Passive Income Case Study | Strike

Strike was acquired in October 2010, a struggling bowling alley purchased for £1,250,000, situated on The Promenade in Largs, Scotland, with clear potential to be a profitable attraction in the local area. The project aim was to transform Strike into a highly profitable mixed-use space to be occupied by some of the nation’s favourite high street brands.

We managed to force capital appreciation from £1.25M to £3.5M, if you would like to find out more about how this is possible join the Community it’s Free.

Purchase Price: £1.25 million

Current Value:   £3.50 million

Current Profit:   £2.25 million

Rental Income:  £210k


Investment Strategy

The original business traded over a single storey of 13,000 sq ft of property, as a ten pin bowling alley (a rapidly declining industry) bar, restaurant and arcade. Although profitable, the sector has been affected by regulatory changes and decreasing discretionary consumer spend.

Largs is a traditional Scottish coastal “day tripper” resort. The business and the freehold was purchased as a going concern and transformed into an investment producing Secure Long Term Income Streams “SLTIS”, by creating five long-term Institutional FRI leases with National operators on 15 - 35-year leases.

Local Regeneration

Taylor Capital not only seeks to generate income for investors, but our strategies focus on the reciprocal effects of regeneration and re-profiling of the town centre on and the positive effects on local communities.

Strike not only surpassed investment targets but boosted the local economy providing an extra 100 jobs, local suppliers increased business the building’s turnover  rocketed up from £400,000 to £7,200,000 amongst the local businesses occupying the space.

Project Financials

The increase in value and high-quality lease arrangements with long term national brands hugely reduces risk and creates a lowly geared investment that will survive and thrive during the next economic correction.

Taylor Capital taylorcapital.co.uk
Case Study "Strike"
Address 1-5 The Promenade, Largs, Scotland
Purchase Price 1,250,000
Current Profit 2,250,000
Current Value 3,500,000
Acquisition Date October 2010
Improvements Tenants 2.3m
Annual rent 210,000
Lease Length 15 to 35 years

Rental Income

Taylor Capital applied trusted strategies to upgrade the asset and added considerable value, generating £2.25 million in profit and inserting multiple national high street brands as tenants on lease terms of 15 - 35 years creating a long term collective annual income of £210,000 inflation protected increasing every 5 years.

The five high profile national operators are as follows:

Tenants Rent per year Lease Break Clause
JD Wetherspoon £72,000 30 years Breaks at 10 & 20 years
Co-op £48,000 15 years No breaks
Costa Coffee £36,000 15 years Breaks at 6 & 1 years
National Arcade Chain £44,,000 15 years No breaks
CalMac Ferries £10,000 35 years No breaks
Total £210,000    

Project Plans & Gallery

Strike was acquired in October 2010, a struggling bowling alley purchased for £1,250,000, situated on The Promenade in Largs, Scotland, with clear potential to be a profitable attraction in the local area. The project aim was to transform Strike into a highly profitable mixed-use space to be occupied by some of the nation’s favourite high street brands. We managed to force capital appreciation from £1.25M to £3.5M, if you would like to find out more about how this is possible join the Community it’s Free.