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Balloon, Newcastle Upon Tyne

Newcastle Upon Tyne NE5 2HB

Your investment

£10,000

Agreement Type

Tenancy

The Balloon is a well-established community pub situated to the north of Newcastle City Centre. Located close to a major retail park just off the busy A1. Nearby is the A191 which is one of the main routes in and out the city centre. There is excellent footfall locally owing to the plentiful housing, both private and council owned, that surround the pub. The pub is easily accessible and visible from the road network around the property.

The Balloon is a well-established community pub situated to the north of Newcastle City Centre. Located close to a major retail park just off the busy A1. Nearby is the A191 which is one of the main routes in and out the city centre. There is excellent footfall locally owing to the plentiful housing, both private and council owned, that surround the pub. The pub is easily accessible and visible from the road network around the property

Pub Layout

The Balloon is a two-room operation. The bar area runs along the front of the building with access via the main entrance which is directly off the road. There is a large function room, which could act as a dining area, which runs from the front of the building to the back. Admiral completed an External Decoration, full refurbishment of the Function Room Toilet and essential Compliance and repairs in Summer 2020. Both areas are serviced by their own bar and have separate toilets.  For the Summer months, there is the added benefit of an outside drinking area which is to the side of the main entrance and new patio area to the front of the pub. To the rear is of the pub is a recently resurfaced car park for over 30 vehicles, this facility is currently shared with a Sandwich shop and bookmakers that help to provide additional footfall to the business

The Balloon already has a strong customer base and is particularly popular with sports fans and teatime drinkers. Trade is solely drinks based and pool and darts teams help boost mid-week profits. An experienced operator would look to build on the already established customer base by introducing a regular entertainment programme and push and advertise the use of the newly appointed Function Room opportunity. It will be important that the drinks range is reviewed on a regular basis to ensure the pub continues to attract consumers from a younger audience.

Private Accommodation

The private accommodation consists of three bedrooms, a bathroom, kitchen and lounge. All in good order

Annual Rent: £30,000

Security Deposit: £5,000

Working Capital: £2,000

Stock: £3,000

Fixtures and Fittings: Upon Valuation  – funding options available for the right licensee.

Tie:  All drinks categories are tied.  For fully funded licensees on long term agreements, we offer free-of-tie options for certain drinks categories in exchange for an annual fee.

Training: £250 plus VAT

For a breakdown on financial information, please refer to the ‘Additional Info’ tab.

This is an exciting opportunity for a new Licensee. The pub underwent significant investment last summer and now appeals to a younger audience who now use the pub since a wider drinks range has been offered employed to ensure the retail offer is relevant. Admiral seek a passionate and enthusiastic licensee well versed in social media, marketing and the energy to manage this very busy outlet.

Annual Rent – This is our lowest rent figure associated with a Full Tie.  If the tie is reduced the effective rent (via Tie Release Fees) will increase.  Rent is billed and paid for weekly in advance depending on the payment terms agreed)

Security Deposit – This sum of money will be held on your account and will be returned to you on exiting of the pub based on your final account balance and the condition of the property

Working Capital – This is a recommend amount required which will be used in the day-to-day running of the business

Stock – This will be valued by an independent valuer on the day you take over the pub. This includes unbranded glassware, unopened bottles, wines, spirits, any unopened / opened kegs and cask ale providing the container is unopened

Fixtures & Fittings – This includes any item that is bolted to the floor or walls, and a fitting to be any item that is free standing or hung by a nail or hook. This will also include furniture

Training – This is required when taking on a Business Support Agreement.  Included is an e-learning package for you and your staff and attendance to our ‘Set Up To Succeed’ workshop held at our Head Office in Chester.  Please note, you will be required to attend this workshop before signing a long term tenancy agreement.

Service Charge Cost – £30.10 per week – This is a weekly charge that includes statutory compliance certification (including Annual CP12 and CP42 gas test), cellar cooling services (including full insurance to cover repairs and / or replacements), Health & Safety Essentials (including assessments) and Licensing Support.


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