CLIENT
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Latham Trust
CLIENT INDUSTRY
-
Holiday Park
SERVICES PROVIDED
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Investment (Disposal)
LOCATION
- Chichester
SIZE/VALUE
- Offers Invited
DIVISIONS INVOLVED
- Leisure and Trade
DATE
- August 2021
Savills were the ‘go to’ agents for us in view of our highly successful relationship spanning 38 years, which covered every aspect of park operational matters. They recommended from the outset a longer lead in time to ensure that the data room included every material contract and document and this certainly paid dividends when the park was eventually marketed. An acceptable offer was received within 16 days of the launch and Savills work in bridging some of the more complex contractual matters helped both parties to arrive at fair and equitable solutions, ensuring that the 10 week exchange deadline was met. Our grateful thanks are extended to the whole Savills team.
Solicitor to The Executors
CHALLENGE
Medmerry Park was first established as a holiday park in 1930 and was further developed in the 1960s and 1970s with the addition of central facilities and additional chalets. The Latham Trust acquired the holiday park in 1984 and it was operated primarily as a holiday letting business until 1991, when the business model changed to focus on the sale of individual chalets for a premium under leases of up to 21 years, which produced secure ground rent income.
In 2016 a strategic review of the future business concluded that the location of Medmerry Park in a prime coastal position meant that it was ideally situated for redevelopment into a high quality static caravan and lodge park, to meet the growing demand in the holiday park sector for this type of accommodation. After extensive engagement with the local planning authority a planning application was submitted in November 2019 for a scheme to develop 518 caravans on the existing chalet park and surrounding fields also in the ownership of the clients. This was refused in January 2021 due to the scale of the proposed development. The Latham Trust, with continued support from Savills Planning team, subsequently prepared a revised scheme providing for 308 holiday lodges or caravans on a like for like basis, which was expected to be approved if submitted. In conjunction with this preparation they made a strategic decision to dispose of Medmerry Park in order to focus on their other business interests, allowing a new owner to pursue the revised planning application in their preferred format.
SOLUTION
Savills Leisure has been involved with Medmerry Park for over 35 years, as it was through Charles F Jones & Sons, who later merged with Savills, that the Latham Trust initially acquired the property in 1984. Savills has continued to work with the Latham Trust throughout its ownership, providing specialist leisure rating, planning and valuation advice to assist it in maximising the value of the property asset. In January 2021 Savills Leisure was instructed to handle the sale of Medmerry Park on behalf of this longstanding client.
RESULTS
A confidential marketing campaign was recommended by Savills, including the preparation of high quality sale particulars and an online data room in order to clearly present the opportunity to prospective purchasers.
Savills Leisure has extensive experience in the holiday park market, and our specialist knowledge of key operators in the sector enabled a target list of prospective buyers to be identified. These parties were approached and invited to review the opportunity following their signature of a non-disclosure agreement. No guide price was set but offers were invited, and in May 2021 an offer was received and accepted by the Latham Trust. The sale completed in August 2021 to Cove Communities, who already own the Bunn Leisure Family Resort located at nearby Selsey, making Medmerry Park an ideal opportunity to exploit the natural synergy between the two sites.