premier inn a whitbread - hsm chartered surveyors · gravesend town centre - 1 mile portfolio...

Let on long leases with indexed income to Whitbread Group Plc

PORTFOLIO SALEA WHITBREAD

4 Prominent Freehold Hotel and Restaurant Investments

on behalf of NFU Mutual

PREMIER INN

OVERVIEW• Four freehold hotel investments with combined restaurants.

• Let to the undoubted covenant of Whitbread Group Plc (D&B 5A1).

• Let for in excess of 20 years expiring on 18 December 2037.

• Reviews five yearly to compound CPI with a collar and cap of 0% and 4% per annum.

• Rent £1,759,469 pa – based on CPI levels as at March 2017.

• Rent equates to approximately £3,950 per room.

• Provides a mixture of secure income and asset management opportunities.

• Strong trading performance across the portfolio.

• Individual or packaged offers will be considered.

• Lot sizes range from £6.9m to £11.7m with offers in excess of £34,693,000 being sought for the four properties, producing a net initial yield of 4.75%, (assuming acquisitions costs of 6.77%).

SUMMARY SCHEDULE Address Hotel

RoomsRestaurant (GIA) Site Rent† Price

Brand sq m sq ft Parking Acres

Welwyn Garden City Stanborough Road, AL8 6DQ 120 Beefeater 751.40 8,088 141 2.40 £594,670 £11,726,000

Gravesend (Central) Wrotham Road, DA11 7LF 55 Beefeater 1,022.03 11,001 114 1.89 £346,362 £6,829,000

Liverpool (West Derby)# Queens Drive, L13 0DL 85 Beefeater 781.04 8,407 127 2.75 £447,800 £8,830,000

Norwich (Airport)* Holt Road, Delft Way, NR6 6BB 64 Brewers Fayre 794.41 8,551 116 2.58 £370,637 £7,308,000

Total 324 3,348.88 36,047 9.62 £1,759,469 £34,693,000

# Liverpool - notification received to extend the number of rooms of the hotel - details awaited.* Norwich - the hotel was extended in 2014 by a further 16 rooms by way of a tenant’s alteration. total number of room is now 80.† Projected rents based on March 2017 CPI levels.

WELWYN GARDEN CITY

LIVERPOOL

GRAVESEND

NORWICH

1

3

2

4

4 Prominent Freehold Hotel and Restaurant Investments PORTFOLIO

WHITBREAD

PREMIER INN & BEEFEATER RESTAURANT

WELWYN GARDEN CITYSTANBOROUGH ROAD, AL8 6DQ

1

PORTFOLIOWHITBREAD

WELWYN GARDEN CITYSTANBOROUGH ROAD, AL8 6DQ

A6129WELWYN TOWN CENTRE - 1 MILE

HATFIELD TOWNFOOTBALL CLUB

GOSLING SPORTS CENTRE

BURROWFIELD INDUSTRIAL ESTATE

HERTFORDSHIRE CONSTABULARY HQ

PORTFOLIOWHITBREAD

LOCATIONWelwyn Garden City is strategically located approximately 38km (24 miles) north of central London and has a population of 46,619 (2011). The town benefits from excellent road communications being adjacent to the A1(M) which provides direct access to London and the north east. Junction 8 of the M1 motorway is located approximately 16km (10 miles) to the west and junction 23 of the M25 12km (8 miles) to the south. There are direct rail services from Welwyn Garden City into both London’s Kings Cross and Moorgate Stations with a fastest journey time of approximately 30 minutes. Luton Airport is only 21 km (13 miles) to the north west of the town.

SITUATIONThe property is prominently located on the A6129 Stanborough Road, just to the south of the town centre and a short walk to the station. The hotel is well positioned for the A1(M), junctions 4 & 5 and the nearby interests of Gosling Sports Centre, Hatfield Town FC, Stanborough Park, Hatfield House and Knebworth House. Residents can also take advantage of the hotel’s proximity to the rail station which is a short walk away, providing a quick and frequent service to central London

LUTON

STANSTED

HEATHROW

CITY

31

30

2 134

14

13

1

67

20

19

1

32

17

18

5

4

2

1

2524

22

8

7 1

4

5

29

28

8

72

3

6

5

4

8

7

9

10

12

11

10

9

2

26

M1

M25

M4

M25

M1

A1(M)

M11

M11

A24

A40

A20

A4

Harrow

Hitchin

Windsor DartfordDartfordWellingWellingRichmond

WoolwichWoolwich

RomfordRomford

Maidenhead Uxbridge

Staines

Slough

Beaconsfield

Watford

Amersham

Welwyn Garden City

HatfieldHoddesdon

Bishop's Stortford

Barnet Enfield

St Albans

Dunstable

Berkhamsted

Tring

HemelHempstead

Stevenage

Harlow

BrentwoodBrentwood

Luton

LONDON

WELWYNRUGBY

FOOTBALLCLUB GROUND

HATFIELD TOWNFOOTBALL CLUB

LEMSFORDSPRINGS

STANBOROUGH PARK

A1(M

)

A1(

M)

A1(M

)LE

MSFO

RD

LAN

E

BR

OC

KE

T R

OA

D

COOPERS GRE EN LN

A6

129

STA

NB

OR

OU

GH

RO

AD

A6

129

GR

EA

T N

OR

TH

RO

AD

A6129

PA

RK

WA

Y

PA

RK

WA

Y

TU

RM

OR

E D

A

LE

ROOKS HILL

OS

BO

RN

WA

Y

A10

00

A10

00

WELWYN GARDEN CITYSTANBOROUGH ROAD, AL8 6DQ PORTFOLIO

WHITBREAD

DESCRIPTIONThe property comprises two adjoining buildings, a 120 bedroom Premier Inn and The Stanborough Beefeater, a bar and restaurant with 2 staff flats above. The hotel was fully refurbished in 2012 and the restaurant in 2010 but having had a recent refit. The area to the front of the site is landscaped and there is provision for parking 141 cars.

The bar and restaurant have been measured by Plowman Craven and the Gross Internal Areas are estimated as follows.

Floor UseArea

Sq m Sq ft

First Residential 133 1,436

Ground Bar & Restaurant 618 6,652

Total 751 8,088


WHITBREAD

SITEThe site extends to approximately 0.97 hectares (2.40 acres).

TENUREFreehold.

LEASEThe property is let to Whitbread Group plc for a term of 25 years from 19th December 2012 (just over 20 years unexpired) on an FRI basis with 5 yearly reviews to CPI, having a collar of 0% and a cap of 4%. The rent will be topped up to the March 2017 CPI increase which produces a rent of £594,670 pa (circa £3950 per room and £14.67 psf overall on the restaurant). The tenant has two rights to renew the lease for a further 15 years on each occasion.

EPCThe property has the following EPC ratings. Copies of the report are available on request.

Premier Inn - C70Stanborough Beefeater - D86

ASSET MANAGEMENTThe site currently has as low site cover of 21.27% and given the affluent southeast location and surrounding area, the property could in the longer term suit residential conversion or redevelopment subject to planning. The low site cover also provides Whitbread with the option to expand the hotel and restaurant facilities as required.

VATThe property has been elected for VAT and VAT will be chargeable on the transaction if not sold by way of a TOGC.

PROPOSALOffers in excess of £11,726,000 are sought for the freehold investment, subject to contract, which produces a net initial yield of 4.75% based on acquisition costs of 6.77%


WHITBREAD


GRAVESEND (CENTRAL)WROTHAM ROAD, DA11 7LF

2

PORTFOLIOWHITBREAD

GRAVESEND (CENTRAL)WROTHAM ROAD, DA11 7LF

WROTHAM ROADGRAVESEND TOWN CENTRE - 1 MILE

PORTFOLIOWHITBREAD

LOCATIONGravesend is a historically important town in north west Kent on the south bank of the Thames Estuary located 35km (21 miles) south east of central London. A Thames Gateway commuter town, it retains strong links with the River Thames, not least through the Port of London Authority Pilot Station. The town has a population of 66,000 (2011) and is the administrative centre of the Borough of Gravesham. Gravesend has witnessed rejuvenation since the advent of direct High Speed 1 rail services to London St Pancras with a fastest journey time of 25 minutes. The town sits just to the north of the A2 which links to the M2 approximately 6 miles to the east and to the M25, 6 miles to the west. Gatwick Airport is readily accessible via the M25 and is approximately 41 miles to the west.

SITUATIONGravesend Central Premier Inn is located on the A227 Wrotham Road, 1 mile north of a full access junction to the A2 dual carriageway. The surrounding area is mainly residential forming part of the affluent Woodlands and Singlewell. Gravesend town centre and the industries of the Thames Estuary are just over a mile away, with the Eurostar mainline station only 2.5m miles away, providing speedy access to Paris Gare Du Nord (2 hours 28 mins) and Disneyland Paris. Bluewater Shopping Centre is within easy reach just over 5 miles to the west. In the long term Gravesend will benefit from the proposed Thames tunnel to the east of the town which the Government has just selected as their preferred route.

HEATHROW

GATWICK

CITY

8

76

1

2

43 5

35

4

7

6

31

30

4

5

2

8

9

2 1

9

9

4

2

1

2524

22

4

5

29

28

2

26

M2

M1

M25

M25

M23

M25M26

M25

M20

M11

A24

A23

A20A2

A4

Canvey IslandCanvey Island

RayleighRayleigh

RedhillRedhill

Harrow

New ThamesCrossing

Southend-on-SeaSouthend-on-Sea

MaidstoneMaidstone

RochesterRochester

GillinghamGillingham

ChathamChatham

TonbridgeTonbridge

SevenoaksSevenoaks

OxtedOxtedReigateReigateDorking

Leatherhead

CroydonCroydon

BromleyBromleySwanleySwanley

DartfordDartfordWellingWelling TilburyTilbury

GraysGrays

Epsom

SuttonSutton

Kingston upon Thames

Richmond

WoolwichWoolwich

RomfordRomford

Barnet Enfield

BrentwoodBrentwood

BasildonBasildon

LONDON

Gravesend

WR

OT

HA

M R

OA

D

SI N

GL

EW

EL

L R

OA

D

WH

ITE

HIL

L R

OA

D

TH

ON

G L

AN

E

MILTON R OAD

OLD R OAD WEST

OLD RO AD EAST

LONDON ROAD

HIGH STRE

ET

CO

LD

HA

BO

UR

RO

AD

HA

LL RD

P

ERRY ST

SP

RIN

GH

EA

D

R

OA

D THAM E S W A Y

NE

W B

AR

NS

RO

AD

A2 WATLING STREET

A2

GRAVESEND

GRAVESENDGRAVESEND

EBBSFLEET R I V E R T H A M E S

WOODLANDS PARK

MID-KENTGOLF CLUB SOUTHERN

VALLEYGOLF CLUB

GRAVESEND (CENTRAL)WROTHAM ROAD, DA11 7LF PORTFOLIO

WHITBREAD

DESCRIPTIONThe property comprises two separate buildings, a 55 bedroom Premier Inn and The Woodlands Beefeater, a bar and restaurant. The hotel is a modern two storey construction extended and refurbished in 2007. The Woodlands Beefeater is a period building which has had a recent refit and is arranged over three floors with the restaurant and separate bar at ground floor and a large function room on the first floor. A manger’s office, changing rooms and one bedroom flat are located at second floor. Ample parking (114 spaces) is provided in front of the hotel and the restaurant.


Floor UseArea

Sq m Sq ft

Second Residential 171 1,838

First Bar & Restaurant 243 2,618


Basement Store 141 1,524

Total 1,022 11,001


WHITBREAD


TENUREFreehold.

LEASEThe property is let to Whitbread Group plc, for a term of 25 years from 19th December 2012 (just over 20 years unexpired) on an FRI basis with 5 yearly reviews to CPI, having a collar of 0% and a cap of 4%. The rent will be topped up to the March 2017 CPI increase which produces a rent of £346,362 pa (circa £3950 per room and £11.65 psf overall on the restaurant). The tenant has two rights to renew the lease for a further 15 years on each occasion.


Premier Inn - C74Woodlands Beefeater - C75

ASSET MANAGEMENTWith the town’s improved links to central London and the affluent micro location adjoining Woodlands Park, the site could in the longer term lend itself to residential redevelopment subject to obtaining the usual planning consents. The low site cover of 18.09% provides the scope for a denser scheme and offers the opportunity of expansive land for future growth by the tenant.




WHITBREAD


LIVERPOOL (WEST DERBY)QUEEN’S DRIVE, WEST DERBY, L13 0DL

3

PORTFOLIOWHITBREAD

LIVERPOOL (WEST DERBY)QUEEN’S DRIVE, WEST DERBY, L13 0DL

QUEEN’S DRIVELIVERPOOL CITY CENTRE - 3 MILES

PORTFOLIOWHITBREAD

LOCATIONLiverpool is a major UK city and metropolitan borough in north west England with a population of 466,415 (2011). Liverpool is located 55km (34 miles) west of Manchester, 29km (18 miles) north of Chester and 331km (206 miles) north of London. The city benefits from excellent road communications being served by the M57, M58 and M62 which provide onward access to the M6, 12 miles to the east. There are direct train services from Liverpool Lime Street station to London Euston with a fastest journey time of 2 hours and 30 minutes. Manchester and Birmingham can be reached by rail in 33 minutes and 1 hour 44 minutes respectively. The city is served by Liverpool John Lennon Airport.

SITUATIONThe property is prominently located on the A5058 Queens Drive ring road, 2 miles north of the M62 and 3 miles east of the city centre via the A5049. The surrounding area provides a mix of good quality residential and commercial property including a newly opened Aldi and M&S Foodhall next door. The property is close to Alder Hey Childrens Hospital as well Broadgreen Hospital and Rathbone Hospital. The property also benefits from being the nearest branded budget hotel to both Anfield and Goodison Park football grounds. Easy access to the city centre provides residents with a cheap alternative to more expensive city hotels.

MANCHESTER

24

25

26

23

17

3

2

1

20

21

22

19

31

15

43

5

20

54 7

119

25

2423

22

14

12

11 10

56

7

12

98

5

10

16

65

2

543

17

34

17

18

19

1 32

31

6

8

6

930

27

1312

14

10

78

43

33

9

6

14

2

4

3

1

2928

M6

M53 M56

M58

M61

M60

M60

M62M62

M62M6

M66

M65M55

ClitheroeColne

Nelson

Accrington

Skipton

Rawtenstall

Todmorden

Brighouse

Chorley

Darwen

Lytham St Anne's

Formby

Leyland

Ormskirk

Otley

Fleetwood Ilkley

Bingley

Shipley

Leek

Bebington

Flint

Kirkby

Prestatyn

Macclesfield

Buxton

Burnley

Blackburn

Keighley

Halifax

Huddersfield

Bury

Rochdale

Bolton

Preston

Blackpool

Southport

Wigan

EllesmerePort

Crewe

Chester

BRADFORD

MANCHESTER

Liverpool

A5049

RO CKY LANE

A5

04

9

A5

089

A5058

QUEE

NS D

R

A50

58

QUEENS

DR

IVE

E PRESCOT RD

EDGE LANE

MIL

L LN

BARNFIELD DR

MELW

OOD DR

TOW N ROW

MU

IRH

EAD

AVE

LOR

EN

ZO

DR

AR

KLES L

AN

E

PR

IOR

Y R

OA

D

PRIORY ROAD

PINEHURST AVE

BR

EC

K R

D

TOWNSEN

D L

AN

E

W DERBY RD

GR

EE

N L

AN

E

SH

EIL

RO

AD

PRESCOT ROAD

PRESCOT ROAD

BRO

AD

GREE

N RD

DE

RB

Y L

AN

E

THOMAS DR

ANFIELDCEMETERY

WALTONCLUBMOOR

RECREATIONALGROUND

EDINBURGHPARK

NORRISGREENPARK

WALKERPLAYINGFIELDS

LIVERPOOL (WEST DERBY)QUEEN’S DRIVE, WEST DERBY, L13 0DL PORTFOLIO

WHITBREAD

DESCRIPTIONThe property comprises two buildings, a two storey 85 bedroom Premier Inn and The Stag & Rainbow Beefeater, a bar and restaurant. The hotel was fully refurbished in 2008 and the restaurant in 2007 with a recent refit undertaken. The Stag & Rainbow Beefeater is arranged over two storeys; the restaurant and bar is at ground floor with staff accommodation comprising a three bedroom manager’s flat at first floor. The area to the front of the site is landscaped and there is provision for parking 127 cars.


Floor UseArea

Sq m Sq ft

First Residential/Office 115 1,243


Total 781 8,407

The tenant has notified the landlord that they would like to expand the hotel element. Further details of this are awaited.


WHITBREAD


TENUREFreehold.



Premier Inn - D90The Stag & Rainbow Beefeater - E106

ASSET MANAGEMENTIn the short term there may be the opportunity to fund a proposed hotel extension that Whitbread are considering. In the longer term the site would lend itself to a number of alternative uses given its prominent situation fronting Liverpool’s main ring road and the low site cover of 18.21%.




WHITBREAD


NORWICH AIRPORT HOTELDELFT WAY, NORWICH AIRPORT, NR6 6BB

4

PORTFOLIOWHITBREAD


HOLT ROADNORWICH CITY CENTRE - 3 MILES

NORWICHAIRPORT

APPLEGREEN PETROL STATION

PORTFOLIOWHITBREAD

LOCATIONNorwich is a city and the county town of Norfolk as well as being the administrative centre for East Anglia. The city has a population of 213,166 (2011). Norwich is located 177km (110 miles) north east of London, 104km (65 miles) south east of Peterborough and 67km (42 miles) north of Ipswich. Access to and from Norwich is via the A11 from Cambridge and the M11. There are direct train services to London Liverpool Street with a fastest journey time of 1 hour 49 minutes. Norwich is served by its own airport, located 3.5 miles to the north of the city centre, providing national and international flights.

SITUATIONNorwich Airport Premier Inn is located on the approach to Norwich Airport, fronting the A140 Holt Road and accessed from Delft Way. The surrounding area comprises a mix of commercial and residential uses including offices, sports facilities, restaurants and hotels. Neighbouring properties include a McDonalds drive thru restaurant, a Porcelanosa retail warehouse and a Toyota/Lexus motor dealership. Located opposite is a Tesco Express and to the rear, across Delft Way, there is a Holiday Inn Hotel, and several office buildings. The property is conveniently situated for Norwich Airport which extends to approximately 700 acres to the north and handled 506,007 passengers in 2016. The hotel also provides affordable rooms for businesses to the north of the city as well as an economical alternative to the pricier city centre hotels.

NORWICH

12

11

13

14

M11 A12

A14

A14A14

A11

A14

A12

A11

A11

A47

A47A47A47

A47

A17

A10

A10

A10

A10

A146

A146 A143

A143

A143

A134

A140

A134

A140

A140

A140A148

A148

A149

A142

A142

A141

A1065

A1101

A1122A1065

A1065A1066

EastDereham

Thetford

Stowmarket

Bury St Edmunds

Newmarket

Mildenhall

Ely

Swaffham

Cromer

King'sLynn

Wisbech

Downham Market

March

Norwich

Cambridge

Great Yarmouth

Lowestoft

NORWICHINTERNATIONAL

AIRPORTA14

0

HO

LT RD

A14

0

CR

OM

ER

RD

A14

0

BOUNDARY RD

A1042 MILE CROSS LANE

LO

W R

OA

D

LO

W R

OA

D

MID

DLETO

NS L

AN

E

DRAY

TON

HIG

H R

OA

D

DR

AY

TO

N H

IGH

RD

A1067

RE

EP

HA

M R

OA

D

R

EEPHA

M R

OA

D

REEPH

AM

RO

AD

FIFERS LANE

HOLLY LN

HALL LN

AY

LS

HA

M R

OA

D

ST

FA

ITH

’S R

OA

D

S

T F

AIT

H’S

RO

AD

SP

IXW

OR

TH

RO

AD

B11

50ROYAL

NORWICHGOLF CLUB

NORWICH AIRPORT HOTELDELFT WAY, NORWICH AIRPORT, NR6 6BB PORTFOLIO

WHITBREAD

DESCRIPTIONThe property comprises two adjoining buildings, a two storey 64 bedroom Premier Inn and The Oaks Brewers Fayre, a bar and restaurant. The hotel is of modern two storey construction having been developed in 2003 with an extension in 2009. A further extension was undertaken by way of a tenant’s alteration in 2014, adding an additional 16 bedrooms, creating a total of 80 bedrooms (the latter which are not rentalised). The Oaks Brewers Fayre was constructed in 2003, refurbished in 2009 and recently refitted. The property is arranged over ground and part first floors with the restaurant and bar at ground floor. Staff accommodation comprising a bedsit, one bedroom flat and a three bedroom flat is at first floor. With the recent extension additional parking was created and there are now 116 spaces.


Floor UseArea

Sq m Sq ft

First Residential 177 1,903


Total 794 8,551

NORWICH AIRPORT HOTELDELFT WAY, NORWICH AIRPORT, NR6 6BB PORTFOLIO

WHITBREAD


TENUREFreehold.



Premier Inn - D76Oaks Brewers Fayre - D96

ASSET MANAGEMENTThe property was extended by Whitbread in 2014 creating an additional 16 bedrooms. There may be an opportunity to retrospectively fund this extension to increase asset value returns. Given the prominent roadside location and proximity to the expanding Norwich Airport, the site would suit range of alternative commercial and residential uses in the longer term. Currently the site cover is only 19.25%.




Tenant’s Extension 2014

PORTFOLIOWHITBREAD

COVENANTWhitbread PLC is the UK’s largest hotel and restaurant company. It is a market leader in the budget hotel and restaurant sectors. Its brands include Premier Inn, Beefeater, Brewers Fayre, Table Table and Costa Coffee. The company employs around 50,000 people in the UK and serves 27 million customers every month.

Whitbread PLC has a Fitch rating of BBB and a D&B rating of 5A1. Whitbread PLC’s full year accounts to 3rd March 2016 reported turnover of £2,921.8 million (up 12.0%), pre-tax profits of £487.7 million (up 5.2%) and net assets of £1,977.9million to £2,404.7 million.

Whitbread PLC is the parent company of the consolidated Whitbread group and is a constituent of the FTSE 100 on the London Stock Exchange. Whitbread PLC does not trade but owns 100% of the share capital of Whitbread Group PLC, the main Whitbread trading entity.

Whitbread Group PLC (the tenant company) is a trading company within the group which additionally holds investments in the rest of the group. The accounts of Whitbread Group PLC for the year ending 3rd March 2016 showed a turnover of £2,921.8 million, pre-tax profits of £495.0 million and net assets of £2,655.4 million. The company has a D&B rating of 5A1.

Premier Inn is the UK’s leading hotel business, with over 730 hotels and more than 64,000 rooms across the UK. In 2015 they opened their first hotels in Germany, Thailand and Indonesia. Internationally, they now have six hotels in the Middle East, three in India, two in South East Asia and one in Germany, with more in the pipeline.

For the year 2015/16 Hotel and Restaurant revenue grew by 9.8%. This was driven by a net addition of 6,123 new Premier Inn rooms and four new restaurants.

Whitbread are continuing their growth strategy with plans for 85,000 UK hotel rooms by 2020

PROPOSITIONOffers are sought either as a whole or in part for this portfolio of four properties. Individual prices have been quoted with a figure in excess of £34,693,000 sought for the four properties, subject to contract. Assuming acquisition costs of 6.77%, this would produce a net initial yield of 4.75%.

Misrepresentation DISCLAIMER - Messrs Hoddell Stotesbury Morgan Limited (9050701) trading as HSM, 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 conditions and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchaser should not rely upon them a statement or representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of HSM has any authority to make or give any representation or warranty whatever in relation to this property. (iv) unless otherwise stated all rents or prices quoted are exclusive of VAT which may be payable in addition. (v) HSM has not made any investigations or otherwise of any issues concerning pollution and potential land, building, air or water contamination. Prospective purchasers must undertake their own enquiries and satisfy themselves in this regard. Date: May 2017.

FURTHER INFORMATIONPlease contact:

Tim Morgan DD: 020 7318 1933 Mob: 07775 654795 Email: [email protected]

Andrew Taylor DD: 020 7318 1934 Mob: 07811 946001 Email: [email protected]

115 Mount Street London W1K 3NQ Tel: 020 7629 2030

PORTFOLIOWHITBREAD

premier inn a whitbread - hsm chartered surveyors · gravesend town centre - 1 mile portfolio...

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