Blackpool itself is a major seaside town with a population of circa 142,000 (2011 census) which rose to prominence as a popular tourist destination in the 19th century. The town remained a popular destination until the late 20th century, when changes in tastes and the opportunities for overseas travel affected its status as a leading resort. The economy within the borough, however, is still dominated by the tourism sector and continues to attract millions of visitors every year. The town is situated approximately 58 miles north-west of Manchester, being well served by the M55 motorway linking directly with the M6 motorway at Junction 32, some 15 miles to the east.
Description
The property occupies a prominent corner site and comprises a substantial public house on the ground floor and basement, with a boxing gym and residential accommodation on the first floor.
The property benefits form a site area of approximately 0.06 hectares (0.15 acres) and a loading area situated immediately to the north of the property on Dickson Road.
Accommodation
Areas are based on Net Internal Areas (NIA)
Basement
5,859 sqft
544.32 sqm
Ground Floor
5,828 sqft
541.44 sqm
First Floor
6,091 sqft
565.87 sqm
Total Approximate Floor Area
17,778 sqft
1,651.63 sqm
Site Area
0.15 acres
0.06 hectares
Tenancy
Let to Spirit Pub Company (Trent) Ltd. The lease is guaranteed by Spirit Intermediate Holdings Ltd and runs for a term of 30 years from 25th March 2004 until 24th March 2034 on full repairing and insuring terms.The lease is a protected tenancy under the provisions of the Landlord and tenant Act 1954.
Note 1: The current rent reserved is £188,000 p.a.x. subject to a fixed increase to £192,699 on 25th March 2020. On completion of sale, the seller will pay the buyer the difference between the current rent and this fixed increase. As a result the property will produce an income of £192.699 p.a.x. from completion.
Rent Reviews
The property is subject to annual fixed uplifts (payable annually) of 2.5% from March 2007 until March 2023 inclusive. At the election of the landlord, the March 2019 rent may be reviewed to open market rental value at which point any future fixed increases shall cease. There are also upward only rent reviews in March 2024 and March 2029 to open market rental value. Consequently, the current rent reserved may rise to a minimum of £207,516 per annum exclusive by March 2023. Please refer to the lease for full details of the review provisions.
Covenant Profile
Spirit Intermediate Holdings Limited (the guarantor) is the beneficial owner of substantially all of the operating assets within the Spirit Group.
The most recent Spirit Pub Company (Trent) Limited accounts for the year end 30 April 2017 indicates a turnover of £115,225,000 with a pre-tax profit of £884,000. The balance sheet indicates tangible fixed assets of £43,890,000 and cash reserves of £661,000. However, after accounting for current debt levels, the net worth of the company is -£202,423,000.
The guarantor to the lease is Spirit Intermediate Holdings, which was one of the principle holding companies of Spirit Group prior to the takeover by Greene King in June 2015. Greene King itself is (we understand) the UK's largest pub retailer and brewer with an estate of some 2,900 public houses with turnover in the year ending 29th April 2018 stated to be £2.18 billion with a pre tax profit of £198 million.
Investment Considerations
Freehold Public House Investment
Let to Spirit until 2034
Producing an Income of £192,699 per annum
Fixed yearly rental uplifts until 2023 inclusive
Approximately 19,196 sqft (1,783 sqm)
Substantial Town Centre location
Nearby Occupiers include Wilko, Sainsburys, Lloyds Pharmacy and Lancaster University
Net Yield
Net initial yield of 6.14%, assuming purchaser's costs of 6.44%.
VAT
Price will be subject to VAT and the sale may be treated as a TOGC if it qualifies within the legal guidelines.
Business Rates
Interested parties are advised to contact the Blackpool Borough Council to obtain this information.
Legal Costs
Each party to bear their own legal costs.
Listed Features
- Basement
- Gym
- Multiple floors
