Let us Entertain You
A unique opportunity to acquire Northern Ireland’s premier leisure destination. The Odyssey Pavilion is part of the landmark Millennium development in Northern Ireland. The property is situated in Belfast City Centre and is a multi-functional entertainment and leisure venue.
The Opportunity A unique opportunity to acquire Northern Ireland’s premier leisure destination. The Odyssey Pavilion is part of the landmark Millennium development in Northern Ireland. The property is situated in Belfast city centre and is a multi-functional entertainment and leisure venue. The Odyssey Pavilion features a 12 screen multiplex cinema, ten-pin bowling, an IMAX Cinema and a range of restaurants, bars and leisure facilities.
Investment Summary • Belfast is the commercial, administrative and cultural capital of Northern Ireland, as well as the main focus of the region’s transport infrastructure. • Belfast is the largest retail centre in Northern Ireland and whilst there are a number of competing centres locally, destinations of a comparable size are some distance away. Londonderry lies around 70 miles (113 Km) to the north-west, whilst Dublin is 100 miles (161 Km) to the south in the Republic of Ireland. • The Odyssey Pavilion comprises a total of 15 leisure based units extending to a total gross internal area of 242,057 sq ft. • Two separate 150 year Long Leasehold Interests granted from 1st February 2001. • Opportunity to significantly improve the income stream through asset management. • The property is for sale by private treaty on the instructions of John Hansen, KPMG, as Administrator of Odyssey Pavilion LLP. We are instructed to seek offers in excess of £10,000,000 (Ten Million Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects an extremely attractive capital value of £41.31 psf.
Belfast is a popular tourist destination with approximately 7 million visitors each year who generate a total annual spend of circa £313 million, supporting around 17,000 full time jobs.
Glasgow
Derry Belfast STENA FERRY TERMINAL
TO BELFAST INTERNATIONAL AIRPORT
TITANIC QUARTER
ODYSSEY COMPLEX
LAGANSIDE BUS STATION
TO BELFAST CITY VICTORIA SQUARE
CITY HALL
Dublin
LAGANSIDE
CENTRAL STATION TO DUBLIN & THE WEST EUROPA BUS & RAIL STATION
Edinburgh
Location The Odyssey complex is located in the City of Belfast, the capital of Northern Ireland. Belfast is the second largest city on the Island of Ireland and lies approximately 70 miles (113 Km) south-east of Londonderry and approximately 100 miles (161 Km) to the north of Dublin, in the Republic of Ireland.
Newcastle Middlesbrough
York
Belfast is a popular tourist destination with approximately 7 million visitors each year who generate a total annual spend of circa £313 million, supporting around 17,000 full time jobs. (Source: Northern Ireland Tourist Board)
Hull
Belfast enjoys excellent transport infrastructure and is well connected to the rest of Ireland and to mainland UK. George Best Belfast City Airport is located approximately 4 miles (6 Km) from the city centre with Belfast International Airport approximately 23 miles (37 Km) north-west. In addition Belfast has a large commercial port that is also used for passenger ferry services with regular sailings to Scotland, England and Wales.
Leeds
Bolton
Manchester
Liverpool
Nottingham
Ipswich Cambridge
Birmingham Luton
London Oxford Reading
Cardiff
Bristol
Belfast has good road communications being positioned within close proximity to the M2 linking the North and West of the Province and the M1 which links with Dublin in the South. The two principal railway services in the city centre include Great Victoria Street and Belfast Central, the latter of which provides a direct link with Dublin. The Titanic Quarter train station is located adjacent to the Odyssey complex and provides regular services into Belfast Central. In recent years, Belfast has witnessed a considerable injection of private and public sector investment, with a number of completed (and on–going) urban regeneration and transport projects improving the overall area. One of the key initiatives includes the investment of some £900M in the regeneration of around 140 hectares of inner city riverside land at Laganside, of which the subject property forms a part.
Titanic Quarter
Odyssey Pavilion Obel Building
University of Ulster
Cathedral Quarter
BT Tower Waterfront Hall Victoria Square
City Hall
City Airport
Situation The property is situated on the eastern periphery of the city centre, within the Queen’s Quay area of Belfast, which lies approximately 1 mile (1.6 Km) to the north east of the city centre. More specifically, the property is situated to the north side of Sydenham Road, which provides a direct link with Belfast City Airport a short distance to the north east (via the A2 – Sydenham Bypass) and Belfast city centre in the west via either Queen’s or Queen Elizabeth Bridges. The Pavilion occupies a prominent quayside river position, overlooking the Harland and Wolff shipyard (Titanic Quarter) to the north and west elevations. It is bounded by the indoor Odyssey Arena immediately to the east and a 1,500 space car park on the opposite side of Sydenham Road to the south.
Central Train Station
The Titanic Quarter including the Titanic drawing office, the Paintworks Film Studio and the Titanic Signature building are located directly north of the Odyssey Complex. In addition the Titanic Quarter includes the Public Records Office (NI), Belfast Metropolitan College, Premier Inn, Citi Group and the Northern Ireland Science Park. The Titanic Quarter accommodates approximately 16,000 people on site per day. The Odyssey complex and the Titanic Quarter are part of the proposed Belfast City Rapid Transit Programme. The Titanic signature building cost in excess of £90m and was officially opened on 31st March 2012, 100 years after the RMS Titanic set sail from Belfast. The largest Titanic attraction in the world, was opened by the First and Deputy First Ministers of Northern Ireland and is predicted to attract in excess of 400,000 visitors a year. (Source: Northern Ireland Tourist Board)
The Odyssey Complex is Belfast’s only dedicated large scale leisure facility.The majority of other leisure offerings are based around existing retail offerings such as Odeon and the restaurants at Victoria Square Shopping Centre, the Omniplex at Dundonald and The Quays in Newry.
Changing trends have meant that the UK population is now geared more towards a higher leisure spend per head.
Overall Odyssey Odyssey Pavilion Complex Description Description The Odyssey Complex is Belfast’s only dedicated large scale leisure facility. The majority of other leisure offerings are based around existing retail offerings such as Odeon and the restaurants at Victoria Square Shopping Centre, the Omniplex at Dundonald and The Quays in Newry. In addition to the subject property (Odyssey Pavilion) the whole Odyssey Complex occupies approximately 23 acres of land and comprises a leisure based scheme with a Science Centre (W5), a 10,000 seat indoor Arena, a mixed-use leisure complex known as The Pavilion / IMAX Cinema and a 1,500 space car park. The overall development reached practical completion in November 2000, and opened for trade shortly thereafter.
The property comprises a semi-detached building arranged over mainly ground and two upper floors. To the rear elevation, the property steps up by an additional two storeys in a segment shape, with part of the Pavilion demise to the ground and first floors, and the separately owned W5 unit extending to 3 upper floors. Overall, the subject property contains a total of 15 leisure based units extending to a total gross internal area of 242,057 sq ft.
Outside of the subject property the overall complex provides the following facilities
The scheme is anchored by a 12-screen cinema, which accounts for approximately 37% of the total floor area. The majority of leisure units (10 in total) are arranged on either side of a wide and high mall. The mall links with the main entrance to the front (landscaped garden) elevation of the property and a further secondary access to the rear with egress to a pedestrianised promenade overlooking the Titanic Quarter.
• W5 (Who, What, Where, When, Why) is an educational venue arranged immediately above The Pavilion on 3 upper floors in a segment shape building overlooking the Titanic Quarter. Ground floor access is shared with the Pavilion / IMAX cinema. W5 provides an interactive educational facility aimed at children under the age of 8 and attracts on average 200,000 visitors per annum.
The first floor contains a total of 4 units, including the IMAX Cinema, whilst the second floor is wholly occupied by a multi-screen cinema. Each of the floors is linked by a combination of internal staircases, two-way escalators and passenger lifts. The Pavilion is serviced from the side elevation of the property from Queen’s Road along with a service yard at the rear.
• The Arena abuts The Pavilion / IMAX cinema to the east elevation of the site through connecting doors which are opened to attract a larger crowd during Arena events and Ice Hockey matches. The Arena is the largest indoor venue in Northern Ireland, with a seating capacity for 10,000 people. It is a multipurpose venue hosting A-List concerts, shows, sports events, exhibitions and conferences. It is home to the Belfast Giants Ice Hockey team and last year hosted the MTV European Music Awards. It attracts on average 500,000 visitors per annum and is operated by a renowned international operator, SMG, on a 15-year management agreement from The Odyssey Trust Company. • The 1,500 space car park is located to the south of the Odyssey Complex, on the opposite side of Sydenham Road. The parking provision serves the entire Complex, and is managed by The Odyssey Trust Company.
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Odyssey Arena
(Entertainment Centre)
Sydenham Road
Belfast Harbour Commissioners Freeholder of Entire Odyssey Complex
Odyssey Trust Company Ltd.
Head Lessee of Entire Odyssey Complex 150 year term from 1st February 2001
Odyssey Property Company
150 year term from 1st February 2001
Tenure Long Leasehold Interest
150 year term (Less 10 Days) from 1st February 2001 – The Pavilion –Cinema – Bars – Restaurants Sheridan Millennium Limited
Long Leasehold Interest
The Odyssey Pavilion is split into two separate Long Leasehold interests. These leases are to Odyssey Pavilion LLP and are both for terms of 150 years less 10 days from 1st February 2001. The relationship with the Head Lessee (Odyssey Property Company) and the Freeholder of the entire Odyssey Complex (Belfast Harbour Commissioners) is set out adjacent.
150 year term (Less 10 Days) from 1st February 2001 – The IMAX Theatre Sheridan Millennium Limited
from Sheridan Millennium Limited 20th April 2009
from Sheridan Millennium Limited 20th April 2009
Lease Assignment
The annual ground rent equates to 6.658% of the income derived from the units and is payable by the tenant to the Head Lessee (Odyssey Property Company). The Head Lessee has the right to impute a passing rent on units being occupied by the tenant (currently Odyssey Pavilion LLP) or any connected person of the tenant or because the tenant has artificially deflated the rent in respect of units occupied by a third party.
Odyssey Pavilion LLP
Odyssey Pavilion LLP
Odyssey Pavilion LLP is currently in negotiations with the Head Lessee on the level of imputed rents on the units traded by the administrator. All the relevant legal documents are available in the secure document library.
Lease Assignment
Unit
Tenant
Trading As
Sq M
Sq Ft
Term Start
Term End
Unit 1 & 8
Sheridan Nightclubs Ltd
The Box
GF: 786 1F: 1,234
GF: 8,460 1F: 13,283
01/08/2002
31/07/2027
Capital House 11 Ltd
Soda Joes
GF: 363
GF: 3,907
Henderson Food service Ltd
The Streat
GF: 164
GF: 1,765
Capital House 11 Ltd
Odyssey Bowl
GF: 1,902 1F: 981
GF: 20,472 1F: 10,559
Beach Club
GF: 1,042 1F: 1,112
GF: 11,215 1F: 11,969
GF: 487 1F: 552
GF: 5,242 1F: 5,941
Pizza Hut
GF: 308
Indian Ocean
Unit 1a
Next Review
Passing Rent
Break Option
Comments
£475,000
TBO : 2013 TBO : 2021 (tbc)
Fixed step rents as follows; 01/05/13 to 30/04/14 - £485,000pa. 01/05/14 to 30/04/15 - £495,000pa. 01/05/15 to 30/04/16 - £505,000pa. 01/05/16 to 30/04/17 - £515,000pa. 01/05/17 to 30/04/22 - £525,000pa. 01/05/22 to 30/04/27 - £608,618.89pa. 01/05/27 to expiry - £705,556.10pa. Management agreement put in place by Administrator. Further details in the document library.
(in administration)
Unit 1c Unit 2
(in administration)
Unit 3
PBR Leisure Ltd
Unit 4
Vacant
Unit 5a
Ladbury Enterprises Ltd
01/08/2002
31/07/2027
01/08/2017
£44,225 Management agreement put in place by Administrator. Further details in the document library.
01/11/2002
31/10/2027
01/11/2012
£267,500
GF: 3,315
01/11/2001
31/10/2021
01/11/2016
£106,440
GF: 318
GF: 3,442
27/04/2012
GF: 692
GF: 7,448
Eclectic Bars managing the business from 25 August 2012.
TBO 31/10/16
Assignment requested to Craigpatrick NI Ltd at £75,000pa until 1st Nov 2016.
(in administration)
Unit 5b
Indian Odyssey Ltd
Unit 6
Vacant
Unit 7
Odyssey Pavilion LLP
Rockies
GF: 446
GF: 4,800
Unit 9
Q Team Ltd
Red Panda
1F: 602
1F: 6,479
Unit 10
Odyssey Pavilion LLP
Chic Shed
1F: 1,060
1F: 11,409
Unit 11
La Tasca Restaurants Ltd (CVA)
La Tasca
1F: 645
1F: 6,942
18/03/2002
17/03/2027
18/03/2017
Cinema
Village Theatres 3 Ltd
Odyssey Cinemas
2F: 7,320 3F: 1,010
2F: 78,791 3F: 10,871
14/05/2001
14/05/2026
14/05/2016
IMAX Cinema
Vacant
1,439
14,843
Kiosk 1
Vacant
GF: 21
GF: 226
Kiosk 2
Vacant
GF: 21
GF: 226
Kiosk 3
Vacant
GF: 21
GF: 226
Kiosk 4
Belfast Giants 2008 Ltd
GF: 21
GF: 226
3 No. ATM’s
Note Machine
-
-
Photo-Me, Mall Promotions
Photo-Me (NI)
-
-
22,547
242,057
Belfast Giants
£12,000
Tenancy at will.
Management agreement put in place by Administrator. Further details in the document library.
01/08/2012
£12,000
Tenancy at will. Management agreement put in place by Administrator. Further details in the document library. Tenant in CVA from 28th August 2012. Unit has ceased trading and last payment date is 31st Oct 2012. The service charge is payable by the tenant until the earlier of Nov 2014 or re-letting.
£1,246,403
Licence terminable by either party on one month's notice.
01/06/2012
31/05/2013
£10,000
£2,173,568
12 month rolling licence agreement.
Schedule of Accommodation & Tenancies
The measured areas listed have been supplied by Faithful and Gould and are assignable to the purchaser. The 1,500 space car park is located to the South of the Odyssey Complex and is controlled by Odyssey Trust Company. The tenant (Odyssey Pavilion LLP) has the right to use not less than 1,500 spaces, albeit in conjunction with the remaining uses at the complex.
Management Agreements The Odyssey Pavilion LLP was placed into administration on 19th May 2010 and currently the administrator trades some units through management agreements via Odyssey Pavilion LLP and Capital House 11 Ltd. Further information on these management agreements is available in the secure document library.
Service Charge The reconciled service charge for year ending 30th April 2012 is £1,078,761. The service charge budget for year ending 30th April 2013 is £1,079,719 with a predicted shortfall of £444,317.25. A detailed breakdown of these figures is available in the secure document library.
Planning Planning documents are available in the secure document library.
Asset Management The property is partially let and income producing. Out of the available 15 units & 4 kiosks there are presently 7 income producing units. The scheme currently consists of; • 4 Tenants in contract paying rent. • 1 Tenant in administration • 1 Tenant in CVA. • 2 Occupiers on tenancies at will paying rent. • 4 Management agreements under the administrator with no rent but contributing to void costs. • 3 Vacant units. • 4 Kiosks of which 1 is let at no rent on a 5 month licence.
Currently only 61.80% of floor space is income producing. Given the nature of administration the property offers excellent asset management opportunities. Namely; • Re-positioning the tenant mix to appeal to a wider market. • Letting the vacant space and attracting National Covenants. • Reduce the service charge shortfall. • Establishing a rental tone. • Run the administration units until re-letting. • Reconfiguration of existing layout. • Further establishing a brand destination.
VAT The vendor has elected to waive its exemption from VAT and it is envisaged that the sale will be treated as a TOGC.
Capital Allowances Any Capital allowances may be available to the purchaser.
Proposal We are instructed to seek offers in excess of £10,000,000 (Ten Million Pounds), subject to contract and exclusive of VAT. An offer at this level reflects an extremely attractive capital value of £41.31 psf. The Odyssey Trust Company has a pre-emption right to buy Units 3 & 4. We therefore require all offers to be proportioned in respect of these units. The below photograpgh highlights the pre–emption section of the property with Units 3 and 4 on the ground floor and W5 above.
Further Information
If you require access to the secure document libary or for further information please contact; Ben Turtle Director 1st Floor, Lesley Studios 32 - 36 May Street, Belfast BT1 4NZ Tel: 028 9026 8006 Email:
[email protected]
Larry Brennan Chairman Savills Ireland 32 Molesworth Street Dublin 2
Mark Riddell Associate Director 1st Floor, Lesley Studios 32 - 36 May Street, Belfast BT1 4NZ Tel: 028 9026 7827 Email:
[email protected]
Mark Garmon-Jones Director 20 Grosvenor Hill London, W1K 3HQ Tel: 0207 409 8950 Email:
[email protected]
Tel: 00 353 (1) 618 1302 Email:
[email protected]
Alexander Joslin Associate Director 20 Grosvenor Hill London W1K 3HQ Tel: 0207 409 8916 Email:
[email protected]
Secure Document Library www.savills.com/odysseypavilion
For Sale By Private Treaty On the instructions of John Hansen, KPMG, as Administrator of Odyssey Pavilion LLP. John Hansen is licensed to act as an Insolvency Practitioner by Chartered Accountants Ireland. The Administrator contracts as an agent of the LLP without personal liability. The affairs, business and property of the LLP are being managed by the administrator.
