hll humberts leisure international leisure business consulting

Transcription

sure
SPRING/SUMMER 2005
HLL HUMBERTS LEISURE INTERNATIONAL LEISURE BUSINESS CONSULTING
contents
NEWS
4
HEALTH AND
LEISURE CLUBS
12
GAMBLING
REFORMS
14
CONSULTING
DIVISION
15
GOLF
16
CARAVAN PARKS
18
HOTELS
20
PUBS
24
PLANNING POLICY
FOR RURAL AREAS
27
welcome
welcome
With the management buy-out of my Leisure Division in Humberts 14 years ago to form HLL Humberts Leisure, I still recall
astonishment at the impetus this gave to a - suddenly - unshackled group of chartered surveyors working in their specialist leisure
industry marketplace!
From that launch, backed by NM Rothchild venture capital money, I reflect now on our five well established UK offices, our high
performing Leisure and Media VCT fund with JO Hambro Capital Management, our associated offices in the Baltic States and our fast
growing Hotels and Leisure Property Business Consulting Division.
This "setting free" from a larger parent and a “can do” mentality still prevails.
As I reflect, over these years however, I do find the transformation of the business climate alarming. In the last seven years in the UK,
over 150 pieces of restrictive legislation have been hampering start ups and small businesses. This growing regulatory burden is
impeding business operation with new regulations costing firms an estimated £100billion a year – or 10% of GDP! A wake up call for
lighter regulation is overdue.
Happily, HLL Humberts Leisure’s core businesses prosper. Across the world, leisure and tourism becomes an increasingly important
element of many countries’ GDP. At last count we were working in the UK and 14 overseas countries on hotel and leisure property
valuations and business plans.
HLL’s strong business consulting and transactional skills provide shrewd solutions to the complex problems of new mixed use hotel and
leisure development projects.
We act for an enviable list of blue-chip corporate and private clients on a series of landmark property based businesses and corporate
undertakings.
HLL’s skills uniquely span all ten leisure/land use sectors of the leisure market. I like to think that we continue to stretch the
professional boundaries with the same fleetness of foot as in those early days of our buyout.
I hope that you will enjoy this latest Bulletin. Please do visit our website to see more on: www.humberts-leisure.com.
N E C TALBOT-PONSONBY
Executive Chairman
2 | 3 HLL HUMBERTS LEISURE
news
Links Country Park
Leisure & Media VCT
Brodie’s Bars
Caribbean Paradise
Tottenham House
Riverside Quarter
Wandsworth
Baltic Connection
news
Conference Centre
Survey
Bond Forges Ahead
Town Centre Planning
Success
They Love UK
Hotel Site Opportunity
Leisure & Media VCT plc
Following the success of Leisure & Media VCT Plc, up to a further £5 million is being raised for
additional investment.
The VCT has a strongly performing and diversified portfolio. Current leisure investments are in
Balance Leisure Limited (health and fitness), the Bar Group Limited (pubs), Brodie & Knight
Limited (pubs), XN Checkout Holdings Plc. (EPOS systems), Nu Nu Plc. (children’s nurseries),
Lindley Catering Limited (football and other catering), Odyssey Group Holdings Limited (health
and fitness), Reformed Spirits Company (Gin), Tomahawk Pubs (pubs) and Top Ten Holdings Plc.
(Bingo). Current media investments are in Cross Border Publishing Limited (financial publications)
and Audio Network Plc. (a music catalogue library).
HLL Humberts Leisure is continuing its role as leisure consultant to the VCT. Further funds are now
being raised in order to give investors an opportunity to take advantage of the unrivalled tax
benefits available for subscriptions in VCT shares and to enable the company to take advantage of
the investment opportunities that are arising.
In particular, and following the Finance Act 2004, investors are now entitled to income tax relief
of up to 40% of the amount subscribed and any dividend or capital distributions of the fund are
also tax free.
The offer is open to members of the public (min subscription £3,000) until April 2005 (unless fully
subscribed prior to that date) and if you would like to receive a Prospectus please do not hesitate
to contact:
Gavin Brent BSC
MRICS
| london: 020 7629 6700 | e-mail: [email protected]
Brodie’s Bars
43 FISHERMAN’S WALK, CANARY WHARF,
LONDON E14
ROSE STREET, PATERNOSTER SQUARE,
ST PAUL’S, LONDON EC4
FOR SALE
Links Country Park Hotel &
Golf Club, Cromer, Norfolk
HLL Humberts Leisure is selling Norfolk’s longest established golf, leisure and conference hotel
for the Abbott family having sold it to them approximately 7 years ago.
Over the intervening period the Abbotts have substantially improved the property which now
comprises 49 letting bedrooms (6 spacious suites), extensive conferencing facilities, indoor
heated swimming pool, and a delightful 9 hole links golf course with panoramic views over this
unspoilt coastline. The hotel and golf course has a considerable published history, and is an
excellent all year round business that is entirely run under management. Offers are invited in
the region of £3.5 million.
Peter Sandes FIBA | winchester: 01962 835960 | e-mail: [email protected]
Following the restructuring of Brodie’s in
2004, we are pleased to report strong trading
at both the Brodie’s bars. Both experienced
good Christmas trade despite increased
competition, especially at Paternoster Square.
Paternoster Square was recently reported in
the Restaurant Magazine to have one of the
best restaurant views in London, overlooking
St. Paul’s Cathedral. Brodie’s Canary Wharf
was extensively refurbished just after
Christmas and has enjoyed a much improved
lunchtime trade since these works were
undertaken. The refurbishment also
considerably improves the facilities for their
late (until 12 midnight) music and dancing
licence on Thursday and Friday evenings.
HLL Humberts Leisure continued its support
for Brodie’s by having its 2004 Christmas
party at the Paternoster unit, no doubt
contributing to its best week of the year!
Gavin Brent BSC MRICS | london: 020 7629 6700
e-mail: [email protected]
news
BEAUTIFUL CARIBBEAN VILLA AND
RESTAURANT COLLECTION FOR SALE
OFFERS IN EXCESS OF £3.1m MILLION
HLL Humberts Leisure has been instructed to sell a portfolio of 3 purpose built beach villas, and renowned
nearby restaurant business that also includes 4 further letting suites. The beach villas were built at the end of 1990’s
to an outstanding Caribbean style specification and all have 3 double bedrooms, and spacious reception rooms opening onto
private terraces/patios with swimming pools. The palm fringed golden beach is a mere 50 metres away. Equally, the
restaurant is to a fabulous standard with dining for approximately 120 covers on 2 levels with views out over the Caribbean,
and has a reputation as being the best dining venue on the Island of Tobago.
Peter Sandes quotes “this is a quite exceptional opportunity for a UK hotel or leisure operator to acquire an exotic destination
business to complement their portfolio, or alternatively a high net worth investor seeking a ready made alternative “lifestyle”
business. Additionally, the owner has a beautiful private plantation house with guest chalet and swimming pool overlooking the
Mount Irvine Golf Club which is available by separate negotiation with a price guide of £550,000.”
Bag a Berth at
Wandsworth’s
Riverside Quarter
HLL Humberts Leisure is currently offering 12 prime residential
moorings for sale on 60 year licences on the River Thames at
Wandsworth. The development forms part of a major mixed
development scheme being carried out by LCR Developments and
FairBriar which combines a new waterside community of over 400
homes, including commercial and leisure space, comprising
waterfront restaurants, specialist shops and offices.
John Mitchell BSc MRICS, handling the sale at HLL Humberts Leisure,
believes that the residential moorings at Riverside Quarter are a
virtually unique opportunity in today’s market, to be a part of a new
waterside community where the developers seek to create a
contemporary hamlet on water, with best quality modern houseboat
design, to complement the outstanding land based development. As
a result, keen interest has already been expressed in these moorings
and the opportunity they represent to create living space on water
close to the heart of the capital. The guide price for the moorings
has been set at £6,000-£7,500 per linear metre and expressions of
interest are being sought.
John Mitchell BSC MRICS | london: 020 7629 6700
| e-mail: [email protected]
international
partnership of
importance
HLL HUMBERTS LEISURE
FORGES CLOSE LINKS IN THE
NEW EMERGING MARKETS
The dignified renaissance
of Tottenham House
Tottenham House in Savernake Forest near Marlborough stands in a Capability Brown landscape
that is on a scale comparable to Stowe Gardens. A century ago the deer park was 16 miles in
circumference, larger even than Windsor Great Park. Now plans to transform the house into a
£70 million resort hotel, a “Gleneagles of the South”, have been submitted.
Tottenham’s glorious Regency interiors contain sumptuous plaster ceilings that look like crisply cut
marble, while the ballroom was, indeed, inlaid with the finest Italian marble executed by Italian
master craftsmen.
The Earl of Cardigan, son of the 8th Marquess of Ailesbury, whose trustees own the house and is
warden of Savernake Forest, says “I have spent more than ten years looking for a hotel company
which will restore the place without ruining it with unsuitable alterations and additions.” He has
offered a 150-year lease to the Buena Vista Hospitality Group, a company running large resort
hotels in Florida. If planning permission is granted they will create a golf resort and conference
centre with 148 guest suites. A new 18-hole golf course, designed by Peter Alliss, will be laid out
in former parkland to the south of the house.
HLL Humberts Leisure, is pleased to announce
that the firm is entering into association with
Re&Solution International, the leading regional
provider of integrated real estate and investment
services in the Baltic States.
Re&Solution, with headquarters in Vilnius, the
capital of Lithuania, has over 8 years experience
of providing a wide range of property
investment, transaction and management
services to a diversified client base that includes
retail chains, international corporations, financial
and governmental institutions and high net
worth individuals in the emerging markets of
Lithuania, Latvia, Estonia, as well as Poland, the
Ukraine and Belarus.
Already, HLL Humberts Leisure and Re&Solution
are working together on a number of major
projects and Executive Chairman of HLL
Humberts Leisure, Nigel Talbot-Ponsonby FRICS,
comments: “We are delighted to be involved
with such an established firm as Re&Solution,
and especially one that has the vision and
expertise to capitalise on the enormous
prospects ahead in this region.”
A launch party to celebrate the formation of this
exciting new partnership is proposed at Her
Majesty’s British Embassy in Vilnius soon.
Lord Cardigan says emphatically: “Not a brick of the new additions will be visible from the main
house or the park”.
The conversion offers new hope for many grand houses that have been taken over as institutions,
allowing them to stand proud once again.
HLL Humberts Leisure advised The Trustees on the disposal of Tottenham House.
Nigel Talbot-Ponsonby FRICS | london: 020 7629 6700 | e-mail: [email protected]
Andrew Bates MRICS | winchester: 01962 835960 | e-mail: [email protected]
Acknowledgement to Marcus Binney/Times Newspapers Ltd
Nigel Talbot-Ponsonby FRICS
| london: 020 7629 6700
Tim Smith BSC (HONS) MRICS
| london: 020 7629 6700
news
UK
Residential
Conference
Centre
Survey
Launched
THE BOND FORGES AHEAD
EST
1983
HLL Humberts Leisure were commissioned by
the Conference Centres of Excellence (CCE)
consortium and the UK chapter of
International Association of Conference
Centres (IACC) to undertake a survey of the
financial performance trends of their
members. Many of the UK’s leading
residential conference centres participated in
the survey, including Hitchin Priory which is
pictured above.
Despite difficult market conditions the
surveyed conference centres were able to
increase bedroom occupancy levels marginally
in 2003 to around 43%. This represented an
increase of 10% in bedrooms sold over 2002.
Venue managers were able to maintain
occupancy levels by seeking other sources of
business away from the traditional
‘conference/meeting’ segment.
Total revenues suffered a small decline,
reflecting the increased pressure on rates by
conference buyers but the centres were able
to contain operating costs. Profit levels in
2003 were, however, almost on a par with
2002. In order to support operating
efficiencies some centres were closed when
no business was booked, meaning that on
average the venues were open for business
for an average of 356 days.
The results of the survey showed that the
UK’s leading residential conference centres
have clearly been holding their own in what
has been challenging times for the national
and international conference markets.
Despite relatively low occupancy levels, the
centres are operated efficiently and this
should offer a sound base to improve on
profitability levels as long as demand levels
increase this year.
The full survey is available at a cost of £100
(plus Vat).
Bridget Baker DMS FBHA
| brighton: 01273 325911
The Holiday Property Bond (HPB) goes from strength to strength and in the last twelve months
HLL Humberts Leisure has assisted them in the acquisition of two new overseas venues - in Turkey
and in Almeria, Spain. We have also re-valued their site at Encosta Cabo Girao on Madeira.
Building works started on site in Madeira in September 2004 and are expected to be finished by the
summer of 2006. This stunning site which extends to 9 hectares is topographically in the form of a
natural amphitheatre and next to Cabo Giroa which at 580m is reputedly the highest cliff-face in
Europe and second highest in the World.
When completed, the resort will provide 119 units comprising a mixture of studios, apartments, and
villas. Resort amenities will include a clubhouse, bar and restaurant and mini-market, together with
swimming pools, tennis courts and bowling green.
In August 2004, HPB was offered the opportunity to purchase Physcos Villas located on the edge of
Turunc on the Aegean coast of Turkey. Another beautiful venue, the site has an imposing backdrop
of mountains and is about ten minutes walk from the sea.
HLL Humberts Leisure was pleased to join HPB’s team in initially investigating this opportunity and
subsequently recommending purchase of the development. During this process, the team recognised
the potential for a larger resort and identified additional land which might enable expansion. We are
delighted to learn that HPB have acquired two adjoining fields and propose to construct 34
apartments together with a large swimming pool on this land.
HLL Humberts Leisure provided the valuation of Los Banos del Alfaix to assist in the acquisition process
of this site which saw contracts exchanged in July 2004. Alfaix is a small village located in the region
of Almeria, to the north of the renowned Costa del Sol in Spain.
HPB have submitted a planning application for the construction of a resort to include 105 units of
accommodation together with a clubhouse, bar and restaurant, tennis courts and swimming pools.
These exciting new developments will provide Bondholders with the high quality locations and
facilities which have become the watchword for HPB over the years. We look forward to continuing
to assist HPB with their dynamic expansion plans.
Peter Haigh BSC FRICS | london: 020 7629 6700 | e-mail: [email protected]
PLANNING
SUCCESS
FOR TOWN
CENTRE
SCHEME IN
TUNBRIDGE
WELLS
Mixed use schemes in town centres are the flavour of the month,
and generally meet with considerable local authority support.
Therefore a proposal by the GLN Development Group to replace an
unattractive redundant cinema and parades of shops with a
landmark mixed use scheme in the centre of Tunbridge Wells,
designed by Reid Architecture, might have been expected to receive
a very favourable response from the planners. However in this case
the local authority wanted the project to incorporate a new cinema,
despite the presence of a new multiplex serving the town and the
lack of commercially realistic demand.
During the lengthy planning inquiry which followed, evidence was
called from architects, planners, quantity surveyors and other
specialists to test the scheme against planning policies. John
Anderson of HLL Humberts Leisure gave valuation evidence to show
that the cinema option was less attractive than even the current
planning consents, and therefore would never be built, losing an
opportunity to enhance the visual amenity of a strategic site and
provide much needed retail, leisure and residential units in the heart
of the town.
The appeal was successful & consent was granted in December 2004.
John G Anderson BSC FRICS | skipton: 01756 799271
e-mail: [email protected]
DESTINATION LEISURE Solstice Park
FOR SCANDINAVIA
Development
Site Sold
Close Stonehenge.
A303. Wiltshire.
One of the lessons learnt from involvement in major leisure-led schemes is that the
period of gestation can be very long. Developers and their advisers need great
patience and have to show creativity and steely perseverance.
One such mega scheme, a 100,000 m2 proposal on the outskirts of the stylish Danish
capital Copenhagen, has been long in the making, mainly because the developers
London & Copenhagen Leisure A/S are keen to satisfy the local authority’s aspiration
for the site to accommodate an international covered arena. However last year heads
of terms for the arena were signed with the premier Danish sporting company
Brondby A/F, listed on the Copenhagen stock exchange, who are looking to diversify
into the broader entertainment world. Negotiations are now proceeding to agree
lease terms, and finalise the building’s specification.
In parallel, a UK based designer outlet centre operator is in the final stages of agreeing
spatial requirements with the masterplanning architects. Negotiations are also
proceeding with a European consortium keen to integrate a snow-based leisure
attraction into the project, which is now destined to become Denmark’s leading
entertainment destination.
John G Anderson BSC FRICS | skipton: 01756 799271
Peter Sandes of HLL acting on behalf of the Amesbury
Property Company reports the successful sale of the Solstice
Park Hotel site, that fronts the new 160 acre Solstice Park
business park on the A303, and immediately on the outskirts
of Amesbury. Stonehenge is a mere 2 miles away. The buyer,
represented by surveyors Atisreal, comprises a syndicate of
offshore investors who will operate the new hotel under a
subsidiary - Armani Hotels Ltd - who also operate the Atlantic
Hotel at Chelmsford in Essex. Whilst there is planning for 149
bedrooms, 100 will be developed in phase 1, and the hotel
construction is due to commence in August.
Peter Sandes FIBA | winchester: 01962 835960
news
THEY
❤UK
Tourist numbers soar to record high
More than 26 million overseas visitors came to Britain
last year, making 2004 a record year for inbound
tourism, according to VisitBritain, the government funded
tourism marketing body.
HOW NUMBERS OF VISITORS COMPARES TO
EXPENDITURE
millions
£ billions
26.5
12.8
26.0
12.6
25.5
12.4
25.0
12.2
24.5
12.0
24.0
11.8
VISITORS
(left scale)
23.5
11.6
EXPENDITURE
(right scale)
23.0
11.4
22.5
1995
WHY GORDON BROWN NEEDS TOURISM
11.2
96
97
98
99
00
01
02
03
04
UK TOURISM EARNINGS IN 2002
• Contributes more than 4% of GDP; one of UK’s
biggest earners
Day trips
£34.1bn
UK residents overnight stays
£26.7bn
• Annual turnover is £76bn
Inbound
£11.7bn
• 2.1m people - over 7% of working population work in tourism sector
Fares to carriers
£3.1bn
Total
£75.6bn
OVERSEAS VISITORS TO UK - PERCENTAGE CHANGE JAN-AUG 2003/2004
+34%
WORLD TOTAL
+13%
+29% +29%
+25%
+24%
+21%
+17%
+15%
+16%
+15%
+12%
+8%
+5%
As
ia
SE
Ja
pa
n
As
ia Re
Pa st
cif of
ic
Acknowledgement to Times Newspapers Ltd. Sources: Visit Britain/Government Statistics/DCMS
-2%
R
Eu est
r
M opeof
id
dl
e
Ea
st
s.
Af
ric
a
Sw
Finede
la n/
nd
Au
st
ria
De
nm
ar
k
No
rw
ay
Sp
ai
n
Eu
ro
pe
E.
Ita
ly
Ge
rm
an
y
Be
lg
iu
m
Fr
an
ce
Ca
na
da
US
+2%
Au
st
ra
lia
+13%
+24% +24%
+21%
HOTEL SITE OPPORTUNITY
BOX END, BEDFORD
Detailed planning consent for a 5,550 sq metre full service hotel to
comprise 64 letting bedrooms, bar, dining and function space, and
leisure (indoor pool, squash and tennis courts). Generous 6.25 acre
site close to business/distribution parks, and large modern executive
housing estates. Massive international water sports park under
construction to the rear of the hotel site.
A feasability study by HLL Humberts Leisure indicates promising
prospects for hotel development.
Offers are invited for the freehold
Peter Sandes FIBA | winchester: 01962 835960
RATING REVALUATION 2005 SHIPSHAPE
LATEST NEWS FOR ENGLAND AND WALES
New rateable values will become effective for all non-domestic property in England & Wales on 1 April
2005. At the time of writing there are still some details to be ironed out, but here are the main points:
1. The rate poundage multiplier for most properties in England will be 42.2p in the £; for all properties
in Wales it is 42.1p.
2. Smaller properties in England (i.e. those with a new RV of less than £21,500 in Greater London, or
£15,000 elsewhere) will pay a small business multiplier of 41.5p in the £.
3. Properties in England with a new RV of less than £10,000 will, subject to certain criteria, benefit from
a new Small Business Rate Relief (SBRR) which is given on a sliding scale. Those with an RV of £5,000
or less will receive the maximum 50% relief.
4. There is no scheme of transitional adjustments in Wales, nor (at the time of writing) any SBRR – from
1 April 2005 all properties in the Principality will pay the new RV x 42.1p.
5. In England there will be a transitional scheme to phase in any large increase or reduction in liability
which results from the revaluation. The maximum increase in 2005/6 will be about 16% for standard
properties (8% for smaller properties – see above). The maximum reduction for the year will be just
under 10% for standard properties (about 27% for smaller).
6. Transitional adjustments are phased out over a four year period, so all occupiers will pay the full
liability in 2009/10.
YORK TOURIST
BOAT BUSINESS
SOLD
Arguably one of York’s most colourful landmarks
and most successful tourism businesses,
YorkBoat, has recently been sold by HLL
Humberts Leisure to Manchester-based
investment company, Zeus Capital. The guide
price was £2m.
Regulations covering the process by which appeals can be lodged are still in the consultation phase at
the time of writing. However it is expected that the previous deadlines for submitting appeals will be
lifted, although other new requirements and limitations on appeals will be implemented.
HLL Humberts Leisure provides a comprehensive rating consultancy service for all types of leisure property.
Martin Reed FRICS | brighton: 01273 325911 | e-mail: [email protected]
AMBERLEY
CASTLE
AMBERLEY. NR ARUNDEL. WEST SUSSEX
YorkBoat represents one of the largest fleets of
modern sightseeing, restaurant and party boats
outside London and is the principal provider of
river cruises on the Ouse in the vibrant City of York.
The award-winning business, under the ownership
of John & Denise Howard since 1989, has
continued to prosper and capitalise on the
growing popularity of York as one of the country’s
top tourist destinations.
Famous castle hotel valued Autumn 2004,
on behalf of proprietors Martin & Joy Cummings, to assist in group expansion.
Zeus Capital’s Ian Currie said that he intended to
build on the Howards’ success and added:
“YorkBoat presents an exciting opportunity for us
to develop our tourism interests in York.”
Richard Baldwin BSC (HONS) MRICS
| skipton: 01756 799271
sports, health & fitness sectors
:Sports
:Health
:Fitness
HLL Humberts Leisure continues its
leading advisory role within the sports,
health and fitness sectors.
Our recent activity in the health and
fitness sector speaks for itself and
includes the following»
VALUATIONS
VALUED
We continue to carry out regular valuations of this type of property for a variety of
reasons. One of the most high profile valuation exercises we have undertaken has
been in relation to Stax Leisure’s Amida Clubs at Twickenham and Beckenham. These
two substantial and extremely successful clubs each have around 7,000 members and
the Twickenham Club has only been open for around a year! We are pleased to report
that the Amida Club in Beckenham received the Fitness Industry Association’s Award for
the best club in the country in 2004.
SOLD
SALES
We are delighted to announce completion of the sale of Odyssey Clubs Group in December
2004. The sale involved two quality freehold health and fitness clubs, one located in
Knebworth and the other in Wooburn Green. The clubs have a combined membership of
just under 7,500 and provide significant opportunity for further development and
improvement by the new owners. The purchasers are a syndicate of private investors led
by Jamie Constable and Peter Ward. HLL Humberts Leisure acted for the vendors.
INVESTMENT & OTHER OPPORTUNITIES
FOR SALE
HLL Humberts Leisure has several existing health and fitness clubs for sale, some of which
are being offered confidentially to the market. One such example is a substantial and quality
long leasehold club with around 3,000 members situated in the Home Counties. More
details can be made available upon signing a confidentiality agreement. (see opposite)
Also in December 2004, HLL Humberts Leisure completed the sale and lease of Henley
Recreation and Health Club to LA Fitness. The new 35 year FRI Lease is guaranteed by
LA Fitness Plc. HLL Humberts Leisure, acting on behalf of the vendor, identified LA
Fitness and negotiated the sale and lease. It is likely to be offering the investment for
sale early in 2005.
FEASIBILITY STUDIES
VALUATION & FEASIBILITY
Through our enlarged Consultancy Division, various feasibility studies have been
undertaken by us of proposed developments in the sector. One of the most recent of
these has been in respect of Clarice Leisure Plc., a client of ours who has developed
two successful spa and health and fitness clubs in East Anglia and who has identified a
further site to develop for this purpose whilst retaining an element of the social
functions of the property. We have provided previous valuation advice in respect of
both of Clarice’s existing successful operations and hope that a new addition will enable
the company to enjoy further success.
PUBLIC SECTOR INVOLVEMENT
MANAGEMENT CONTRACT/LEASE
In recent years, public sector facilities have increased in popularity and have moved
towards providing a more competitive offering to the private market. HLL Humberts
Leisure has been extensively involved in offering three Northampton Borough Council
leisure centres to the private market on a management contract or lease basis. We are
pleased to report significant interest in this opportunity from the private sector and
hope that agreement will be reached in early 2005 in respect of one of the short listed
options identified.
SPORTS GROUNDS
UNDER OFFER
In addition to our extensive involvement in the health and fitness sector, HLL
Humberts Leisure continues to be extremely active in the sports ground market.
In particular, we are pleased to report the continued ability of sports grounds in
the Greater London area to achieve significant rate per acre realisation levels as
per Chislehurst Sports and Country Club, opposite, which is currently under offer.
Please note that the sports and health and fitness sector is a rapidly changing market. To the best of our knowledge, the information contained herein is correct
at the time of writing (February 2005) but may have changed by the time you read this bulletin.
Gavin Brent BSC
MRICS
| london: 020 7629 6700 | e-mail: [email protected]
gambling reform
WHO WILL PLACE
THEIR BETS NOW?
IS THIS THE LAST THROW OF THE DICE FOR THE GAMBLING BILL?
In our last bulletin we reported on the
apparently widespread acceptance that the
gaming landscape in the UK would change
dramatically, with a large number of new
casinos being opened and a resultant
challenge to other leisure businesses for
consumers’ disposable income.
What a change a media campaign can
produce! The Government found itself
backtracking fast, placing the industry in an
uncertain future, by promising to limit the
increase in the number of casinos to just 24,
with only 8 of these to be the large regional
models. Not only are the American operators
unhappy - the JV between Gala and Harrah’s
has already been disbanded - but the UK
industry is severely concerned by the
proposed limit on slot machines in the smaller
units, which may disadvantage the indigenous
operators.
The problem the Government has now landed
itself with is how to decide where the 8 new
regional casinos should go. Should favour be
shown to the traditional seaside locations
such as Blackpool, or to city regeneration
schemes such as the 3 proposals in Sheffield,
or to national tourism hotspots such as in
London? Whichever locations win, the losers
will feel sorely done by, and some no doubt
with a measure of good reason.
But there may well be a silver lining to this
cloud (that is if you consider the change to be
a cloud). The structural impact of the original
proposals might well have been severely
damaging for some other leisure sectors. It is
likely that the immense and rapid investment
which was envisaged, largely backed by US
operators, would have had an unpleasant
knock-on effect on some other players. It was
unlikely to have been a win win scenario.
With a general election looming, raising the
spectre of further policy changes being forced
out on the hustings, no one can be sure of the
final result.
John Anderson BSC FRICS | skipton: 01756 799271 | e-mail: [email protected]
consulting division
premier league
A PREMIER LEAGUE TEAM JOINS THE CONSULTING DIVISION
The consulting division is continuing its rapid growth with the addition of an
international, experienced team from TRI Hospitality Consulting. The team consists of
Peter Gee, Michala Holm and Adela Cristea.
Peter Gee
MA (CANTAB) FCA
Michala Holm
MSC
Adela Cristea
Peter has spent 20 years in the hospitality sector and has developed over 100 hotels for both
Holiday Inns Inc, and Hilton International, from Bombay in the East to Guauaquil in the West,
from Iceland in the North to Durban in the South. He is a chartered accountant and a
graduate of Cambridge University and Harvard Business School.
BA ECON MBA
Michala is originally from Denmark and has spent 10 years in the hospitality and consultancy
sectors. She studied hotel management at Les Roches Crans-Montana, Valais, Switzerland
and has a Masters degree in Tourism Planning and Development from Surrey University. She
is also a graduate of Harvard Business School.
Adela Cristea was born in Romania and learnt Russian as a second language. She studied
Economics at Bucharest University and obtained an MBA in London.
The team has worked, in addition to the UK, in a diverse range of countries including the
Turks & Caicos Islands,, Haiti, Ecuador, Morocco, Thailand, Vietnam, Abu Dhabi, Cyprus,
Greece, Romania, Russia, India, Estonia, Latvia, Libya, Lithuania, Italy, Germany and Spain.
LOWER MILL
“eco-chic” destination resort in the Cotswolds
As well as market-led feasibility and market studies and financial due diligence, the team
has developed special experience in business planning for mixed use developments with
the objective of achieving optimum profitability for the scheme.
Recent developments on which the team has been involved include:
The Beach at Carlyon Bay, Cornwall, The White House in St Austell, Cornwall, Snowdonia
Gateway in Gwynedd, Wales, Little Morocco in Marrakech, Ha Potami in Cyprus, Governor’s
Beach in the Turks & Caicos Islands and a major leisure development in Moscow.
Amongst the facilities included in these schemes are:Hotels, golf courses, real estate for sale and rent, timeshare, health and fitness, spas, ski
slopes, water parks, aquaria, heritage museums, beach clubs, retail and commercial units,
food and beverage outlets and attractions such as turtle sanctuaries.
Their area of special expertise is the development of creative financing structures for real
estate. Recent examples include “Live and Let” in Cornwall and “GuestInvest” in London.
THE WHITE HOUSE
Destination resort outside St Austell, Cornwall
They are currently involved in a number of unitisation schemes in the UK and abroad.
The team joins a thriving consultancy division with bases in Brighton and Skipton.
TURKS AND CAICOS Mixed use up market
development on Grand Turk
The sequence of integrated services starts with
the new team and includes:• market led business planning and financial
• projections and financial structuring;
• the introduction of suitable financial partners
• valuations
• debt financing
• operator selection
• planning
• property transactions
• the sale of leisure homes
The benefits that the team
brings are enormous and will
enable HLL Humberts Leisure to
offer the most comprehensive
range of services of any
professional firm in the UK.
The division is already working
in the Caribbean, Morocco,
Cyprus and the Baltic States and
is looking forward to providing
an unrivalled service for its
property development clients.
Peter Gee MA (CANTAB) FCA | london: 020 7629 6700 | e-mail: [email protected]
Michala Holm MSC | london: 020 7629 6700 | e-mail: [email protected]
Adela Cristea BA ECON MBA | london: 020 7629 6700 | e-mail: [email protected]
golf
The 2004 golf
market: amazing
success for the
HLL golf team
The HLL Humberts Leisure golf team enjoyed huge success in the golf market during 2004. In a
typical year between 20 - 30 golf courses change hands in the market nationally. HLL Humberts
Leisure handled 20 instructions in 2004 - a record for the Company!
2004 saw large scale changes in the golf market, which included:
The UK’s largest golf operator - American Golf UK Ltd - was put up for sale by its American parent company. Close Brothers offered the company
for sale and the portfolio of 23 courses has been sold to Crown Sports. HLL Humberts Leisure handled the American Golf portfolio valuation in 2002
when the American parent company was acquired by Goldman Sachs & Starwood.
Clubhaus refinanced and re-branded to Club Company Ltd during the year and continues to trade its portfolio of golf and health club operations.
Glendale Golf Ltd emerged during 2004 as a new and dynamic force in the market, focussing on acquiring leasehold pay and play businesses,
principally in the municipal golf sector. HLL Humberts Leisure let two courses to Glendale Golf through the year, Tilgate Forest Golf Course, Sussex,
Castle Point Golf Course, Canvey Island, plus a short term management contract over Richmond Park Golf Course, London.
Jack Barker’s Golf Company also continued its expansion during 2004. HLL Humberts Leisure let Risebridge Golf Centre, Essex to the Company in
November 2004. This acquisition increases Jack Barker’s portfolio to 10 courses, the great majority of which are in the pay and play sector.
HLL HUMBERTS LEISURE CONTINUES TO DOMINATE THE MARKET FOR LEASING MUNICIPAL GOLF COURSES. TO DATE WE HAVE LET THE FOLLOWING
COURSES ON BEHALF OF LOCAL AUTHORITY CLIENTS:
The Royal Parks Agency
Richmond Park Golf Course
Management contract
Castle Point Borough Council
Castle Point Borough Council
Let
Crawley Borough Council
Tilgate Forest Golf Centre
Let
London Borough of Havering
Risebridge Golf Centre
Let
Northampton Borough Council
Delapre Golf Centre
Let
London Borough of Redbridge
Hainault Forest Golf Centre
Let
Portsmouth City Council
Portsmouth Golf Course
Let
London Borough of Hounslow
Hounslow Heath Golf Course
Bidder shortlist identified
Four of these transactions occurred during 2004. We anticipate that the trend of externalising the management of public sector golf facilities will
continue into 2005. Proprietary golf facilities also come to the market periodically on a leasehold basis. HLL Humberts Leisure let Worldham Park
Golf Course, Hampshire to Luddington Investments Ltd in December 2004.
2004 saw HLL Humberts Leisure complete the sale of a number of proprietary golf courses, many of which were completed on an off market basis.
Our successes included Richings Park Golf Club, Buckinghamshire and North Weald Golf Club, Essex. The demand for proprietary golf clubs remains
high, with new entrants to the market and regional operators expressing particular interest in well located businesses that are offered for sale at
a level that reflects their historic or future trading potential.
HLL Humberts Leisure’s professional team remained heavily involved in the golf sector throughout 2004 undertaking valuations, rent reviews and
specialist advice for litigation purposes. For further information on the services that we offer, please visit www.humberts-leisure.com
If you are currently considering letting or selling your golf business, or require valuation, rent review or rating advice, please contact Ben Allen
BSc (Hons) MRICS, Martin Brister FRICS or Nigel Talbot-Ponsonby FRICS for confidential, professional advice from our Winchester or London offices.
Ben Allen BSC (HONS) MRICS | winchester: 01962 835960 | e-mail: [email protected]
Martin Brister FRICS | winchester: 01962 835960 | e-mail: [email protected]
caravan parks
CARAVAN PARKS
A FINANCIAL
REPUTATION
COMES OF AGE
A feature of the investment market over the
last few years has been a growing appetite
amongst financial institutions to buy equity
in holiday park companies. The high profile
acquisition of the Haven portfolio by Bourne
from Rank plc, with the participation of L & G
Ventures, appears to have galvanised the
view of the sector as offering excellent
income flows combining secure “rental”
income and a strong “retail” element on top.
Unlike many leisure sectors that ebb and
flow, the caravan park industry has shown
great resilience, partly on account of a
planning regime which makes it virtually
impossible to create substantial new
competition within the market.
HIGH-LEVEL
ACTIVITY IN
THE CARAVAN
PARK SECTOR
WESTSTAR HOLIDAYS
In the summer of 2004 HLL Humberts Leisure
were instructed by RBS Ventures, owners of
GB Holiday Parks, to value their portfolio of
19 parks as part of the vendor’s due
diligence being assembled by the
investment bank UBS. The sale process
attracted very wide interest and a deal was
finalised with the Dutch Bank ABN Amro at a
figure reported to have been £105 million.
The purchaser then went straight back into
the market to acquire Park Resorts from
Close Brothers, in a deal which is believed to
have valued the company at £165 million.
No sooner was the ink dry on the GB deal
than we received a request from Phoenix
Equity Partners to assist them in their due
diligence on the Weststar Parks portfolio.
After winning exclusivity just before Christmas
the team (including corporate finance
advisers Livingstone Guarantee and lawyers
Travers Smith Braithwaite) were involved in
detailed analysis of the parks during January,
leading to a deal finalised on February 16th.
In a letter to HLL’s project director John
Anderson, Andrew Deakin of Phoenix wrote “I
wanted to thank you for your hard work over
the last few weeks. I thoroughly enjoyed
working with you on this project and really
appreciated all the work you and your team
have done which was key to getting us to the
finishing line”.
Winter 2004/5 has seen
considerable market activity,
particularly in the corporate
holiday sector where a
number of notable
transactions have now
taken place»
Firstly in October, Parkdean plc purchased five parks
(2000 + pitches) from the largest operator in the
market, Bourne Leisure Ltd in a deal worth £41.75
million. Then in November 2005, NatWest Ventures
sold their interest in GB Holiday Parks to ABN Amro (see
inset article on previous page).
In many respects the GB Holiday Parks deal was seen
to be ground-breaking, and others with a major stake
in the industry promptly reviewed their position,
leading ABN Amro to announce on 23 December that
they were taking a major shareholding in Park
Resorts to create an overall portfolio of 35 parks and
establish themselves as a second largest operator in
the market to Bourne Leisure Ltd.
Other major operators are reported to be reviewing
their position in the market and a number of small
family groups are known to be in the market on a
confidential basis. Clearly, the sector has come of age
with HLL Humberts Leisure at the forefront of this
market activity.
THE HOLIDAY SECTOR
In the individual parks market HLL Humberts Leisure
handled a number of major transactions this year
including the recent sales of Park Estates Caravan Park
at Bridlington, with 400 static pitches, to North Bay
Leisure and Oakcliff Holiday Park in South Devon, to a
local operator. Earlier in the year Greenlake Holiday
Park near Hartlepool was acquired on behalf of GB
Holidays (prior to the buy-out), providing over 450
existing holiday static pitches. In addition, HLL
Humberts Leisure successfully handled the sale of
Tallington Lakes near Stamford at the outset of 2004.
Holiday parks have proved popular with owneroccupiers and with smaller regional companies. For
example, Langcliffe Caravan Park near Settle, North
Yorkshire, comprising 55 static and 63 tourers, sold for
in excess of the guide price of £975,000. A regional
park operator/developer acquired a holiday static
development site near Sleaford in Lincolnshire for 100
static pitches and adjoining lake for a figure in excess
of the guide price of £530,000. Riverside Park in
Rothbury, Northumberland was offered for sale by
formal tender in the summer of 2004 on behalf of
Alnwick District Council, and after considerable
interest a preferred tenderer was nominated and is
due to complete in early 2005. Climping Camp in
West Sussex has sold for a very substantial premium
over and above the asking price of £95,000.
Parks in Scotland and Wales have fared well in the
market also, with Conifers Leisure Park in Dumfries
and Galloway (28 letting chalets, plus consent for 29
units for development) selling to a regional operator
despite being in administrative receivership on the
basis of a guide of £950,000. Letham Holiday Park in
Fife, comprising 125 holiday static and 18 lodge
pitches, was sold by private placement in Spring
2004. Trossachs Holiday Park in Perthshire, an awardwinning holiday lodge, static and touring park in 110
acres, is currently under offer on the basis of a guide
price of £2.5 million. Woodlands Chalet Park in MidWales, which included 144 chalets, licensed club and
pool in 14.5 acres, sold in early 2004 to a leisure
investor on the basis of a guide price of £2 million.
THE RESIDENTIAL SECTOR
In line with the residential housing sector generally,
the park home market has calmed down somewhat
during the last year with prices consolidating
alongside a general concern amongst operators of the
impact of the new Implied Terms, which are likely to
be introduced later in 2005. However, the market
remains relatively active with few parks on the
market and prices per pitch continuing to be achieved
well in excess of £20,000 in the best locations and
Major East Coast Holiday Park
sold before market launch
with developable pitches often
substantial additional premium.
obtaining
a
Sunset Drive Park Home Estate in Romford, Essex was
offered by HLL Humberts Leisure on behalf of the
London Borough of Havering and sold for well in
excess of the asking price of £1.35 million. A small
riverside park with 21 pitches near Lancaster, Lune
View Park, was sold on behalf of Scottish and
Newcastle plc in October 2004 after strong interest at
informal tender (19 bids received) for well in excess
of the guide price of £325,000.
LOOKING AHEAD
Prospects for 2005 look good, particularly in the
holiday sector, and we expect a greater number of
parks to come to the market this year as owners ‘cash
in’ on the back of the last few years’ strong trading
performances. Development opportunities suitable
for lodges (especially timber-clad units) are highly
sought-after and redevelopment of old style holiday
parks to lodge parks in prime locations is increasingly
frequent. Park Homes may be more of a buyers’
market as a result of the changes in the residential
market as a whole and with the increased regulation
now imminent.
Whilst market activity in all sectors is likely to be
muted during the general election campaign, HLL
Humberts Leisure continues to expect substantial
interest in the caravan sector at every level for the
foreseeable future.
HLL Humberts Leisure has recently achieved a
notable success with the sale of Park Estate
Caravan Park in Bridlington, East Yorkshire.
Comprising 400 serviced holiday static caravan
pitches (including 33 hire fleet units) and being
within walking distance of the beach and the town
centre, the property had been in the Hall family
since the 1970’s, and since that time has been
developed into a highly profitable holiday
business.
HLL Humberts Leisure secured the purchaser, North
Bay Leisure Ltd, by way of a confidential placement
prior to a wider marketing campaign for an
undisclosed sum. Peter Smith of HLL Humberts
Leisure commented, “The fact that we were able to
achieve such a successful and rapid sale is due in no
small measure to the high quality presentation of
detailed business information, as well as
knowledge of the active parties in the market.”
David Allison of North Bay Leisure Ltd said, “We are
extremely pleased to acquire Park Estate, and will
be working to build good working relationships
with existing customers on the park whilst looking
to improve the current trading level still further.”
John Mitchell BSc MRICS | london: 020 7629 6700 | e-mail: [email protected]
Peter Smith BA MRICS | skipton: 01756 799271 | e-mail: [email protected]
John Anderson BSc FRICS | skipton: 01756 799271 | e-mail: [email protected]
hotels
hotels: one good
year, what’s next?
By all accounts 2004 turned out to be
a successful year with hotel operators
reporting significant growth. But what
is in store for the next 12 months? »
Some commentators are predicting that 2004 was the first year of a
three year rebound, but London hasn’t seen more than three years of
robust and unbroken revpar (revenue per available room) growth
since 1994-97. Industry analysts reported occupancy in London for
October 2004 was 83.3%, almost identical to 2003, which is a 28%
increase over the 3 years from October 2001 and the low after 9/11,
although November showed a small year on year fall in occupancy to
84.5% (from 84.7%). However, revpar growth continues apace with a
predicted increase of 12.7% for London for the full year. As a note of
caution the provinces are likely to show a smaller growth of 4.8% for
2004. Experts have forecast revpar up to 2006, and although they
expect London to be below the peak of 1997, the UK as a whole
should attain the 1990’s peak by 2006.
So what is fuelling this growth, and is it sustainable?
Industry experts have measured occupancy at London airport hotels at
80%, a 7% increase on 2003 which represents the fastest rate of
growth ever. Heathrow hotels were at the highest for 4 years at 79%,
slightly ahead of 2000, and Gatwick remained steady for the second
year at 83%. This is backed up by VisitBritain who predict a record
26.34m international visitors to Britain in 2004. Many are from
Europe benefiting from the favourable exchange rate, although
American visitors are adversely affected by the value of the dollar.
despite all this the UK economy continues to grow. Terrorism remains
a real threat, but the UK has lived with this threat in various forms for
over 30 years, and has enjoyed economic growth through this period.
Hotel operators are also predicting growth as they look to acquire new
trading units. At the limited service end of the market Travelodge
have made bullish predictions of growth in the number of their hotels
over the next few years. They are not alone with several other
limited service operators making similar statements, including Accor,
who have recently commenced franchising their brands, Campanile
who are in the process of launching an investor friendly management
contract and Prem Group who have agreed to run out a large number
of Days Hotels over the next 7 years. At the higher end of the
market, operators such as Thistle, Hilton and Intercontinental Hotel
Group are disposing of real estate, but maintaining the operation of
the hotels by way of sale and manageback transactions.
There has also been an increase in corporate travel evidenced by
Intercontinental Hotel Group reporting a 4.3% increase in pre-tax
profits for the third quarter based upon a rise in business travel. This
is particularly interesting as over the past few years many business
travellers have downgraded their accommodation from 4 and 5 star
hotels.
Favourable economic growth is also labelled as a reason for continued
growth. The UK is in its 14th year of continuous economic growth
with unemployment levels remaining low. However, whether this
continues after the general election in Spring 2005 remains to be
seen. Although with both major political parties having similar
economic policies any major changes to the domestic economic
conditions are unlikely.
There remains the global threats of terrorism and an economic
downturn, but in the short term at least the UK appears resilient. The
US has economic problems evidenced by the falling value of the
dollar; the Far East has had both natural and economic disasters and
the Middle East has been the victim of various conflicts, however
The impact that the recent tsunami will have on global travel and
tourism and, in particular, the thousands of tourists who visit the
affected area from Britain, remains to be seen. It is possible that
some of those planning to visit the area may choose to stay in the UK
whilst hotels there are re-built although, long term, the impact of
such incremental business on UK hotels may be minimal.
The above makes very encouraging reading, and although it is dangerous to predict exact levels of performance in the future, it is not
unreasonable to expect continued high levels of occupancy and growth in revpar throughout the UK for 2005.
Anthony Miller FRICS IRRV | london: 020 7629 6700 | e-mail: [email protected]
Tim Smith BSC (HONS) MRICS | london: 020 7629 6700 | e-mail: [email protected]
Richard Baldwin BSC (HONS) MRICS | skipton: 01756 799271 | e-mail: [email protected]
planning - use classes changes
Planning - Use
Classes Changes
Among the other major changes that are
occurring to the planning system, the
Town & Country Planning (Use Classes)
Order 1987 was amended in Sept 2004.
As a reminder, each use class contains a variety of different uses and
any change from any one use to another use in the same use class
does not need planning permission. In some cases, a change may also
be permitted from one use class to another as specified by the Order.
More normally, any change from one use class to another will need
planning consent.
The changes have a particular impact upon the leisure industry and in
particular upon the pub, restaurant and bar sector. The old A3 use
class has now been replaced by three new Use Classes. New use class
A3 covers restaurants and cafes with a primary purpose for the sale
and consumption of hot food on the premises. New use class A4
covers pubs and bars where the primary purpose is the sale and
consumption of alcohol on the premises. New use class A5 covers
takeaways where the primary purpose is the sale of hot food for
taking away.
As with all changes of this sort, attempts at simplification have the
ability to lead to yet more confusion. One need only think of the
traditional country pub with its saloon bar and restaurant lounge to see
where the apparent confusion may arise. It will be interesting to see
what use class will be given to the new generation of chameleon bars
which serve mainly food at lunch times, alcohol in the evenings, and
can even turn into nightclubs later the night. There seems to be
plenty of future work here for planning lawyers.
This brings us to the other major change. Nightclubs were formally
included in Use Class D2 along with cinemas, music halls, bingo and
casinos, dance halls, swimming pools, skating rinks, gymnasiums, and
indoor and outdoor leisure uses. A new D3 use class has now been
created for “late night leisure”. The government is also proposing to
define a new use class (D4 perhaps?) for casinos as part of the bill
currently passing through Parliament to de-regulate the industry.
We provide a summary of the changes on the page opposite.
Martin Taylor BA (HONS) BTP MRTPI MIED MTS | brighton: 01273 325911 | e-mail: [email protected]
Clare Lee BSc (HONS) PGDipTP MRTPI AIEMA | brighton: 01273 325911 | e-mail: [email protected]
Leisure Uses
USE CLASSES
TYPE OF USE/DETAIL
PERMITTED DEVELOPMENT
(New) A3 Restaurants and cafes
Where the primary purpose is the sale & consumption of hot food
food on the premises
Permitted change to A1 or A2
(New) A4 Pubs and bars
Where the primary purpose is the sale/consumption
of alcohol on the premises
Permitted change to A1, A2, or A3
(New) A5 Takeaways
Where the primary purpose is the sale of hot food for taking away
Permitted change to A1, A2 or A3
Sui Generis
Amusement Centres
Funfairs
Permitted change to A1
No permitted change
C1 Hotels
Hotels, motels, boarding and guest houses
No permitted change
Sui Generis
Holiday and caravan parks
No permitted change
D1 Non-Residential Institutions
Places of worship, church halls, clinics, health centres,
consulting rooms, crèche, day nursery/centre, museums,
libraries, art galleries, exhibition halls, non-residential conference,
education and training centres
No permitted change
D2 Assembly and Leisure
Cinemas, bingo halls, casinos, leisure centres, sports halls,
swimming baths, skating rinks, health & fitness clubs,
other indoor and outdoor sports (no motorised sport and firearms)
and leisure uses
No permitted change
(New) D3 Late night leisure
Nightclubs
No permitted change
(New) Sui Generis
Warehouse clubs to be classified as sui generis
No permitted change
Sui Generis
Theatres
No permitted change
NB: NewUse Class for Casinos Proposed in Latest Bill Before Parliament November 2004
Non-Leisure Uses
USE CLASSES
TYPE OF USE/DETAIL
PERMITTED DEVELOPMENT
A1 Shops
Shops, retail warehouses, hairdressers, undertakers, travel and
ticket agencies, post offices, dry cleaners, cold food takeaway
and sandwich bars.
No permitted change
A2 Financial and professional Services
Banks, building societies, estate and employment agencies,
professional and financial services, betting offices.
Permitted change to A1 (if ground
floor display window exists)
Sui Generis
Launderttes, taxi or vehicle hire businesses, petrol filling stations.
No permitted change
(New) Sui Generis
Motor vehicle showrooms to remain classified as sui generis,
but with permitted development rights allowing a change
of use to A1 to be removed.
No permitted change
B1 Business
Offices (not within A2), research and development, studios,
laboratories, high tech, light industry (in a residential area without
detriment to amenity).
Permitted change to B8
where no more than 235 m2
B2 General Industrial
General Industrial: Heavy metal, oil or mineral treatment to
include melting, refining and extraction industries.
Permitted change to B1/B8
B8 limited to no more than 235 m2
B8 Storage or Distribution
Wholesale warehouse, distribution centres, repositories.
Permitted change to B1
where no more than 235 m2
Sui Generis
Works registrable under the Alkali, etc Works Regl. Act 1906.
No permitted change
C2 Residential Institutions
Residential schools, colleges and training centres.
No permitted change
C3 Dwelling Houses
Dwellings (not more than 6 residents living together as a family),
small businesses operated from home, communal housing of elderly
and handicapped.
No permitted change
Sui Generis
Residential mobile homes.
Hostel.
No permitted change
No permitted change
Matters relating to planning use, classifications and permitted development rights are complex and the table above is provided for guidance purposes
only. Terms used in the Use Classes Order are fairly old and do not always take account of modern leisure uses. We have placed some of these uses in
the Use Class we believe is applicable, however, this may be a matter of fact and degree, and subject to interpretation by the local planning authority.
pub agency
welcome
pub agency:
continuous change
and consolidation
The pub industry has maintained the high level of activity that has been evident over much of the
previous decade with further consolidation occurring within the large tenanted Pub Co’s and also the
Regional Brewers and newer Pub Co’s.
In the past year Punch Taverns has acquired Pubmaster and Innspired, Greene King has acquired 422
community pubs from Laurel, Wolverhampton & Dudley has acquired Wizard and Burtonwood. Newer
entrants to the sector such as Admiral Taverns, London & Edinburgh and County Estate Management
have all made significant acquisitions of tenanted public houses. In addition Enterprise Inns is in the
process of absorbing the Unique estate
Against this backdrop of continued change within the sector, the acquisition focus has been on
community public houses with a broad based trade as opposed to high street properties where price
and competition are intense and there remains concerns of over saturation. These issues are further
exacerbated where property is held leasehold and the tenant is paying a high rent which is
unsustainable when analysed on a traditional profits method approach. Landlords however have often
been relying on rent review clauses enabling them to set rents on a retail £ per square foot/metre
basis. This has caused significant problems to the tenant.
HLL Humberts Leisure has recently acted on behalf of Mill House Inns in a rent review of a public house
on a large out of town retail park where these arguments have been used and where we were able
to negotiate a deal which satisfied both parties. In addition we are currently dealing with a number
of reviews for a large regional brewer in a leisure/retail location where the property is rack rented
when the rent is calculated using a profits method approach.
With the evolution of the Pub Co concept it is apparent that many of the larger operators are
outsourcing aspects of their property management which enables the company to focus their
resources on profit creation through the early implementation of rent reviews and lease renewals,
conversion of tenancies at will on to more secure tenancy arrangements, and capital investment
projects etc.
HLL Humberts Leisure currently assists one of the leading tenanted Pub Co’s by providing an estate
management service which deals with such matters as headlease reviews/renewals, boundary
disputes, compulsory purchase matters, disposal of unlicensed property, identification and disposal of
development opportunities and litigation matters affecting their pub estate.
This service utilises our wide ranging licensed property and leisure experience linked to the local
expertise from our regional offices. Andrew Moore BSc MRICS who previously was a senior Estate
Manager with Scottish & Newcastle Pub Enterprises has now joined our Skipton Office and will be
working alongside Richard Baldwin and Neville Langrick. Our existing staff in other offices enable us
to provide a national coverage.
The Brewing Industry will be faced with a number of challenges during 2005. There will be further
consolidation amongst the Pub Cos and their management will have to face the challenges of the new
Licensing Laws leading to individual and property licences, as well as dealing with the requirements
affecting Licensed Premises under the Disability Discrimination Act. The prospect of a smoking ban
also requires careful consideration by the industry.
The Industry must be pleased at the conclusions reached by the Trade and Industry Committee
following the Inquiry into the Beer Tie. The committee gave the present business model a seal of
approval and recommended that each Pub Co should have a Code of Conduct with an improved and
more open process for assessing pub rents. They further advised prospective tenants to obtain proper
legal and accounting advice and to secure better trading information from their Landlord before taking
on a pub tenancy or lease.
We have just completed a letting on behalf of the National Trust of the Spread Eagle at the world
famous Stourhead Gardens in Dorset to a well known hotelier/restaurateur.
Peter Constantine BSc FRICS | chepstow: 01291 627813 | e-mail: [email protected]
Anthony Miller FRICS IRRV | london: 020 7629 6700 | e-mail: [email protected]
Richard Baldwin BSc (HONS) MRICS | skipton: 01756 799271 | e-mail: [email protected]
Andrew Moore BSc MRICS | skipton: 01756 799271 | e-mail: [email protected]
new licensing act
NEW LICENSING ACT
ready or not, here it comes
The new Licensing Act 2003 is expected to come fully into force in November 2005. The new Act takes away the liquor licensing jurisdiction from magistrates
and hands it to local authorities; they will then become the licensing authority for all types of licensable activity.
The backbone of the new Act introduces the concept of the “Premises Licence”. Separate licences for the sale of liquor, for the provision of public music and
dancing and for the performance of plays or films will no longer be required. In their place, the single Premises Licence will authorise all types of “licensable
activity” which are defined as:
• the sale by retail of alcohol;
• the supply of alcohol in a members club;
• the provision of late night refreshment; and
• the provision of regulated entertainment (i.e. plays, films, live or recorded music and sporting events).
The Premises Licence is designed to be held by a person who carries on or proposes to carry on the business at the premises. This may, in some
circumstances, be an individual, but it is increasingly likely to be the corporate entity which operates the business at the premises.
When the Premises Licence is issued by a local authority, two new conditions must be imposed. First, no supply of alcohol may be made under the Premises
Licence without an individual nominated on the Premises Licence as the Designated Premises Supervisor
(DPS). (The DPS assumes a crucial role under the new regime as the person whom the
authorities would expect to have control over the premises and be responsible for
maintaining and observing any conditions endorsed on the Premises Licence.)
Secondly, every supply of alcohol under the Premises Licence must be
made or authorised by a person who holds a “Personal Licence”. For
many premises, the primary personal licence holder will also be the
DPS, but depending on the size of the premises the DPS may well be
assisted by a number of personal licence holders.
The changes which the new Act introduces to the licensing regime are
sufficiently radical to require a transition phase (currently expected to
commence in February) to enable operators to make applications to
convert their existing licences into the new format prior to full
implementation in November. All licensed premises will need to convert
during this transition as all types of existing licences will be extinguished
when the new regime comes fully into force.
Not surprisingly, local authorities are extremely concerned to avoid a deluge
of conversion applications at the start of the transition. Some local
authorities are encouraging existing licensees in their area to stagger their
applications, by adopting a phased approach, inviting licensees in certain
geographical locations to delay lodging their applications until later in the
transition. If licensees are minded to do so, this will enable local authorities
to deal with applications in a more measured way. Significantly, the new Act
stipulates that if a local authority has not dealt with a conversion application
within two months of its submission, it is deemed to be granted in any event.
Applicants can also apply during the transition to vary their existing licences.
This could include new types of licensable activities which they do not currently
provide, or varying their existing types of licensable activities or hours.
There is a similar deeming provision so that a two month time limit again
applies. However, for a variation application the deeming is a refusal not a grant,
although an automatic refusal immediately initiates an appeal process to the
magistrates.
Operators of licensed premises who hold provisional licences only, at the start of
the transition, face extra hurdles over the next 12 months. The conversion
application procedure is not available to them. Their only option is to apply to the
local authority for the grant of a brand new Premises Licence, to ensure that the
premises can continue to trade at the end of the transition when the old provisional
licence will be extinguished. There is increasing concern within the licensed trade that
there are no guarantees for operators in these circumstances to ensure that local
authorities will be required to grant a Premises Licence. It would be perfectly possible
for a local authority to refuse a Premises Licence application, on policy or planning
grounds, for example, even though licensing justices had granted a provisional licence
under the old regime.
Clearly the new Act will keep all those involved with licensed premises on their toes for
some time to come.
Craig Bayliss, Partner at Berwin Leighton Paisner, Solicitors.
new planning policy
NEW
PLANNING POLICY
FOR RURAL AREAS
The Government has published a new Planning Policy Statement 7 (PPS7) for rural areas of England. This replaces the former PPG7 published in
February 1997. Under the new Planning Act, the PPS have more weight as local authorities are not meant to repeat their policies in the new style
Local Development Documents. PPS7 is doubly important as it contains many of the tourism and leisure polices considerations in the soon to be
deleted PPG21 on Tourism.
PPS7 continues to protect the wilder countryside from unnecessary
development and states that most development in rural areas will be in
existing towns and villages, with the priority given to the re-use of
previously developed land.
Nevertheless, the revised guidance states that regional planning bodies
and local planning authorities should recognise, through their respective
regional spatial strategies and local development documents that tourism
and leisure activities are vital to many rural economies. This should be
good news to the many hard pressed tourism businesses in rural areas
whose development is so often hampered by the one-sided application of
environmental planning policies.
The guidance states that while rural tourism and leisure developments
should be sustainable and not harm the countryside, planning documents
should recognise that in areas designated for their landscape, nature
conservation and historic qualities there will be scope for tourism and
leisure developments.
As usual, the devil is in the detail. Despite these favourable comments,
PPS7 goes on to state that where new buildings are required, visitor
facilities and tourist accommodation should be provided in, or close to
service centres and villages. Clearly, in most instances such tourist facilities
will be “priced out” by residential values. However, the guidance does
state that new visitor buildings in the countryside may be justified where
they are needed in conjunction with a particular countryside attraction.
The guidance is more helpful when it comes to the conservation of
buildings in the countryside. Re-use for economic purpose, is preferred
over residential conversions, and the PPS states that conversion of suitable
existing rural buildings to provide hotel and other serviced accommodation
should be allowed. Similarly, planning authorities are required to take a
positive attitude to proposed extensions of existing tourist accommodation.
Moreover, in popular holiday areas, planning authorities are required to set
out policies in their Local Development Documents (replacement Local
Plan) on the provision of new holiday and touring caravan sites and chalet
developments, and on the expansion and improvement of existing sites
and developments. This may come as relief to those holiday parks in areas
where they have been prevented from any further expansion in the past.
Of particular interest is the policy exception for new houses in the
countryside that reflect the highest standard of contemporary architecture.
In the original draft the exception for large high quality houses contained
in the former PPG7 had been dropped. However, the final version
reinstates this policy exception, albeit with a more modernist slant. The
new policy exception seeks to encourage innovative design, modern
methods of construction, use of sustainable building materials and
developments that have a reduced impact on environmental resources.
It remains to be seen how much notice Council’s will take of the PPS in
preparing their local development documents and deciding planning
applications. So often tourism and leisure matters fall behind housing
development and countryside constraint considerations, especially in rural
areas. Nevertheless, the new PPS generally provides valuable support for
the development of tourism and leisure businesses in rural areas.
The HLL Humberts Leisure Consulting team regularly advise local
authorities, farmers, landed estates, hotels, visitor attractions, holiday parks
and other rural leisure businesses on the planning, market and financial
viability of development proposals. Please feel free to contact a member
of the team if you need assistance.
planning appeals deadline
Appeals deadline set
to return to 6 months
In September 2003 the Government
halved the time allowed for lodging
appeals from six months to three months.
As a result, applicants had little or virtually no
chance to negotiate, prepare and submit a
revised application and get a decision before the
appeal deadline. This meant that far more
applicants appealed against their refused
applications due to the limited time available.
Subsequently there was a backlog of
applications at the Planning Inspectorate, with
decision times soaring to a year and a ten per
cent hike in appeals, since the measure was
introduced.
The Government has now announced that the cut
off date will revert back to six months after an
urgent review of a policy that has been blamed
for this exceptional rise in appeals. The
Inspectorate has already setup a task force to deal
with the backlog of cases and it will be
restructuring to place 15 percent more staff in
front line services. Planning Minister Keith Hill
expects to see a substantial reduction in the
Inspectorate’s backlog by next March.
The change came into force and affects appeals
made after January 14th 2005. Any application
refused on or after October 14th 2004 will be
applicable for six months to appeal. So, for
example, if an application was refused on October
14th, the applicant would have a further three
months to appeal after January 14th.
Local authorities are also being given more time
to process major applications, with the deadline
moving from eight to thirteen weeks before
developers can appeal against non determination.
The Government believe this will improve the
performance of local authorities in determining
applications which they might not currently take,
since they know they can’t determine them before
the deadline.
Increased fee for
planning applications
The Office of the Deputy Prime Minister
has launched a further round of
consultation on planning fees, with the
aim of recovering the full cost of
processing applications.
Fees for householder applications will rise from £110 to £135. The maximum fee for large scale development will increase from £11,000 to £50,000.
RELEVANT PROPOSED REVISED FEES AND FEES STRUCTURE FROM 2005
Categories
Current
fee
Current
maximum
Proposed
fee
Proposed
threshold
& maximum
£220
-
£5,500
£265
£80
£6,625
£50,000
Per 0.1 hectare
Per 0.1 hectare over 15 hectares (2005)
£220
-
£5,500
£265
£80
£6,625
£50,000
16. Material change of use in land or buildings other than above
£220
3. Building (other than dwellings, agricultural buildings,
plant or glasshouses etc.) OUTLINE
Per 0.1 hectare
Per 0.1 hectare over 2.5 hectares (2005)
13. Operations nor within above categories - includes
mineral operations
£265
The ODPM cited that a significant number of responses to the consultation, which ended last week, had complained that the proposed increase for major
applications of 17 per cent was not high enough. Therefore, they propose an increase of 355 per cent for large scale development instead.
This is a considerable increase in planning fees, with costs rising rapidly the larger the proposed development site is. The addition of a ‘second tier’ fee structure
for development sites larger than 2.5 hectare affectively reduces the significance of the cap of £5,500 (increased to £6,625) which previously kept planning costs
down for large sites.
Example: 30 acre site - 12 hectares
25 x 265 = 6625
6625
95 x 80 = 7600
7600
14225
proposed planning fee = £14,225
The additional £7,600 fee increases the application cost to £14,225 when it would only have got up to £5,500 at the current rate or £6625 for the proposed rate,
if there wasn’t a proposed second tier rate.
debentures
golf and leisure clubs:
debentures are back
During the 1980’s the UK saw an explosion
in the construction of high quality golf and
leisure clubs financed on the expectation
of the sale of debentures to members.
The success of these clubs was at best mixed and the subsequent recession in the UK
in the early 90’s meant that these high priced debentures became almost impossible
to sell and most of the clubs that had been trying to sell them have now moved onto
a traditional joining fee and annual subscription membership structure.
However this is not the end of the story as the improving economy in the late 90’s and
the early 2000’s again created a demand for high quality golf and other clubs whose
construction can only be financed by the issue of capital in a new club. But today’s high
quality clubs are not issuing the old style debentures that gave the holders club
membership rights and little else. Today’s clubs are issuing real equity in themselves.
The attraction of these schemes is easy to see. A new golf or other leisure club is
expensive to construct and usually there is the initial cost of the land as well. This initial
cash outflow has to be repaid by profits made by the club when it is open. But the early
years of any club’s operation are it’s least profitable and so developers have found that
the easiest way to recoup this initial cash outflow is to sell capital in the new club to
the members. This ensures that leisure developers can try to match their cashflows with
initial construction costs being hopefully equalled by sales of equity in their club. It also
has the advantage of making an obvious exit route for the developer, as when all the
equity in the club has been sold he can automatically ensure that he no longer has any
involvement or liability.
The drawback to these schemes is the regulation that goes with issuing equity to the
public. In the UK this means either a full UK Companies Act Prospectus if you wish to
offer the equity on an unrestricted basis or a slightly shorter Financial Promotion
Document if you wish to only offer the equity to a restricted number of ‘sophisticated
investors’ (basically those with assets of more than £250,000 or an annual income of
more than £100,000).
This trend in the return of these schemes in the UK has been mirrored in the US where
wealthy American investors routinely pay six figure sums for a capital share of an
exclusive club. It is now even spreading to Europe with exclusive locations such as the
South of France, Southern Spain and Tuscany all having new leisure developments
which are being sold on an equity basis.
So, as long as the economy remains healthy, we are going to see more of these equity
schemes especially as operating profits of upmarket golf and other leisure clubs
continue to remain elusive.
Steven Landes Senior Partner of S H Landes & Co Chartered Accountants
Ben Allen BSC (HONS) MRICS | winchester: 01962 835960 | e-mail: [email protected]
HLL humberts leisure
comprehensive property services
VALUATIONS
For all types of leisure property, for balance
sheet purposes, purchases, sales and for
raising finance for acquisition or further
development.
PROFESSIONAL SERVICES
Rent reviews and lease renewals for both
landlord and tenant, rating, litigation,
dilapidation claims and all other professional
matters for all types of leisure properties.
AGENCY
Acquisition, sale and leasing of leisure
related property in the UK and overseas.
MARKETING
Integration of direct mail, advertising, public
relations and other publicity material to
achieve the widest exposure and the
optimum sale.
CONSULTANCY
Feasibility studies, viability testing, and
development option appraisal on a full
range of leisure business and property
proposals to ensure correct conceptualisation
and successful implementation.
FINANCE
Funding for leisure industry schemes. Advice
on availability of funding packages, together
with introductions to sources of equity
including the Leisure and Media VCT plc and
debt finance.
DEVELOPMENT/INVESTMENT
Arrangement of an integrated service
including site acquisition, valuation,
planning, funding and ultimate disposal,
together with advice on the selection of
other professional intermediaries.
PLANNING
Planning appraisal, planning history
research, planning applications and appeals,
expert witness, enforcement notice,
licensing and technical advice in the
pursuance of leisure related property
development proposals. Site finding and
assessment.
RESEARCH
Property market appraisal, leisure market
research and trends monitor, competitor
analysis, demographic catchment and visitor
profiling, and economic impact
measurement.
HLL Humberts Leisure specialises in leisure
property divided into ten distinct business
categories:
HOTELS
>> London/City Centre Hotels
>> Resort Hotels
>> Commercial/Business Hotels
>> Country House Hotels
>> Motor Lodges and Budget Hotels
GOLF
>> International Golf Resorts
>> Golf Hotels and Country Clubs
>> Proprietary Golf Clubs
>> Pay and Play Golf Centres
>> Driving Ranges and Golf Academies
>> Golf Development Sites
HOLIDAY PROPERTY
>> Caravan Parks
>> Holiday Villages
>> Cottage Letting Complexes
>> Club Membership Resorts
SPORTS COMPLEXES AND VENUES
>> Racecourses
>> Stadia
>> Grandstand Hospitality Boxes
>> Tennis Centres
>> Squash Clubs
>> Dry Ski Slopes
>> Health and Fitness Clubs
>> Playing Fields/Sports Grounds
>> General Sports Complexes
>> Shooting Schools
URBAN LEISURE
>> Cinemas and Theatres
>> Night Clubs and Discotheques
>> Indoor Bowling Centres
>> Snooker Clubs
>> Integrated Retail and Leisure Complexes
>> Children’s Nurseries
WATER-BASED LEISURE
>> Coastal and Inland Marinas and Related
>> Development
>> Multi-Use Lakes
>> Fisheries
VISITOR ENTERPRISES
>> Theme Parks
>> Tourist Attractions
>> Heritage Centres
>> Historic Buildings
>> Factory Shopping
>> Children’s Play Centres
PUBLIC HOUSES AND LICENSED PROPERTY
>> Pub Restaurants
>> Theme Bars
>> Tenanted & Managed Public Houses
>> Wine Bars
>> Freehouses
FUNDING
>> Sale and leaseback
>> Introduction to sources of equity and
>> debt finance
>> Specialist VCT Leisure Fund
INSTITUTIONAL PROPERTY
www.humberts-leisure.com
NORTH
STABLE COURTYARD
BROUGHTON HALL
SKIPTON
YORKSHIRE
BD23 3AE
TEL: +44 (0)1756 799271
FAX: +44 (0)1756 700811
LONDON
12 BOLTON STREET
MAYFAIR
LONDON
W1J 8BD
TEL: +44 (0)20 7629 6700
FAX: +44 (0)20 7409 0475
lei
The dramatic outline of the extensive clubhouse complex at nightfall
of the Brunstorf Golf & Country Club, Hamburg, on the market with
HLL Humberts Leisure.
SOUTH EAST
PAVILION VIEW
19 NEW ROAD
BRIGHTON
EAST SUSSEX
BN1 1UF
TEL: +44 (0)1273 325911
FAX: +44 (0)1273 329602
SOUTH WEST & WALES
BANK BUILDINGS
HIGH STREET
CHEPSTOW
MONMOUTHSHIRE
NP16 5XQ
TEL: +44 (0)1291 627813
FAX: +44 (0)1291 625614
TEL: +44 (0)1962 835960
FAX: +44 (0)1962 835961
SOUTH
WESTGATE HOUSE
39-41 ROMSEY ROAD
WINCHESTER
HAMPSHIRE
SO22 5BE

hll humberts leisure international leisure business consulting

Transcription

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