A rare prime mixed use leisure scheme within an attractive and vibrant part of central Bath. Located adjacent to Bath’s prime retailing pitch, Saw Close is centrally positioned within Bath’s prime food, drinking and leisure destination opposite the Theatre Royal. Bath is an internationally renowned, historic city that attracts over six million visitors, generating nearly half a billion pounds per annum for the local economy. The attractive modern Bath stone façade property was completed in 2017 and comprises a 149 bed hotel, social games venue and two ground floor restaurants. The property totals 54,816 sq ft across ground and three upper floors. Externally the property benefits from a large area to the front incorporating private restaurant seating and public realm. Multi-let to Z Hotels, Lane7, Zizzi Restaurants and Five Guys, with 64% of the income weighted to the hotel. The property has a WAULT of 22.4 years to expiry and 20.5 years to break. Total contractual rental income of £1,334,000 per annum will be topped up to reflect actual and anticipated index linked uplifts to November 2027, estimated at £1,520,052 per annum. Including the 2025 Turnover Rent for Zizzi’s, this increases the reversion to £1,531,812. The hotel rent equates to a very low £6,686 per key, the social games venue equates to £13.85 per sq ft, based upon estimated November 2027 increases, and the two restaurant units average just £31.63 per sq ft. Z Hotels has established itself as one of the UK’s leading boutique hotel brands offering a compact luxury hotel experience. Z Hotel Group operates at 98%+ occupancy levels, with Bath being one of the most successful hotels in the Z Hotel portfolio. Long leasehold interest expiring July 2165 (138 years unexpired) at a peppercorn rent.
Additional Information
Sales process
Offers are invited in excess of £19,500,000, subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 7.30%, based on the topped up rent to November 2027 and assuming purchaser’s costs of 6.75%. This reflects a low £85,800 per key, £178 psf on the social games venue and an average £406 psf CV on the restaurants.
Performance indicators
Bath is also a key university city, underpinned by two well established Universities that continue to attract and grow their student population. The University of Bath and Bath Spa University has around 27,500 students, of which 18% are international students. This sizeable academic community contributes significantly to Bath’s retail, F&B and leisure economy.
Overview of the tenants
The property is multi-let to Z Hotels, Lane7, Zizzi Restaurants and Five Guys, with 64% of the income weighted to the hotel.
Other relevant information
The property has a service charge which is fully recoverable from the tenants and the anticipated budget for year ending June 2027 is likely to be around £132,994 per annum. We understand the property is elected for VAT, and it is envisaged that the sale will be treated as a Transfer of a Going Concern (TOGC).
