secure long income leisure investment · location coventry is the second largest city in the west...

SECURE L ONG INCOME L EISURE IN V ES T MEN T

ANSTY ROAD, COVENTRY, CV2 3EY

INVESTMENT SUMMARY

• Located in Coventry, the 2nd largest city in the West Midlands.

• Prominently situated on Ansty Road (A4600), an arterial route.

• Situated 3 miles from Coventry city centre.• Freehold.• Substantial corner site providing 1.02 acres.

• 10,069 sq ft public house.• Recent refurbishment undertaken by the tenant. • Extensive car park to the front and rear.• Large beer garden and outdoor play facilities.• Let to Spirit Pub Company (Trent) Limited, wholly

owned by Greene King Plc. • Long unexpired term of 16.7 years unexpired.

• Greene King Plc is the UK’s leading pub retailer and brewer, operating 2,730 pubs and hotels. The group has a market cap of £2.63bn.

• Passing rent of £120,000 per annum.• 5 yearly open market rent reviews.• Seeking offers in excess of £2,050,000.• Attractive Net Initial Yield of 5.50%.

THE NEW PIPPIN ANSTY ROAD, COVENTRY, CV2 3EY

For indicative purposes only.

LOCATION

Coventry is the second largest city in the West Midlands, after Birmingham, with a population of 325,949. Population projections identify Coventry as being the fastest growing city in the UK, outside of Greater London.

The city lies 24 miles east of Birmingham, 24 miles west of Leicester and 96 miles north west of London.

The city benefits from excellent transport links. The M6 to the north, runs east to west and connects with junction 19 of the M1, while the M69 links Leicester with the A46 Coventry Eastern Bypass at junction 2 of the M6. Coventry benefits from frequent train services to surrounding West Midlands cities and to London Euston, with a fastest journey time of 59 minutes.

Coventry Airport is situated 3 miles south of the city centre, while Birmingham International Airport is just 12 miles to the west.

BIRMINGHAM

COVENTRY

EASTMIDLANDSAIRPORT

M40

M1

M6

M6(T)

M6

M6

M5

M1

M1NEWCASTLE-UNDER-LYME

REDDITCH NORTHAMPTON

MILTON KEYNES

MANSFIELD

LEAMINGTONSPA

WORCESTER

TELFORD

WALSALL

DUDLEY

CANNOCK

KIDDERMINSTERSOLIHULL

STAFFORD

CREWE

BURTON UPONTRENT

CHESTER

MELTON MOWBRAY

TELFORD

WALSALL

DUDLEY


BURTON UPONTRENT

NEWCASTLE-UNDER-LYME

WIGSTON


REDDITCH NORTHAMPTON

MILTON KEYNES

MANSFIELD

WORCESTER

CANNOCK

STAFFORD

CREWE

CHESTER

MELTON MOWBRAY

TELFORD

WALSALL

DUDLEY


BURTON UPONTRENT


WIGSTON

RUGBY

LEAMINGTONSPA

RUGBY

WOLVERHAMPTON

BIRMINGHAMBIRMINGHAM

LEICESTERLEICESTER

WOLVERHAMPTON

COVENTRY

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325,949population

2nd largest city in West Midlands

excellenttransport links

motorways, stations & airports

fastestgrowing city in the UK

outside of Greater London


M6

M6

M69

A46

COV

ENTR

Y EA

STER

N BY

PASS

A4

6

A46

A4600

ANSTY ROAD

A4600

ANSTY R

OAD

A

4600

SKY BLUE W

AY

A44

4

A44

4A

444

A444

A444

A4114

A4114

A4053

A4053

A4053

WO

OD

WAY LA

NE

DEEDMORE RO

AD

HENLEY ROAD

B4082

PRO

FITT AVEN

UE

SEWALL HIGHW

AY

SEWALL HIGHWAY

HIP

SWEL

L H

IGH

WAY

BELGRAVE ROAD

LONGFELLOW ROAD

BUR

NS

RO

AD

BINLEY ROAD

BINLEY ROAD

BINLEY ROAD

CLIFFO

RD BRID

GE RO

AD

C

LIFFORD

BRIDG

E ROA

DB4082

B4027 BRINKLOW ROAD

B4027 COVENTRY ROAD

B4110

B4110STONEY

STA

NTON R

OAD

STO

NEY

STANTON ROAD

B4109

FOLE

SHIL

L RO

AD

B41

19

FOLE

SHIL

L RO

AD

LOC

KH

URST LAN

E

THE SCOTCHILL BURNABY ROAD

B40

98

B4098

RADFORD RD

B4098

BEAK

E AV

ENU

E

MOSELEY AVE

EN

GLET

ON R

D

BARKER’S BUTTS LANE

COUNDON ROAD

SPON END BUTTS ROADB4544

B4544

Coventry Hospital

Coombe Country Park

RADFORD

FOLESHILL

BARRAS HEATH

STOKE

BELL GREENPOTTER’S GREEN

RADFORD

FOLESHILL

BARRAS HEATH

STOKE

BELL GREENPOTTER’S GREEN

COVENTRYCOVENTRY

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SITUATION

The property is located on Ansty Road (A4600), 2.6 miles east of Coventry city centre. The A4600 is an arterial route which provides access to the city centre and junction 2 of the M6 to the north, as well as access to Leicester via the M69.

The New Pippin occupies a prominent corner position at the junction of Ansty Road and Hipswell Highway, within a densely populated residential location. The property is situated opposite a Co-op convenience store and BP petrol filling station. To the rear of the property is a modern GP surgery, built in 2016.


DESCRIPTION

The New Pippin comprises a 10,069 sq ft public house, arranged over basement, ground and first floors. The ground floor comprises a substantial trading area, while the first floor provides staff and manager accommodation. The basement comprises a beer cellar and storage. The tenant has recently undertaken a substantial refurbishment of the property.

There is a large beer garden to the front and rear of the property, as well as children’s outdoor play facilities.

The large site extends to 1.02 acres, including a large customer car park to the rear.


ACCOMMODATION

We have been provided with the following Gross Internal floor areas.

FLOOR USE SQ FT SQ M

Basement Storage 1,244 115.6

Ground Trade area 6,995 649.9

First Staff Accommodation 1,830 170.0

TOTAL 10,069 935.5

Recent refurbishment undertaken by the tenant


84.6m

86.4m

LB

FARREN ROAD

HIGHW

AY

HIPSWELL

1

1

14

16

Surgery

184

25

4

2

2

1

174

15

2a

2b

Shelter

Coventry Oak

9

28

86.9m

86.3m

86.6m

LB

ANSTY

ROAD

HOCKING

RO

169

208

PO

188

Wyken United Reformed

185

Pippin Gara

ge

2

198

179

23

(PH)

23b

23a

Church

Shelter

0m 10m 20m 30m

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TENURE

Freehold.

Large beer garden and outdoor play facilities



TENANCY

The property is let to Spirit Pub Company (Trent) Limited for a term of 25 years, from 04 July 2011, expiring 03 July 2036. This provides 16.7 years unexpired.

The current passing rent is £120,000 per annum. The rent is reviewed 5 yearly to open market rental value. The next rent review is 04 July 2021.

COVENANT

Spirit Pub Company (Trent) Limited forms part of the Spirit Pub Company which was acquired by Greene King Plc in 2015 for £774m.

Greene King Plc is the UK’s leading integrated pub retailer and brewer, operating 2,730 pubs, restaurants and hotels. The Company’s leading retail brands include Greene King Local Pubs, Chef & Brewer, Farmhouse Inns and Hungry Horse.

The Group also has a strong history of brewing award-winning ales for more than 200 years, with their leading ale portfolio including Greene King IPA, Old Speckled Hen, and Abbot Ale.

In August 2019, Greene King Plc agreed a sale of its entire business to CK Asset Holdings, a real estate group run by Hong Kong’s richest family. The deal values the business at an Enterprise Value of £4.6bn and reflects a 51% premium to the value at the announcement date. The Company remains listed on the London Stock Exchange within the FTSE 250 and has a Market Cap of c£2.63bn.

Greene King Plc are presently trading strongly overall with like-for-like sales up 2.9% as at April 2019 against the national pub company average of 0.8%.

Spirit Pub Company (Trent) Limited is a wholly owned subsidiary of Greene King Plc which has published the following financial information:

YEAR END 28 APRIL 2019 29 APRIL 2018 30 APRIL 2017

Total Revenue £2,216,900,000 £2,176,700,000 £2,216,500,000

Profit Before Tax £246,900,000 £243,000,000 £273,500,000

EBITDA £482,000,000 £486,600,000 £524,100,000

Net Assets £2,107,900,000 £2,073,100,000 £1,939,600,000

VAT

The property is elected for VAT. It is envisaged that the sale will be treated as a Transfer of a Going Concern (TOGC).

EPC

The Property is rated D83.


Disclaimer: ADS RE Ltd (ADS RE) on its own behalf and on behalf of the vendors / lessors of the properties whose agent ADS RE is, gives notice that:1 (a) All particulars provided are given as a general outline only for the guidance of the intending purchaser, lessee or tenant, and do not constitute in whole or in part, an offer of contract for sale or lease; (b) Whilst all particulars of properties given including but not limited to descriptions, dimensions, references to condition and necessary permissions for use and occupation and maps are believed to be correct and are given in good faith, they are however given without responsibility. None of the statements contained in these particulars as to the property are to be relied upon as statements or representations of fact; (c) The vendor / lessor does not make or give, and neither ADS RE nor any of its members or any person in its employment has any authority to make or give any representation or warranty whatsoever in relation to any properties. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor / lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor / lessor and a purchaser or tenant. 2 Prospective purchasers / lessees or tenants should not rely on any particulars provided and are strongly advised to; (a) Satisfy themselves by inspection or otherwise as to the correctness of each statement contained in these particulars; (b) Inspect the property and the neighbouring area; ensure that any items expressed to be included are available and in working order; (c) Arrange a full measured, structural (and where appropriate environmental) survey of the property; and (d) Carry out all necessary searches and enquiries. NOV 2019. Designed and produced by Creativeworld Tel: 01282 858200.

INVESTMENT CONSIDERATIONS

• Significant corner property with extensive road frontage.

• Extensive refurbishment recently undertaken by the tenant.

• Long unexpired lease term.• Let to a wholly owned subsidiary of Greene King Plc,

the UK’s largest brewer.• Future development potential.

PROPOSAL

We are instructed to seek offers in excess of £2,050,000, reflecting an attractive Net Initial Yield of 5.50%.

FURTHER INFORMATION

Anthony Sidoli020 3418 [email protected] ADS Real Estate Advisors6 Brook StreetLondonW1S 1BB

www.adsre.co.uk

Alex Gotham020 3418 [email protected]

secure long income leisure investment · location coventry is the second largest city in the west...

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