The Midland Grain Warehouse No 2 sits on a site extending to circa 1.054 acres and was constructed in 1850. The premises have been extensively refurbished inline with heritage requirements, listed building control and Travelodge brand standards to provide a 68 bed Travelodge with bar/cafe.
Location
Burton upon Trent is a large town straddling the River Trent in the east of Staffordshire. The economy of the town revolves around manufacturing, education, health, social services, retail and banking. It is situated approximately 10 miles south west of Derby, located on the A38/ A50 with junction 11 of the M42 located approximately 9 miles to the south east accessed via the A414. Rail services into London St Pancras and London Euston take between 2 hours and 2 hours 40 minutes.
East Midlands International Airport is located about 20 miles to the east of the town and Birmingham International Airport is 30 miles to the south. Major facilities include Burton Place, Cooper’s Square and The Octagon Shopping Centres, Centrum East and Middleway Retail Parks. The hotel is located at the heart of Burton upon Trent, adjacent to Burton upon Trent Railway Station and approximately half a mile from the town centre.
Accommodation
The opportunity includes revenue generated from the following areas:
Hotel - Travelodge - 68 Rooms -25 year lease from Sept 2012, subject to 5 yearly upward only rent reviews to RPI. - £235,280 PA (£3,460 per key)
Car Park - Excel Parking Services Ltd - 95 spaces - 10 year lease from Feb/March 2013. - £20,000 PA
Sandwich Shop - Craig Michael Yates - circa 350 sq ft - 5 year lease from Nov 2012, subject to upward only rent review in Nov 2015. - £4,000 PA
Ground Floor Offices - Vacant - circa 2,400 sq ft - Marketed at a rental of - £23,000 PA
Outbuildings/Offices - Vacant circa 600 sq ft - Marketed at a rental of - £8,000 PA
Total potential rental income upon letting the vacant accommodation - £290,280
Terms
Travelodge
Travelodge is the second largest branded budget hotel chain in the UK, operating from 470 hotels (some 34,678 rooms). It is the UK’s best known brand with 95% prompted brand awareness (BDRC Survey 2010). The company generated over 12 million customer visits over its estate during 2011.
Excel Parking Services Limited
Established in 1994, Excel provides a variety of car park management and control services. They have a strong brand and operate in various locations throughout the UK. They had a consolidated turnover of £10.31M and total assets valued at £7.325M in 2011.
Sandwich Shop
This is an established kiosk retail outlet operated by a local operator, Craig Michael Yates, on a 5 year lease from November 2012 which has continually occupied this site for at least the past 12 years.
Price
We are seeking offers in excess of £3,150,000 in respect of the Travelodge income equating to a net initial yield of 7%, after allowing for acquisition costs at 5.8%. With regards to the remaining income and potential income of £55,000 per annum, we are seeking an additional £520,000, equating to a net initial yield of 10%, after allowing for acquisition costs at 5.8%. Legal Costs Each party is to be responsible for their own legal costs incurred in this transaction.
VAT
Prices, outgoing and rentals are exclusive of VAT.
Viewing
Strictly by appointment only with the Sole Agent Savills.
Specification
- Located in the heart of Burton on Trent
- Grade II Listed, former Midlands Grain Warehouse
- Total potential income of £290,280 PA
- Travelodge lease 25 years, with effect from September 2012, subject to five yearly upward only rent reviews to RPI