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FREEHOLD INVESTMENT FOR SALEAA National Academy Training Centre - Fosse Way (A46) Six Hills Melton Mowbray Leicestershire LE14 3PD
INVESTMENT SUMMARY• Six Hills is a prominent intersection off the A46
Fosse Way in the East Midlands equidistant from
Nottingham, Leicester, Melton Mowbray and
Loughborough
• Situated adjacent to the A46 with the Six Hills
Hotel and Conference Centre, Ragdale Hall &
Spa and Six Hills Golf Club nearby
• Large landscaped site extending to
2.03 ha (5.01 acres) with low site density of 13%
and plentiful of car parking
• Well specified office building with a newer
steel portal framed warehouse building
providing purpose-built bespoke workshops with
accommodation totalling 3,853.88 sq m
(41,484 sq ft)
• Freehold
• Securely let to Automobile Association
Development Limited for use as their sole UK
National Academy Training Centre
• 2½ years unexpired
• Passing rent of £234,518 per annum reflecting a
rent of only £5.69 per sq ft overall
• A price of £2,200,000 (Two Million Two
Hundred Thousand Pounds) is sought, subject
to contract, reflecting a net initial yield of
10.08% assuming standard purchase costs
Location Six Hills is located in East Midlands within a radius of
20 miles from Nottingham, Leicester, Grantham,
Melton Mowbray and Loughborough. London is
approximately 105 miles to the south.
Occupying a prominent position on the A46 (Fosse
Way) Leicester to Lincoln Trunk Road, the M1 and
M69 motorways are accessible 14 miles to the south
west and the A1 at Newark-on-Trent 26 miles to the
north east. East Midlands Airport is 23 miles to the
west.
SituationThe property lies adjacent to the A46 Fosse Way on
the southbound carriageway at its junction with Six
Hills Lane (B676). Direct access to the property is
gained from a shared driveway.
The immediate area provides both leisure and
commercial uses including the Six Hills Hotel and
Conference Centre on north-bound side of the A46,
the Six Hills Golf Club, Ragdale Hall Health and Spa, a
petrol filling station, garage and a large Foyle Food
Processing Facility.
SiteThe property benefits from a large irregular-shaped
site with an area extending 2.03 hectares (5.01 acres)
and a low site coverage of only 13%.
There is substantial car parking available as well as
landscaped grounds including recreational areas,
lake/balancing pond, footpaths and outdoor seating.
Description The property comprises an office building of brick
construction connected at the rear to a modern
steel portal framed warehouse building that has
been fitted out as a training facility.
OfficesThe offices, constructed in the 1980s, are arranged
over ground and first floors totalling 1,436 sq m
(15,460 sq m). The accommodation includes a large
reception with central staircase, an open plan office
suite and sixteen rooms of varying sizes which are
mainly used for teaching.
The specification throughout is high and includes:
• Four pipe fan coil air conditioning
• Central Heating
• Suspended ceilings with inset Category II
lighting and recessed spotlights
• Perimeter trunking
• Double glazing
• Male and female WC facilities
• Passenger lift
• Secondary staircases at either ends of the
building
WarehouseTo the rear and connected to the office building is a
purpose built steel portal framed warehouse building,
constructed circa 2004, with brick and clad elevations
under a pitched profile roof with inset translucent roof
light panels.
The rectangular building totals 1,846,67 sq m
(19,878 sq ft) has been sub-divided into seven vehicle
workshop training areas with sixteen electric roller
shutter loading doors. The workshops have an eaves
height of 6.75m (22’2 ft) and are fitted with specialist
equipment including an exhaust extraction system and
two post vehicle lifts. In addition, there is an engineer’s
workshop, a large staff canteen with seating for
approximately 100 persons and ancillary toilets and
store rooms.
A lift accesses the first floor accommodation comprising
offices and classrooms with a similar specification to
the offices. There is a first floor corridor used as a
viewing area with windows overlooking several of the
workshops below.
StoreAt the south-western end of the site there is a
self-contained single storey brick warehouse building
totalling 570.88 sq m (6,145 sq ft) used for archive
storage.
Accommodation The property has been measured in accordance with the RICS Code of Measuring Practice (6th
Edition) and provides the following net and gross internal areas:
TenureFreehold.
TenancyThe property is entirely let on a FRI lease to Automobile Association Developments Limited
for a term of 15 years and 4 months from 28th September 2003, effectively 2½ years
unexpired. The current passing rent is £234,518 per annum exclusive and there are no
remaining rent reviews.
CovenantThe Automobile Association Developments Limited (Company No. 01878835) was founded
in 1905 and is the largest breakdown cover organisation in the UK today with
approximately 15 million members. The services it now provides goes beyond breakdown
to include car insurance, maps, travel guides, campsite guides, home insurance, savings
accounts, smart phone and tablet apps and home emergency breakdown cover.
In 2007, the AA merged with Saga Group (owned by Charterhouse Capital Partners) to
form Acromas Holdings and was listed on the London Stock Exchange in 2014 and it is
now a constituent of the FTSE 250 Index.
The Automobile Association Developments Limited reported the following financial
accounts for the preceding three years:
The AA National Academy and Training centre at Six Hills, is the main UK site for AA
technical training and inductions for technicians. It aims is to provide the best technical
training for the motor industry including not just AA employees and patrols but also
motor manufacturers. Up to 125 people can be trained on the site at one time.
Value Added Tax All figures stated are exclusive of VAT, which will be chargeable on the sale price,
however it is anticipated the property will be transferred as a Transfer of Going Concern.
Unit Floor Use Sq m Sq ft
Office First Offices / classrooms 764.50 8,229
Ground Offices / classrooms 671.83 7,232
Sub-total net internal area 1,436.33 15,461
Workshop First Offices 418.07 4,500
Offices Workshops / canteen 1,428.60 15,378
Sub-total gross internal area 1,846.67 19,878
Storage Ground Archive stores 570.88 6,145
Sub-total gross internal area 570.88 6,145
TOTAL 3,853.88 41,484
2015 2014 2013
Turnover £538,624,000 £240,288,000 n/a
Pre -Tax Profit £169,870,000 £1,100,807,000 £5,088,000
Cash £236,145,000 £118,163,000 £685,000
Shareholder Funds £1,129,971,000 £1,134,234,000 £222,978,000
Investment Considerations• Six Hills is centrally located in the UK with accessibility to the M1, M69 and A1
• Local amenities include the Six Hills Hotel and Conference Centre, Golf Club and Ragdale
Hall Health and Spa
• Large attractively landscaped site with low site cover density with further potential to
construct additional buildings subject to agreement and obtaining necessary consents
• Bespoke purpose-built workshop units serving the UK’s only AA Academy Training Centre
• Unexpired lease term of 2½ years offering potential for lease re-gear
• Secured to an undoubted covenant with a current turnover of £538 million, cash of
£236 million and shareholder funds of £1.129 billion
• High yielding investment opportunity and low capital value per square foot
Proposal A price of £2,200,000 (Two million Two Hundred Thousand Pounds) is sought subject to contract.A purchase at this level, after allowing standard purchase costs, would reflect a Net Initial Yield of 10.08% and a capital value of only £571 per sq m (£53 per sq ft).
Further InformationFor further information or to arrange an inspection please contact:
Important Notice - MisrepresentationIan Scott International, their clients and any joint agents give notice that: 1) They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2) Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Ian Scott International have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise.
www.ianscott.com
Paul Hanison
+44(0)20 7493 9911 +44(0)7885 299 708
15 Bolton Street, Mayfair, London W1J 8BG