Harrogate’s iconic Odeon cinema offered as freehold as £7m investment opportunity
Built in 1936 for the Odeon and operated by them ever since, the cinema was completely refurbished in 2008 and is a well-known landmark in Harrogate, with Odeon being the main operator of its kind in the town.
Leased for 25 years to the UK’s largest cinema operator, Odeon Cinemas Limited, the property enjoys an unexpired term of 16.3 years with annual RPI linked rent reviews subject to a collar of 1% and a ceiling of 5%.
Offers are sought above £7.00m, reflecting a net initial yield of 7.00%.
Located on East Parade on the outskirts of Harrogate town centre, the 5-screen cinema contains 892 seats in a gross indoor area of 23,971 square feet and holds partial ownership of an 88-space car park.
Owning a freehold interest in a property means that you own the building and the land it sits on.
CBRE reports that the UK cinema sector is recovering well from the impact of the Covid-19 pandemic: averaging 2021 weekend box office gross, receipts ended at 69% of the average weekend catch of 2019, which was the second most profitable year on record.
2022 is set to be an exciting year for the industry, with one of the best movie slates of the past decade including several Marvel films and the sequel to the highest-grossing movie ever, Avatar, slated for release.
Located a short walk from the city’s shopping center with global brands and a varied offer of restaurants and bars, the cinema is also directly opposite Harrogate station and adjacent to the A61, making it ideally placed for attract high attendance levels.
Alfie Stephenson, CBRE’s operational property team, said: “This iconic building has thrived under Odeon’s operation since its opening and is an integral part of Harrogate’s leisure scene.
“The long-income investment opportunity allows an investor willing to acquire the freehold interest in a cinema leased from the UK’s largest operator on a term that benefits from annual RPI linked rent reviews .
“Our research shows that the cinema sector should have a strong 2022, with attendance expected to return to 100% of 2019 levels, making this a timely opportunity.”
