We are instructed to seek offers in excess of £2,750,000 exclusive of VAT, for our client's heritable interest subject to and with the benefit of the existing leases.
A purchase at this level would reflect an attractive net initial yield of 9.73%
Located in Dalkeith, Midlothian, some 7 miles south-east of Scotland's capital city, Edinburgh. With a population reach in excess of 500,000 within 30 minutes, it is the administrative centre for Midlothian Council.
It lies only a short distance from a major interchange on the A720 Edinburgh City Bypass, the Sheriffhall Roundabout, thereby offering excellent road connectivity to locals and businesses alike. The A1 trunk road is less than 3 miles to the east providing access to towns in East Lothian, such as Musselburgh, Haddington and North Berwick, with the M8 interchange at Hermiston Gait 10 miles westwards.
Mayfield, meanwhile, is approximately 2 miles to the south west of Dalkeith situated between the A68 and A7. Both of these roads are principal links to the Scottish Borders making towns such as Galashiels and Stow easily accessible. The former mining villages of Newtongrange and Easthouses border Mayfield which enjoys elevated views to the Pentland Hills and Edinburgh beyond.
Rail connectivity has been greatly improved in recent years with the opening of the Borders Railway connecting Galashiels with Edinburgh Waverley. The nearest station to Mayfield is at Newtongrange, less than 2 miles away, with a further stop at Eskbank only slightly further afield. Bus connections are also readily available providing connections into the city centre.
The subjects occupy a substantial site on Mayfield Industrial Estate, a firmly established location just off the B6482 which runs through the middle of Mayfield itself.
The surrounding area is principally residential in nature as the thriving local community continues to expand and become an increasingly popular commuter belt for Edinburgh. Evidence of this growth is visible at the state-of-the-art Newbattle High School which was officially opened in November 2018 and forms part of a £38 million Community Campus.
There are however a number of commercial and industrial occupiers situated on the industrial estate including Interflex Group, nwh Construction Services, Scottish Ambulance Service, Saltire Soccer Centre, nsd International and Lloyds Pharmacy. The National Mining Museum of Scotland, meanwhile, is only a few minutes' drive away in neighbouring Newtongrange.
The subject property extends to an approximate gross internal area of 52,563 sq ft and comprises a large detached single storey industrial unit on a regular rectangular shaped site. It is of steel framed construction and is clad externally with profile metal sheeting. There is also a small section of two storey offices attached to the west elevation with a mix of brickwork and timber cladding. We understand the property was constructed circa 1985 but has since received a significant amount of capital investment by the current owners to suit the current use.
Internally, the main warehouse accommodation has been subdivided into three main sections. The principal space (23A) is occupied by Ryze trampoline park with dozens of interconnecting trampolines raised from floor level. Access is provided by a set of steps at the front of a central reception area. The middle section (23B) consists of additional trampolines whilst the final ground floor area (23 F&H) is occupied by a gymnastics club.
A mezzanine area, accessed via stairs and a disabled access lift, provides accommodation for Sky High Cafe (23C), seating area and party rooms (23E). It connects with the original office block which has been converted to provide additional party rooms and office space. There is also an open plan room (23G) which is let out for events and pilates classes. The ground floor of the former office block (23D) is occupied by an expanding gym operator and also provides toilet accommodation for customers of the trampoline park.
To the north and east elevations there is a large tarmac car park providing spaces for up to 130 vehicles. There is an area of expansion land to the south of the property partially formed in a mix of grass and unmade ground. The area of land to the west of the subjects, meanwhile, is being retained by the vendor.
The subject property has an approximate site area of 1.52 hectares (3.75 acres).
About ryze adventure parks
Ryze opened in May 2014 and was the first trampoline park on Scotland's east coast and one of the first of its type in Europe. The Ryze brand is the UK arm of Circus Trix who are the largest trampoline park operator in the world. Circus Trix, which was founded in the usa in 2011, now have over 300 parks globally, including two further Ryze locations in Scotland - Glasgow and Dundee. The most recent of these, a 37,000 sq ft facility, opened in Dundee following a £1.5 million investment.
With three parks now in full operation it gives Ryze the opportunity to reach 90% of communities in Scotland.
Ryze Edinburgh Limited has invested nearly £1.3m since first opening in 2014. Turnover for the last 3 years has been £1.33m in 2015; £1.24m in 2016 and £1.0m in 2017. The reduction in sales has been due to an increased level of competition from other park operators. Turnover for 2019, however, is forecast to be £1.1m with a steady increase year-on-year predicted as customers return to the biggest trampoline park on the east coast.
The property is held on a heritable title (Scottish equivalent of English freehold).
We understand the property was subject to a change of use from industrial building (Class 5) to extreme sports centre comprising indoor skate park and trampoline park with ancillary cafe and shop (Class 11 assembly and leisure) and formation of car park (part retrospective). Approved with conditions. Further enquiries can be made with Midlothian Council.
Copies of all EPCs are available on request.
Each party will be responsible for their own legal costs incurred in connection with the transaction.
Due to the multiple tenancies in place various rateable values have been entered into the valuation roll by the Local Assessor.
We understand the property is opted for tax and, as such, VAT will be applicable to the purchase price
We are instructed to seek offers in excess of £2,750,000 exclusive of VAT for our client's heritable interest subject to and with the benefit of the existing leases. A purchase at this level would reflect an attractive net initial yield of 9.90%
Viewing and further information
By prior arrangement through the sole selling agent Allied Surveyors Scotland plc.
Iain W. Mercer
Director of Commercial Agency (East)