Leisure Investment Opportunity
- A modern purpose built gym facility constructed in 1998 extending to 18,102 sq ft (1,681.72 sq m).
- Wednesbury is situated 9 miles north west of Birmingham City Centre.
- Let to Fitness First Clubs Limited(guaranteed by Fitness First Limited) for a term of 35 years expiring 29th April 2039, subject to a break option 30th April 2029.
- Term certain of 11 years to break and 21 years to lease end.
- Underlet to 24/7 Fitness Group Limited, on matching terms, with a guarantee from Twenty Four Seven Fitness Limited.
- Current rent of £198,410 per annum.
- Rent to be topped up to the fixed uplift rent review on 30th April 2019 at £224,481 per annum.
- 24/7 Fitness is the fastest growing low cost gym operator in the UK, offering flexible ‘no contract’ gym memberships.
- Offers are invited in excess of £2,800,000 (Two Million, Eight Hundred Thousand Pounds), subject to contract and exclusive of VAT.
- This reflects a Net Initial Yield of 7.50% based off the topped up level of £224,481 per annum, assuming normal purchaser’s costs of 6.41%.
Wednesbury, in the West Midlands, lies within Sandwell Metropolitan Borough in the area known as the Black Country. It is located approximately 9 miles (14.5 km) north-west of Birmingham City Centre, with Walsall 5 miles (8.0 km) to the north-east and Wolverhampton 6 miles (9.6 km) to the north-west.
The town is strategically located on the motorway network being approximately 3 miles (4.8 km) west of the intersection of the M5 and M6 motorways. Junction 9 of the M6 motorway is 2 miles (3.2 km) north-east of Wednesbury via the A461 (Dudley Road), and Junction 1 of the M5 lies 4 miles (6.4 km) to the south east via the A41 (Black Country New Road).
Wednesbury is located on the Midland Metro Tram Line which links Birmingham and Wolverhampton via West Bromwich and Wednesbury. Mainline Rail services are from Walsall providing services to the West Midlands area including Birmingham New Street Station. Birmingham International Airport is located approximately 20 miles (32.2 km) to the south-east of Wednesbury and is easily accessible within a 40 minute drive time via the M6.
The property occupies a prominent position fronting the busy Steel Roundabout on Hallens Drive. The Steel Roundabout provides the main access route to the Automotive Components Park and lies at the junction of the A41 (Black Country New Road) and A461 (Dudley Road). The A41 provides direct access to the M5 to the south and M6 to the north. Wednesbury Parkway tram station neighbours the property to the south, with journey times to Birmingham City Centre and Wolverhampton within half an hour and 15 minutes respectively.
The property is situated on the southern border of the Britannia Business Park, a well-established commercial location with a number of major occupiers represented including Amazon, Warburtons Bakers, WH Smith, Dreams Furniture and E-ON.
The property comprises a purpose built gymnasium building with part mezzanine floor and extensive car park constructed in 1998. The building is of steel frame construction with cavity brick infill and part cladding to the front elevation under a shallow pitched roof of profiled metal.
Internally the ground floor provides a large open plan gym, male and female changing rooms, a communal shower and spa area, a reception, a small office and a bar/lounge area. There is a 5 person lift providing access between ground and mezzanine floors.
The first floor mezzanine area is accessed via a metal frame staircase to an open balcony providing access to an exercise studio, beauty and sunbed area, first floor gym, and an RPM studio for bike classes.
The car park provides a total of 125 marked spaces with 4 for disabled use.
The property occupies a site of approximately 2.61 acres (1.06 hectares) providing a site coverage of approximately 16%.
Buchanan Bond understands the gross internal floor area (GIA) to be as follows:
Fitness First Clubs Limited
Fitness First started as a single health and fitness club in Bournemouth in 1993. They are now the largest privately owned health club group in the world. They consist of more than 360 Fitness First clubs worldwide with just over 927,000 members in 16 countries. In the UK alone there are 78 Fitness First clubs with over 171,000 members.
Fitness First Clubs Limited has a D&B rating of 4A2 which represents a “lower than average risk” of business failure. Summary accounts for the last 3 years are set out below:-
24/7 Fitness Limited and Twenty Four Seven Fitness Limited
Established in 2011, 24/7 Fitness is the fastest growing low cost gym operator in the UK, offering flexible “no contract” gym memberships. The company currently operates 14 gyms throughout the UK which are all open 24 hours a day.
24/7 Fitness Limited has a D&B rating of B2 which represents a “lower than average risk” of business failure. Summary accounts for the last 3 years are set out below:-
Twenty Four Seven Fitness Limited has a D&B rating of N4 which represents a “high risk” of business failure.
The property has been elected for VAT and it is the intention of the vendor to treat this transaction as a Transfer of a Going Concern (TOGC).
Offers are invited in excess of £2,800,000 (Two Million, Eight Hundred Thousand Pounds), subject to contract and exclusive of VAT. This reflects a Net Initial Yield of 7.50% based off the topped up level of £224,481 per annum, assuming normal purchaser’s costs of 6.41%.
MISREPRESENTATION ACT 1997 & DECLARATION
Buchanan Bond Real Estate Ltd, for themselves and for the vendors 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 intending purchasers, and do not constitute, nor constitute part of, an offer or contract.
ii) All descriptions, dimensions, references to condition and necessary permission for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements or representations of fact and must satisfy themselves by inspection or otherwise as to the correctness of each of them.
iii) No person in the employment of Buchanan Bond Real Estate Ltd has any authority to make or give any representation or warranty in relation to this property.