Bute Arms Rowlands Gill

High Spen, Rowlands Gill, Rowlands Gill NE39 2BD

Under Offer
  • Bute Arms Rowlands Gill
  • Bute Arms Rowlands Gill
  • Bute Arms Rowlands Gill
  • Bute Arms Rowlands Gill

Bute Arms Rowlands Gill

Superb Business Opportunity

Earmarked for investment, the Bute Arms is situated west of Newcastle city in the suburb of High Spen. Named after the local mine owner, this rustic venue is the only pub in the village which makes this a great business opportunity. High Spen is made up of a mixed profile of residents such as mature couples, professionals with young families and rural families, which provides the right operator with an opportunity to build an exciting and enticing offer.

Currently closed, this site will undergo a refurbishment by Star Pubs & Bars. Following the planned works, this site has the potential to rebuild itself as the go to spot for socialising and as a vibrant village local. A tasty food offer should be introduced, in addition to a complimentary drinks range including real ales and craft beers, all served in a cosy, family friendly atmosphere. A suite of weekly events should be created to drive custom during the week.


Enthusiastic Community Operator Wanted

Are you an innovative & vibrant operator? If so, we would love to hear from you. You will need to demonstrate business management skills such as people management, financial management and customer service

Pub Features

  • Rolling Tenancy
  • Refurbishment Planned
  • Catering Kitchen
  • Private Accommodation
  • Pub Games
  • Weekly Billing
  • Monthly Billing

Trading Area & Facilities

Once the planned works are complete, the Bute Arms will showcase a refreshed, contemporary décor complete with new or revamped fixtures & fitting and soft finishes throughout. Currently the pub has a contemporary feel with lots of natural finishes in wood, whilst retaining some rustic traditional features including ceiling beams, exposed stone walls and a fire place in the back area adds a cosy, welcoming feel.

The current layout consists of an open plan trading area with a lounge to the front and a galley type bar as the focal point. A larger area with a modern-style bar is situated at the back, which would be perfect as a distinct dining area. In addition there is a games room with table football game.

Externally the pub will undergo a facelift which will see much improved kerb appeal through a new lighting & signage scheme.

Applicants should be aware that all refurbishments are subject to final board approval which will be determined as part of the leasing process.
Where a significant investment is made in a pub by Star Pubs & Bars, an "Investment Exemption" will be required. The exemption means that the option of a Market Rent Option lease won't be available at rent review for a period of up to seven years for this site, as per The Pub Code (2016).

Private Accommodation

The private accommodation consists of bedrooms, kitchen & bathroom and a lounge and where required there will be appropriate works carried out in line with the Star Pubs & Bars Ready to Trade Promise.

Premises Licence Details

Please refer to the Premises Licence for further details.

Premises Licence Opening Hours

Mon Tue Wed Thu Fri Sat Sun
10:00 - 23:00 10:00 - 23:00 10:00 - 23:00 10:00 - 23:00 10:00 - 00:00 10:00 - 00:00 12:00 - 23:00

Financials

Annual Rent £
31,000
Estimated Annual FMOP (Licensee Profit) £
32,866
Representative HEINEKEN UK Brand Discount Per Barrel £
140
Estimated Annual Turnover £
394,189
Estimated Annual Barrelage
254

The above figures are provided as a guide only and will be finalised as part of the commercial agreement (please download the rent model from Trading Information section for full financial details).

Historical volume figures may not include purchases made through 3rd Parties.

** All figures quoted are exclusive of VAT

*** FMOP = Fair Maintainable Operating Profit

Investment

Ingoing Costs
Estimated Licensee Fixtures & Fittings Value £
31,000
Estimated Fixtures & Fittings Valuation Fee £
250
Estimated Stock Valuation £
6,000
Deposit Amount £
7,750
Rent In Advance £
596
Training Fee £
1,000
Estimated Designated Premises Supervisor / Manager Fee £
50
Premises Licence Fee £
180
Rates Assessment Fee £
55
Estimated Legal Fees £
650
Estimated Total Ingoing Costs £
46,531
Estimated Minimum Ingoing Costs £
12,768

In order to ensure a successful start-up, all applicants must have a minimum £10,000 un-borrowed funds.

The Estimated Licensee Fixtures & Fittings (F&F) Value assumes that the pub will be let on a Rolling Tenancy or Business Start-Up Agreement, where we own the majority of the F&F. The F&F Value for Full Repairing & Insuring Leases will be significantly more.

The calculation of the Estimated Minimum Ingoing Costs assumes a minimum deposit of 1 month's rent or £3,000 (whichever is greater) and that fixtures and fittings (F&F) are rented. The subsequent deposit build up and F&F rental costs are not included in the rent model or ongoing costs below.

Other SP&B Ongoing Charges
Estimated Annual Buildings Insurance £
1,785
Estimated Annual Maintenance Compliance Charge £
1,463
Estimated Annual Accountancy & Stocktaking Charge (including tills) £
6,108

The above figures are provided as a guide only and will be finalised as part of the commercial agreement (please download the rent model from Trading Information section for full financial details)

* All figures quoted are exclusive of VAT

** Deposit build up will be payable over a maximum of 24 months

*** Fixtures and Fittings annual rental fee should be estimated at 15% of the F&F value. The actual F&F value will be determined on the day of entry

**** Maintenance Compliance Charge relates to the fees for various statutory inspections

***** Estimated Legal Fees is a charge applied to your account by SP&B for creation of your Lease. You are required to engage and pay for your own solicitor - your solicitor's fees are not included in the above estimate

****** The above figures assume that rent is billed weekly in advance and that Star Pubs & Bars retain ownership of large fixtures and fittings. Initial costs for a Fully Repairing and Insuring lease will be higher as rent is invoiced monthly in advance and all fixtures and fittings must be purchased