Units 3 & 4, 23 Pennybridge Industrial Estate

The subject property is a mid-terrace warehouse comprising Units 3 & 4 Pennybridge Industrial Estate which have been combined to form a single warehouse unit extending to a gross internal area of approximately 1,960 sq. m. (21,097 sq. ft.)  The Unit is of steel portal frame and concrete block construction with a pitched profiled metal clad roof with a yellow brick outerleaf at ground floor level and a grey metal clad exterior at first floor level.  The property is fully let to JD Sports Gyms Limited t/a JD Gyms and is open 24/7 to its members.  We understand the gym opened in July 2025 and prior to this the unit was let to Lifestyle Fitness.  Car parking is available to the front and is shared with neighbouring occupiers including Honeybee Playtown, a Hondda motorcycle dealership and Howdens.

The property has been fitted out to a high specification by the tenant and comprises a large open plan gym area which is made up of lifting platforms and a track, free weights area, cardio and strength area, spin studio and another large studio to the rear.  There are large male and female changing rooms in addition to male only and female only saunas.  The remainder of the property comprises staff rooms, locker rooms and a plant room to the rear.  The property is fitted out commensurate with JD Sports gym brand and is of a typical gym fit out with an exposed ceiling and suspended spot lights and LED lighting throughout with suspended cooling / heating units throughout the property.  Overall  the building presents very well and has been finished to a high specification in line with the JD Gyms brand.

TENANCY

The property is fully let to JD Sports Gyms Limited on the residue of a lease commencing on 11th MArch 2014 and expiring on 3rd July 2041 at a current passing rent of £99,922 per annum.  On 11th March 2029 the rent increases to £111,673 per annum and on 11th March 2032 increases to £124,806 per annum. The Tenant has an option to determine the lease on 3rd July 2036, subject to six months' notice in writing to the Landlord.  The property therefore offers 10.29 years' term certain and 15.29 years' income to lease expiry.  The rent is reviewed every five years from the Term Commencement Date (11th March 2014) to a rent equal to the previous rent plus 11.76%.  

TENANT COVENANT

The property is fully let to JD Sports Gyms Limited who have a Dunn & Bradstreet Credit Rating of 4A2 and a deliquency score of 96/100.  As at 1st February 2025, they recorded a Turnover of £122,141,000 and had a net profit of £30,230,000.  They have a tangible Net Worth of £21,112,000.

JD Gyms is one of the UK's fasest-growing fitness brands, offering premium-quality training spaces at affordable prices.  Founded in 2014 under JD Sports Fashion PLC, the chain has rapidly expanded to over 100 state-of-the-art clubs nationwide, attracting more than 572,000 members with its blend of high-end design, advanced equipment and outstanding value.    Facilities feature cutting-edge gym floors, stylish interiors, luxurious changing areas with saunas and an extensive range of group exercise classes, all supported by continued investment and a growing rollout of 24/7 access.  Delivering record financial performance in recent years, driven by strong membeship growth and ongoing reinvestment, JD Gyms remains committed to providing an inclusive, inspiring and affordable fitness expierience across the UK.

EPC RATING

We have been advised that the property benefits from an EPC rating of 57C.  A copy of the EPC certificate is available upon request.

RATEABLE VALUE

We have undertaken a search on the Land & Property Services website which shows the following rateable value for the property for the year 2025/26:-

Total Net Annual Value: £75,000

Non-Domestic Rate £ 2025/26: £0.696348

Estimated Rates Payable 2025/26:  £52,644 per annum

TITLE

The property is held under Long Leasehold Title for a term of 900 years from 18th June 2003 under Folio AN97918L.  A copy of the Title pack is available on request to the agent.

ASKING PRICE

We are instructed to seek offers in excess of £1,400,000 exclusive which equates to a Net Initial Yield of 6.73%, an Equivalent Yield of 7.66%, a Reversionary Yield of 8.41% and a capital value of £66 per sq. ft.