Prime North-West Leisure Investment Opportunity
- Prime North West Leisure opportunity situated on the outskirts of Manchester.
- Manchester being the UK’s second largest economy outside of London.
- Prominently situated on Bury New Road (A56) providing direct access into Manchester City Centre 1.5 miles (2.4 km) to the south.
- Purpose built entertainment casino developed in 2008 extending to 3,116.23 sq m (33,543 sq ft) GIA.
- Very low site cover of 29%.
- Long Leasehold from the Council of the City of Manchester for a term of 250 years from 21st April 2005 at a peppercorn rent.
- Fully let to Grosvenor Casinos Limited until 2nd May 2030 on two separate leases (casino and car-park).
- Securely let to Grosvenor Casinos Limited with a D&B rating of 5A1.
- Unexpired term certain of 11.2 years.
- The current owners negotiated the removal of the tenant only break clause for the casino lease in May 2020.
- The annual rent was reduced from £360,000 per annum to £225,000 per annum from 3rd May 2018 – 2nd May 2020. The rent will increase back to £360,000 per annum in May 2020 and will remain unchanged until the next review date on 3rd May 2025.
- The car park lease is subject to a current rent of £96,006 per annum and minimum fixed uplifts in 2022 and 2027.
- The vendor will top up the casino rent to £360,000 per annum producing a combined total rent of £457,006 per annum.
Manchester has established itself as the UK’s second largest economy outside of London. It is the administrative and commercial hub of the North West and is the largest and fastest growing
regional city in the UK.
Manchester is located approximately 34 miles (55 km) east of Liverpool, 83 miles (133 km) north of Birmingham and 196 miles (315 km) north-west of London.
Strategically located midway between London and Glasgow, and Liverpool and Leeds, Manchester benefits from one of the most extensive regional motorway networks in the UK. The M60 Orbital provides easy access to the national motorway network including the M61, M62 and M56 which links the city to other major UK cities including London, Leeds, Liverpool, Bristol, Birmingham, Glasgow and Edinburgh.
Manchester is served by two mainline railway stations, Manchester Victoria and Manchester Piccadilly (the 4th busiest railway station in the UK, with over 23 million passengers every year) which links the city to the wider national rail network. There are 46 trains daily from London to Manchester with a fastest journey time of 2 hours 8 minutes. The proposed High Speed 2 railway line which is currently under consultation has the potential to reduce journey times to 1 hour 8 minutes between Manchester and London.
Manchester International Airport, one of Europe’s fastest growing airports, is located approximately 8 miles (12.8 km) south of the city centre. It is the third largest airport in the UK, with more than 22 million passengers each year. There is a direct rail service from Manchester Piccadilly to the airport, with a fastest journey time of 18 minutes.
The property is prominently located on the Bury New Road (A56) in the residential suburb of Lower Broughton 1.5 miles (2.4 km) north of Manchester City Centre. The A56 provides direct access to Manchester City Centre with Manchester Victoria Railway Station and Manchester arena 0.7 mile (1.1 km) to the south and is a busy commuter route to the northern suburbs of Manchester.
Manchester Victoria railway station is within 15 minutes’ walk or five minutes’ drive. The A56 Bury new Road is well served by local buses providing direct access to the city centre immediately to the south. Additionally, the Manchester Fort Retail Park is 1 mile (1.6 km) to the east with a multiple of retailers present including Nike, TK Maxx, Next, M&S and B&Q
The property was constructed in circa 2008 and comprises a purpose built sports and entertainment casino building and is of steel frame construction with part brick, part metal cladding to
Internally the property provides modern ground floor casino facilities with male/female WCs, café and bar restaurant areas and private external smoking areas. The current fit-out includes a 240 seat card room, 40 jackpot slot machines and electronic Roulette, Blackjack, Three Card Poker and a brand new Dice game.
The entertainment space also caters well for any event from birthday celebrations to corporate functions. Back of house accommodation consists of kitchen and stores on the ground floor, with offices, facilities and plant room at mezzanine level. The casino is air conditioned throughout.
The site benefits from two extensive car parks to the north and south of the site providing a total of approximately 184 spaces.
We understand the gross internal floor area (GIA) to be as follows:
Please note these areas have been measured in accordance with RICS Code of Measuring Practice (6th Edition).
The site benefits from approximately 184 car parking spaces.
The Property is held on a long leasehold from The Council of the City of Manchester for a term of 250 years, from 21st April 2005, at a rent of one peppercorn per annum.
Grosvenor Casinos Limited
Established in 1970, Grosvenor Casinos (formerly County Clubs and Grosvenor Clubs) is a UK-based chain of 52 casinos located in major towns and cities across the UK, with two unbranded sister casinos located in Belgium.
Grosvenor Casinos is owned by The Rank Group who operate exclusively in the casino, bingo and online gaming industries across Belgium, Spain and the UK.
As of January 2019, Grosvenor Casinos had a client base of over 1.7 million customers. Of these 1.7 million customers, over 7.7 million occur each year with a total spend per visit of £51.37.
The Grosvenor Casinos network currently employees over 6,300 employees across the United Kingdom. Grosvenor Casinos Limited has a D&B rating of 5A1 which represents a ‘minimum risk’ of business failure. Summary accounts for the last 3 years are set out below:-
Available upon request.
The property has been elected for VAT, therefore VAT will be payable on the purchase price. It is anticipated the transaction will be treated as a Transfer of a Going Concern (TOGC).
Seeking offers in excess of £6,700,000 (Six Million, Seven Hundred Thousand Pounds), subject to contract and exclusive of VAT.
A purchase at this level reflects a Net Initial Yield of 6.40% based off the topped up rent of £457,006 per annum and purchaser’s costs of 6.64%.
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.