• 19.75 years unexpired lease term, no breaks

• Undoubted Income - let to Nuffield Health, with AGA from Virgin Active

• Nuffield Health is the UK’s largest health charity – Net Assets £102m

• Virgin Active – Shareholders’ Funds of £517 million

• Modern purpose built health & fitness club

• 6.4% Net Initial Yield

The property is accessed via Blaen Bran Close and is located immediately off Avondale Road. Cwmbran town centre is less than 1.6 km (1 mile) to the south and Cwmbran Rail Station is 0.8 km (0.5 miles) to the south. The A4042 which links directly with the M4 Motorway is approximately 1.6 km (1 mile) to the east.

The property is situated in a mixed use area comprising residential and commercial use. Surrounding occupiers include Ford, ATS Euromaster and Cwmbran Rugby Club. The property benefits from being in an established residential neighbourhood, resulting in a strong catchment population for the health club.

The subject property comprises a high quality purpose built detached health and fitness club constructed in 2000, arranged over ground, first and second floors. The property is of steel portal frame construction with brick facing and profile clad finishes under a curved profile roof.

The property benefits from a full range of facilities including:

• Large open plan gym area
• Fitness studio
• 25 metre heated indoor swimming pool
• Hydrotherapy spa, steam room and sauna
• Spa treatment rooms
• Plunge pool
• Changing rooms
• Creche
• Members bar and restaurant

Tenant’s works were carried out to the club in June 2012 including an upgrade of the shower rooms.

We understand the property is the only nationally operated premium health and fitness club within Cwmbran.

We estimate the site area to be approximately 0.71 hectares (1.76 acres).

An Environmental Desk Study was carried out by WSP in May 2015. The report concluded that the site presents a low/medium risk for continued use for commercial purposes. A copy of this report is available to download.

Freehold.

The current passing rent of £263,912 per annum reflects a rate of £100.23 per sq m (£9.31 per sq ft) overall. From our enquiries it would appear that this rent compares favourably to other health and fitness clubs across the United Kingdom:

Assignee – Nuffield Health (Co. No. 00576970) is the largest health charity in the United Kingdom with:

• 14,000 employees
• 31 Hospitals, comprising 1,300 hospital beds
• Over 110 Fitness and Wellbeing Gyms
• 5 Medical Centres
• 212 Corporate Fitness and Wellbeing Gyms
• 6 Hospital Sterile Services Units
• 1 Diagnostic Suite

Nuffield Health has a D&B Rating of 5A1 and has reported the following figures:

2015 saw Nuffield Health deliver its highest ever EBITDA of £86 million, with hospitals seeing an increase of 4% and fitness and wellbeing seeing a 52% increase.

Nuffield Health is a not-for-profit organisation, reinvesting all profit in their gyms, medical centres, hospitals and staff. Their charitable purpose is to advance, promote and maintain health and healthcare of all descriptions and to prevent, relieve and cure sickness and ill health of any kind, all for the public. For further information visit www.nuffieldhealth.com.

Tenant – Virgin Active Limited (Co. No. 03448441) has reported the following figures:

Tenant’s Guarantor – Virgin Active Holdings Limited (Co. No. 03613370) has reported the following figures:

Tenant’s Guarantor – Virgin Active Group Limited (Co. No. 2664542) has reported the following figures:

Virgin Active is the leading international global health club operator. The first club opened in 1999 and there are now 267 clubs spanning nine countries and four continents with 1.3 million adult members. It is the number one health club operator by revenue in the UK and Italy.

In April 2015 South African investment firm Brait SE acquired an 80% stake in Virgin Active in a transaction that put an enterprise value on the business of circa £1.3 billion. Virgin Group has retained a 20% holding in the chain whilst private equity firm CVC Capital, which jointly owned the health club with Virgin Group, sold its stake entirely. Brait SE, which is part-owned by South African billionaire Christo Wiese, is listed in Johannesburg and on the MTF market in Luxembourg. It also has an approximate 20% stake in the UK’s Iceland Foods and an 86% holding in leading South African food group, Premier.

Virgin Active has a consistently strong track record of delivering profitable growth. Over the ten years between 2004 and 2014 (which included the acquisitions of Esporta clubs in the UK and Spain and Holmes Place clubs in the UK), Virgin Active grew its revenue at a compound annual growth rate of 22 per cent and its underlying EBITDA at a compound annual growth rate of 20 per cent on a constant currency basis. For further information visit www.virginactive.com.

In June 2016 Virgin Active agreed to sell 35 UK clubs to Nuffield Health, creating a more focused estate of clubs around London and other major towns and cities.

Virgin Active is part of The Virgin Group, a leading international investment group and one of the world's most recognised and respected brands. Conceived in 1970 by Sir Richard Branson, the Virgin Group has gone on to grow successful businesses in sectors ranging from mobile telephony, travel, financial services, leisure, music, holidays and health & wellness. Virgin employs more than 71,000 people around the world, operating in 35 countries. For further information visit www.virgin.com.

The property has been elected for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

Our client is seeking offers in the region of £3,850,000 (Three Million, Eight Hundred and Fifty Thousand Pounds), subject to contract, reflecting a net initial yield of 6.4%, assuming purchasers’ costs of 6.53%.