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Finch Farm for sale (£15.3m)

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http://www.scribd.com/doc/69456072

 

Investment summary

 

An extremely rare opportunity to acquire the training facility of a well known and successful Premier League football club

 

The 55-acre complex provides world-class training facilities including a medical centre, gymnasium, offices, dining rooms and a media centre with over 10 full-size football pitches

 

The investment provides over 30 years’ secure income with 2.5% per annum fixed uplifts, compounded and payable 5-yearly

 

Total income of £1,259,153 per annum

 

Security of income provided by television rights from the Premier League, the world’s most successful and lucrative football league

 

Offers are sought in excess of £15,356,000 (Fifteen Million, Three Hundred and Fifty Six Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 7.75%, allowing for usual purchasers costs of 5.80%.

 

The Vendor proposes to top up the rent to the level of the 26/07/2012 uplift which is £1,259,153.

 

Due to the fixed rental increases the opportunity presents the following reversionary yield profile:

 

26/07/2017: 8.77%

26/07/2022: 9.92%

26/07/2027: 11.23%

26/07/2032: 12.70%

26/07/2037: 14.37%

26/07/2042: 16.26%

 

The asset is held in an onshore SPV. Our client is open to discussions with the purchaser in relation to the acquisition of the SPV.

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To be honest, we'd be stupid not to try and buy it. Considering we have no off field assests other that Goodison, it might make us look more tempting. That said, it would also shoulder us with more debt.

 

Not that I can see it happening mind you....

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Tenancy Information

 

The property is let to Everton Football Club Company Ltd for a period of 50 years commencing from 26 July 2007. The initial rent is £1,112,907.48 per annum and is subject to 5 yearly upward-only rent reviews on the basis of 2.5% per annum compounded. There is a tenant-only break option after 35 years, dated July 2042, subject to 12 months’ written notice and payment of rent up to the termination date. The Vendor proposes to top up the rent to the level of the 26 July 2012 uplift which is £1,259,153.

 

With respect to security of income, whilst there is a direct contractual requirement for Everton FC to pay the rent under the terms of the lease, revenue received from Everton FC from their television rights (which was approximately £45 million in 2010) is paid into a designated account over which there is a charge in the Landlord’s favour. An irrevocable direction has been made to the Premier League to pay an amount of the TV revenue equivalent to one years’ rent plus VAT each year into the designated account. The yearly rent plus VAT is then paid out of the designated account. The TV monies are received on a monthly basis with significant tranches in January, May and August of each year.

 

Tenant Option to Purchase

 

The tenant has an option to purchase the freehold reversion at every fifth anniversary of the term in not less than 6 months notice in writing by the tenant to the landlord. The tenant can exercise this option at a price reflecting open market value with the benefit of the residue of the existing lease at the relevant date. The amount paid by the tenant must not be less than £13,869,244 plus an additional amount of £2,239,883. The additional amount is subject to being increased by RPI for the period from the start date of the lease to the date 20 working days prior to the date of completion of the transfer of the reversion.

 

The tenant’s next option to purchase occurs on the fifth anniversary of the term in July 2012. Based upon historic RPI figures between July 2007 and May 2011 (an average of 3.12% per annum for the first four years) and projected RPI figures for 2011 and 2012 which stand at an average of 4.32%, we envisage the additional amount to be £2,642,594. When added to the base amount, the total equates to £16,511,838.

 

Whilst a future landlord cannot control the timing of a possible option exercise and the corresponding market conditions at that future date, the structure of the option to purchase is governed by market value with a buffer of the minimum amount. In addition, it seems unlikely that the tenant will seek to exercise this option as it does not reflect an efficient use of capital at a given future date.

 

Relating to this option to purchase, is an overage provision. If planning permission is effected or the property or a part of the property is sold with the benefit of a new planning permission within 5 years from the date of the tenant purchasing the reversion then an overage mechanism is operated whereby the landlord effectively receives 50% of the uplift in value above the current use value having deducted various costs.

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So we'd just have new landlords then?

Yup.

 

Flags up (for me) the absurdity of the current wage levels in football when we can rent the entire place for about half what we'd pay one player.

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On page 5 of the doc it says we wouldn't be interested as we prefer to keep our cash liquid and it's too much capital to be invested,

 

That's an excellent way of telling your 6 year old child why they didn't get a bike for Christmas .

 

"well billy, there is no father Christmas, I know that you know this because 3 naughty men with a tape recorder heard me say this and told you. They were right of course, now you may be wondering why daddy sold your favourite toys from the boot of his car and replaced them with a skipping rope? You may also be wondering why you can't have a new bike despite us selling all your toys? the answer is me and your mummy need to keep our cash liquid and £100 is too much capital to be invested"

 

How many more missed opportunities? £1.2m a year to rent, or £15m to buy outright? We lease for 25 years at a cost of £30m and not own it? That land could be worth a fortune at the end of the lease.

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That's an excellent way of telling your 6 year old child why they didn't get a bike for Christmas .

 

"well billy, there is no father Christmas, I know that you know this because 3 naughty men with a tape recorder heard me say this and told you. They were right of course, now you may be wondering why daddy sold your favourite toys from the boot of his car and replaced them with a skipping rope? You may also be wondering why you can't have a new bike despite us selling all your toys? the answer is me and your mummy need to keep our cash liquid and £100 is too much capital to be invested"

 

How many more missed opportunities? £1.2m a year to rent, or £15m to buy outright? We lease for 25 years at a cost of £30m and not own it? That land could be worth a fortune at the end of the lease.

Hindsight is a wonderful thing.....

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That's an excellent way of telling your 6 year old child why they didn't get a bike for Christmas .

 

"well billy, there is no father Christmas, I know that you know this because 3 naughty men with a tape recorder heard me say this and told you. They were right of course, now you may be wondering why daddy sold your favourite toys from the boot of his car and replaced them with a skipping rope? You may also be wondering why you can't have a new bike despite us selling all your toys? the answer is me and your mummy need to keep our cash liquid and £100 is too much capital to be invested"

 

How many more missed opportunities? £1.2m a year to rent, or £15m to buy outright? We lease for 25 years at a cost of £30m and not own it? That land could be worth a fortune at the end of the lease.

Private loan with the same yearly rate but we get to own it in the end would be ideal

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Private loan with the same yearly rate but we get to own it in the end would be ideal

thats a good idea actually! Send it to the board quick!

 

edit: seriously no sarcasm there....

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Someone needs to create a font or internationally recognised format of wording that represents sarcasm. The minute someone creates it, they'll be famous. It'll be used everywhere, on social networks, forums, letters, advertisments...everything. Someone needs to say 'this' is the international format of sarcasm.

 

Otherwise people just don't know!

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Someone needs to create a font or internationally recognised format of wording that represents sarcasm. The minute someone creates it, they'll be famous. It'll be used everywhere, on social networks, forums, letters, advertisments...everything. Someone needs to say 'this' is the international format of sarcasm.

 

Otherwise people just don't know!

http://glennmcanally.com/sarcastic/

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where do you consider Everton would find the money to buy the site?

 

They sold it in the first place because they needed the money up front and nothing has changed. It's unfortunately a costly necessity.

 

It is the kind of thing where it might have been nice if some rich share holder like Robert Earle might have put 15 million in the bank to help keep the site and avoid the club having to pay a lease. He could have even charged a small lease if he wanted just not to the sum of 1.3 million.

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Hindsight is a wonderful thing.....

 

its not hindsight matt, its short sight.

 

they should have gone to specsaver!

 

do we have a font for "so fucking angry about this whole deal i want to pull my tongue out and wipe my own arse with it after a vindaloo"

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From Daisy Cutter, the guy (or girl) who ran the story from the link in the Potential New Investors Thread.

 

Hi all,

 

I'm Daisy Cutter. If you've got any questions I'll answer them as best I can. Though I am severely restricted by what I can say.

 

I have repeatedly told Everton fans on Twitter when asked for the latest developments to look out for a land deal (which I mention in the original article). Now that Finch Farm is coming to light I feel that (hopefully) I can come on here and not get slated for passing off yet another takeover rumour.

 

A quote from the story I ran ten days ago - 'Our source revealed that the consortium of businessmen had no prior intention of investing in the club and indeed had no previous knowledge even of its existence until they flew over recently to conclude a complicated three-way transaction for a forty-acre land deal in the city'.

After I ran the piece I got into a whole load of grief so had to back off. Yet I still gave blues the respect they deserve by responding on Twitter individually and said to each and every one (when they asked for further info) - 'Look out for an imminent land deal'.

I remember when I typed the first one out I added 'that involves EFC' but then deleted that because....well, it was pretty obvious wasnt it that it involves EFC! Otherwise whats the point in me even mentioning it on a football website in an article entitled 'New Everton Owners'.

You now have your land deal that involves EFC. Exactly as I said ten days ago. Despite people saying 'I know guys high up at the club and they know nothing about this. How do you know if they dont?' Well here is the proof that I do know. Yet you're still rolling out the same tired old bullshit that this is a wind-up from me! To what purpose??? Why would I do it as a wind-up? Please tell me because it f****ing baffles me to be honest.

I make NO money from the Daisy Cutter. I dont need this grief. I'm spending half an hour typing this when I've got a ton of stuff to do today. So its a pretty pointless wind-up wouldnt you say? When I'm the one getting the abuse and grief? I'd actually suggest that it serves the precise opposite intentions of a wind-up!

If people choose to not believe it then I perfectly understand - considering the sheer amount of foundless rumours that have been circulated by your own fans and others in recent times.

But a wind-up? Why? It only takes a person with two functioning brain cells to see that I have been completely honest and upfront about this and that I'm clearly not the kind of guy to participate in this kind of thing unless I genuinely believe that its true. Lets concentrate on the land deal for proof of this.....I stated that if I was incorrect I would put up an apology to blues. Thats because I'm not typing this from an office at Goodison or some high-up place of power. There was always the chance that the info passed onto me was erroneous. I very much doubted it considering the source but sometimes people are mistaken or exaggerate.

Now I dont know how a land deal work for f***s sake! I've never worn a hardhat or studied a blueprint in my life. For all I knew it could take six weeks before it even came to light. Yet the blues on Twitter were pressing me for an apology because nothing happened within six days so I duly put up an apology. Later that day it came out that Finch Farm is up for sale and so I thought 'Great, I can now be a bit more candid and maybe now people will stop going on about the 'Newspaper that honestly lies' tagline thats at the top of my site from its previous incarnation as a daft Daily Mash-style fake-football site. Or at least people will no longer be accusing me of being a wind-up merchant and making veiled threats about finding out who I am ' so I join up here....only to see you talking about me as if I'm somehow trying to do your lot down.

It f***ing beggars belief! If this thing happens then great - most of my mates are blues and I'll be chuffed to f*** for you all. After all the crap you've been through with Kenwright its a huge understatement to say that you deserve it.

If it doesnt, it doesnt. Still a long way to go but it looks likely that in the near-future you'll be owned by guys with money. Thats all I'm saying and I'm done with this now.

 

Don't appreciate such veiled threats especially when its blazingly clear to anyone and everyone by now surely that I just run a football website and I'm a blabbermouth haha. I'm not one of those internet losers out for fake glory. In a week when the Roses reform, Westlife split up and City are top of the league I don't need that pretend 'kudos'. I'm being 100% genuine and if you're not owned by an Indian Consortium within a couple of months I'm perfectly prepared to come back on here, hold my hands up and say that I was just passing on information and it ultimately proved to be wrong.

Thing is though, I'm not wrong. I've said for the past week 'Look out for a land deal'. No-one on here or any other Everton forum knew about Finch Farm. I did a week last Monday. Surely that shows that I'm on the right track here? That the information that I have has some genuine substance to it?

 

 

A bit of extra info about me then I'd best get cracking with other stuff.

 

In my other life when I'm not Daisy I write about football as a freelancer. So I get told lots of 'inside' crap. I disregard 99% of it. I say this to illustrate that I'm not a naive guy who has swallowed whole a load of tosh here.

Recently I've been informed of four 'exclusives' that I believe/believed to be true.

One involves Ian Wright that I cannot print because I'll get my ass sued off.

One was Roy Keane going to Forest.

One was Derek McInnes going to Bristol City.

And then this one fell from the Gods into my lap.

Was wrong about Keane (but who knows, maybe he was offered the job and realised the financial restrictions the club is now under and declined?)

But by and large I do have experience in being able to differentiate between a genuine tip and someone passing themselves off as an 'ITK'.

 

This one has legs. I'm sure of it. Although it still has some ground to cover and so many things can - and knowing Kenwright probably will - go wrong.

 

Courtesy of NSNO.

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its not hindsight matt, its short sight.

 

they should have gone to specsaver!

 

do we have a font for "so fucking angry about this whole deal i want to pull my tongue out and wipe my own arse with it after a vindaloo"

 

 

no but i have the vocab for such an occasion :lol:

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I would have thought it would have made financial sense for one of Everton's main shareholders to buy the land and loan it back to the club. It seems like a full proof investment, and considering some on the board are very wealthy indeed they could help kill two birds with one stone so to speak. They would get a guarenteed payment back from the club every year, and if it took their fancy they could also reduce the rate we pay. If he could then leave us as the beneficiaries in their will when they die then would also be good.

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Guest blueboy122   
Guest blueboy122

What benefits would it have to someone, having an asset but not be able to use it......

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What benefits would it have to someone, having an asset but not be able to use it......

 

Same benefits as anyone owning a property and renting it out gets....income.

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Guest blueboy122   
Guest blueboy122

 

 

So why haven't rom capital done that?

 

 

Same benefits as anyone owning a property and renting it out gets....income.

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Guest blueboy122   
Guest blueboy122

 

 

 

They rent it to us.

 

Ah yes sorry with you now. Essentially if Capital ram sold the site to someone else, could the new owners charge us double what we have been paying previously? Therefore potentially leaving us to train in Sefton park because we can't afford the new rent that the new owners are charging?

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No, it's all in a contract that specifies the amount of rent that will be charged.

 

Personally, I'm wondering whether the club are interested in buying Finch Farm

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Guest blueboy122   
Guest blueboy122

No, it's all in a contract that specifies the amount of rent that will be charged.

 

Personally, I'm wondering whether the club are interested in buying Finch Farm

 

What benefit would it be?

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Well as some one else points out above, it's 1.2 million a year to rent for a 50 year contract. If we buy it outright it'll only cost us 15mil excluding VAT ( providing the asking price hasn't changed). That's a significant difference, albeit money spread over a long period.

 

Ha ha I didn't see that two people had already replied to the 'what benefit?' question! Seems i also need to read the whole thread before I post!

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If the club came out and said they have taken the Rodwell money and used it to buy the training ground, and no further cash for the playing squad, how would you react?

 

Would save them approx £1m a year in rent.

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If the club came out and said they have taken the Rodwell money and used it to buy the training ground, and no further cash for the playing squad, how would you react?

 

Would save them approx £1m a year in rent.

 

I'd wonder if our board had had brain transplants for brains capable of good business sense.

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Any chance they could take a mortgage to secure it?! Potentially we could pay it off after 10-15 years and then it's ours! I suppose they'd have to find someone to stump up the mortgage but I doubt it's impossible to broker that kind of deal.

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http://www.london-gazette.co.uk/issues/60518/notices/1831673/all=05798738

 

Date: 28 May 2013 Issue Number: 60518 Page number: 10479

Publication Date: Tuesday, 28 May 2013

 

Notice Code: 2442

 

Meetings of Creditors

 

FINCH FARM LIMITED

 

(Company Number 05798738)

 

Recovery House, 15-17 Roebuck Road, Hainault Business Park, Ilford, Essex IG6 3TU

 

Principal Trading Address: Suite 1 Burney Court, 113 Manor Road, Chigwell, Essex IG7 5PS

 

Notice is hereby given pursuant to Section 98 of the Insolvency Act 1986 that a meeting of creditors of the above named Company will be held at Recovery House, Hainault Business Park, 15-17 Roebuck Road, Ilford, Essex IG6 3TU on 7 June 2013 at 10.30 am for the purposes mentioned in Sections 99 to 101 of the said Act.

 

Creditors wishing to vote at the meeting must lodge their proxy, together with a full statement of account at the registered office - Recovery House, Hainault Business Park, 15-17 Roebuck Road, Ilford, Essex IG6 3TU not later than 12 noon on 6 June 2013.

 

For the purposes of voting, a secured creditor is required (unless he surrenders his security) to lodge at Recovery House, Hainault Business Park, 15-17 Roebuck Road, Ilford, Essex IG6 3TU before the meeting, a statement giving particulars of his security, the date when it was given and the value at which it is assessed.

 

Notice is further given that prior to the meeting Allan John Clark of Carter Clark, Recovery House, Hainault Business Park, 15-17 Roebuck Road, Ilford, Essex IG6 3TU, who is qualified to act as an Insolvency Practitioner (IP Number 8760), will furnish creditors free of charge with such information concerning the Company’s affairs as they may reasonably require. The telephone number of Allan John Clark is 020 8524 1447. Ryan Sinclair who can be contacted on 020 8559 5092 will be able to assist with enquiries by creditors.

 

Resolutions to be taken at the aforementioned meeting may include a resolution specifying the terms on which the Liquidator is to be remunerated. The meeting may also receive information about or be called upon to approve the costs of preparing the statement of affairs and convening the meeting.

 

15 May 2013

 

 

Marco Stellon Director

 

(1831673)

They're (the company, not Everton, Everton don't own Finch Farm) four months behind with accounts and a fortnight behind with the Annual Return. Either the company is going to be closed/wound up or they'll file accounts. If it's being wound up, it probably means that Finch Farm has been sold.

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Liverpool City Council bought it last month for £13m.

 

I'm not sure that's a good thing or a bad thing. Could we see a 300 strong housing estate on our beloved training facilities?

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I'm not sure that's a good thing or a bad thing. Could we see a 300 strong housing estate on our beloved training facilities?

 

Pretty sure we're "sitting tenants", Whoever bought it did so in the knowledge that we'd be there for the long term.

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Well it's too close to the airport to comfortably live in. When I played there the sound of air-crafts was deafening and many times we would have to set-up the training again because the balls had rolled away.

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