Drake House, Derry's Cross

Plymouth PL1 2SW

Overview

  • Exceptionally prominent city centre leisure investment totalling 33,886 sq ft
  • Highly visible and modern building, constructed in 2002, located in the primary leisure pitch
  • Primary Retail Population of 458,000 (Source PROMIS)
  • Occupied by national and well-regarded brands including Grosvenor Casinos, Walkabout and Sizz All
  • Neighbouring occupiers include Travelodge, Revolution, Wildwood, Bella Italia, Wetherspoons and Theatre Royal
  • Total rent received of £463,905 per annum, reflecting £13.69 per sq ft overall
  • Attractive WAULT of 9.47 years to earliest determination
  • Immediate access to significant local car parking provision, including a 200 space car park to the rear of the property and the 612 space Theatre Royal multi-storey car park behind Derry's Cross
  • The surrounding area is undergoing a major transformation with a large number of commercial, student and residential developments under construction or recently completed
  • We are instructed to seek offers in excess of £5,800,000 (Five Million, Eight Hundred Thousand Pounds), for our client's freehold interest, subject to contract and exclusive of VAT.
  • A purchase at this level would reflect a Net Initial Yield of 7.50% and an attractive capital rate of £171 per sq ft, assuming purchaser's costs of 6.62%.

Location

Plymouth is the second largest city in the South West and is widely renowned for its maritime history and its association with being an international seaport. The city is situated approximately 45 miles south west of Exeter, 112 miles south west of Bristol and 220 miles south west of London. Plymouth city centre is located 2.8 miles to the south of the A38 Devon Expressway connecting the M5 at Exeter to the north east with Cornwall via the A390 and A30 arterial roads.

Plymouth is situated on the South Devon Main Line, a major route from London Paddington to Penzance, via the Great Western Main Line. Plymouth Railway Station is on the northern edge of the city centre, approximately a 15 minute walk from the property. The station is the second busiest interchange in Devon, providing a wide range of regular regional and Inter-City services operated by Great Western Rail (GWR) and CrossCountry.

Further information on Plymouth and its development potential can be found in the Marketing Brochure.

Situation

The property is prominently located in the city centre's main leisure pitch, on the south-western edge of Plymouth city centre, with frontage onto Derry's Cross roundabout.

All units are highly visible and benefit from footfall generated by the property's excellent position on a major thoroughfare from Union Street to the main city centre retailing provision, located directly to the north east. The property is adjacent to a number of national leisure occupiers in the neighbouring purpose-built Derry's Cross scheme, comprising 85,711 sq ft of leisure floorspace including a 96 bedroom Travelodge, The Gym, Bella Italia, Revolution Bar and Wildwood.

The property benefits from immediate access to significant local car parking provision, including a 200 space car park to the rear of the property, accessed via Derry's Cross. There are a further 612 spaces in the multi-storey car park adjacent to the Theatre Royal.

Local transport links are excellent with numerous local bus services available on Union Street, Derry's Cross and Royal Parade. Plymouth Railway Station is situated a 15 minute walk to the north.

Description

The property comprises a modern three storey building constructed in 2002, providing leisure accommodation on ground and two upper floors. The ground floor comprises two bar/restaurant units as well as the entrance to the casino. The two upper floors accommodate the casino on the first floor and staff and ancillary provision on the second floor.

The property is of steel frame construction which supports composite profiled metal and cast concrete floor and roof decks. Given the sloping nature of the site, ground floor areas to the rear are below ground level and are formed with a concrete retaining wall. Internally the units have been fitted out by the tenants to suit their occupational requirements, including a casino fit out at first floor and a restaurant and pub at ground floor. Servicing is via the rear of the property, accessed from Derry's Cross.

Tenure

Freehold.

Tenancy

A Tenancy Schedule can be viewed in the link below:


Covenant Information

Grosvenor Casinos Limited (48% of income)
Grosvenor Casinos is the UK's largest multi-channel casino operator, providing gaming and restaurant facilities for members. The company was established in 1970 and is a UK based chain of 52 casinos located in major towns and cities across the UK. It is owned by The Rank Group which operates exclusively in the casino, bingo and online gaming industries across Belgium, Spain and the UK. The Grosvenor Casinos Network currently employs over 6,300 employees across the UK. The Company currently has a Dun & Bradstreet rating of 5A1.

Intertain (Bars) Limited (25% of income)
Intertain (Bars) Limited operates large scale bars, most of which are focused on eating and sports viewing. 25 of the 30 bars operated under the Australian themed Walkabout brand were acquired by Stonegate Pub Company for £39.5M in 2016, one of the largest pub owners and operators in the UK with brands including Slug & Lettuce, Venues, Yates, Common Room, Classics Inns and Town Pub & Kitchen.

In July 2018, Stonegate Pub Company announced the acquisition of Be At One, the cocktail bar operator, for c.£50m and 15 London bars from Novus Leisure for c.£30m, increasing the portfolio to 739 pubs and bars, and underlying earnings of £125m.

We understand there are plans to undertake a full refurbishment of the unit as part of a portfolio wide improvement strategy following a £595m refinancing facility approved in March 2017.

Eldridge Pope & Co Limited (27% of income)
Eldridge Pope & Co Limited (52308) has a Dun & Bradstreet Rating of H-. Eldridge and Pope is a wholly owned subsidiary of Marston's plc, which has a market capitalisation of £633.5m and in the year ending 30 September 2017 reported a tax profit of £100.3m.

The unit is underlet to San Shui Limited (t/a Sizz All), who have traded from the premises since 2008 and did not exercise their break clause in 2018.

VAT

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

EPC

An Energy Performance Certificate is available upon request and provides a rating of D (90).

Dataroom

For access to the Allsop Marketing Data Room please use the following link: https://datarooms.allsop.co.uk/register/drakehouse

Proposal

We are instructed to seek offers in excess of £5,800,000 (Five Million, Eight Hundred Thousand Pounds), for our client's freehold interest, subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 7.50% and an attractive capital rate of £171 per sq ft, assuming purchaser's costs of 6.62%.

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NET INITIAL YIELD:
7.5%
PRICE:
£5,800,000
REGISTER INTEREST
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