Beach Esplanade 49,902 SF Sports & Entertainment Building Offered at $2,603,877 CAD at a 9.23% Cap Rate in Aberdeen AB24 5NS

Offers over £1,400,000 (ONE MILLLION, FOUR HUNDRED THOUSAND POUNDS STERLING) are invited, reflecting a 9.23% net initial yield after allowing for standard purchasers costs of 5.98%.
The property comprises a substantial leisure facility arranged over basement, ground and first floor levels. There is a roof terrace overlooking the beachfront above a single storey element of the building. Internally, the property comprises open plan, leisure space comprising of inflatable sections for varying ages at ground level together with a large café/seating area, reception and WCS. The first floor has been extensively fitted out in 2022 at an approximate cost of £300,000 to include a new bar/restaurant complete with corporate entertainment activities to include interactive dart boards, axe throwing, putting as well as a private function bar/room for corporate events/birthday parties. The basement floor is used for storage and office space as well as further WC facilities. There is a lift that services the ground and first floor levels.
The subjects were initially held on a ground lease between Aberdeen City Council (Landlord) and John Codona’s Holiday Inn Limited (Head Tenant) from 28 May 1993 for an initial term of 34 years to 27 May 2027. The lease was assigned to The Noble Leisure Company Limited (Head Tenant) on 3 July 2003. The original lease was varied in June 2001 to permit the tenant the option to extend the lease for three further periods of 34 years from 28 May 2027, 34 years from 28 May 2061 and 29 years from 28 May 2095 with the potential lease expiry 27 May 2124. The rent was agreed at £28,000 per annum. There is a sub-lease in place between the Head Tenant and Pinz Bowling Limited from 1 May 2018 for a period of 15 years with expiry due 30 April 2033 at a current passing rent of £165,000 per annum. The lease is held on Full Repairing & Insuring terms. The net income received is £137,000 per annum. The sub-tenant has a pre-emptive right to purchase on receipt of any offer agreed between the Head Tenant and a third party. The sub-tenant has one month to exercise said option once presented with an offer deemed acceptable to the Head Tenant.