0835 Leisure Summer 08_aw.indd - HLL Humberts Leisure

HLL Humberts Leisurechartered surveyors | international leisure business consultingSummer 2008leisureGolf focus -personal views of avibrant market (p16)The future ofplanning applicationsis here (p36)Sun, fun andoutdoor issues (p34)and on the cover...Day Visitor Attractions (p30)Budget hotels boom (p23)Health and fitness clubs (p26)www.humberts-leisure.com

From the ChairmanHLL HumbertsLeisure -another yearof sustainedgrowth. Thesuccess storycontinues...Since concluding a management buyout from the formerHumberts partnership in 1991, HLL Humberts Leisure hasmultiplied in size, now fielding 50 staff in seven specialistteams covering ten different leisure industry sectors fromfive offices around the country. In 2007, HLL undertookassignments in over 20 countries with values ranging from£500,000 to over £400 million.HLL Humberts Leisure is 100% owned by itsmanagement and has no legal connection withHumberts, the estate agents.I am delighted HLL Humberts Leisure has been able todeliver 18 years of sustained growth. Despite testing marketconditions, the domestic leisure industry remains strong.We are acquisitive for opportunities for further growth ofthe company in key sectors to strengthen our position asleading advisors to the leisure industry.In this issue:The golf market from the perspective of three differenttypes of investorBudget hotels - HLL advises a booming sectorPlanning applications as you’ve never seen them beforeFractional Ownership a new way to afford a holiday homeEntrepreneur’s Relief - the workings of the new tax systemIf we can assist you, now or in the future, please contact mepersonally or any one of our sector specialists.Good Reading!Nigel Talbot-Ponsonby FRICS,Executive Chairman, London.e: ntp@humberts-leisure.com t: +44 (0)20 7629 670012 Bolton Street Mayfair London W1J 8BDt: +44 (0)20 7629 6700 f: +44 (0)20 7409 04752 Summer 2008

Summer 200804 News14 Featured properties12 Iford Golf CentreA magnificent 27 hole pay and play course with a stunningclubhouse and unique two tier floodlit driving range.16 Focus on the golf marketFrom a national, regional and personal perspective.20 Focus on the Holiday Property BondIt’s your leisure time... Why share it?23 Focus on budget hotelsA market that continues to boom, despite concerns over thecredit crunch.26 Club classThe health and fitness sector remains buoyant.27 Tax updateSarah Cardew of Penningtons Solicitors looks at the effect ofEntrepreneurs’ Relief on leisure investments.28 Too many cooks?Luke Cutler looks at the state of the restaurant sector.30 A grand day outThe diverse world of day visitor attractions.31 VAC 2008HLL Humberts Leisure are proud sponsors of theVAC conference 2008.32 Fractional ownershipThe next big thing in holiday home purchasing?34 Not in my back yardJohn Coen of Ford & Warren solicitors looks at theramifications of beer garden behaviour.36 1APPA guide to the future of planning applications.38 PlanningComplexity brings the need for a professional approach.40 Coastal erosionRachel Whaley and Simon Davis watch the East Yorkshirecoast getting swept away.43 Why choose HLL Humberts Leisure?www.humberts-leisure.comHLL Humberts Leisure 3

NewsHouseboat berths atRiverside Quarter, Londonsee price increase of 60%in just two years.HLL Humberts Leisure has recently agreed the sale of the finaltwo houseboat berths at the fashionable London Riverside Quarterdevelopment on the River Thames in Wandsworth. After a slowstart-up in 2006, 12 berths in all have been sold with the majorityof sales completed in the latter part of 2007 at prices in the orderof £300,000 plus, approximately 60% above the initial asking price.With the advent of new craft designs and the ability to tap into fullresidential services (electricity, drainage, water, broadband andsatellite TV), London’s riverside living has really come of age.In the past two months considerable further interest in the berthshas been expressed and we would be pleased to assist developerselsewhere on the river to maximise their value from potentialberthing. We foresee demand for similar schemes in other locationsaround the UK – contact HLL to get best value out of yourwaterfront property.ContactJohn Mitchell BSc MRICS, London e: john.mitchell@humberts-leisure.com t: +44 (0)20 7629 6700Paul Barnes BSc(Hons) MRICS, Winchester e: paul.barnes@humberts-leisure.com t: +44 (0)1962 835 960Purple patchHLL Humberts Leisure was appointed asretained agents for Choice Hotels EuropePlc in 2006, has reviewed in excess of 500sites for the company and has entered intonegotiations on several prime sites over thelast 18 months. Choice Hotels Europe Plcunderwent a change of name during thecourse of 2007 and became ‘The Real HotelCompany Plc’ culminating in the launch of anew brand called ‘purplehotels’. The purplebrand is an updated version of the SleepInn model with brighter and more vibrantidentity and more relaxed, open public areas.RHC Plc’s ‘purplehotels’ brandrequirements (which can be for completedpurpose built hotels or development sites)are a minimum of 80 – 120 bedrooms on asite of 1.0 to 1.5 acres in or on the edge ofmajor towns & cities or main arterial roads.If you have a property that meets theserequirements please contact Tim Smith orAlex Campbell for a confidential discussion.ContactTim Smith BSc(Hons) MRICS, Londone: tim.smith@humberts-leisure.comt: +44 (0)20 7629 6700Alex Campbell BA(Hons) MA, Londone: alex.campbell@humberts-leisure.comt: +44 (0)20 7629 6700Hotel market continues unabatedHLL Humberts Leisure has recently been appointed to secure operators for three keystrategic hotel developments across the South East. Commenting, Tim Smith, Directorof Hotels, said “These three schemes demonstrate the continued importance of the hotelelement of any mixed use scheme. We are expecting considerable interest from brandedoperators for each site, as they are strategically located in key markets.”The sites in question are:■ A 100-150 bedroom hotel in Basingstoke, close to the M3 motorway.■ A 100 bedroom, town centre scheme in the centre of Tunbridge Wells■ An exciting new leisure concept, part of an iconic development scheme.Hotel operators with a requirement for hotel bedrooms or development sites in Basingstoke,Tunbridge Wells, London or other locations throughout the UK are invited to contact theHotels team at HLL Humberts Leisure.ContactTim Smith BSc(Hons) MRICS, London e: tim.smith@humberts-leisure.com t: +44 (0)20 7629 6700Luke Cutler BSc(Hons) MRICS, London e: luke.cutler@humberts-leisure.com t: +44 (0)20 7629 6700Alex Campbell BA(Hons) MA, London e: alex.campbell@humberts-leisure.com t: +44 (0)20 7629 67004 Summer 2008

NewsvaluationvaluationThe Grand Pier, Westonsuper-Mare,SomersetValued on behalf of Handelsbanken, Bristol, in connection with the saleof the pier to Kerry and Michelle Michael at the beginning of 2008.■ A renowned Grade II Listed Victorian Pier■ Freehold■ 380m in length with a total decked area of 10,000 sqm■ Originally built in 1903 but partially destroyed by fire in the 1930s■ Now comprising a significant seaside arcade attractionContactRichard Baldwin BSc(Hons) MRICS, Skiptone: richard.baldwin@humberts-leisure.com t: +44 (0)1756 799 271confidential saleIto at Westfield LondonWestfield London, the £1.6 billion retail and leisure development atWhite City, West London is nearing completion. Once completed,White City will be the largest in-town shopping centre in Europe.Anchored by four main high street stores Westfield London willinclude a large number of restaurants and food outlets.HLL Humberts Leisure has recently undertaken a valuation onbehalf of RBS for the new restaurant concept ‘Ito’ created byTom Eteridge.ContactLuke Cutler BSc(Hons) MRICS, Londone: luke.cutler@humberts-leisure.comt: +44 (0)20 7629 6700confidential saleExceptional RestaurantOpportunityHLL Humberts Leisure is instructed to confidentially market anoutstanding restaurant business in South Wales. The establishedbusiness, which occupies a superb coastal location, includes:■ Net sales just under £1.9 million■ Adjusted net profit of close to £600,000■ Planning consent to extend■ Extensive trade areas■ Virtual freeholdAn information pack will be provided on completion of an NDA.Offers in the region of £3.5 million.ContactCharles Kaminaris BSc(Hons) MRICS, Chepstowe: charles.kaminaris@humberts-leisure.com t: +44 (0)1291 627 813Popular animal basedvisitor attraction, SomersetHLL Humberts Leisure is instructed to confidentially marketan established day visitor attraction in Somerset. The successfulbusiness, which occupies a freehold site, comprises:■ Renowned animal based attraction■ Circa 100,000 visitors p.a■ 9.4 hectares (23 acres)■ For sale/joint venture consideredFor further information or to request an NDA please contactHLL Humberts Leisure.ContactRichard Baldwin BSc(Hons) MRICS, Skiptone: richard.baldwin@humberts-leisure.com t: +44 (0)1756 799 271www.humberts-leisure.comHLL Humberts Leisure 5

NewssoldsoldMiddleton Hall Golf Club,Norfolk■ 18 hole 5,785 yd (par 71) golf course■ 10 bay floodlit driving range■ Practice facilities■ Well presented clubhouse■ Established, successful business■ Popular tourist location■ Freehold (3 holes leased)Sold June 2008ContactBen Allen BSc(Hons) MRICS, Winchestere: ben.allen@humberts-leisure.com t: +44 (0)1962 835 960Paul Barnes BSc(Hons) MRICS, Winchestere: paul.barnes@humberts-leisure.com t: +44 (0)1962 835 960Crazy Golf?Following the upsurge in golf course development during the1990s, the UK golf market has become increasingly competitive.This, together with the extensive fixed overheads of running suchoperations, has led to a significant rise in the number of golf clubsdeveloping additional on-site facilities to provide secondary ortertiary income streams such as conference, banqueting, spa andleisure amenities; as well as on-site accommodation through theaddition of lodges or hotel bedrooms.The Consultancy and Public Sector Development team at HLLHumberts Leisure has advised on a number of golf developmentprojects across the UK and is currently providing expert witnesson the demand for hotel accommodation at a leading golf club inOxfordshire. The Consultancy and Public Sector Development teamis well placed to offer specialist independent advice regarding thelikely market demand, economic impact, financial feasibility, businessplanning and investment appraisal of such developments.ContactNigel Mills MBHA, Brightone: nigel.mills@humberts-leisure.com t: +44 (0)1273 325 911Cherise Smith BA(Hons), Brightone: cherise.smith@humberts-leisure.com t: +44 (0)1273 325 911The Ridge Golf Club, KentA freehold established proprietary golf club located in central Kent■ 18 hole 6,242 yd (par 71) golf course■ Driving range & practice facilities■ Spacious clubhouse with leisure club, function facilities■ Two bedroom apartment■ Commercial location close to Maidstone / M20 Motorway■ Established business with growth potential■ Circa 975 golf & leisure members■ FreeholdSold April 2008ContactBen Allen BSc(Hons) MRICS, Winchestere: ben.allen@humberts-leisure.com t: +44 (0)1962 835 960Paul Barnes BSc(Hons) MRICS, Winchestere: paul.barnes@humberts-leisure.com t: +44 (0)1962 835 960soldWaterfront Golf Centre,Yorkshire■ 9 hole Simon Gidman designed 3,325 yard (par 36) golf course■ 31 bay floodlit golf driving range■ Short game practice areas■ Clubhouse/golf shop c. 279 sq m (3,000 sq ft)■ Purpose built greenkeepers building■ Leasehold – 35 year leaseSold May 2008ContactBen Allen BSc(Hons) MRICS, Winchestere: ben.allen@humberts-leisure.com t: +44 (0)1962 835 9606 Summer 2008

Newsunder offerfor saleHersham Village GolfClub, SurreyAn established proprietary golf club located inside the M25 Motorway■ 18 hole 5,305 yd (par 67) golf course■ 16 bay floodlit golf driving range (plus 6 outside bays)■ Practice facilities■ Clubhouse■ Commercial location close to Walton-on-Thames & Weybridge■ Established business with growth potential■ FreeholdOIRO £1.65 millionContactBen Allen BSc(Hons) MRICS, Winchestere: ben.allen@humberts-leisure.com t: +44 (0)1962 835 960Paul Barnes BSc(Hons) MRICS, Winchestere: paul.barnes@humberts-leisure.com t: +44 (0)1962 835 960Lostwithiel Hotel Golf &Country Club, CornwallA well presented proprietary golf hotel in a popular tourist location.■ Circa 30 bedroom hotel■ Clubhouse with leisure club and function/conference facilities■ 18 hole 5,907 yard (par 72) golf course with practice facilities■ Indoor swimming pool, tennis courts & fishing lakes■ Established business – turnover in the region of £1.1 million withgood potential for growth/commercialisation.■ Freehold.OIRO £2.25 million.ContactBen Allen BSc(Hons) MRICS, Winchestere: ben.allen@humberts-leisure.com t: +44 (0)1962 835 960Paul Barnes BSc(Hons) MRICS, Winchestere: paul.barnes@humberts-leisure.com t: +44 (0)1962 835 960short leet selectedletHazlehead Golf Course,AberdeenOne of the finest 45 hole pay & play golf courses in Scotland■ Located on the western outskirts of Aberdeen (population 202,370)■ No 1 Course – (established 1928) designed by Alister MacKenzie■ No 2 Course - 5,764 yards (par 67)■ 9 hole course■ Practice ground & practice facilities■ Potential clubhouse/hotel development sites (stpp)■ 90 year leaseContactBen Allen BSc(Hons) MRICS, Winchestere: ben.allen@humberts-leisure.com t: +44 (0)1962 835 960Tapton Park Golf Club,Derbyshire■ 18 hole 6,104 yard (par 72) golf course■ 9 hole 2,613 yard (par 34) golf course and 9 hole par 3 course■ Practice ground (with potential for floodlit golf range)■ Clubhouse & Lodge house■ Greenkeepers’ compound■ Circa 70,000 rounds p.a.■ Great potential for growth■ 25 year leaseContactBen Allen BSc(Hons) MRICS, Winchestere: ben.allen@humberts-leisure.com t: +44 (0)1962 835 960www.humberts-leisure.comHLL Humberts Leisure 7

NewsQueen’s Pier, Ramsey, Isle of ManHotel developmentobstacles overcomeHLL Humberts Leisure is constantly involved in looking for suitablesites on behalf of hotel and leisure developers or operators wishingto have a presence in various markets within the UK. Requirementsdo vary from operator to operator and brand to brand but, as arule of thumb, key requirements include location, land availability,likelihood of achieving planning consent, strength and characteristicsof the market, viability, development costs and land values.Once a hotel developer or operator has identified suitable locationsand sites which meet their specific requirements, they can oftencome up against real or perceived barriers which hinder thedevelopment process. An increasingly real obstacle to developmentis often linked to obtaining planning permission, particularly forout-of-centre sites and, in particular, at sites located in or near to theGreen Belt, Areas of Outstanding Natural Beauty, conservation orheritage areas. This is becoming increasingly common as competitionfor sites intensifies and the availability of suitable sites diminishes.HLL provides consultancy and planning advice to clients in orderto overcome these obstacles and satisfy planning requirements.An important planning requirement is often to prove need foradditional hotel rooms (both qualitative and quantitative) and toaddress national planning policy relating to new hotel development– outlined in Planning Policy Statement 6 (PPS6), Planning PolicyStatement 7 (PPS7) and the Good Practice Guide on Planningfor Tourism. PPS6 requires a Sequential Site Assessment whichassesses the proposed site relative to other potential sites froma locational, market and planning perspective. Local PlanningAuthorities, however, tend to apply PPS6 indiscriminately to allhotel development proposals even though it may not be applicable tocountryside or roadside hotel proposals.The Consultancy and Public Sector Development team at HLLcan truly provide clients with a one stop shop to developers andoperators requiring prudent advice to overcome these obstacles.HLL has provided planning policy and market evidence in supportof planning applications and expert witness at planning inquiries atvarious locations across the UK, including very recently projects inCambridgeshire, Heathrow, Oxfordshire, Essex and Kent.ContactNigel Mills MBHA, Brightone: nigel.mills@humberts-leisure.com t: +44 (0)1273 325 911Martin Taylor BA(Hons) BTP MRTPI MIED MTS, Brightone: martin.taylor@humberts-leisure.com t: +44 (0)1273 325 911Unrivalled among our piersPleasure piers were first built in England during the nineteenthcentury. The surge in popularity for many coastal resorts during theVictorian era led to the construction of a large number of piers. Manypiers were built to counteract tidal changes and ensure that the searemained visible to visitors at all times. Pleasure piers often include arange of facilities such as fun fairs, theatres and night clubs.In recent decades however, the decline of the traditional seasideresort and the cost of maintaining such piers has led to the gradualdecay of many such structures. Indeed, the Piers Society estimatethat there are just 55 pleasure piers remaining in existence aroundthe UK today.As finding sufficient funds to pay for the upkeep of pleasure piershas hit Local Authority and private owners hard, so many havesought to diversify and develop new income streams. Some – suchas Brighton’s Palace Pier – have been extremely successful. Others,however, have not.HLL Humberts Leisure’s Public Sector Development team hasrecently undertaken several pier-based studies to examine theviability of existing piers to help ensure that such historic structuresare maintained for future generations to enjoy.The Queen’s Pier in Ramsey on the Isle of Man was closed to thegeneral public on safety grounds in 1991. HLL Humberts Leisurewas commissioned by the Isle of Man Government to review theavailable options for the Queen’s Pier and to make recommendationsas to its future use. We considered a range of commercialdevelopment options, taking into account a survey of local residentsundertaken by BMG in conjunction with our study. We provided anumber of viable development options to the Government and alsorecommended that consideration should be given to the potential fordeveloping a new leisure marina adjacent to the pier.More recently, HLL Humberts Leisure has been commissioned byBrighton & Hove Council to advise on the development potentialof the disused arches adjacent to the decaying West Pier. Thedevelopment of the proposed Brighton i360 visitor attraction has ledto a need to redevelop the pier’s immediate environs and generatefunds for the Council which could be put towards the restoration ofthe West Pier. We are currently working on a number of commercialdevelopment options, ranging from beach chalets to café/restaurantusage and the potential to create a new Artist’s Quarter in this keycentral location.Our team has extensive experience of providing advice across a widespectrum of tourism and leisure property. For further informationplease contact Peter Sharp at the Brighton office.ContactPeter Sharp BA(Hons) MBHA, Brightone: peter.sharp@humberts-leisure.com t: +44 (0)1273 325 9118 Summer 2008

Newsconfidential saledevelopment siteOn behalf of Punch TavernsPortfolio of 7 managed publichouses in the North of England.HLL Humberts Leisure has been instructed to confidentially market a portfolio of 7managed public houses located in Nottinghamshire and South Yorkshire. The properties areall large community style pubs with a value for money food offering and potential to increasethe wet trade. For further information or to request a non-disclosure agreement, pleasecontact HLL.ContactAndrew Moore BSc(Hons) MRICS, Skiptone: andrew.moore@humberts-leisure.com t: +44 (0)1756 799 271Peter Constantine BSc(Hons) FRICS, Chepstowe: peter.constantine@humberts-leisure.com t: +44 (0)20 7629 6700for saleWest Berkshire,16th Centuryvillage pubwith restaurantHLL Humberts Leisure’s Pubs Agencyteam has been instructed to sell TheBeehive Inn situated in the village ofUpper Basildon near Pangbourne andReading in West Berkshire.This distinctive freehold pub dates from the 16th Century and has the characteristic charmof a traditional inn with flagstone and oak floors, open fires and oak beam ceilings. Therecently refurbished inn has a bar area and a 40 seater restaurant, a trade garden and a patio,with an onsite marquee for functions, parties and weddings. There is car parking for 25 carswith planning consent to add a further 35 spaces. The property also includes a 3 bedroomflat, plus 2 further staff bedrooms and outbuildings which include furtherstaff accommodation.The sale is being handled by Peter Constantine BSc(Hons) FRICS, who commented‘The Beehive offers all the benefits of a village inn and is a destination venue for a largeaffluent catchment area. We expect strong interest from the corporate sector as well asindividual operators’.ContactPeter Constantine BSc(Hons) FRICS, Chepstowe: peter.constantine@humberts-leisure.com t: +44 (0)20 7629 6700Eagles Nest,KidderminsterHLL Humberts Leisure has been instructedby Punch Taverns PLC to sell a formerpublic house with planning permission for10 x 2 bedroom flats and 4 x 3 bedroomsemi detached houses.The property is in an established residentialarea and backs onto open fields and hasa site area of 0.57 acres ( 0.23 hectares).Offers in the region of £700,000 are invitedfor the freehold property.ContactPeter Constantine BSc(Hons) FRICS, Chepstowe: peter.constantine@humberts-leisure.comt: +44 (0)1291 627 813valuationThe Beehive,LondonHLL Humberts Leisure has recently valuedThe Beehive on Crawford Street just offBaker Street in Central London. The Beehiveis the latest launch from veteran restaurateurClaudio Pulze, who has opened over 30restaurants in London including Aubergine& Zafferano. This time he’s moved away fromthe fine-dining scene & is keen to stress thatThe Beehive is not a ‘gastropub’.ContactLuke Cutler BSc(Hons) MRICS, Londone: luke.cutler@humberts-leisure.comt: +44 (0)20 7629 6700www.humberts-leisure.comHLL Humberts Leisure 9

NewsRatingRevaluation forEngland andWales in 2010The Valuation Office Agency undertakes aRevaluation of all non-domestic property inEngland and Wales every 5 years, and hasalready started work on the next Revaluation,due to take effect in April 2010.As a preliminary to the Revaluation, theValuation Office Agency (VOA) seeksinformation from all occupiers of nondomesticproperty. Many non-domesticproperties within the leisure sector arevalued having regard to the level of receipts,and the VOA makes use of tailor madeForms of Return, which seek specificinformation regarding the level of receiptsfor the 3 years leading up to 1 April 2008(known as the Antecedent Valuation Dateor AVD). The 2010 Rateable Value will becalculated having regard to the estimatedrental value of the property as at 1 April2008. To that extent it will be the tradingreceipts from the 2007 season that will havethe greatest bearing on value, though thereceipts from earlier years will be useful insetting the context.Certain of the FOR’s, notably those inrespect of caravan parks, are long and timeconsuming to complete. HLL HumbertsLeisure would be pleased to assist clientsrequiring any advice concerning either thecompletion of the form or indeed the natureof the information to be disclosed.ContactPeter Boghurst MRICS, Brightone: peter.boghurst@humberts-leisure.comt: +44 (0)1273 325 911Model Standards 2008 forResidential Caravan Sites in EnglandThe Department for Communities and Local Government have now published the longawaited revision to the Model Standards for residential caravan parks which specify ModelStandards with respect to the layout and the provision of facilities, services and equipment.The 2008 Standards replace the Model Standards 1989, and will be adopted byLicensing Authorities when applying licence conditions to new sites and sites that havebeen substantially redeveloped. In considering variations to existing Site Licences, LocalAuthorities should consider whether it is appropriate for the 2008 Model Standards to apply,and where a current licence condition is adequate in serving its purpose, the Authority shouldnot normally apply the new Standard. In any event, where it is appropriate to apply the newStandard to a condition, the Local Authority should be able to justify its reasons for doing so,and must consult with the site operator prior to imposing the new Model Standard. In thoseinstances where it is considered that the new Site Licence condition is inappropriate, onerousor unduly burdensome, there remains a right of appeal to the Magistrate’s Court.The full text of the Model Standard can be obtained direct from Communities and LocalGovernment publications, PO Box 236, Weatherby, West Yorkshire, LS23 7NB, telephone08701 226236 or online via the Communities and Local Government (www.communities.gov.uk). It should be noted that following the Regulatory Reform (Fire Safety) Order2005, many of the fire related standards that existed in the 1989 Model Standards havebeen superseded, and the site operators are under an obligation to commission a Fire RiskAssessment in respect of their parks. For specific advice in respect of Site Licensing issuescontact Peter Boghurst MRICS, at HLL’s Brighton office.ContactPeter Boghurst MRICS, Brighton e: peter.boghurst@humberts-leisure.com t: +44 (0)1273 325 911Planning team strengthenedFollowing the recent appointment of Rachel Whaley in the Skipton office, HLL Humberts Leisure hasfurther strengthened its Planning team with the appointment of Debbie Marriage as a Senior Planner inHLL’s Brighton Office.Debbie brings 9 years’ experience in both the public and private sectors, predominantly in local authoritydevelopment control in various parts of the UK including East Sussex, Middlesex, South Yorkshire andNottinghamshire. Debbie also has experience of both planning policy and private consultancy work. Mostrecently, she worked for corporate clients in the mobile telecommunications sector in the south-east.Debbie will work alongside Martin Taylor and Aimée Cannon. The Brighton based part of HLL’s Planningteam covers the South Coast, South East, East Anglia, the West Country, South Wales and the Midlands.ContactDebbie Marriage BSc MA MRTPI, Brightone: debbie.marriage@humberts-leisure.com t: +44 (0)1273 325 91110 Summer 2008

Newsfor saleFine holiday cottageinvestment opportunity,nr Malmesbury, WiltshireHLL Humberts Leisure has been instructed to sell Oaksey ParkHoliday Cottage Complex - a managed holiday cottage complex- as an investment opportunity. Oaksey Park enjoys an excellentcommercial trading location in the Cotswolds, on the edge of theCotswolds Water Park. The development overlooks the attractive9 hole (2,901 yard) Oaksey Park Golf Course, in a rural locationmidway between the historic market towns of Cirencester andMalmesbury in an area popular with tourists and holiday makers.The opportunity offers:■ An attractive managed investment with a guaranteed minimumyield of 6% net revenue (years 1-3) on 14 high quality cottages■ Planning consent for the development of 12 furtherholiday cottages■ Cottages with eco-credentials and discounted golf rates■ Accessible rural location on the edge of the Cotswold Water Park■ Excellent occupancy rates – circa 40 weeks per annum■ Possible further future phase(s) of development, subjectto negotiationThis is an excellent opportunity for anyone wishing to invest inproperty with a guaranteed and secure initial income stream. Theproperty is for sale as a whole or in 3 lots on a 999 year lease with aguide price for the whole of £4.25 million.ContactPaul Barnes BSc(Hons) MRICS, Winchestere: paul.barnes@humberts-leisure.com t: +44 (0)1962 835 960for saleHoliday Cottage Complex,Powys■ 10 attractive cottages■ 2 recently completed contemporary bedroom spa apartments■ Substantial 5 bedroom, 17th century farmhouse■ New manager’s apartment■ Panoramic views of the surrounding countryside■ 1.24 hectares (3 acres) in totalFor sale freeholdContactRichard Baldwin BSc(Hons) MRICS, Skiptone: richard.baldwin@humberts-leisure.com t: +44 (0)1756 799 271Charles Kaminaris BSc(Hons) MRICS, Chepstowe: charles.kaminaris@humberts-leisure.com t: +44 (0)1291 627 813Paul Barnesgoes WestPaul Barnes, who joined HLL Humberts Leisure’s Holiday Property& Golf team in the London office in 2006, moved to the company’sWinchester office at the end of May 2008. Paul will primarilyconcentrate on offering agency related advice to the owners ofcottage complexes, holiday and residential parks throughout theSouth West and along the South Coast.To discuss your holiday park or park home estate requirements, orfor a confidential discussion on the potential sale of your property orbusiness, please contact Paul Barnes.ContactPaul Barnes BSc(Hons) MRICS, Winchestere: paul.barnes@humberts-leisure.com t: +44 (0)1962 835 960www.humberts-leisure.comHLL Humberts Leisure 11

NewsPark lifeHLL’s success continues in the dynamic holidaypark, lodge park and park home estate marketTo discuss your holiday park requirements, or for advice,information, professional services, consultancy and planning queriesplease contact:AgencyPeter Smith BA(Hons) MRICS, Skipton (ref PRS)e: peter.smith@humberts-leisure.com t: +44 (0)1756 799 271John Mitchell BSc MRICS, London (ref JCM)e: john.mitchell@humberts-leisure.com t: +44 (0)20 7629 6700Charlie Mason BA(Hons) MSc, Londone: charlie.mason@humberts-leisure.com t: +44 (0)20 7629 6700Paul Barnes BSc(Hons) MRICS, Winchester (ref PGB)e: paul.barnes@humberts-leisure.com t: +44 (0)1962 835 960Emma Carling, Skipton (ref ELC)e: emma.carling@humberts-leisure.com t: +44 (0)1756 799 271Richard Baldwin BSc(Hons) MRICS, Skipton (ref RNB)e: richard.baldwin@humberts-leisure.com t: +44 (0)1756 799 271Valuation and professional servicesJohn Anderson BSc FRICS, Skiptone: john.anderson@humberts-leisure.com t: +44 (0)1756 799 271Martin Reed MRICS IRRV, Brightone: martin.reed@humberts-leisure.com t: +44 (0)1273 325 911Peter Boghurst MRICS, Brightone: peter.boghurst@humberts-leisure.com t: +44 (0)1273 325 911Martin Taylor BTP MRTPI MIED MTS, Brightone: martin.taylor@humberts-leisure.com t: +44 (0)1273 325 911SoldWoodlands Park, KentA substantial mixed residential and holidaypark with considerable developmentpotential in a prime location. Park homeestate for 125 homes with 119 units privatelyowned; with office, shop and former licensedclub. Space for development of further homes. 200 pitch touringpark with planning for circa 55 holiday statics in place of 100tourers. Consent for further 25 holiday statics. Owner’s 4 bedroombungalow. In all about 15 ha/37 acres. Freehold.Guide £7 million – Ref JCM/PGB +44 (0)20 7629 6700Valley View, PowysSite Licence for 155 pitches. 10 monthseason for holiday statics and 11 monthseason for chalets. Current developmentincludes 126 holiday statics, 29 chalets.Circa 12.14 ha/30 acres in total. Freehold.Guide £4.1 million - Ref PRS/ELC +44 (0)1756 799 271Sandfield & Merryfield,LincolnshireTwo adjoining holiday static parks operatingtogether on the popular Lincolnshire Coast.Approximately 5.38 ha/13.29 acres forboth parks. Combined site licences currently developed for 254holiday statics, with 195 owner-occupiers, 25 hire fleet and 34vacant pitches. Licensed club (on a new 1 year lease). 2 brick builtbungalows used for holiday letting. 4 retail shops (currently let toa single tenant) with 4 furnished holiday apartments above. Parkreception/leisure shop. Sold March 08.Guide £4 million - Ref PRS/ELC +44 (0)1756 799 271Woodlands Holiday Village,West WalesA profitable chalet park with 144 owneroccupiedholiday chalets on short-term leaseson the popular Ceredigion coast. Reception,licensed club, heated swimming pool, owner’s flat. Circa 5.9 ha/14.5acres in total. Sold to Songbird Leisure Ltd for redevelopment.Guide £2.3 million – Ref JCM +44 (0)20 7629 6700Cauldron Barn Caravan Park,DorsetA major holiday park in the popular resortof Swanage with planning consent forresidential park homes in place of holidaycaravans. Currently 169 fully serviced single holiday static pitches(with 158 privately owned and 11 hire fleet vans), amenity field with9 touring pitches, central facilities and car parking. In all about 5.62ha/13.89 acres. Sold freehold to Berkeley Leisure Group Ltd.Confidential sale - Ref JCM/PGB +44 (0)20 7629 6700Whitecliff Bay Holiday Park,Isle of WightA significant mixed holiday static, chaletand touring park with latent redevelopmentpotential. The main holiday site comprises253 holiday units (39 privately owned caravans, 214 hire fleetcomprising chalets and static caravans) and extensive indoor andoutdoor central facilities. A separate touring park comprisingapproximately 400 touring pitches. Predominantly freehold and soldto Away Resorts, a new company backed by Close BrothersPrivate Equity.Confidential sale - Ref JCM/PGB +44 (0)20 7629 6700Under offerDownsview Caravan Park,West SussexAn attractive holiday park in an accessiblerural location only 9 miles from Brightonwith 4 bedroom house and furtherdevelopment potential. Planning consent and site licence for 39holiday homes with 11 month holiday use. Approximately1.15 ha/2.84 acres in total. Freehold.Guide £1.6 million - Ref PGB +44 (0)1962 835 960Riverside Caravan Park, IoWAn attractive holiday static park redevelopmentopportunity in the popular resort of Sandown,comprising a bare site (with old bases andservices) with planning consent and site licencefor use as a holiday park for up to 59 pitches with an 8 month season, 3-bed owner’s bungalow and former licensed clubhouse. Circa 1.1 ha/2.72acres. Freehold.Guide £750,000 – Ref JCM/PGB +44 (0)20 7629 6700Golden Sands Caravan Park,West SussexA freehold holiday static redevelopment siteon the coast with beach frontage. 37 singlehomes sited in about 1.14 ha/2.81 acres.Guide £600,000 – Ref JCM/PGB +44 (0)20 7629 670012 Summer 2008

NewsOn the marketCarnaby Heritage Park,East YorkshireA rare opportunity to acquire a newlyconstructed holiday bungalow development,close to the coastal resort of Bridlington. 28 x2 bedroom holiday bungalows and 3 x 2 bedroom holiday apartments.Fully furnished show home. Suitable for individual sales, buy to letinvestors or holiday letting operators. For sale freehold.Offers invited - Ref PRS/ELC t: +44 (0)1756 799 271Appuldurcombe GardensHoliday Park, Isle of WightA well-established holiday park with statichire fleet of 41 units, 100 touring pitches,extensive central facilities and planningconsent for 21 holiday lodges. Two period houses (availableseparately). In all about 4.99 ha/12.33 acres. For sale freehold as awhole or in 3 lots.Guide price £3 million (for the whole) – Ref PGB/JCM+44 (0)1962 835 960Bryn Tirion, AngleseyAn exciting opportunity to develop holidayapartments on the spectacular east coastof Anglesey. Circa 0.42 ha/1.04 acres intotal. Planning permission for 21 holidayapartments and an indoor swimming pool.Suitable for buy to let investors or owner-occupiers. Freehold.Guide price £1.25 million - Ref PRS/ELC +44 (0)1756 799 271Rode Heath, CheshireAn opportunity to acquire a lodgedevelopment site in a prime location.Planning permission for 32 twin unit lodges.Approximately 11.31 hectares (27.96 acres) intotal. Current consented area of 2.8 ha/7 acres.Guide price £1.75 million (plus overage on additional land)- Ref PRS/ELC t: +44 (0)1756 799 271Gracelands PHE,LeicestershireA well established park home estatecomprising 45 serviced pitches with 44homes (21 singles and 23 twins) occupied.1 newly laid twin park home pitch for the sale of a new home.Potential for future development of larger homes. Approximately1.35 ha/3.33 acres. For sale freehold.Guide price £1.45 million - Ref JCM +44 (0)20 7629 6700Glen Afton, AyrshirePlanning permission for 74 holiday chaletsin total of which 4 are currently sited.Planning permission for 50 holiday statics.Former hotel/hostel. Fully licensed club(currently non-operational). Two semidetachedcottages. The site is currently managed under a short termlicence at an annual fee of £52,000.Guide price £1.5 million or may let - Ref PRS/ELCt: +44 (0)1756 799 271Jaybelle Holiday Park,West SussexA prime site for the development of up to 59holiday static caravans or 40 twin holiday lodgeswith additional warden’s unit. In all about 1.62ha/4 acres of mature grounds close to the coast. For sale freehold.Guide price £1.5 million – Ref JCM/PGB +44 (0)20 7629 6700Stone Valley Court PHE,LincolnshireA well established park home estate in aprime town near Lincoln with 26 homes – 25privately owned (24 twin and 1 single), onehome held on an AST. Separate 4 bedroom bungalow let on an AST.In all about 0.76 ha/1.80 acres. For sale freehold as a going concern.OIRO £1.15 million – Ref JCM+44 (0)20 7629 6700Bartington PHE, CheshireA well located park home estate in a highlysought-after village location. Site Licence for21 park homes - 11 twin and 10 single unitssited. For sale freehold.Guide price £750,000 - Ref PRS/ELC +44 (0)1756 799 271Yew Tree PHE,StaffordshireA park home development site in a ruralyet highly accessible location lying betweenStoke-on-Trent and Stafford. The park hasconsent for 14 homes, 3 of which have been sold with the remainderpart developed ready for further profitable home sales.Guide price £675,000 – Ref: JCM +44 (0)20 7629 6700Orchard PHE, OxfordshireA prime park home estate, centrally locatedwithin a popular Thames Valley village, withexcellent pitch fee income. 12 homes intotal (6 twins, 6 singles) with existing annualpitch fees of £23,045.64. Freehold.Offers in the region of £525,000 – Ref: JCM +44 (0)20 7629 6700Lazy Days Holiday Park, KentA recently developed holiday static parkwith further development/sales potentialoverlooking the sea. 30 pitches, 17 of whichare developed for twin units and the restsingles including one used as warden’saccommodation. In all about 0.81 ha/2 acres. Freehold.Guide price £435,000 – Ref PGB/JCM +44 (0)1962 835 960Crumpwood, StaffordshireLodge development opportunity. Formerdairy farm with open views acrosswooded valley and close to Alton Towers.Well situated for access to A50 dualcarriageway. Potential for over 100 timberlodges. Detached period farmhouse within mature garden setting.Approximately 44.5 ha/110 acres in total. For sale freehold.Price on application - Ref PRS +44 (0)1756 799 271www.humberts-leisure.comHLL Humberts Leisure 13

Featured property | Iford Golf CentreThe Bourne(mouth)SupremacyIford Golf Centre, a magnificent 27 hole pay and play golfcourse, with a two tier 60 bay floodlit driving range, wellappointed clubhouse and an established trading recordclose to the Bournemouth/Christchurch/Poole conurbation.14 Summer 2008

Featured property | Iford Golf Centre■ 18 hole 6,313 yard (par 72) David Pottage designed golf course,constructed to USGA specification by Artington Golf■ 9 hole par 3 golf course■ Impressive Charles Mador designed clubhouse, furnished, fittedand equipped to a high specification■ Two tier 60 bay floodlit golf driving range with contouredoutfield■ Floodlit practice putting green■ Purpose built greenkeeping complex■ Circa 78 hectares (193 acres)■ Established business with potential for furthercommercialisation■ Commercial trading location on the South Coast of England:Bournemouth (centre) – 11 minutesChristchurch (centre) – 7 minutesPoole (centre) – 17 minutesLondon – 2 hrs 20 minutes■ Turnover circa £1,200,000■ 68% golf & range income; 24% food & beverage income & 8%retail income■ 4 years of consistent growth in turnover■ 52,000 rounds (2007)■ Leasehold – 99 year FRI lease at annual ground rentOffers invited in the regionof £1,750,000 - £2,000,000ContactBen Allen BSc(Hons) MRICS, Winchestere: ben.allen@humberts-leisure.com t: +44 (0)1962 835 960Paul Barnes BSc(Hons) MRICS, Winchestere: paul.barnes@humberts-leisure.com t: +44 (0)1962 835 960www.humberts-leisure.comHLL Humberts Leisure 15

Focus | The golf marketPar for the courseHLL Humberts Leisure’s activity in the golf market continuesapace demonstrating the strength of the sector despite the currentgeneral economic uncertainty.The golf market is driven by three main categories of purchaser – lifestyle buyers/newentrants to the sector; regional operators (who own several courses in a geographicalarea) and corporate operators with a national presence. Ben Allen BSc(Hons) MRICS, whoheads the HLL’s Golf Agency team, recently spoke to representatives from each categoryto gauge their insight into the sector and their thoughts on the coming months. Here, intheir own words, is the reaction.For further insight in to the golf sector; to register your interest in acquiring or sellinga golf business; or for professional valuation advice please contact a member of ourspecialist team.ContactBen Allen BSc(Hons) MRICS, Winchester e: ben.allen@humberts-leisure.com t: +44 (0)1962 835 960Martin Brister FRICS, Winchester e: martin.brister@humberts-leisure.com t: +44 (0)1962 835 960Paul Barnes BSc(Hons) MRICS, Winchester e: paul.barnes@humberts-leisure.com t: +44 (0)1962 835 960Tim Smith BSc(Hons) MRICS, London e: tim.smith@humberts-leisure.com t: +44 (0)20 7629 6700National operator: Burhill Golf & Leisure LtdJames Bracey, Property and Development Manager for Burhill Golf & Leisure Ltd.What attracts Burhill to golf?Burhill Golf & Leisure is one of the leading national golf course owners and operatorswith 10 golf sites across the UK. The company, which is owned privately by members ofthe Guinness family, has been in golf for just over 100 years. Around this time the mainhouse on the Burhill Estate, Walton on Thames, Surrey, was converted into a golf clubhouseand the adjoining buildings were converted into complimentary leisure facilities for thegolf members. The club appealed to the new Surrey resident seeking a better quality ofenvironment within the London commuter belt.Today Burhill Golf Club remains the group’s flagship venueand one of the best known and commerciallysuccessful golf clubs in the UK.Our golf business took off in the 1980s when Burhill Golf & Leisure Ltd moved intoaffordable non-commitment golf, establishing Hoebridge Golf Centre, near Woking, againin Surrey. Unlike Burhill Golf Club, Hoebridge is a public golf centre and its success as oneof the busiest pay-and-play courses in the South East proved to be the foundation forfurther expansion into this sector. The group now boasts seven pay-and-play golf centreswith driving ranges; and three golf clubs. Aldwickbury Golf Club and Redbourn Golf Club,both in Hertfordshire, were acquired in 2006.Golf was seen as a more commercially viable land use to that of agriculture, acceptable interms of planning and a solution to extracting longer term value. Today we are pursuingcomplimentary leisure uses at a number of the sites; however, this is not without localplanning challenges.16 Summer 2008

Focus | The golf marketBurhill Golf ClubThe group also has other property interests including: commercial,residential and marine related facilities at Bosham Harbour inWest Sussex.What are the key features of a golf coursethat make it a success?Burhill Golf & Leisure has a good understanding yield managementin the property and leisure industries. So whether it is moorings,tenants or tee times on a golf course, we apply the sameprinciples in all of our businesses to optimise profitability.In golf, we manage tee times very carefully and have been verysuccessful in improving utilisation at our courses. We havemanaged to maintain yields in a challenging and oversuppliedmarket place. This has been achieved through quality, service andvalue of product although every general manager is always toldthere is room for improvement.Like any industry we have to consider revenue streams outside ofthat of our core golf trade. We have developed successful drivingranges, which are floodlit and so can be used during the eveningsafter dark, excellent food and beverage operations, golf retail,award winning health and fitness centres at Birchwood Park GolfCentre in Kent and Hoebridge Golf Centre, plus accommodationat Thornbury Golf Centre, Bristol. We are looking at furtheraccommodation opportunities at other centres, too.We have also worked successfully with third parties, such as localauthorities, as we do at Wycombe Heights GC and Abbey Hill GCin Milton Keynes. We want to attract other owners to us, and notjust in golf – but also in other leisure areas such as hotels. We arekeen to grow through acquisition or partnership.Birchwood Park Golf CentreWhat is the future for the sector?I don’t think there is any doubt that we are going to see somecasualties in the golf sector in the near future. There are a lot ofgolf course operations out there in precarious financial situations.I think it is fair to say that the downturn in the economic situationwill be challenging; however, this could create opportunities.Our golf centres offer the right combination of quality, serviceand value to make them popular with consumers and highlyprofitable. In areas where there is competition, we will certainlychallenge and strive to set market standards.This should enable us to pursue our objectives to expand thegroup in the UK and possibly abroad.The next couple of years will be a tough time for the golf sector,but we are optimistic that our businesses will continue to thrive.www.burhillgolfandleisure.co.ukwww.humberts-leisure.comHLL Humberts Leisure 17

Focus | The golf marketRegional operator: Pentland Golf Johnathan Callister PGA, Chief Executive of Pentland GolfWhat attracts Pentland Golf to the sector?There was a time when golf clubs and courses could rest on theirlaurels, secure in the knowledge that they would continue toattract what I would call the ‘stereotypical’ golfer without havingto bother with anything as crass as marketing or trying to winover their potential players.In the past ten years however the demographics of our society havechanged beyond all recognition as new societal groups have emergedwith substantial amounts of disposable income and as individualshave come to expect higher standards in every walk of life.Historically, golf had been viewed as relatively elitist with a privateclub membership base. The high price of fees and equipment hasalso meant that, for many people, the costs of playing the sportare prohibitive and effectively act as a barrier to entry. At PentlandGolf, we realised this about twelve years ago and began to shape avision of how a high quality golf business could operate in order toattract a wider set of audiences.Attitudes to the game have also changed and will continue to doso and whilst value for money is still at the top of the agenda;customer service, clubhouse furnishings and the overall ambienceof the golfing facility will play an increasingly important role inpeoples’ choice of venue.What are the key features of a golf coursethat make it a success?In order to appeal to a more rounded audience and to really bringour vision of golf in the 21st Century to life, at Pentland Golf werealised that we would have to find ways of making the gamemore accessible to people. This meant reducing the traditionalbarriers that stopped people from taking up golf, and widening itsappeal to different audiences that had not previously been seen astarget markets.We had a clear vision of our goals when we first built Etchinghilland we deliberately created a club where anyone would bewelcome and which was free of the traditional clichés andprejudices that were associated with golf clubs at the time.We also broke away from the traditional golf club image andmodernised our buildings to give them the air of a stylish bar orbistro where people would be welcome to while away a chilledoutafternoon. By branding ourselves in this way, we aimed toattract and retain a range of audiences.I believe that this strategy - more than any other - is still thegreatest factor in our success. And although it is now more thantwelve years since we devised it, we have managed to keep this18 Summer 2008strategy fresh and alive within the company because we havecontinually revisited it and updated it to reflect changes in theway people shop, eat and spend their leisure time.Naturally, the fact that our clubs are welcoming to a whole host ofvery different audiences – from young players of both sexes to aweekly regular in his 90’s, is not the only key factor in our success.Another vital ingredient is the condition of our golf courses and thedemands and challenges they offer to players. At Pentland Golf weregularly invest in the courses in order to keep them playable 12months of the year with large teeing areas, good quality pathwaysand greens that are free draining. We also ensure that we createnew challenges for players at regular intervals. I firmly believe thatif the course continues to challenge a player, they will increasinglyenjoy the experience of playing it again and again.We are also very proud of the number of good quality, highlytrained staff that we have at each facility. I conduct a finalinterview with every member of staff regardless of the positionthey are being interviewed for. I look specifically for people withpersonality, enthusiasm, energy and warmth in dealing withmembers of the public as I think that the quality of your staff is adirect reflection of the type of company you run.What is the future for the sector?As we look to the future, the growth in pay and play courses andthe development of facilities with a more aggressive pricing policywill continue to make golf more accessible. The industry as a wholeand providers in particular must also realise that golf must be moreaccessible to all – and this includes an increasingly receptive junioraudience– if the market is to grow over the coming years.For the past few years I have known when things were goingto be tough and I am under no illusion that, given the currenteconomical environment, the next two years could be themost challenging times the Industry has seen. As the economystruggles, less time and money will be allocated to leisure asdisposable income decreases. Customers are also more aware ofchoices available and will demand better value than ever before.To that end, it is vital that we continue to monitor changes in theeconomy and society and reflect those changes in our golf coursesas well as ensuring that we have excellent facilities, courses andstaff that meet the demands of our clients. Only by doing this canwe secure a profitable future for the Industry... but of course nomatter what you achieve and how much planning and preparationyou undertake, you can never account for three inches of snowon the ground the Sunday before the start of The Masters. That’swhen you know you are going to be in for a challenging year!www.pentlandgolf.co.uk

Focus | The golf marketI have been asked many times over the last 6 months why Iacquired Studley Wood Golf Club. The inference behind all of thequestions has been that I must have temporarily lost my senses!The Newcomer: Ian Darby Proprietor - Studley Wood Golf ClubWhat attracted you to golf?My reasons for taking the plunge into golf course ownershipwere numerous. I had spent 20 plus years in the mortgage sector,enjoying most of the cut and thrust of the industry. However Ireally wanted a new challenge. Secondly I had always hankeredover owning my own business, particularly one in the sportssector. Thirdly I have seen, visited and played so many clubs overthe years that I believed could and should have been run better.Finally I thought I could make a living and have some fun inthe process!So I set out to research the industry and at the same time realisea life-time’s ambition. I contacted Ben Allen at HLL HumbertsLeisure and set out to understand why so many clubs were notworking! It didn’t take me long to recognise a whole list of issuesmany of which I thought were surmountable. These came undertwo headings.Firstly, poor basic business practice including, lack of trainedmanagement (often golf professionals promoted beyond theirskill set), insufficient business planning and bad cost control.Secondly, the customer proposition - poor service, inadequatecommunication, tired facilities and finally poor food, served badly!Add to this the preponderance of cheap pay and play alternativesand I quickly found out why so many clubs were struggling. I alsodiscovered those, run well, that could and were providing a strongreturn on capital.What were the key selection criteriafor my investment?During my period of research I was able to pinpoint the criteria fora potential target club.1 The golf course had to be quality, even if it needed some work.2 The club needed to have a track record of success, even if inmore recent times, it had struggled.3 It needed to be well positioned, ideally close to a large affluentconurbation, with a road network close by.4 It also needed to be a business that had a substantial memberbase, with real upside in the food and catering area.5 Finally, it needed to have facilities that enabled the club tocreate turnover outside of the golf season.Criteria established, I looked at several clubs and ultimately cameacross Studley Wood Golf Club, just 4 miles outside of Oxford. Andwhat a gem it is too!It ticked virtually all the boxes. It has a very high quality course,recognised as one of the very best in the county.Secondly it needed refurbishing and the space and fabric of thebuilding needed reorganising. However the work wasn’t of astructural nature, and hence the costs were bearable. Thirdly ithad historically been very successful as a golf club, but had neverfocused on alternative revenue streams, nor its core food andbeverage business. Fourthly I believed that with fresh energyand focus I could make a real difference. Finally I understood thereasons why the owner wanted to sell. Having spent 12 yearscreating his dream he had, I think, run out of steam, and theenergy needed to take the club to the next stage.So what of the future of the sector?In the short term the sector certainly has it challenges. People aretime poor, spoilt for choice, price conscious and more demandingin their expectations. The sector has also operated in the mostbenign of economic environments, which cannot be expected tocontinue. The result I fear will be that over the next couple ofyears, several clubs will go to the wall, and many will come undersevere pressure to make the numbers work!Does it make it a poor time to enter the sector? I don’t think so,vendors are I suspect likely to be more flexible on price, the choiceof potential targets will increase. Increased life expectancy andpopulation growth will certainly see plenty of golfers looking for aquality course to spend their free time at. I do however firmly believethat clubs will have to become more creative with the product theyoffer, look for example at how 20 20 has transformed cricket!How are we doing at Studley Wood?Early days, but 6 months in we have negotiated renewals,attracted 50 plus new members and finished an internalclubhouse refit, whilst continuing to upgrade the course.Most importantly I have a business partner, Ken Heathcote,who recently joined me. Ken adds 25 years of golf and serviceexperience to my enthusiasm.Our combined strength and belief in our strategy will ensure thatwe will be looking to add to Studley Wood, so we will quietly belooking around over the next year!!Finally, there is an open invitation to anybody looking to enter the sector.Pack your clubs and come up to Oxford. You will be most welcome.www.studleywoodgolf.infowww.humberts-leisure.comHLL Humberts Leisure 19

Focus | Holiday Property BondIt’s your leisure time.Why share it?It’s official: suggestions that the HolidayProperty Bond is a form of fixed weektimeshare, though inevitable, are groundless.That’s the view of the OFT. The TCA (theTimeshare Consumers Association). And of HLLHumberts Leisure - which has worked withHPB Management for over 20 years...For modest investors, for whom a holiday villa or cottage is littlemore than an idle dream, timeshare has long been viewed as anaffordable alternative. And rightly so.Although it achieved its share of ‘bad press’ in earlier years - byreason of sharp marketing practices, declining standards andescalating ‘management fees’ - a number of ethical timesharecompanies do exist, helping their clients to secure, if not theirdream holiday, at least a consistent standard of accommodation intheir chosen destination.Unfortunately that very ‘consistency’ is fixed week timeshare’sundoing: the fact that it restricts holidaymakers to a singlelocation or time slot. Or, often, both.20 Summer 2008ExchangeProvided they continue to pay their annual fees, timeshare‘owners’ have the right to use a unit in their chosen resort - duringthe agreed week(s) - for a specified period of years. If, howeverthey need to change their date or destination, things start to gettricky – necessitating the services of an exchange company which,for a fee, will attempt to trade weeks with another owner.This isn’t always easy: although the accommodation may allowfor up to 52 owners (weeks) in a year, demand tends to beconcentrated into the peak season – say, 30 weeks.By contrast, because investors in the Holiday Property Bond have afinancial stake in every Bond home, they are able to holiday rentfreeat their choice of destinations – at times to suit them.And because the Management team sets realistic occupancytargets each year, Bondholders can be confident of securing eithertheir preferred accommodation – or an acceptable alternative– during (or close to) their preferred dates.This goes some way to explaining why the Holiday Property Bondenjoyed a record 2007, attracting over £28m in new investment.

Focus | Holiday Property BondStandardsOver the years, there has sometimes been a failure by sometimeshare providers to keep their annual costs to a competitivelevel: indeed, some firms have increased their fees by two-threetimes the rate of inflation.Conversely, the Bond’s quarterly fee - of around £25.00 includingVAT - is linked to RPI.In addition, its user-charges are calculated on a no-profit basis- and they are payable only when a holiday is actually booked.Which means there are no ‘nasty surprises’ once a consumer hasinvested.Moreover the Bond commits to the very highest standards – andis answerable to its own ‘watchdog’ - the Holiday PropertyBondholders Committee - the majority of whose members areelected by the investors.ClubsA variety of ‘alternative’ holiday schemes have hit the headlinesof late.Holiday clubs, for example, offer many features of timeshare- such as the use of self-catering accommodation in exchange fora capital sum. Unfortunately, some lack the legal protection andcertainty of delivery that consumers demand.Then there’s Fractional Ownership – which provides for anumber of weeks’ accommodation each year, plus a share of anyassociated rental income and subsequent capital appreciation.Sadly, these latter schemes tend to invest in high-endaccommodation, usually in exotic locations, putting them beyondthe reach of many investors. The Holiday Property Bond which,requiring a minimum initial investment of just £4,000, is accessibleto consumers with more modest budgets.There is also a Trustee (HSBC Trustee Isle of Man Ltd) whichcontrols all the Bond’s assets. So Bondholders are assured aconsistently high level of accommodation and service, whereverthey choose to holiday - in the UK or overseas.www.humberts-leisure.comHLL Humberts Leisure 21

Focus | Holiday Property BondPointsThe Holiday Property Bond’s Holiday Points system has beenproven over the last quarter-century. And it is a model of fairness.Each £1 invested entitles the Bondholder to one Holiday Point perannum. And the ‘value’ of those Points is reviewed annually, andincreased or decreased in line with the cost of providing additionalaccommodation for new investors.Existing Bondholders’ Holiday Points are then adjusted based onany revaluation – providing a useful hedge against inflation, andensuring that the value of Bondholders’ holiday entitlements ismaintained throughout the lifetime of their Bond.By way of example: an investment of £1,000 made in 1983 would– today - secure holidays currently requiring 2,550 Holiday Points.GuaranteeHPB also offers new investors a unique guarantee: If they bookand take their first holiday at a Bond-owned site any time withinthree years of investing, and are not 100% satisfied, they maycash-in their Bond within 14 days of their return. They will receivethe Bond’s then unit value (which may have gone up or down)plus a full refund of their initial charges.Of the 1,355 new Bondholders taking their first HPB holidays in2007, only six – that’s less than 0.45 percent - encashed theirBonds under the guarantee. The TCA has not reported a singlecomplaint in respect of HPB.Putting that into context, the TCA reports that timesharecancellation rates vary from around 15 percent (at the ‘top end’ ofthe market) to over 70 percent in the volume market.No penaltyWhilst timeshare owners seeking to sell may be penalised bythe developer through, amongst other things, transfer fees,investors in HPB able to transfer their Bonds to their children andgrandchildren without charge.This, above all else, illustrates the fundamental difference betweenthe Bond and some other shared ownership schemes: as aninvestment in your – and your family’s - future holidays, it’ssomething you may actually be pleased to share.Further informationTo find out more about the Holiday Property Bond:Visit www.hpb.co.uk.Freephone 0800 856 0065 or email details@hpb.co.uk.Whilst stocks last, enquirers will receive a complimentary copyof “HPB: then. And now” - which commemorates the Bond’sfirst quarter century and profiles a number of its longstandinginvestors, many of whom are now able to book their 2009 holidayaccommodation at the equivalent of 1980s rates.The latest Timeshare Consumers Association reports are availableto download at www.timeshare.org.uk.ContactGeoffrey Baber, Managing Director, Holiday Property Bonde: gbaber@hpb.co.ukNigel Talbot-Ponsonby FRICS, Londone: ntp@humberts-leisure.com t: +44 (0)20 7629 6700Please note: The contents of this article are the author’s sole responsibility.They do not necessarily represent the views of Humberts Leisure Limited.22 Summer 2008

Focus | Budget hotelsBudget hotelsector boomsThe Credit Crunch? What Credit Crunch – the LimitedService & Budget Hotel Sector continues to boom, withambitious expansion plans in place by major operatorsA recent article published by the Investment Property Databank (IPD) stated that over the past 25 years, hotelshave delivered an average annual return of 15.4%. Compare this to the 8% return from residential property, 10.9%from commercial property and 6% from shares, it is easy to see why the UK hotel sector has become a firmfavourite amongst both foreign and domestic based investors over the last few years.According to a PKF report, the UK hotel industry had an impressive 2007 and achieved consistently highoccupancy levels and average room rates during the year, with London reaching record-breaking levels. In thecapital, occupancy levels reached close to 83% over the year with average room rate (ARR) increasing 8.9% to£130.17 and revpar increasing 10.3% to £107.96. The true merit of these statistics is even more impressive as theyare the highest the capital has experienced since PKF started collecting data in 1974, while occupancy was thehighest since 1997, highlighting the strength of the hotel sector in 2007. These record levels are further supportedby recent information published by the Office of National Statistics that a record 16 million overseas touristsvisited London in 2007, boosting the capital’s economy by £8.7bn.But what impact has the recent ‘credit crunch’ and US Sub-Prime losses had on the budget hotel sector? Firstly,yields have moved out over Q3/Q4 of 2007 and Q1 of 2008 by as much 50-75 points for all of the major brandedoperators despite strong demand from owner/operators and investors. Furthermore, from a developmentperspective, bank debt has become significantly more difficult to secure as the Banks look to tighten their lendingrequirements following heavy losses from exposure to the US Sub Prime market. All of these factors combine topresent what would be expected to be a difficult 12 to 18 months for the budget hotel sector.But what of the Operators?Visit London have conducted a survey of hotel developments and new hotels that are scheduled to open over thenext 2-3 years in the capital which we summarise in the table overleaf.www.humberts-leisure.comHLL Humberts Leisure 23

Featured Focus | Budget property hotels | Nonsuch BayHotel No of Rooms Operator/Developer Status OpeningPark Plaza Apartments, County Hall 395 Park Plaza/Galliard Open 2007Radisson Edwardian, Canary Wharf 169 Radisson Edwardian Open 2007Travelodge, Islington 392 Travelodge Open 2007Travelodge, Heathrow 297 Travelodge Open 2007Grange Hotels, City of London 292 Grange Hotels Under Construction 2008Marriott, Twickenham Stadium 146 Marriott/RFU Under Construction 2008Silken Hotel, The Strand 166 Silken Hotels Under Construction 2008Sofitel, Heathrow T5 600 Arora/BAA Under Construction 2008City Inn, City of London 609 City Inn Advanced Planning 2009Ibis Trocadero 600 Accor/Golfrate Advanced Planning 2009Renaissance, St Pancras 254 Marriott/Manhattan Loft Under Construction 2009Hilton, Wembley Stadium 420 Hilton/Quaintain Estates Advanced Planning 2010Park Plaza, Waterloo 953 Park Plaza/Marlbray Under Construction 2010Shangri-La Hotels, London Bridge Tower 195 Shangri La Hotels/Sellar Property Advanced planning 2010Jumeirah, Beetham Tower 260 Jumeirah/Beetham Early Planning 2011Total Number of Bedrooms 5,748Source: Visit LondonAccording to the survey some 5,748 bedrooms are anticipated toenter the London market over the next three years. But there aremore hotels in the development pipeline which were not includedin the survey or have become publicly known since publication.With all the current and planned regeneration and developmentprojects in London, combined with a slowdown in the residentialmarket resulting in a number of schemes going back to planningfor change of use to hotel, there is potential for double thatnumber of hotel bedrooms. One key aspect of growth in the hotelsector has been the increased reliance and recognition of brands.As more hotel companies dispose of the real estate element oftheir investment, many investors view a brand as further securitywhether the hotel is operated by the brand owner or franchisee.Consequently, very few hotels are constructed without a brandin mind and this is where the likes of Travelodge and Hilton arehighly successful.Growth. Growth. Growth.A report by consultant Melvin Gold forecast that the limitedservice and budget hotel sector would treble by 2027, growing upto 10 times faster than the rest of the hotel industry. This soundslike a fairly optimistic growth level but if one considers that twothirdsof all hotel bedrooms in the UK are currently non-branded,then there is the huge potential for branded operators to take aneven greater share of the UK hotel market.The limited service and budget hotel sector has experienceda great deal of growth over the last few years due to thecombination of aggressive acquisitions and the emergence of anumber of new brands. Travelodge have been among the marketleaders in the budget hotel sector for the last 3-5 years andrecently announced their aim of trebling the size of the Travelodgeestate by 2020 with a view of having a 10% share of the total UKhotel market.An aggressive £200m Travelodge expansion is well under waywith the company recently announcing it had secured 9 newsites and will invest £28.3m in developing new hotels in Cheshire,Poole, Newport, Felixstowe, Devizes, St Helens, Fort William,Clacton and Ashbourne. This has been followed by anotherannouncement that Travelodge has bought a further 6 properties(Bath, Coventry, Edinburgh, Newcastle, Oldham and Stevenage)from Menzies hotels in a deal worth £85m which will straightaway add 700 rooms to the Travelodge estate as part of its planto expand by 4,000 rooms by the end of the year. As part of thisdeal Travelodge has acquired the four-star Menzies Belford hotel inEdinburgh which will be transformed into budget accommodation,after operating as a luxury hotel for 30 years.Whitbread has announced expansion plans for their PremierInn brand, currently undergoing a rebranding exercise fromPremier Travel Inn. Following the acquisition of Golden Tulip UKby Whitbread for a reported £44 million in September 2007, sixGolden Tulip hotels were re-branded as Premier Inn properties,with a further nine sites due to open within the next two years.This includes the planned Tulip Inn developments near York,Doncaster and London Gatwick Airport. The Premier Inn brand isundergoing an aggressive £100m expansion which will increasethe portfolio by 50%. In London there are plans to add a minimumof six new hotels over the next three years to its existing Londonportfolio of 44 hotels. This expansion will increase the totalnumber of bedrooms in the capital from 5,300 to circa 6,500,with a further pipeline of 2,000 rooms expected to be announcedover the next twelve months, representing an increase of 60% toPremier Inn’s London estate. Whitbread also recently completedthe acquisition of the Quality Hotel in Westminster, Kensington’sComfort Inn, and the Purple Hotel in the City of London from theReal Hotel Company for £18.5m. This deal represented a purchaseprice per bedroom of £50,000 on a leasehold basis but following are-branding to the Premier Inn brand the total investment couldbe circa £100,000 per bedroom.Hilton Hotels Corporation announced the introduction of threebrands into the UK in 2007 - Doubletree by Hilton, Hilton GardenInn and Hampton Inn by Hilton. The upmarket full-serviceDoubletree brand will target existing buildings, whilst the midmarketGarden Inn tier will focus upon new builds in city centresand suburban locations. Hampton Inn, the budget hotel offering,will extend the US franchise model into the UK and will be indirect competition with the likes of Travelodge and Premier Inn.Although Hilton have not announced an official target for theHampton Inn brand, they did sign an agreement with Somerston24 Summer 2008

Featured property Focus | | Budget Nonsuch hotels BayHotels in June 2007 to introduce 25 new hotels over the next five years under itsHampton by Hilton brand - this will go some way to creating a healthy presence withinthis sector. Expect further announcements shortly...Other budget and limited service operators currently undergoing aggressive acquisitionactivities are the likes of The Real Hotel Company Plc for their purplehotels brand, LouvreHotels for Campanile and InterContinental Hotels Group for their Express by HolidayInn brand. All of the operators are actively acquiring sites within the UK predominantlytargeting city centre and high quality main arterial route locations.If one listens to the hotel operators, the next two to three years would appear to lookgood for the majority of the branded limited service and budget operators with aggressiveexpansion plans already in full swing. Topland, the Sol Zakay-run company, has embarkedon creating a £1bn portfolio of budget hotels in the UK using £200m of its own equity tobuy development sites, which it will let to operators such as Travelodge and Premier Inn.Topland announced this project in order to capitalise on a fast-growing sector. The budgethotel market is one of the few markets that has not ground to a shuddering halt in thewake of the credit crunch.Other hotel operators have outlined their intentions to enter the exciting budget hotelsector. Rezidor have recently announced that they will be entering the budget hotel sectorby launching a new “colourful” budget hotel brand. In addition to the likes of EasyHotel,Hilton and other operators such as Purple Hotels, the two heavyweights of the budgetsector Travelodge and Premier Inn may find that their expansion plans could face somestiff competition for sites.Capital growthMost existing and emerging operators are focusing significant energies on London. Thefollowing table highlights the main areas within London that Visit London anticipate willexperience the most budget hotel growth over the next 5 years.But where is all the land?With so many operators fighting overthe same sites the result will be acontinuation of increasing land andsite values. Subsequently, operators arecurrently assessing new ways of makingdevelopment schemes more financiallyviable for the developer and these involveinnovative build techniques, such asthe 120 bedroom Travelodge hotel atUxbridge which is being made from cargocontainers, or being a component of alarger mixed-use building.Given that every budget and limitedservice operator is announcing grandexpansion plans, the budget hotel sectorwould appear to be in a solid and stablecondition. Shame that cannot be saidabout the rest of the UK economy.A final thought is that if the five leadingbranded budget hotel operators were tohit their respective national expansiontargets, then we would need to find theequivalent floor space for new rooms ofcirca 20,128,640 sq ft or 462 acres of land.The question is where is all of the landgoing to come from?London AreaCentral LondonEast LondonWest LondonNorth LondonSouth LondonSource: Visit LondonLocal LocationsEuston, King’s Cross, London Bridge, Elephant & Castle, Paddington,Waterloo, Victoria, Vauxhall/Nine Elms/Battersea, Holborn, Hollowayand the South Bank.Bishopsgate/South Shoreditch, Whitechapel/Aldgate, Isle of Dogs,Stratford, Lower Lea Valley, Royal Docks, Barking Reach, LondonRiverside, Deptford Creek, Greenwich Peninsula, Belvedere/Erith,Thamesmead, Ilford, Woolwich, Kidbrooke.Wembley, White City, Park Royal, Heathrow/Feltham/Bedfont/Hounslow, Hayes/W Drayton/Southall/Stockley, Willesden Junction.Upper Lea Valley, Tottenham Hale, Cricklewood/Brent Cross, Mill HillEast, Colindale, Haringey, Heartlands/Wood Green.Croydon, South Wimbledon/Colliers Wood.HLL Humberts Leisure is retained by anumber of leading hotel operators anddevelopers and if you have any sites thatmay be suitable then please contact TimSmith for a confidential discussion.ContactTim Smith BSc(Hons) MRICS, Londone: tim.smith@humberts-leisure.comt: +44 (0)20 7629 6700Alex Campbell BA(Hons) MA, Londone: alex.campbell@humberts-leisure.comt: +44 (0)20 7629 6700Luke Cutler BSc(Hons) MRICS, Londone: luke.cutler@humberts-leisure.comt: +44 (0)20 7629 6700www.humberts-leisure.comHLL Humberts Leisure 25

Health and fitness clubsClub classDespite widespread concern over a downturn in the economy, the health andfitness sector remains buoyant according to a number of recent published reports.Although growth has slowed, the number of facilities in the UK, total numbers of members and market value of thesector have increased over the last year. Consolidation continues to occur and, at the time of writing, the solutionto Esporta is eagerly awaited. HLL Humberts Leisure provides advice to many companies in the health and fitnesssector, with some of our most recent activity including:37° Health and Fitness Club,More London Riverside, SE1Forming part of the new More London development,on the South Bank of the River Thames, the club hasattracted in excess of 3,000 members after less than twoyears of operation. The property has been revalued by HLLHumberts Leisure on behalf of the owners and principalfunders, Close Venture Management.Fitspace and Fitness FirstHLL Humberts Leisure recently acted on behalf of Fitness Firstin respect of the sale of seven health and fitness clubs to Fitspace.Fitspace is a new discount internet based health and fitness clubcompany offering membership pricing significantly below otheroperators in the market. Fitspace now operate eight health andfitness clubs and is one of fifteen investments currently heldby Leisure & Media VCT PLC, a joint venture set up by HLLHumberts Leisure and JO Hambro Capital Management Ltd.37° Health and Fitness Club,London Olympia Exhibition CentreForming part of the famous London Olympia Exhibition Centre thisis the second of the two 37° Health and Fitness Clubs in London.The club had more than 2,000 members by the end of April 2008(after only four months of operation) and has been revalued by HLLHumberts Leisure on behalf of the owners and principal funders,Close Venture Management.Clarice House Group(Ipswich, Colchester & Bury St. Edmunds)HLL Humberts Leisure provides ongoing valuation and strategicadvice to the Clarice House Group, assisting the company’sdevelopment of its health club, residential and day spa offeringfrom three existing properties in East Anglia.The Weybridge Health Club,Walton Lane, Weybridge, SurreyComprising former livery stables and farm buildings which havebeen redeveloped to provide a high class sports and health andfitness club facility. The club achieved in excess of 2,000 memberswithin its first year of operation and is expected to attain its targetcapacity well within the first two years of trading.The owners of the Weybridge Health Club, who are backed by CloseVentures, also recently acquired Riverbourne Health and FitnessClub in Chertsey and are eager to acquire other quality freeholdor long leasehold opportunities. HLL Humberts Leisure providesongoing valuation advice for The Weybridge Health Club and alsohandled the sale of Riverbourne.HLL Humberts Leisure is currently looking to acquire other qualityhealth and fitness clubs on behalf of clients. If you have suitableopportunities, or require advice on the health and fitness sector,please contact Gavin Brent at HLL’s London office.ContactGavin Brent BSc MRICS, Londone: gavin.brent@humberts-leisure.com t: +44 (0)20 7629 670026 Summer 2008

Tax | Entrepreneur’s reliefHow muchof a relief?Sarah Cardew of Penningtons Solicitors LLP considersthe ambit of the new Entrepreneurs' Relief withparticular reference to those investing in propertyA new single 18% rate of capital gains tax was introduced forall gains on disposals made on or after 6 April 2008. The quasireplacement for taper relief, Entrepreneurs' Relief, came into effecton 6 April 2008 and has the potential to mitigate gains to 10%.Entrepreneurs' relief applies to gains made on disposals byindividuals of:■ Shares or securities in a trading company; or■ The whole or part of a business; or■ Certain assets used in a business which has ceased; or■ Certain personal assets used in a business.Disposals of shares and securitiesThere are conditions which have to be met throughout the period ofone year ending with the date of the disposal:1 The company must be a trading company (or the holdingcompany of a trading group);2 The individual must hold at least 5% of the company's ordinaryshare capital allowing the individual to exercise at least 5% of thevoting rights. The holding must be at least 5% of the ordinaryshare capital (and give at least 5% of the voting power in thecompany) so that a shareholding of 4.9% will not qualify; and3 The individual must be an officer or employee (full or part-time)of the company or, if the company is a member of a tradinggroup, of one or more companies which are members of thetrading group.Entrepreneurs' Relief can also be obtained in respect of companieswhich have ceased trading providing the conditions are satisfiedthroughout the period of one year ending with the date on whichthe company ceased trading. In addition, trading must have ceasedwithin the period of three years ending with the date of disposal.It is important to note, that providing an individual has held at least5% of the company's ordinary shares and voting power for a yearbefore the disposal, acquisitions over and above that 5% holding willqualify for relief even if those acquisitions have been held for lessthan one year.Importantly, Entrepreneurs' Relief will not apply to shares in nontradingcompanies e.g. those carrying on a property investmentbusiness. However, relief could be available for disposals of furnishedholding letting businesses. Therefore, the distinction between tradingand investment companies is very important.Transfer of a businessA business is any trade, profession or vocation conducted on acommercial basis with a view to a profit. This means that sharesand securities and other assets held by the business for investmentpurposes or assets not used for the business will not qualify.Sellers need to ensure that they are disposing of their business,rather than a collection of assets. For example, selling one asset isnot likely to constitute the sale of a business.By itself, the sale of a let property will not qualify for Entrepreneurs'Relief. There must be a disposal of the whole or part of a tradingbusiness. In particular, commercial property letting is not a tradingactivity. However, if the property is let to a trading partnership ofwhich the claimant is a member, or to a trading company of whichthe claimant is an officer or employee, the claimant may be entitledto a measure of relief on a disposal of his property if that disposalis associated with a disposal of his interest in the partnership, orof his shares in the company and that other disposal meets all theconditions for relief.The relief must be claimedRelief is not automatic and a claim has to be made on or before thefirst anniversary of 31 January after the tax year of disposal. There isno requirement that this claim must be made in the self-assessmentreturn and surprisingly, there is no set format for the claim.CapThere is a £1m lifetime cap on the amount of capital gain whichqualifies for Entrepreneurs’ Relief. The cap applies to all gainsrealised on or after 6 April 2008, even if the gains relate wholly orpartly to a period pre 6 April 2008.This article was drafted on the basis of current tax law,practice and interpretation thereof as at 9 June 2008and is intended for general guidance only. Specific legaland tax advice should always be sought in relation tothe facts of a particular situation.ContactSarah Cardew, Penningtons Solicitors LLPe: sarah.cardew@penningtons.co.ukt: 01256 407170www.penningtons.co.ukwww.humberts-leisure.comHLL Humberts Leisure 27

RestaurantsIs there trouble simmering in the restaurant sector?Luke Cutler who recently joined HLL HumbertsLeisure from Davis Coffer Lyons offers his personalperspective on the state of the market.I did not have the pleasure of working through the recession inthe early 1990s, but I understand that it provided a challengingenvironment, to say the least, both for restaurateurs andsurveyors alike.Whilst I don’t necessary think we are close to a recession just yet,a general lack of confidence due to the credit crunch demonstratesthat the pendulum has shifted. In my opinion, it is safe to say for theimmediate future we are facing challenging times in the restaurantsector, both from a transactional and operational perspective.Any observer of the press can be permitted to be a little confused.On the one hand corporate operators are saying ‘business as usual’ interms of continued growth of like-for-like sales and new acquisitions,while on the other hand we are seeing operators issuing profitwarnings, disposing of sites and scaling back or ‘putting on hold’acquisitions programmes. I don’t think this is anything new - therestaurant sector has always been a volatile environment, with 50%of business failing in their first year; I just think the ‘credit-crunch’has intensified this. The restaurant market is difficult to predict at thebest of times, but with the changing economy I am facing the mostdifficult period of my career so far. From my perspective predicting/estimating the market is certainly proving more difficult than it did12 months ago. This is mainly due to increased levels of uncertaintyand lack of transactional evidence.In terms of property and styles of business, the restaurant sector isa multi-tiered market. It will be interesting to see how the variousfacets of the sector will pan out if we do, as many commentators aresuggesting, enter a recessionary cycle. Whilst it is generally perceivedthat many of City of London square mile companies are alreadycutting back on corporate entertainment, and that’s not just for thelap dancing clubs but also for the restaurants, will we see this type ofpolicy intensify in the event of a recession? I think so. So that’s thehigh class city restaurant possibly looking down the barrel of reducedrevenue and a drop in market value. What about the high street?Interestingly, this is the sector that in my opinion will be the mostdifficult to predict. Over the past five to ten years, this sector hasmatured significantly on the back of a large number of entrepreneursand innovative casual dining concepts. It’s safe to say that while theeconomy has been booming (or overheating, depending on yourstance), the casual dining sector has never had it so good. So whatwill happen during the possible recessionary period? Well of courseconsumer spending will reduce, but in my opinion in comparisonto previous recessions, the restaurant sector has matured to a levelwhere many people dine out more than three times a week and itis no longer seen as an event, but utilised for convenience. I thinkthat when the consumer is hit in the pocket, eating out will remain adiscretionary spend but from an operator perspective I don’t think itwill be all doom and gloom as I suggest that dining out at restaurantswill be less of a discretionary spend than drinking at pubs.Toomanycooks?28 Summer 2008

RestaurantsSo where is the market currently? Market values have reduced, ofthat I am sure, but by how much is dependant on the submarket andits location. A simple equation really, but price paid is dependanton the number of buyers in the market for that particular property/business at that particular time; and the number of buyers in themarket is likely to be dependant on a multitude of factors that includethe location, level of actual or future profitability, adaptability of theproperty, rental levels and the ability to obtain finance. In the currentmarket, those properties that are located well within establishedrestaurant pitches or locations with strong footfalls, that are alsoavailable at market rents, are still highly desirable. Many of thesesites are not being openly marketed as the major corporate playersare obtaining these off-market. However, although highly desirablethe majority of buyers are more reluctant to pay the premiums basedon inflated multipliers of profit than they were a year ago. The mainconcern in terms of marketability/saleability relates to those propertiesthat are in less desirable locations. There is currently an over supplyof these properties and a reduction of buyers in the market. From avaluation perspective these are the most difficult to estimate marketvalue as there is very little in the way of transactional evidence. Ipredict that we will see more restaurant premises on the market atreduced or nil premiums.One of the main factors that is providing a slow down in transactionsat the moment is the cautious approach many lenders are takingto new lending opportunities. On the whole, they are being morecareful in terms of adhering to lending policy more rigidly; theyare reducing loan-to-value levels and requesting more in the wayof additional security. However, finance is still out there and themajority of the banks are still keen to lend to this sector. I think froman operator’s point it is probably more important in the currentclimate to make sure that all lending proposals are carefully anddiligently produced, and that business plans are realistic. As a valuerI am very often asked to provided loan security valuations for newbusinesses, this involves a future business based on projections.On the whole I am happy to say that the vast majority of these arecarefully considered, but in some instances I am amazed at theprojected levels of turnover, gross profit margins and overheads.Obviously, no projections are ever going to be perfect, though I thinkin this restricted lending environment it is paramount that if you arelooking to obtain lending for a new restaurant, that you make theseestimates as accurate as possible.In conclusion, there is going to be ongoing consolidation in themarket and there will be winners and losers in maintaining marketshare in the sector; it looks likely that there will be a further slowdown in consumer spending. Yes, there is evidence of an oversupplyof properties in some sectors, and yes there is reduction in marketvalues and premiums paid. However, let’s not pretend it’s all bad.There is plenty of evidence to suggest that the restaurant sector is stillfairly buoyant and operators remain confident in terms of developingexisting brands and new concept roll-outs. So please let’s not panic- let’s just batten down the hatches - those that are prepared will farebetter than those that bury their heads in the sand.ContactLuke Cutler BSc(Hons) MRICS, Londone: luke.cutler@humberts-leisure.com t: +44 (0)20 7629 6700www.humberts-leisure.comHLL Humberts Leisure 29

Day Visitor AttractionsA rollercoaster rideThe visitor enterprise business is a very diversesector which includes country parks, farms,gardens, historic properties, leisure/theme parks,museums, art galleries, steam/heritage railways,visitor/heritage centres, wildlife attractions,workplaces (such as distilleries, vineyards,breweries etc) and even places of worship.The UK private attractions sector is dominated by MerlinEntertainments Group who acquired the Tussauds Group in March2007 from Dubai International Capital (DIC) for £1.03bn, makingthem the second largest visitor attraction company in the world,topped only by Disney. In May 2008 it was reported that MerlinEntertainments acquired the London Aquarium from County HallEntertainments for an undisclosed sum. In addition to the sale price,Merlin has negotiated a 35 year lease on the site. The attractionwill be rebranded and become part of Merlin’s Sealife chain ofaquariums. Just days before the deal was announced, Merlin revealedthat it is to open a Legoland in Dubai.Recent corporate activity in the UK has centred around the Spanishoperator Aspro (Europe’s leading ‘park’ company) who in March2008 purchased Oakwood Theme Park in South West Wales. Thisrepresents one of the largest single theme park sales to take placein recent years. Aspro currently operates 32 leisure parks in sevencountries, made up of 22 water parks, 2 marine zoos, 4 latestgeneration aquariums, 2 animal parks and 2 amusement parks.Following on from the Oakwood deal, Aspro acquired Blue ReefLeisure who operate four aquaria in Hastings, Portsmouth, Newquayand Tynemouth, together with Smugglers Adventure in Hastings.The company now plans to open a fifth aquarium in Bristol in 2009.The gap between the two tiers of operators – basically the Big 6Parks and the rest – has widened and smaller parks are going tofind it increasingly difficult to compete in the future. After Merlin,the sector is predominantly made up of smaller groupings such asthose within the Gulliver’s, Gibbs, Heritage Great Britain and Crealyportfolios, or privately owned single attractions.Fundamentally over the last 2 years the day visitor attraction sectoris reeling from a poor year in 2007 largely as a result of the sameunpredictable weather that gifted them a fine year in 2006. Themepark admissions for example in the UK fell by an estimated 600,000on the previous year in 2007 to 12.7 million revenues down from274 million to 259 million (source Mintel). With the tremendouspressures that have been exerted on the industry particularly throughhigher overheads and declining visitor numbers it is likely that manyattractions will struggle to survive in the next 5 years particularlyif the pattern of weather seen in 2007 is repeated in coming years.The parks and attractions that will survive and prosper will bethose that can retain tight controls on their cost base while at thesame time investing in new rides and attractions or the thoughtfulrefurbishment of existing attractions, together with proactive targetedmarketing. But this investment must be well structured, as ourexperience shows that the public are becoming more discerning andcertainly the factors that influence visitation and repeat visitationto attractions is changing. The need to create “value for money”and “authenticity” and engage the public in an “experience” areof primary importance, as is the necessity to educate. For anyattractions with animals, increasingly the public’s expectations nowcentre on the scale, size and overall general quality of the enclosure,aviaries, tanks etc. In addition the principals of conservation,education and research, good animal husbandry and welfare are ofparamount importance and ultimately underpin the success of thistype of venue.30 Summer 2008

VAC conferenceThe attractions business is also very reliant on externalconditions. Factors that affect tourism such as the economicsituation, political crises and the weather, impact upon visitornumbers and consequently turnover. One of the biggest issuescurrently affecting the sector is a growing burden of red tapecovering areas such as employment, gaming machines, fire safety,Criminal Records Bureau (CRB) checks and insurance. TheNational minimum wage for workers aged 22+ has risen from£3.60 per hour in 1999 to £5.73 as of the 1st October 2008.A development rate of £4.77 per hour for workers aged 18-21inclusive and £3.53 per hour for all workers under the age of18, who are no longer of compulsory school age will also beapplicable. The introduction of new legislation in the form of theFire Reform Act now places more reliance on parks carrying outtheir own fire risk assessments. Parks are also becoming moreconscious of the need to do CRB checks on their staff.Insurance is another area where costs have shot up in the last5 years - although price increases have softened recently theyvery rarely go down and are still above where they were 5 yearsago. This is an overhead that is increasing on a regular basis,particularly for employee and public liability insurance. Therising cost of energy has also added significant extra overheads tothe average attraction.It seems that many of the factors are pointing to perhapssomewhat of a “rollercoaster” ride over the next few year, so holdon tight! Lets hope for a favourable summer with positive G forcesat work. There is activity in the sector and long may it continue.HLL Humberts Leisure has specialised in the sale and valuationof visitor attraction businesses for more than 25 years. We haveprovided professional and agency advice to a substantial number ofoperators and are regarded in the industry as the market leaders.ContactNigel Talbot-Ponsonby FRICS, Londone: ntp@humberts-leisure.com t: +44 (0)20 7629 6700Richard Baldwin BSc(Hons) MRICS, Skiptone: richard.baldwin@humberts-leisure.com t: +44 (0)1756 799 271Visitor AttractionConference 2008This year, for the fifth time in succession, since its inception, HLLHumberts Leisure will once again be sponsoring the prestigiousVAC Conference at the Queen Elizabeth II Conference Centre inWestminster, London in October 2008.The Annual National Conference of Visitor Attractions is theindustry’s leading event and will be attended by major tourism andvisitor attraction operators from across the UK, along with manyvisitors from overseas representing visitor attractions ofinternational importance.HLL Humberts Leisure is proud of its continuous association withVAC and will be fully represented at the Conference by delegatestaff and a stand at the exhibition, where HLL Humberts Leisure’srecent successful sales and professional activity in the sector will beon display.ContactNigel Talbot-Ponsonby FRICS, Londone: ntp@humberts-leisure.com t: +44 (0)20 7629 6700Richard Baldwin BSc(Hons) MRICS, Skiptone: richard.baldwin@humberts-leisure.com t: +44 (0)1756 799 271www.humberts-leisure.comHLL Humberts Leisure 31

Fractional OwnershipBom Sucesso, Silver Coast. Near LisbonFraction of the costLes Milton asks if the future for holidayhome sales lies in Fractional OwnershipIt is fair to say that the market for holiday homes in the UK andEurope is under some pressure as in the US, although with anexchange rate of $2.00 to the pound Floridian property is definitelyworth inspection.But even against this depressing background, Brits who havealways had a well cultivated ownership gene, could find the currentmarket full of opportunities – if they are prepared to consider therelatively new concept of fractional ownership, sometimes calledshared ownership.Fractional Ownership – what is it ?Fractional Ownership allows several unconnected buyers tocollectively own the freehold of a holiday home. In practice thedeveloper finds the buyers and guides them through the ownershipprocess. Quite often fractional ownership involves four people eachcontributing towards the cost of buying the property between themi.e. they each own 25% of the bricks and mortar.So if you have a second home budget of £ 100,000 rather than buya one bedroom apartment in Southern Spain, you could afford aquarter share of a £ 400,000 villa. The legal implications may sounddifficult and risky – but they are not. Fractional packages of thisnature have been available in Europe, especially in Portugal for thelast seven years with few problems or complaints.Think about it. How much practical sense is there in owning asecond home in a sunshine resort when at best you can only spend6 or 7 weeks there each year. With, say, a quarter share, you wouldhave 13 weeks a year potential occupancy of a villa that you own.You could stay there for some of the time,give your parents or family the opportunityfor a holiday break and still have time to rentout your villa to recover some of your costs.Remember if you own 25% of the homeequity, you only pay 25% of the service andmaintenance costs.Fractional Ownership meets the needs ofmany potential buyers.■ Those who would like to buy their dreamhome but lack the funds.■ Others who may have the funds butrecognise that it makes no economicsense to own a property outright forlimited use.■ Research suggests that the majority ofpeople can only holiday for 8-10 weeksper year, maximum.■ Fractional Ownership is also the perfectway to test ownership before committingto the outright purchase of a villa orapartment.Over the last six years Fractional Ownershiphas been the fastest growing sector of theUS property market and in 2006 it grew by+32% over the previous year.In Europe the concept was introduced a fewyears ago but is quickly growing, especiallyin the South.32 Summer 2008

Fractional OwnershipBecause owning a second home has been seen as a sunshinepurchase, the UK has been slow to start but now many developersare looking for sales options other than outright sales. For themFractional Ownership could be an option.For any market place to work effectively it demands an equilibrium.The consumers must find the concept attractive and affordable. Andfor those providing the purchasing opportunity, it must be financiallyrewarding, practicable and relatively easy to provide and administer.Fractional Ownership allows propertydevelopers to offer an attractive alternative tooutright purchase. Buyers can still OWN anequity stake in a property which will increasein value as the market improves.If the developer has more opportunities to sell, his overall velocityof sale – a key market benchmark – increases accordingly. Mostimportantly, fractional ownership creates a year-round resortpopulation. The resort has a busy, successful atmosphere which isenjoyable and reassuring. Resorts need a buzz.And finally, for the developers a busy community providesopportunities for secondary income – rentals and resortmanagement, greater profits in restaurants and bars, and busy golfcourses, shops and spas.Fractional Ownership is the future for many buyers anddevelopers alike.Enter Fractional OwnershipAbout 10 years ago the property marketers in the US married twoimportant factors. Firstly, many people want a holiday home, ideallythat they could own themselves. Secondly, Timeshare was not alwaysattractive, but the concept of occupation rights on an annual basiswas – it provided the security of knowing that the holiday venue wasdetermined in advance, the facilities and amenities were known, likedand held no surprises. And the holiday planning process was easy,hassle free and the accommodation was already prepaid.The Fractional Ownership Consultancy based in Guernsey andSpain was the first company to provide the legal and administrativeframework that developers of resorts worldwide could adopt toensure a totally hassle-free arrangement and a win-win situation forboth developer and owner. Today FOC structures the contractualarrangement between all parties making it flexible yet watertight.FOC has even teamed up with a leading UK building society tooffer – for the first time ever – mortgages on fractions of properties.The most popular Fractional Ownership arrangementsinvolve four partners. Although properties with morefractions are possible care needs to be taken to avoidlocal or EU laws and directives being brought in toplay, which could adversely affect the operation ofthe fractional system. With proper structuring up totwelve fractions ought to be possible inmost jurisdictions.Most Fractional Ownership packages are available in quality resortswith a full range of amenities and facilities. The resorts, and thereforethe individual properties, are professionally managed and theirconsiderable infrastructure is kept in superb order for the benefit ofowners and visitors alike. Resorts being run using the FOC fractionalinfrastructure include the Mona Lisa Resort at Disney’s world famousCelebration Resort in Florida, where quarter shares in two-bedroom,two bathroom luxury apartments with all the 5-star amenities can bebought for £ 80,750 through Dream Quarters (www.dreamquarters.co.uk). In Portugal, Vigia’s Parque da Floresta villas (www.vigiagroup.com) are similarly priced and Oceanico Developments (www.oceanicodevelopments.com) have a range of fractional options and prices.Recently they have introduced a fractional package which includes ashare of a luxury villa with extensive golfing rights, an on-hand speedboat and free car hire when you are there.Some say there are also extremely strong environmental reasonsfor buying a property on a fractional basis. Some believe that it isbecoming increasingly irresponsible for people to own holiday homesthat are only infrequently used. Making a conscious decision to shareyour holiday home means fewer homes need to be built and lessenergy required in their construction and maintenance.And finally from a financial perspective Fractional Ownership isgood news. Owners and investors have found that appreciationin fractional property values reflect the outright sales market. Asdoes the rental market. Fractional owners can offer rentals – oftenthrough the developers’ rental services which can make a significantcontribution to their annual service and maintenance costs.Fractional Ownership – it’s too good an opportunity to miss.ContactLes Milton is Chairman of the Fractional Ownership Consultancywww.fractional.netNigel Talbot-Ponsonby FRICS, Londone: ntp@humberts-leisure.com t: +44 (0)20 7629 6700Please note: The contents of this article are the author’s sole responsibility.They do not necessarily represent the views of Humberts Leisure Limited.www.humberts-leisure.comHLL Humberts Leisure 33

Outdoor drinking areasSun, fun& outdoorissuesJohn Coen of Ford & Warren Solicitors considersthe impact of too much Summer fun.It seems, if one has not spoken too soon, that summer may have arrived after what appearslike a very long wait. In true tradition, we understandably head in droves for the greatoutdoors. What better way to enjoy the great outdoors then with a pint of your favourite inyour hand. Yes, that much under used pub asset, the beer garden or outdoor drinking areasuddenly becomes very popular. It is not surprising that pub landlords are happy for theirpubs external area to be much used given the fact that in many cases they will have investeda considerable sum of money in making them as comfortable and welcoming as possible fortheir customers.Good weather (plus the smoking ban) will undoubtedly result in the great outdoors beingenjoyed in your local for considerably longer hours and by a greater number of customersthan would otherwise be the case.More people drinking (and smoking) outside can often result in more noise being created bya pub’s customers. This may not be a problem if the pub is a considerable distance from yourneighbours’ homes (or in other words, out of ear shot) but if it is within ear shot one couldhave problems on one’s hands. These problem could well sour the sun & fun element ofone’s summer.The possible problems may be categorized as follows:Noise from people using an outdoor drinking area.It is very hard to limit or reduce the noise that people make whilst talking, laughing andgenerally enjoying themselves. In most case, if this does not carry on too late into the nightthen one should not encounter too many problems from one’s neighbours, the police or thelocal authorities environmental health or pollution control officer. That said, just like it seemsas though every class at school had a bully, most pubs appear to have a neighbour who issome what sensitive to noise.Problems may well arise if some of one’s customers use “colourful language”, shout asopposed to talk to their friends, sing (or at least try to) and/or misbehave themselves.The best way to try and minimise noise issues in an outdoor drinking area is to patrol itas often as staffing numbers allow. These staff can incorporate within their patrols, glasscollecting, cleaning ashtrays, tables, etc.If these staff feel some customers’ conductneeds to change then they must possessthe confidence to politely ask the peopleconcerned to quieten down or to go insidethe pub. Clearly if the foregoing does notwork then the customers concerned shouldbe asked to leave the premises.Ideally these external patrols should berecorded in a log book so that there isevidence that steps are been taken to“police” the outdoor area to ensure patronsare behaving themselves. If it is foundnecessary to ask customers to leave then thisshould also be recorded in the log book.Noise from regulatedentertainment (music)If a premises’ licence permits one to providelive and/or recorded music outdoors, it isvery important ensure compliance withsuch time limits that exist concerning itsprovision, e.g. live music outdoors to finishat 20.00.Conditions may also have been placedon a licence requiring, for example, thatexternal music must not cause a nuisance toneighbours. If there are conditions relatingto the provision of external music then likeall other conditions on a premises licencethese must be complied with (whether onelikes or loathes them).34 Summer 2008

Outdoor drinking areasIt is important to point out that, the provision of incidental orbackground music is not a licensable activity. This means one canprovide this type of music both indoors and outdoors withoutpermission (from your premises licence). This then raises thequestion what is incidental or background music. There is nodefinition of incidental/background but the answer to the followingquestions will help in deciding what category the music falls into,live/recorded music or incidental/background music:■ Is the music being provided one of the main reasons for peopleattending the premises?■ Is the music advertised as the main attraction?■ Does the volume of the music disrupt or predominate over otheractivities?If the answer to any of the above questions is yes, then the musicbeing provided is not incidental/background music.From a practical point of view the main issue is the volume of themusic. If the volume is low and really is background music thenfine. If it is loud enough to be heard in a neighbour’s house and toconstitute a nuisance, it is not incidental/background music.The important point is that regardless of the activity or activities thattake place in a outdoor drinking area, they should not constitute astatutory nuisance.If the activity or activities do cause a nuisance or indeed constituteantisocial behaviour then one may face action under TheEnvironmental Protection Act 1990, The Noise Act 1996, The CleanNeighbours and Environment Act 2005, etc.of the residents, etc are upheld then the Licensing Committee whohear the review can take such action as they feel is necessary andproportionate to resolve the problems.The action taken may include:■ Reducing the hours the outdoor drinking area can be used■ Reducing the hours the outdoor area can be used for theconsumption of alcohol (thus allowing it to be used by smokersbeyond the reduced hours)■ Limiting the number of customers who may use the outdoor areaat any one time■ Requiring door staff to be positioned in the outdoor drinking areaon, e.g. Friday and Saturday nights■ Limiting or removing the entitlement to provide regulatedentertainment outdoorsThe best advice is to do all one can to ensure that any activityor activities that take place in an outdoor area does not cause anuisance to residents who live close to the premises. If this can beachieved then one’s customers should be able to enjoy the sun andfun whilst not causing any issues.ContactRichard Baldwin BSc(Hons) MRICS, Skiptone: richard.baldwin@humberts-leisure.com t: +44 (0)1756 799 271John Coen, Ford & Warren Solicitorse: john.coen@forwarn.comt: +44 (0)113 243 6601www.forwarn.comAn alternative for those aggrieved by activities taking place in outdoordrinking areas (including residents) is to apply for a review of thepremises licence under The Licensing Act 2003. If the complaintswww.humberts-leisure.comHLL Humberts Leisure 35

1APP | The future of planningWelcome to the futureAn overview of recent changes toplanning application submissions inEngland by HLL’s Simon DavisYou may have become aware that the standard planning applicationform on which an application is made has recently changed. Thisis the English Government’s new ‘National Standard PlanningApplication Form’, or 1APP as it is known. The forms were rolledout gradually by individual local authorities but on April 6th 2008,they became the new standard for all planning submissions acrossEngland.New forms & use of the InternetThese new standardised forms are the latest step in theGovernment’s campaign to streamline the planning system andencourage applications to be submitted online. 1APP supersedesthe previous system in which it was necessary to obtain the specificapplication forms of the local authority concerned. The old systemgenerally worked well in that copies of the forms were ordered bypost in advance of the application being submitted. However, asplanning and modern working has evolved, it is now more likely thatapplications will be made either from afar or through the internet.In order to minimise confusion about the details and the numberof completed forms required by each particular authority, thegovernment has decided to rationalise the current system. The resultof this is a new national standard application form and a nationwiderequirement for 3 [1] copies of the form, plans and supportingdocuments to be submitted.The Government are keen to encourage people to use the internetto submit their applications and there are numerous benefits tosubmitting an application through the planning portal. For instance,the online form is tailored to the type of application that is beingmade, meaning that applicants may find themselves answering lessquestions online than they would on the paper form. There arealso useful tools on the planning portal which allow for the correctelectronic form to be chosen, the creation of location plans, thecalculation of fees and for applications to be electronically checkedprior to submission.[1] Although, it should be noted that whilst some local authoritiesnow accept 3 copies of everything, some have interpreted 3 copiesto mean 3 copies of the original (so 4 in total)!36 Summer 2008

1APP | The future of planningThe benefits of both 1APP and the use of the internet are obvious. Planners and developersacross the country now only need to have one set of forms handy and will become completelyfamiliar with what is required, thus minimising mistakes and consequent delays. Features ofthe new system include a simpler and more transparent planning process. And if using theplanning portal, forms and details can be saved for future use.However, it is clear from our recent use of the new forms that it will take some time to getused to them and that further clarification may be required as to how to answer certainquestions. For example, park homes have been defined by the government to be low costhousing; however the forms only include boxes for market or affordable housing in thesection about residential units. We have recently flagged this issue up with the DCLG andwrote to them on the 22nd April 2008 requesting that the forms be amended to include asection for low cost housing and also to not have to specify the numbers of bedrooms (giventhat such details are not usually confirmed until later – i.e. subject to buyer preference)Furthermore, it is not obvious as to how park warden’s residential accommodation isto be defined on the form. Whether it is a form of key worker housing and whether theaccommodation is a flat or perhaps a live/work unit. Applicants should also be aware that aTree Survey is now required for all application sites with trees either on or adjacent to them.This also throws up the need for a topographical survey as Tree Consultants generally can’tproduce a Tree Survey without one. Other items to watch out for include the need to providedetails as to sewage/surface water drainage and waste & recycling facilities and to indicatethese on the drawings.New Validation CriteriaIn addition to the requirements found in the new application forms, regard also needs tobe had to the new standard validation criteria that have been brought in for all authoritiesin England. These documents state what must be submitted with a planning application inorder for it to be validated and registered. The criteria are split into national (standardised)standards and local standards. The local criteria does allow for some variety in what isrequested by local authorities across England (and is therefore not standardisedas 1APP is), however these criteria do highlight specific requirements in a waythat allows these to be easily checked before an application is submitted.It should be noted that Building Controlapplications are not currently includedin the implementation of 1APP, howeverit is more than likely that the Englishgovernment will also want to streamlineand standardise this process too – as well asperhaps other application types such as sitelicensing.Access the Planning PortalMore details on 1APP and the ValidationCriteria, and all aspects of the government’sonline planning process, are available eitheron the Planning Portal website www.planningportal.gov.uk, or you can still getthis information from the offices or websiteof your local authority. Please note that theseprocedural changes currently only apply toEngland, however, it is possible that if thechanges are perceived favourably then theywill be coming to Scotland and Wales too,although experience tells me that the Welshand Scottish versions will seek to improveupon the English 1APP.ContactSimon Davis BA(Hons) DipTP MRTPI, Skiptone: simon.davis@humberts-leisure.comt: +44 (0)1756 799 271In the case of a previous application to North Somerset District Council, theregistration process was held up significantly because although a specific designand access Statement was not required (as the application was for a change ofuse); information about the local requirement for a Disabled Access Statementwas missing. It will now be possible (and relatively simple) to check for suchlocalised requirements by contacting the local authority and asking for a copyof their Validation Criteria (or viewing the document online).The Planning Form should no longerbe an afterthoughtI am sure that in time, writing these new forms and checking the validationcriteria will become second nature, but my advice for anyone planning onsubmitting an application in the near future, is to read through the formand check the validation criteria at an early stage rather than leavingit to the last minute as is often currently the case. That way, you willavoid finding out at the last minute that you need a Tree Survey andTopographical Survey because there are trees adjacent to your site. Inaddition, you may find out at an early stage (unlike the writer) that inaddition to the 1APP form, Arun District Council also require you tosubmit a checklist indicating what information you are supplying inaccordance with their local validation criteria.Unlike the 1APP form and the national validation criteria, the localvalidation criterion does vary from authority to authority. So it isimportant to view the relevant checklist and not simply rely uponexperience with others. For example, Arun District Council requirethat existing and finished floor levels are specified on layout drawingswhereas other Authorities simply state that a plan should have a scaleand a north point.www.humberts-leisure.comHLL Humberts Leisure 37

Planning | Professionalism paysSkipsea Sands Holiday Park: Part of the Park Resorts Portfolio ReviewStrictly professionalHLL Humberts Leisure’s Director of Planning,Martin Taylor shows that planning complexitybrings the need for a professional approachHLL Humberts Leisure’s Planning team has continued to go fromstrength to strength. With the increasing complexity of makinga successful planning application or getting a site allocated fordevelopment, many clients are benefiting from HLL’s expertplanning professionals in trying to cut through the increasingbureaucracy and barriers to leisure development.During the later part of 2007 and into early 2008, HLL’s Planningteam undertook a complete portfolio review of the of 37 holiday parksites acquired by GI Partners for the new management team at ParkResorts. This review examined potential development opportunitiesin relation to existing planning policy, proposed policy, and previousplanning history.The review identified a considerable number of opportunities toenhance the value of the portfolio and we have now embarked ona structured programme to obtain site allocations and planningpermissions in support of a development programme for the estate.Similar portfolio reviews have also been completed for eightKingswood Educational and Activity Centres, and for eightracecourses belonging to Northern Racing. In each case we havebeen able to identify the planning prospects and future action tosecure value enhancing development. We have also underpinnedexisting values by forming a terrier of existing planning permissions.In terms of planning applications, timberlodges and wooden cabins have been theorder of the day.After lengthy negotiations with the local council we obtained planningconsent for 12 lodges on the Isle of Wight which are now beingdeveloped. We have had similar successes for lodge developments inDevon, Northumbria and West Sussex.38 Summer 2008

Planning | Professionalism paysLeft: The Planning team are dealing with LodgeDevelopments around the CountryTop: Extract from Vision Statement for 38 Lodge ParkPicture courtesy of Hankinson Ducket AssociatesBreydon Water Holiday Park: Part of the Park Resorts Development ProgrammeIn the meantime the Planning team aredealing with a number of major holidaycentre proposals with an application for38 holiday lodges being dragged throughthe planning system on a site in the SouthDowns Area of Outstanding Natural Beauty.A further application for just over 100holiday lodges has been submitted for anew holiday village at a site adjoining theLincolnshire Wolds Area of OutstandingNatural Beauty.Just to get these applications registered isnow taking an inordinate amount of preapplicationwork with the Local PlanningAuthority and prior consultation work withthe local community. Such work is nowa requirement necessary to complete theimpervious new 1APP standard planningapplication form for all planning authorities.Such applications now have to beaccompanied by a whole raft of supportingreports which depending on the locationmay include a Design & Access Statement,Landscape and Visual Impact Assessment,Ecological Surveys and Report, TreeSurvey and Report, Flood Risk Assessment,Sustainable Transport Assessment andTravel Plan, Tourism Need and EconomicImpact Assessment.With all these highly technical reports wehave found it useful to prepare a singleVision Statement which clearly sets outthe client’s vision for the site, the benefitsthat will accrue to the local community,environment and economy, and how any keyissues are being dealt with. Such statementshave been key to dealing with consultationswith the local community, Local Authorityand statutory bodies.If you are proposing any development orlooking to identify opportunities to increasethe value of your property, but are put offby the complexity of the current planningsystem, then please do not hesitate to getprofessional support by contacting the HLLHumberts Leisure Planning teamContactMartin Taylor BA(Hons) BTP MRTPI MIED MTS, Brightone: martin.taylor@humberts-leisure.comt: +44 (0)1273 325 911www.humberts-leisure.comHLL Humberts Leisure 39

Coastal erosionTumble and fallSenior Planners Rachel Whaley and Simon Davis,based at HLL’s Skipton office, have been dealing witha number of cases involving coastal erosion along theEast Yorkshire Coast.Our experience is that whilst Councils impacted by coastal erosion are doing a lot of workto address this important issue in policy terms, in reality the solutions are far from easyto achieve. Clearly the problem will not go away, and we are continuing to work with therelevant planning authorities to find a way forward. Across the country, work on preparingthe new Local Development Framework is gathering pace, and it is vital to ensure that inareas where coastal erosion is an issue it is dealt with by the local planning authorities ina constructive manner as they formulate their Core Strategy and Development Policiesdocuments. We set out below some of the key issues that need to be addressed.Rapid retreatThe East Yorkshire coastline is the fastest eroding coastline in the UK and also one of thefastest eroding in North West Europe. It is currently predicted that this stretch of coastlinewill continue to erode at a rate of around 1.5m a year. Many clients are seeing at first handthe devastating effect of these erosion rates on their parks.Legacy of the Ice AgeThe dynamic nature of the cliffs is partly due to their geological origins. Approximately twomillion years ago the coastline was a chalk cliff running from Flamborough through Beverley40 Summer 2008

Coastal erosionand Hessle. After the last Ice Age, the ice sheets retreated depositingboulder clay made up of fine silts, boulders and gravel. This is thecomposition of the Holderness Plain today. The soft boulder clay isvery easily eroded, and the cliffs are extremely unstable and liable tocollapse as a result of rain and wave action.Coastal protection measures are in placeat some of the settlements in the area.However, the majority of the coastline remainsvulnerable to this continuing natural process.The average rate of erosion along this coastline is 1.5m a year withrates fluctuating significantly over time and between different areas ofthe coastline. Single events such as storms can result in cliff retreat ofbetween 6-9m at a time.The lost villagesThe problems of coastal erosion along this coastline are nothingnew and one wonders why the policy approach has only come intothe spotlight in more recent years. Since the Roman times a stripapproximately 3.5 miles wide of the present day coastline has beenlost with documented evidence of around 30 villages having oncethrived on this area. Yet still development on the coastline continued.Local planning policyThe current adopted local plans for the coastline area are the EastYorkshire Borough Wide Local Plan (adopted June 1997) and theHolderness District Wide Local Plan (adopted April 1999). Theseare due to be replaced by a single Local Development Plan for thewhole of the East Riding Council area. Policies in the current LocalPlans do make some provision for replacement of caravan sites wherethe existing site is at risk of loss through coastal erosion. The policiesin both Local Plans only allow for new caravan sites within theHolderness Plain coastal area where they will relocate an existing siteat risk of loss through coastal erosion. New sites will not be permittedwithin 400 metres of the cliff top but replacement provision may bemade by way of limited extension on the landward side.This policy is intended to provide the flexibility to replace pitcheslost through coastal erosion, yet the Council’s stated preferenceis that existing sites as risk should be relocated in their entirety toappropriate inland sites. This would appear to be rather impractical.The general aim of the coastal zone policies is to reduce thedominance and visual intrusion of caravan sites, as well as addressingthe practical problems of coastal erosion.Integrated Coastal Zone Management PlanAlthough the Local Authority has a power to provide coast protectionand maintain existing defences under the Coast Protection Act1949, this is not a statutory duty. Previous efforts by the Council toaddress the problem include the Shoreline Management Plan whichwas ultimately never adopted due to concerns over its seeminglynegative approach to “do nothing” in the affected areas. It was alsorecognised that the social and economic issues of coastal erosion, inparticular the value to local communities of the tourism industry wasnot being fully taken into account.The Integrated Coastal Zone Management Plan (ICZMP) wasintroduced in an attempt to bring together all the issues, plans andstrategies for coastal management into a clear set of policy aims. Areport on ‘The rollback of caravan and holiday home parks fromthe eroding East Yorkshire Coastline’ was commissioned as part ofthe work arising from the Management Plan. This was produced inwww.humberts-leisure.comAugust 2003 and has now effectively become the rollback policy ofthe Council.The report identifies 24 sites along the coastline as being at particularrisk from erosion within the next 100 years. The limitations ofadopted Local Plan policies are recognised and more positiveguidance is offered, suggesting that in general there is considerablepotential for the area to absorb tourism development in the formof caravan and holiday park rollback and relocation, the nature ofthe landscape lending itself well to effective screening. However,it recognizes the difficulties encountered in securing appropriatelylocated sites and the economic impact of taking existing sites out ofaction whilst relocation/redevelopment takes place.The report recommends a policy approach which provides for thereplacement of caravan sites at risk of coastal erosion over the next100 years to sites that would not be at risk over that time period(effectively at least 150 metres from the coastline), subject to theremoval of any coast protection works, restoration of vacated land,enhancement of nature conservation resources and provision ofpublic access to the coast.The Council has adopted this as their preferred policy approach butit does not have formal status as supplementary planning guidance.Although cited as a material consideration, it is still the policiesin the adopted Local Plans that are used to consider planningapplications for rollback and relocation of lost pitches, each casebeing considered on its merits.National Planning PolicyThe Good Practice Guide on Planning for Tourism (2006), which ismore up to date than the adopted Local Plans for the area and the 2003report on rollback policy, requires local planning authorities to examinethe scope for relocation away from sites prone to coastal erosion butrecognises that the high land values associated with holiday parks, thecost of infrastructure and possible planning issues relating to a proposedsite may make such proposals impractical or unviable.Who should pay?Yorkshire Forward has set up a fund to assist in the realisation ofschemes which meet the objectives of the ICZMP for relocationof caravan sites susceptible to coastal erosion. This fund is to bemanaged by the East Riding of Yorkshire Council. However, inmanaging such funds it will always be necessary to demonstratethat the spending of public monies is for the greater public good,rather than simply propping up private businesses. This willinevitably lead to difficulties as the Council seeks to justify whysome sites are worthy of public subsidy, while other businesses areleft to fend for themselves.Difficulties encountered inseeking a rollback solutionThere are a number of difficulties in seeking a solution throughrollback. Landbanking occurs as developers realise the potential forselling suitable rollback sites as the pressure mounts, whilst somelandowners are unwilling to sell land to adjoining sites as they continueto hold out for the hope value of residential development, despite thisbeing contrary to established local and national planning policy.The preferred approach of relocating entire sites inland, as well asbeing difficult to negotiate, will clearly have significant financialimplications in terms of lost income during the relocation of thepark as well as the potential loss of a more competitive locationimmediately adjacent to the sea where customers prefer to spendtheir holidays.HLL Humberts Leisure 41

Coastal erosionPitch banking is another approach put forward in the 2003 reportwhere sites would be available, not for a single park to relocate, butfor park owners losing pitches to erosion to develop a number ofreplacement pitches on that site. Whilst this in part addresses someof the financial concerns, it means that park owners have to adopta different operational approach to managing their units and bringsoperational problems such as how would the occupants of the pitchbank site access the facilities that they would normally expect fromthe main site.Despite the recognition of the problem and the Council’s stated aimsto work towards a resolution, many site owners feel that they have norealistic way forward.One client particularly frustrated by the current approach toapplications for site extension under rollback policy has a parksituated directly on the coastline and has suffered significant lossesas a result of coastal erosion. Around 80 static caravan pitches havebeen lost since 1980, 44 of these in the last 17 years. Recent stormsin October 2007 led to further cliff collapse as the photographsdramatically illustrate.Seeking to address the problem by approaching the Council forplanning permission to re-site the caravans at risk, he applied todevelop land to the west of the park and this application was refusedon the grounds that the distance between the cliffs and the re-sitedpitches was less than that required (based on the current rate oferosion) to last the life time of the caravans. He then amended hisproposals to reduce the number of pitches to be re-sited in orderto achieve the required distance of 165m (equivalent to 61 years).The Council did not support these proposals, stating that they werenot sustainable as they sought to extend the park laterally alongthe coastline and therefore did not strictly represent a roll backproposal. A further alternative to re-site the caravans on land outsideand to the north of the town was also turned down being deemedunacceptable due to its location in the open countryside, the lack offacilities close by, the need for extensive screening, and the possibleimpact on adjacent land use.This leaves the site operator in the unenviable position of havingtried all avenues to re-locate lost and at-risk pitches, and now havingto watch the southern half of the park crumbling into the sea.There is little evidence in this tale of the Council’s support forrollback policy and recognition of the importance of the holidaycaravan parks to the local economy. It would seem that the restrictiveapproach of the old, adopted Local Plan policies are still very muchto the fore.There are many parks affected in this way and we have a number ofclients experiencing difficulties tackling the issue of erosion of their sites.Effect on the local economyThe effect on the local economy of these lost pitches is massive andit is important that the Council is made to recognise this. Takingthe numbers at our site above, for example, using data providedby the UK Tourism Survey of 2006 for the Yorkshire Region, it iscalculated that the most recent loss of 44 pitches will result in a lossof £198,145 in visitor spending each year, increasing to a loss of£360,264 each year if calculated on the basis of the total numberof 80 pitches lost since 1980. Couple this with the damage to otherholiday parks along this coastline and is it is clear that the localeconomy is losing millions of pounds in tourism revenue with furtherimpact on the viability of local retail businesses and the demand forlocal jobs.Local Development Framework consultationConsultation on the Issues and Options for the Core Strategy DPDis currently underway. The Council will be including discussion ofthe general approach to rollback policy for caravan sites in the CoreStrategy so this will be an important opportunity for operators tomake their views known to the Council during this first stage of theprocess. More detailed consideration of the actual rollback policieswill form part of the Development Control Policies DPD and workon this document is not scheduled until 2009.SummaryDespite the problems of coastal erosion and loss of settlements tothe sea dating back to Roman times, the move to develop a planningpolicy approach to deal with the issue is very recent.East Riding of Yorkshire Council has endorsed the 2003 reportcommissioned on rollback policy and stated its support for theholiday park industry in this area. However, there is currently apolicy vacuum with applications being determined each case on theirmerits using adopted Local Plan policies which do not reflect thecurrent thinking, and the timescale for adopting new developmentcontrol policies to tackle the issue at least two years ahead. Withthe coastal erosion rates averaging 1.5m a year, this is time manypark operators simply do not have and we can only hope that theCouncil’s initial work on the Core Strategy DPD will lead to a morepositive approach for those operators needing to relocate now.ContactRachel Whaley BSc(Hons) DipTP MRTPI, Skiptone: rachel.whaley@humberts-leisure.com t: +44 (0)1756 799 271Simon Davis BA(Hons) DipTP MRTPI, Skiptone: simon.davis@humberts-leisure.com t: +44 (0)1756 799 27142 Summer 2008

Why choose HLL Humberts Leisurespecialistexpertise,professionalinsightHLL Humberts Leisure provides results-driven specialist propertyexpertise to clients across the UK and overseas, with dedicatedprofessionals working in ten distinct leisure-business sectors.HotelsLondon/City Centre HotelsResort HotelsCommercial/Business HotelsCountry House HotelsMotor Lodges and Budget HotelsGolfInternational Golf ResortsGolf Hotels and Country ClubsProprietary Golf ClubsPay and Play Golf CentresDriving RangesGolf AcademiesGolf Development SitesHoliday PropertyCaravan ParksLodge DevelopmentsHoliday VillagesCottage Letting ComplexesClub Membership ResortsPark Home EstatesSports Complexesand VenuesRacecoursesStadiaGrandstand Hospitality BoxesTennis CentresSquash ClubsDry Ski SlopesHealth & Fitness ClubsPlaying Fields/Sports GroundsGeneral Sports ComplexesShooting SchoolsUrban LeisureCinemas and TheatresNight Clubs and DiscothequesIndoor Bowling CentresSnooker ClubsIntegrated Retail andLeisure ComplexesChildren’s NurseriesWater-Based LeisureCoastal MarinasInland MarinasMulti-use lakesFisheriesVisitor EnterprisesTheme ParksTourist AttractionsHeritage CentresHistoric BuildingsFactory ShoppingChildren’s Play CentresPublic Houses andLicensed PropertyRestaurantsTheme BarsTenanted and ManagedPublic HousesWine BarsFreehousesFundingSale and leasebackIntroduction to sources ofequity and debt financeSpecialist VCT Leisure FundInstitutional PropertySchoolsCollegesHere are a few of the keypeople at HLL HumbertsLeisure who can help youmake the most of yourleisure propertyPubsPeter Constantine BSc(Hons) FRICS, t: +44 (0)20 7629 6700Richard Baldwin BSc(Hons) MRICS, t: +44 (0)1756 799 271Andrew Moore BSc(Hons) MRICS, t: +44 (0)1756 799 271Marcus Street BSc(Hons) MRICS, t: +44 (0)1291 627 813Charles Kaminaris BSc(Hons) MRICS, t: +44 (0)1291 627 813ConsultancyJohn Anderson BSc FRICS, t: +44 (0)1756 799 271Nigel Talbot-Ponsonby FRICS, t: +44 (0)20 7629 6700Nigel Mills MBHA, t: +44 (0)1273 325 911Peter Sharp BA(Hons) MBHA, t: +44 (0)1273 325 911Cherise Smith BA(Hons), t: +44 (0)1273 325 911Planning and Public Sector DevelopmentMartin Taylor BA(Hons) BTP MRTPI MIED MTS, t: +44 (0)1273 325 911Simon Davis BA(Hons) DipTP MRTPI, t: +44 (0)1756 799 271Aimée Cannon BA(Hons) MRTPI, t: +44 (0)1273 325 911Rachel Whaley BSc(Hons) DipTP MRTPI, t: +44 (0)1756 799 271Debbie Marriage BSc MA MRTPI, t: +44 (0)1273 325 911Hotels and General LeisureGavin Brent BSc MRICS, t: +44 (0)20 7629 6700Nigel Talbot-Ponsonby FRICS, t: +44 (0)20 7629 6700Tim Smith BSc(Hons) MRICS, t: +44 (0)20 7629 6700Andrew Bates MRICS, t: +44 (0)1962 835 960Luke Cutler BSc(Hons) MRICS, t: +44 (0)20 7629 6700Alex Campbell BA(Hons) MA, t: +44 (0)20 7629 6700Golf & Golf HotelsBen Allen BSc(Hons) MRICS, t: +44 (0)1962 835 960Martin Brister FRICS, t: +44 (0)1962 835 960Tim Smith BSc(Hons) MRICS, t: +44 (0)20 7629 6700Holiday PropertyJohn Anderson BSc FRICS, t: +44 (0)1756 799 271Martin Reed MRICS IRRV, t: +44 (0)1273 325 911John Mitchell BSc MRICS, t: +44 (0)20 7629 6700Peter Smith BA(Hons) MRICS, t: +44 (0)1756 799 271Peter Boghurst MRICS, t: +44 (0)1273 325 911Stephen Morgan FRICS, t: +44 (0)1291 627 813Paul Barnes BSc(Hons) MRICS, t: +44 (0)1962 835 960Emma Carling t: +44 (0)1756 799 271Charlie Mason BA(Hons) MSc, t: +44 (0)20 7629 6700CEOJane Ker BA FCA, t: +44 (0)20 7629 6700What can HLL do for you?ValuationsFor all types of leisure property, for balance sheetpurposes, purchases, sales and for raising financefor acquisition or further development.Professional servicesRent reviews and lease renewals for bothlandlord and tenant, rating, litigation, dilapidationclaims and all other professional matters for alltypes of leisure properties.AgencyAcquisition, sale and leasing of leisure relatedproperty in the UK and overseas.MarketingIntegration of mailing, advertising, publicrelations and other publicity material to achievethe widest exposure and the optimum sale.ConsultancyFeasibility studies, viability testing anddevelopment option appraisal on a full rangeof leisure business and property proposals toensure correct conceptualisation and successfulimplementation.FinanceFunding for leisure industry schemes. Advice onavailability of funding packages, together withintroductions to sources of equity including theLeisure and Media VCT plc and debt finance.Development/InvestmentArrangement of an integrated service includingsite acquisition, valuation, planning, funding andultimate disposal, together with advice on theselection of other professional intermediaries.PlanningPlanning appraisal, planning history research,planning applications and appeals, expertwitness, enforcement notice, licensing andtechnical advice in the pursuance of leisurerelatedproperty development proposals. Sitefinding and assessment.ResearchProperty market appraisal, leisure marketresearch and trends monitor, competitor analysis,demographic catchment and visitor profiling,economic impact measurement.Humberts Leisure Ltd. Registered in England & Wales No. 2567699. VAT No. 761 451 929.Registered Office: 12 Bolton Street, Mayfair, London W1J 8BD. e: contact@humberts-leisure.com

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