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.
The property comprises a modern three storey building constructed in 2002, providing leisure accommodation on the ground and two upper floors. The ground floor includes two popular bar/restaurant units as well as the entrance to the casino. The two upper floors
accommodate the casino on the first floor and staff/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.
A schedule of Accommodation and Tenancies can be found within the link below.
Grosvenor Casinos Limited (48% of income)
Grosvenor Casinos is the UK's largest multichannel casino operator, providing gaming and restaurant facilities for members at 52 casinos located in major towns and cities across the UK. It is owned by The Rank Group who operate exclusively in the casino, bingo and online gaming industries across Belgium, Spain and the UK. The Grosvenor Casinos Network currently employs 6,300 employees across the UK. The company currently has a Dun & Bradstreet rating of 5A2, an underlying turnover of £216M and a pre tax profit of £3.46M for the year ending 30 June 2019.
Stonegate Pub Company Limited (25% of income)
In 2016 Stonegate Pub Company acquired the Australian themed Walkabout brand for £39.5M, which has subsequently become 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 the cocktail and bar operator Be At One for c.£50M and 15 London bars from Novus Leisure for c.£30M, increasing the pubs portfolio which currently holds 770 pubs and bars. In July 2019, Stonegate announced its plans to acquire Ei's nationwide pub portfolio of over 4,000 pubs for £1.27bn. This acquisition would make the combined group Britain's largest pub company.
The unit has undergone a full refurbishment as part of a portfolio wide improvement strategy following a £595M refinancing facility.
Marston Estates Limited (27% of income)
Marston's Estates Limited is a wholly owned subsidiary of Marston's Plc. Marston's Plc is a FTSE 250 listed company and the UK's leading brewer of cask and bottled beers. Their estate extends to 1,400 pubs, restaurants and bars across the UK, employing c.14,000 people, with brands including Wychwood, Young's, Courage and Estrella Damm. Marston's Estates Limited has a Dun and Bradstreet Rating of 5A2 representing a lower than average risk of business failure.
The unit is underlet to San Shui Limited (t/a Sizz All), who have traded from the premises since 2008.
The property has been elected for VAT. It is anticipated that the sale will be treated as a Transfer of Going Concern (TOGC).
We are instructed to seek offers in excess of £5,450,000 (Five Million, Four Hundred and Fifty 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 8.00% and an attractive capital rate of £161 per sq ft, assuming purchaser's costs of 6.61%.