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The Plough-sandygate

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46 minutes ago, lil-minx92 said:

Nope. Representations are still being accepted. There was a good one the other day hitting back at Crossthwaite Commercials's (in my opinion somewhat dubious) supporting statement about the marketing of the pub. I think they are treading on thin ice with regards their professional obligations as members of RICS

What did Crossthwaite say in their supporting statement?

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Here it is, taken verbatim from the public PDF.

MV

 

---------------------------------------------------------------------------

From: Martin Crosthwaite Sent: 06 August 2019 12:23

To: Steve Burlaga

Cc: Mark Platts

Subject: The Plough

 

Steve

I understand the planning case officer is asking for further clarification regarding our marketing of the Plough, and in particular the rent we are quoting.

As you are aware, we have been inviting rental offers in the region of £50,000 per annum, however this figure has never been set in stone and we have always been prepared to be flexible and talk to any interested parties. Furthermore, we have not been asking for any ingoing premium which is unusual in the pub market.

 

It is important to realise that the Plough is not tied to any particular brewery/PubCo and although some local pubs have been offered a lower rents, these have been instances where premiums have been requested and the tenancy agreements are tied to a particular pub company/brewery, which does affect the profitability for the operator.

 

The Plough is a relatively large property with a ground floor area in excess of 2,000 ft.2 along with a flat above comprising three bedrooms, living room, kitchen and bathroom. I believe there is also a function room at first floor, however this is sealed off due to safety reasons and I have therefore not been able to gain access. There is also a substantial car park.

 

By way of comparison, I understand that the Three Merry Lads on Redmires Road was recently marketed at a rent of £74,000 per annum with an ingoing premium required in excess of  £60,000.  The Ranmoor Inn on Fulwood Road was similarly advertised at a rent of £30,000 per annum (reduced, I believe from £36,000 pa) with an ingoing cost of £14,500.  Both of these pubs are tied houses and where the rents are generally below the level one would normally expect to pay for a free house.

 

Furthermore, unlike the Plough, neither of the above two pubs can be said to occupy exclusive positions, the Sportsman pub being located extremely close to the Three Merry Lads and the Bulls Head is within 200 yards of the Ran moor Inn.

 

In August last year, we did accept a rental offer from a new start-up business - we agreed a rent of £45,000 per annum for the first three years, rising to £50,000 per annum thereafter. After lengthy negotiations, however, not to mention numerous surveys, these people withdrew their interest and no one has made a firm offer since.

 

The main drawback in our marketing is that whe·n we commenced marketing, the building was very tired and the upper floor flat had been stripped out. Since then, there have been at least four break-ins where substantial damage has been caused and we are now in the position that any ingoing tenant would need to completely re-fit the interior of the premises, both upstairs and down, not to mention spend a considerable sum on the structure.

 

Whilst we have always been prepared to agree to a rent free period, indeed we did agree one with the previously interested party, the level of work now required in my view makes it completely un-economic to restore and reopen the pub and living accommodation.

 

I trust that the above comments are helpful but please let me know if you need anything else.

 

Regards

 

Martin Crosthwaite

Crosthwaite Commercial

Hawk Works, 105A Mary Street, Sheffield S1 4RT

Edited by MaxVinella

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The site is turning into a builder's yard. The heaps of rubble are largely screened off from view.  It's a disgrace. I hope the council protect this building before it becomes too late.

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the level of work now required in my view makes it completely un-economic to restore and reopen the pub and living accommodation.

 

this statement requires justification in my view.

 

how could that statement be made without knowing a future incumbents business plan?

 

what if their business model for a pub made it hugely profitable?

Edited by makapaka

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"...The main drawback in our marketing is that whe·n we commenced marketing, the building was very tired and the upper floor flat had been stripped out. Since then, there have been at least four break-ins where substantial damage has been caused and we are now in the position that any ingoing tenant would need to completely re-fit the interior of the premises, both upstairs and down, not to mention spend a considerable sum on the structure...."

 

The upper floor flat has been stripped out?, for what reason?

 

Four break ins?, well no doubt there will be records with a local police station, complete with incident numbers, etc., unless they mean when Spacepad work men ripped out the nice old marble fire places, in broad daylight? 

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On 29/08/2019 at 13:13, MaxVinella said:

Here it is, taken verbatim from the public PDF.

MV

 

---------------------------------------------------------------------------

From: Martin Crosthwaite Sent: 06 August 2019 12:23

To: Steve Burlaga

Cc: Mark Platts

Subject: The Plough

 

Steve

I understand the planning case officer is asking for further clarification regarding our marketing of the Plough, and in particular the rent we are quoting.

As you are aware, we have been inviting rental offers in the region of £50,000 per annum, however this figure has never been set in stone and we have always been prepared to be flexible and talk to any interested parties. Furthermore, we have not been asking for any ingoing premium which is unusual in the pub market.

 

It is important to realise that the Plough is not tied to any particular brewery/PubCo and although some local pubs have been offered a lower rents, these have been instances where premiums have been requested and the tenancy agreements are tied to a particular pub company/brewery, which does affect the profitability for the operator.

 

The Plough is a relatively large property with a ground floor area in excess of 2,000 ft.2 along with a flat above comprising three bedrooms, living room, kitchen and bathroom. I believe there is also a function room at first floor, however this is sealed off due to safety reasons and I have therefore not been able to gain access. There is also a substantial car park.

 

By way of comparison, I understand that the Three Merry Lads on Redmires Road was recently marketed at a rent of £74,000 per annum with an ingoing premium required in excess of  £60,000.  The Ranmoor Inn on Fulwood Road was similarly advertised at a rent of £30,000 per annum (reduced, I believe from £36,000 pa) with an ingoing cost of £14,500.  Both of these pubs are tied houses and where the rents are generally below the level one would normally expect to pay for a free house.

 

Furthermore, unlike the Plough, neither of the above two pubs can be said to occupy exclusive positions, the Sportsman pub being located extremely close to the Three Merry Lads and the Bulls Head is within 200 yards of the Ran moor Inn.

 

In August last year, we did accept a rental offer from a new start-up business - we agreed a rent of £45,000 per annum for the first three years, rising to £50,000 per annum thereafter. After lengthy negotiations, however, not to mention numerous surveys, these people withdrew their interest and no one has made a firm offer since.

 

The main drawback in our marketing is that whe·n we commenced marketing, the building was very tired and the upper floor flat had been stripped out. Since then, there have been at least four break-ins where substantial damage has been caused and we are now in the position that any ingoing tenant would need to completely re-fit the interior of the premises, both upstairs and down, not to mention spend a considerable sum on the structure.

 

Whilst we have always been prepared to agree to a rent free period, indeed we did agree one with the previously interested party, the level of work now required in my view makes it completely un-economic to restore and reopen the pub and living accommodation.

 

I trust that the above comments are helpful but please let me know if you need anything else.

 

Regards

 

Martin Crosthwaite

Crosthwaite Commercial

Hawk Works, 105A Mary Street, Sheffield S1 4RT

Hence the reason for not asking for (being able to justify) a premium. You cant then say this is why the asking rent is high!

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Meanwhile the builder's yard becomes more of an eyesore in the attempt to make it look like a derelict building. There have been bonfires too - that is a concern.

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