Altitude Investments, a boutique investment agency based in the Midlands & the South West, have recently acquired the Odeon Cinema in Taunton, on behalf of a local investor.
The asset is a freehold single let prominent cinema located on Herons Gate retail park in Taunton. The park sits immediately off Junction 25 of the M5 motorway, and 2 miles to the east of Taunton town centre and includes occupiers such as McDonald’s, B&Q, Halfords, Sainsbury’s, The Range, Currys PC World, Oak Furniture Land and Travelodge.
The building totals 27,000 sq ft, sits on a site of 3.2 acres and is let to the secure covenant of Odeon Cinemas limited with over 18 years remaining with no breaks. The passing rent is £591,000 per annum and is reviewed annually in line with RPI collared at 1% and capped at 5%, with the next uplift due in July 2020. The investment was purchased for £10,450,000, which reflects a NIY of 5.3%
Founded in 1930, Odeon is the best-known cinema chain in UK and Ireland, employing over 2,500 people and named in the Sunday Times ‘Top 100 places to work’ in 2018. They currently have a D&B rating of 5A1 and a 100/100 Experian score representing a very secure source of income.
George Turnbull, director of Altitude comments “we are very pleased to have concluded another off-market acquisition, proving that there is always room for the ‘nimble’ investment firms to transact in these difficult market conditions. Altitude is a small firm, but we have great contacts nationally which enables to uncover these opportunities and keep a strong deal flow for our investors”
George continues “This asset is a strong performer in the regional market following the LUXE refurbishment of two screens, creating further investor confidence.”
Altitude are closing in on their target of transacting £100m in this financial year, and assets under management (AUM) of north of £120m showing that niche regional firms can still mix it with the big guys.
George finishes “We have access to very active funds at present, and continue to seek investments from £5m + in the offices, industrial and hotel sectors throughout the UK”
