Property Auctions 11/Jul/2019 | The Percy Arms, Percy Street, Newcastle upon Tyne, NE1 7RW

Freehold Index-Linked Pub/Restaurant Investment

Entirely let to Barley Pub Company Limited with guarantee from Stonegate Pub Company Limited
Lease expires in May 2039 (20 years unexpired - no breaks)
Annual RPI linked reviews (minimum 2% pa and maximum 4% pa)
Situated close to Newcastle University Campus (24,000 students) and Newcastle United Football Club
Opposite Marks & Spencer and very close to Intu Eldon Square Shopping Centre with retailers including John Lewis, Fenwick, Waitrose and Nando’s

Lot 40
Auction 11th July 2019
Rent £130,925 per Annum Exclusive
Status Withdrawn Prior
Price
Sector
Leisure
Auction Venue
The Montcalm Hotel
2 Wallenberg Place
London W1H 7TN

Property Information

Location

Miles: 18 miles north of Durham; 59 miles east of Carlisle; 275 miles north-east of London
Roads: A1, A167, A692, A1 (M), A194 (M)
Rail: Newcastle Train Station (London King's Cross - 3 hours)
Air: Newcastle International Airport

Situation

Newcastle-upon-Tyne is the capital of the North East (population 293,000) and serves a wide catchment area. Newcastle is served by an excellent road and railway network, as well as Newcastle Airport, about 5 miles north of the City Centre. The property is located in a conservation area in a prominent position on the west side of Percy Street in the heart of the City Centre, opposite Marks & Spencer and Haymarket Bus Station. Intu Eldon Square Shopping Centre is a short walk away with national retailers including John Lewis, Fenwick, Waitrose and Superdrug. To the west of the property, within a few minutes walk is St James' Park, home of Newcastle United Football Club. Newcastle University Campus is also located close by (24,000 students) and Morden Street public car park is located at the rear of the property.

Tenure

Freehold.

Location

Miles: 18 miles north of Durham; 59 miles east of Carlisle; 275 miles north-east of London
Roads: A1, A167, A692, A1 (M), A194 (M)
Rail: Newcastle Train Station (London King's Cross - 3 hours)
Air: Newcastle International Airport

Situation

Newcastle-upon-Tyne is the capital of the North East (population 293,000) and serves a wide catchment area. Newcastle is served by an excellent road and railway network, as well as Newcastle Airport, about 5 miles north of the City Centre. The property is located in a conservation area in a prominent position on the west side of Percy Street in the heart of the City Centre, opposite Marks & Spencer and Haymarket Bus Station. Intu Eldon Square Shopping Centre is a short walk away with national retailers including John Lewis, Fenwick, Waitrose and Superdrug. To the west of the property, within a few minutes walk is St James' Park, home of Newcastle United Football Club. Newcastle University Campus is also located close by (24,000 students) and Morden Street public car park is located at the rear of the property.

Tenure

Freehold.

Description

The property comprises a four storey building with the main bar and seating area on ground floor and a pool room to the rear. The first floor comprises a function room with a bar and customer WC, while the second/third floors comprise the manager’s accommodation of two bedrooms, a large lounge, kitchen, utility room and bathroom/WC. There is a beer garden to the rear of the property. The pub remains ever popular on matchdays, being located only a few minutes’ walk from Newcastle United’s football ground.

VAT

VAT is applicable to this lot.

Completion Period

Six Week Completion

EPC

Band D. See legal pack at acuitus.co.uk

Description

The property comprises a four storey building with the main bar and seating area on ground floor and a pool room to the rear. The first floor comprises a function room with a bar and customer WC, while the second/third floors comprise the manager’s accommodation of two bedrooms, a large lounge, kitchen, utility room and bathroom/WC. There is a beer garden to the rear of the property. The pub remains ever popular on matchdays, being located only a few minutes’ walk from Newcastle United’s football ground.

VAT

VAT is applicable to this lot.

Completion Period

Six Week Completion

EPC

Band D. See legal pack at acuitus.co.uk

Tenancy & Accommodation

Floor	Use	Gross Internal Floor Areas (Approx)		Tenant	Term	Rent p.a.x	Reviews
Ground Basement First (Front) First/Second (Rear) Second/Third	Public House Cellar Public House Ancillary Staff Maisonette	141.20 sq m 67.40 sq m 123.00 sq m 10.70 sq m Not Measured	(1,520 sq ft) (725 sq ft) (1,325 sq ft) (115 sq ft)	BARLEY PUB COMPANY LIMITED with a guarantee from STONEGATE PUB COMPANY LIMITED (1)	Approximately 35 years from 15/12/2004 until 21/05/2039 (by way of lease extension) on a full repairing and insuring lease	£130,925	RPI linked rent increases in May 2020 and annually thereafter (collared at 2% pa and capped at 4% pa)
Totals		342.30 sq m	(3,685 sq ft)			£130,925

(1) For the year ending 24th September 2017, Barley Pub Company Limited reported a turnover of £61,309,000, a pre-tax profit of £945,000 and a total net worth of £1,055,000 (Source: Experian Group 05/06/2019).
(2) Stonegate Pub Company is the 4th largest managed pub company in the UK, operating 770 pubs across the country. Brands include Slug & Lettuce, Yates, Classic Inns and Walkabout. Stonegate is owned by investment funds managed by TDR Capital LLP (Source: www.tdrcapital.com).