23
LINCOLN miles to the south of Flemingate with international
and domestic flights.
Beverley: Tourism
The town is a popular tourism destination known for
the famous Beverley Minster (built 1420), Beverley
Westwood and Beverley Racecourse (established
1767). The town is also known for its impressive
Georgian streets containing a great number of listed
PRIME
buildings including 15th century North Bar. Various
BEVERLEY WESTWOOD FLEMINGATE DEVELOPMENT NORTH BAR sports, food and music festivals are held through the
year including the Tour de Yorkshire. The east coast
seaside resorts of Hornsea, Bridlington, Flamborough
INVESTMENT OPPORTUNITY
and Filey are close by as well as the Yorkshire Wolds
made famous by the artist David Hockney. The town
was recently listed in the Sunday Times report Best
Places to Live in northern England.
BEVERLEY RACECOURSE FILEY BEACH BEVERLEY MINSTER
PREMIER INN
.four
intake
gas
FLEMINGATE • BEVERLEY • EAST RIDING OF YORKSHIRE
duct
Incoming
electricity
supply
duct
Incoming
telecom
15
supply
16
1
Up
15
Stair
2
14
3
Steel
13
Stair
4
12
Steel
5
11
6
10
Up
7
duct supply
9
Incoming
8
water
Landing
Steel
1
Unit 2
Vacant Unit (GF)
(Hotel Rooms Above)
Block
H bin
store
Extension
cb
SVP
es
cb
water
liveri
SITUATION.
l De
cb
water
phone
Hote
cb
Premier Inn
NE
Hotel (GF) Harr
The property is located within Flemingate which is which is located close to the centre of Mult ison
F ZO
i-Sto Mew
rey s
Car
P OF
cb
Park
Beverley and occupies a highly prominent position next to the multi storey public car park.
Belfast
Sink
DRO
cb
The property is accessed off the B1230 which is the main route through the southern part of Premier Inn
Entrance
Beverley. The B1230 leads to the A164 which provides access to A63/M62.
Stair
Steel
1
2
3
4
5
6
7
8
Landing
cb
11
&
10
Steel
9
Stair
Switch
Steel
controls
cupboard
cb
cb
BEVERLEY
Flem
inga
te (B
For indicative
123
0) purposes only
TRAIN STATION AND
BEVERLEY TOWN CENTRE
FIRST/SECOND FLOOR
1230)
gate (B
Flemin
BLOCK A
BEVERLEY
MINSTER
BEVERLEY EASTGATE
MINSTER
CY
GENLE
ER
EMVEHICLY
GRASSED AREA ON
PLAY PARK
E E
UNIT 2A
US AT
HO ING
BLOCK D
EM
FL
CYCLE
PARKING
GROVEHILL RD BLOCK B
US ON
HODGS
E
HO
CYCLE
PARKING
ARMSTRONG WAY
E
US
HO
UNIT 7A
R
TE
NS
MI
B1230 PRIORY RD
PRIME
CYCLE
PARKING
FIRST FLOOR
HU 1 7 0 NZ
INVESTMENT OPPORTUNITY
BLOCK G
6 SCREEN CINEMA
WITH OVER 1,000 SEATS
Entertainer
The
TheToyShop.com
FIRST FLOOR
BLOCK C
B1230
HU17 0NZ
PREMIER INN
FLEMINGATE • BEVERLEY • EAST RIDING OF YORKSHIRE .five
FLEMINGATE.
Flemingate is a regionally significant FLEMINGATE
mixed-use development which includes
a 6 screen cinema, East Riding College,
a large number of retailers including
Debenhams, H&M and River Island,
various restaurants and bars and a
500 space multi storey public car park.
The scheme is 95% let and has a
weekly footfall of 50,000.
FLEMINGATE FLEMINGATE FLEMINGATE AT CHRISTMAS
PRIME
INVESTMENT OPPORTUNITY
HU17 0NZ
EAST RIDING COLLEGE FLEMINGATE FLEMINGATE
PREMIER INN
FLEMINGATE • BEVERLEY • EAST RIDING OF YORKSHIRE .six
DESCRIPTION.
The Premier Inn hotel was constructed in 2015
and trades as the Premier Inn Beverley Town Centre.
It totals circa 30,676 sq ft and extends over ground
and 3 upper floors. It provides 80 en-suite bedrooms
together with a branded bar and restaurant. A retail
unit is part of the asset but not included in the
Premier Inn demise. The unit extends circa 2,012
sq.ft and is let to One Stop Stores Limited.
The hotel has an exceptional occupancy rate,
the post lockdown occupancy rate is 93%.
Area
We have been provided with a summary of the
hotel’s approximate GIA floor areas as follows:
Floor Area Sq.ft Rooms
3 7,416 22
2 8,385 25
1 8,385 25
Ground (hotel) 6,490 8
Ground (retail) 2,012 One Stop
Total 32,688 80
PRIME
INVESTMENT OPPORTUNITY
PREMIER INN
FLEMINGATE • BEVERLEY • EAST RIDING OF YORKSHIRE .seven
TENANCIES. COVENANT.
The hotel is let to Premier Inn Hotels Limited on a 25 year FRI lease Premier Inn Hotels Limited (Company No. 05137608). One Stop Stores Limited (Company No. 02462858).
from 29th April 2016 to 28th April 2041 (20 years 6 months term
Premier Inn are the UK’s leading budget hotel operator with a substantial One Stop is a leading organisation in the UK convenience store market,
certain) with a break option on 29th April 2036 (15 years 6 months
market share of the budget hotel market. Premier Inn Hotels Limited is a and is owned by Tesco PLC but operates as a separate business. They
term certain). The lease is subject to 5 yearly rent increases to CPI
wholly owned subsidiary of the Whitbread Group PLC whose other brands have over 900 stores employing over 10,600 people.
capped at 5% per annum compound. The hotel will be sold via a
include, Table Table, Tayburns, Beefeater and Brewers Fayre. They are part www.onestop.co.uk
‘topped up’ passing rent of £325,071 per annum. The top up has been
of Whitbread PLC which recently celebrated its 275th Anniversary as a
calculated using the CPI Index to March 2020. This reflects a highly
British business. Premier Inn has more than 750 hotels in the UK with over 23 February 2019 24 February 2018 25 February 2017
reversionary room rate of only £4,063 pax per bed.
72,000 rooms. Premier Inn’s pipeline is secured to target 85,000 rooms by
Turnover £1,142,894,000 £1,068,992,000 £1,011,260,000
The ground floor retail unit is let to One Stop Stores Limited (part of 2020. Whitbread Group PLC recently sold Costa Coffee for £3.8 billion to
Tesco PLC). One Stop Stores Limited have entered into an Agreement the Coca-Cola Company and plans to use these proceeds to reduce the Profit before tax £28,767,000 £20,141,000 £18,815,000
for Lease dated 4th September 2020. The lease is for 15 years with group’s indebtedness which will provide significant headroom for further
Tangible Net Worth £142,264,000 £129,356,000 £117,956,000
tenant break options at years 5 and 10 at a commencing rent of expansion of Premier Inn.
£24,144 pa and subject to a 6 month rent free period. The term
The hotel group was named the UK’s top-rated travel brand and the
commencement date is anticipated to be Q4 2020.
top-rated hotel chain for 2017 by Which?. Additionally, they have being
The total rent passing is £349,215 per annum. voted Best UK Economy & Midscale Hotel at the British Travel Awards for
2018 and The Business Traveller Awards named them Best Budget Hotel
Chain for the seventh year in a row. Premier Inn has been awarded the
Best UK Family Hotel in the TripAdvisor Travellers’ Choice Awards, Best
UK Hotel Group in the Silver Travel Awards and the Business In The
Community Environmental Leadership Award. On the 10 June 2020
Whitbread confirmed the successful completion of its rights issue,
launched on 21 May 2020, raising £1bn with an acceptance rate
of over 91%.
Alison Brittain, CEO, commented: “We are very pleased with the
successful completion of Whitbread’s £1bn equity raise, which
achieved an acceptance rate of over 91%, demonstrating the high
PRIME
level of confidence in our strategy from both our institutional and
retail shareholders”.
INVESTMENT OPPORTUNITY
28 February 2019 01 March 2018 02 March 2017
Turnover £905,086,000 £874,907,000 £812,000,000
Profit before tax £243,838,000 £245,675,000 £268,397,000
Tangible Net Worth £1,135,333,000 £940,001,000 £1,143,166,000
PREMIER INN
FLEMINGATE • BEVERLEY • EAST RIDING OF YORKSHIRE .eight
THE HOTEL INVESTMENT MARKET.
The fixed lease investment market for hotels has strengthened Premier Inn has one of the most in demand covenants, as
as demand has increased for index linked long income secured they offer both secure and predictable levels of real income.
against strong covenants. INDICATIVE IMAGE
Rent Per Tenant Break Lease
Date Property Price Rent Yield Purchaser Comments
Room Options Length
Sold via forward funding
Sep Premier Inn Glasfryn £6,110,000 30
£283,500 £4,500 N/A 4.35% Private price confidential.
20 Road St Davids (quoting) years
63 Bed Hotel
Jun Premier Inn 30 Sold via forward funding
£8,000,000 £356,000 £4,238 N/A 4.14% Institution
20 Faversham years 84 Bed Hotel
Premier Inn Avebury
Mar 25 Forward Fund
Boulevard, Milton £23,700,000 £1,026,000 £5,700 20 years 4.24% M&G
19 years 180 Bed Hotel
Keynes
Premier Inn,
Mar 25 126 Bed Hotel
St Marys Gate, £10,330,000 £478,921 £3,800 N/A 4.35% CBREGi
19 years 999 – Year LLH
Sheffield
Jun Premier Inn, 25 IM Forward Fund
£6,900,000 £346,350 £4,329 20 years 4.70%
18 Holyhead years Properties 80 Bed Hotel
Christian
Dec Premier Inn, 22 79 Bed Hotel,
£6,245,000 £316,808 £4,010 17 years 4.75% Vision
17 Lichfield years 250 Year LLH
Charity
Nov Premier Inn, 25 Forward Fund
£14,040,000 £712,250 £6,475 20 years 4.75% Undisclosed
17 Tunbridge Wells years 110 Bed Hotel
TENURE. SERVICE CHARGE.
PRIME
The Property is long leasehold - 250 years at a peppercorn. Premier Inn and One Stop pay a service charge contribution.
This obligation will continue onto the long leasehold title but will
VAT. be reimbursed by Premier Inn and One Stop. The 2020 budget
for the Premier Inn is £41,227. The One Stop service charge is
INVESTMENT OPPORTUNITY
The property is elected for VAT although it is anticipated that the capped at £2,500 pa.
sale will be structured as a Transfer of a Going Concern (TOGC).
ANTI MONEY LAUNDERING.
EPC. In accordance with Anti-Money Laundering Regulations,
EPC’s can be provided upon request. two forms of identification and confirmation of the source
of funding will be required from the successful purchaser.
PREMIER INN
FLEMINGATE • BEVERLEY • EAST RIDING OF YORKSHIRE .nine
PROPOSAL.
Offers are sought in excess of £6,550,000 (Six Million, Five
Hundred and Fifty Thousand Pounds) subject to contract and
exclusive of VAT. A purchase at this level reflects the following
yield profile (assuming purchasers’ costs at 6.64%):
Rent
Date NIY %
Premier Inn Retail Unit Total
Topped Up
Passing
£325,071 £24,144 £349,215 5.00%
Rent (as
March 2020)
Forecast
(assuming
2% pa CPI)
2021 £331,572 £24,144 £355,716 5.13%
2026 £366,083 £24,144 £390,227 5.63%
2031 £404,185 £24,144 £428,329 6.18%
2036 (break
£446,253 £24,144 £470,397 6.79%
option)
CAPITAL ALLOWANCES.
There are no unclaimed capital allowance available.
FURTHER INFORMATION. STEVE CARRICK DAVID NICHOLLS
DATA ROOM.
PRIME
sc@carrickre.com david.nicholls@haguenicholls.com
For further information or to arrange a viewing, 0161 806 0455 • 07711 042 584 07950 574 986
A data room has been set up with relevant please contact the joint agents.
DAVID HAGUE
documentation; access is available on request.
INVESTMENT OPPORTUNITY
david.hague@haguenicholls.com
07960 195 167
carrickre.com
IMPORTANT NOTICE: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Carrick Real Estate or Hague Nicholls in the particulars or by word of mouth or in writing (“information”) as being
ON THE INSTRUCTIONS OF WYKELAND GROUP factually accurate about the property, its condition or its value. Neither Carrick Real Estate or Hague Nicholls has any authority to make any representations about the property, and accordingly any information given is entirely without
responsibility on the part of the agents, seller(s) or lessor(s). Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate
only. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection
or in other ways that these matters have been properly dealt with and that all information is correct. VAT: The VAT position relating to the property may change without notice. Carrick Real Estate is a limited company registered in England
with registered number 10893418. Our registered office is Canada House, 3 Chepstow Street, Manchester, M1 5FW where you may look at a list of members’ names. October 2020. carve-design.co.uk 14321/21
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