Autism Care Home Investment
Tanglewood Mews, Wylam Road, Stanley, County Durham DH9 0EJ
Well secured autism care home investment with 27 years unexpired
Road
Wylam
ace
Sunny Terr
6
07
A6
e
Lan
View
High Street
A6076
l
Hil
rn
a
B
A693
Investment Considerations
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Modern autism care home investment providing 23 bedrooms constructed in 2008.
Location
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Currently producing a rent of £347,782 pa (topped up to March 2017)
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27 years unexpired with no breaks
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Strong covenant - Let to Autism Care UK (4) Ltd with a guarantee from Lifeways
Finance Ltd (net worth of £96m)
Stanley is located 9 miles (14.5 km) north of Durham and 10 miles (16.3 km)
south of Newcastle. The town has good communications being situated
approximately 6 miles (10 km) west of junction 63 of the A1(M) with direct access
from the motorway along the A693.
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Annual rental uplifts of a minimum of 3%
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Gross Internal Area 13,387 sq ft (1,243.7 sq m)
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Planning consent to increase the number of beds in future to circa 40.
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Freehold
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Our client is seeking offers in excess of £5,000,000 (Five million pounds) subject to
contract and exclusive of VAT, reflecting a net initial yield of 6.6% assuming
purchaser’s costs of 5.8% based on the topped up rent of £347,782 pa. This yield
rises annually based on the minimum 3% pa uplifts
Chester-Le-Street is situated 6 miles (10 km) to the east and is on the East Coast
Mainline with shortest journey times of two hours to Edinburgh and 50 minutes to
York. Newcastle International Airport is located 14.6 miles (23.4 km) to the north.
Stanley, a market town, benefits from a population of approximately 20,000
persons and a district population of approximately 54,000 persons. It provides
the home for the Beamish Museum, the world famous open air museum telling
the story of life in the north east over the past two centuries.
Situation
The property is situated on the south side of View Lane immediately to the west
of its junction with Wylam Road. The property is located in a densely populated
residential area a short distance to the north east of the town centre.
Description
ROAD
WYLAM
The property, which was constructed in 2008 and
opened in 2009 comprises a purpose built 23
bedroom residential care home.
Blencathra
It provides a gross internal area of 13,387 sq ft
(1,243.7 sq m) and it has a very low site coverage
of 14%.
1
The property is divided into five self-contained units
each providing their own kitchen and space for
the care staff that are in each unit at all times. The
buildings named Maple and Olive are arranged over
two stories and provide seven ensuite bedrooms as
well as communal space. Each of these units has
a lift. The remaining three units are arranged over
ground floor only and provide three apartments each
with a bedroom, living room and bathroom.
5
ENUE
PARK AV
The property is on a broadly rectangular site which
is mostly level apart from the access road from View
Lane.
Tanglewood Mews
24
Tenancy
57
Track
10m
20m
1
0m
30m
El Sub Sta
56
53
© Crown Copyright, ES 100004106.
For identification purposes only.
Ordnance Survey © Crown Copyright 2015. All rights reserved. Licence number 100022432. Plotted Scale - 1:972
The property is let to Autism Care UK (4) Ltd for a
term of 30 years from 22 March 2012 (expiring 21
March 2042) at a topped up rent of £347,782 pa
(March 2017) on a full repairing and insuring basis.
The lease is guaranteed by Lifeways Finance Ltd.
Autism Care UK Ltd (4) is Part of Lifeways Group. Lifeways is one of the leading specialist support
providers in the UK, supporting over 4,750 people with complex needs. In addition, Lifeways is also
the UK’s largest supported living provider supporting over 3,500 people and has in excess of 7,500
employees. The Guarantor, Lifeways Finance Ltd is rated 5A1 by Dun and Bradstreet which represents a
minimum risk of business failure and is financed and owned by Omers, a Canadian Pension Fund.
The lease states that the rent is reviewed each
year. In even years ‘‘the rent shall be increased by
the greater of the sum determined by multiplying
the passing rent by 103% or EBITDA divided by
2’’. In odd years ‘‘the rent will be increased by the
sum determined by multiplying the passing rent by
103%. We understand that the rent is therefore to
be increased by a minimum of 3% annually.
Autism Care UK (4) Ltd
The lease is outside the L&T 1954 Act.
Covenant
30/04/2013
30/04/2014
£1,940,766
£1,743,845
Pre-Tax profit
£273,111
£162,291
Total Net Worth
£193,537
£357,011
31/05/2013
31/08/2014
£355,000
£772,166
Turnover
Lifeways Finance Ltd
Turnover
Pre-Tax profit
Total Net Worth
£134,819,638
£2,665,046
£93,747,948
£96,412,994
Tenure
Freehold
Planning
The original planning permission (1/2006/0442)
allowed ‘the erection of a special needs health
care centre’ comprising three separate units. Only
one of these has been constructed to date but as
development has lawfully ‘commenced’ on site the
permission remains valid in perpetuity. The additional
units for which planning consent has been granted
would provide a further 18 beds.
EPC
An EPC has been commissioned.
VAT
The property will be subject to VAT although we anticipate
the sale will be treated as a Transfer of a Going Concern.
Proposal
Our client is seeking offers in excess of £5,000,000 (Five million pounds) subject
to contract and exclusive of VAT, reflecting a net initial yield of 6.6% assuming
purchaser’s costs of 5.8% based on the topped up rent of £347,782 pa (March 2017).
For further information or to make arrangements for viewing please contact:
Jeremy Hodgson
020 7543 6709
Alex Butler
020 7543 6722
Dominic Ketteringham
020 7543 6833
[email protected]
[email protected]
[email protected]
www.allsop.co.uk
Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property
are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations,
warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to:
(a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property;
and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: CommandD www.commandHQ.co.uk 05.15