Baxter Gate, Loughborough

Description

Purpose-built leisure development completed in 2016 on the site of the former Loughborough General Hospital, extending to approximately 53,977 sq ft GIA. Comprises a former 8-screen Cineworld multiplex cinema of approximately 28,342 sq ft and seven ground-floor restaurant and leisure units. The former cinema and four restaurant/leisure units are vacant, providing potential for re-letting, reconfiguration or alternative use subject to necessary consents. VAT is applicable, with TOGC intended.

Accommodation

Former 8-screen Cineworld multiplex cinema extending to approximately 28,342 sq ft, together with seven ground-floor restaurant and leisure units ranging from approximately 3,135 sq ft to 5,070 sq ft. Total scheme area approximately 53,977 sq ft GIA. Site area approximately 1.72 acres (0.70 hectares).

Location

Prominent position on Baxter Gate in Loughborough town centre, adjacent to the town's principal bus interchange. Loughborough is a university town with a student population in excess of 18,000. The Rushes Shopping Centre, Carillon Court Shopping Centre and Beehive Lane Multi-Storey Car Park are nearby.

Tenure / Property Information

Investment Analysis

The £2,000,000 guide is not a market value or GDV. The supplied sold comparables are small terraced or other freehold properties on Baxter Gate and are not sufficiently comparable to this approximately 53,977 sq ft purpose-built leisure scheme. No income schedule, passing rents, capitalisation evidence, valuation or comparable leisure transactions were supplied, so market value cannot be estimated reliably. The scheme is partly occupied, with PizzaExpress, Nando's and Centro Lounge occupied, while the former cinema and four restaurant/leisure units are vacant.

Investment Snapshot

Strategy Recommendation

Do not bid on the current evidence alone. Obtain and verify the full tenancy schedule, rents, lease terms, vacant-unit strategy, VAT/TOGC treatment, buyer premium, seller costs, planning position and a specialist leisure valuation before setting a bid limit.

Works Required

No physical defects or specific refurbishment requirements are evidenced. Potential works may include re-letting or reconfiguration of the vacant former cinema and four restaurant/leisure units, with any alternative use subject to necessary consents. The extent and cost of works cannot be estimated from the supplied evidence.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR analysis cannot be completed because GDV, rent, refurbishment cost, finance costs and lease income are unsupported. The former cinema and vacant units may offer re-letting or reconfiguration potential, but this depends on demand, consents, costs and leaseability. VAT applies, with TOGC intended, and buyer and other charges are not quantified.

Buy-to-Let Analysis

BTL yield cannot be established because no passing rents, tenancy schedule figures or sufficiently specific rental evidence were supplied. Three occupiers are identified, but the income, lease terms and liabilities are not provided. Four restaurant/leisure units and the former cinema are vacant, creating material income uncertainty.

Flip Analysis

A flip appraisal cannot be supported. The supplied comparables are not appropriate evidence for a large leisure investment, while no GDV, works budget, resale costs or market evidence for the vacant accommodation has been supplied. Any resale outcome would depend substantially on leasing or reconfiguration.

Investor Risks & Due Diligence

• The former cinema and four restaurant/leisure units are vacant.

• Passing rents, lease terms, expiry dates and tenant obligations are not supplied.

• No sufficiently specific rental comparable or auctioneer rent estimate is available.

• VAT applies and the financial effect of the intended TOGC is not quantified.

• Buyer premium and additional seller or third-party charges are not stated.

• Any reconfiguration or alternative use is subject to necessary consents.

• A 10% deposit is payable immediately upon signing the auction contract.

Recommendation

Do not bid on the current evidence alone. Obtain and verify the full tenancy schedule, rents, lease terms, vacant-unit strategy, VAT/TOGC treatment, buyer premium, seller costs, planning position and a specialist leisure valuation before setting a bid limit.

Strategy Rating

Analysis Confidence

The property description and occupancy status are detailed, but the core valuation inputs—passing rents, tenancy terms, GDV evidence, refurbishment costs, fees and specialist comparable transactions—are absent.