CRUISE LOCH NESS

FORT AUGUSTUS • HIGHLAND • SCOTLAND

  • THE OPPORTUNITY

  • Award-winning visitor attraction in a world renowned location with option to purchase superb owner’s accommodation in the Scottish Highlands, United Kingdom

    • Well established, award-winning visitor attraction providing cruises on the world-renowned Loch Ness
    • Highly reputable business able to demonstrate strong and historic profitability
    • Trading inventory to include four modern premium quality commercial vessels accommodating a total of 342 passengers
    • Well-located Fort Augustus base providing; ticket office, shore-side stores, compound and 60m of custom designed pontoons on the Caledonian Canal
    • First time to the market
    • Exclusive opportunity to purchase a stunning five/six bedroom detached family home set in approximately 0.71 acres (0.29 hectares) of private land and gardens plus an additional 1.93 acres (0.78 hectares) of croft land, located nearby

  • BACKGROUND

  • Cruise Loch Ness has been held in the same family ownership since its inception in May 1968 and began offering visitor cruises on Loch Ness with an ex RNLI lifeboat carrying only 12 passengers. Over the years the family have continually invested into the business to incorporate high specification vessels within the fleet. In order to keep up with increasing demand, bespoke designed, 210 passenger vessel ‘Spirit of Loch Ness’ is the most recent purchase at a cost of £1.55 million in 2018.

    The business has a proven track record and continues to be one of the leading tourist attractions in Scotland.

  • It is popular with day-trippers, stay-cationers and overseas visitors with a large proportion of trade derived from organised UK coach tour holidays and Scottish-based day tour operators. The company has also engaged in other opportunities to include providing film-makers with the use of the boats for documentaries, exclusive chartered private hire for celebrities and also took part in the 2012 Olympics by carrying the Olympic Torch on board one of the RIBs.

    In 2015 the business was awarded a 5 star tour rating from the Scottish Tourist Board and since then has

  • collected several accolades, particularly in 2019 when awarded top industry accolade ‘Best Visitor Attraction’ at the Scottish Thistle awards as well as UK Small Business of 2019 and the Family Business of the Year Award at the Federation of Small Businesses’ annual awards.

    In 2018, Cruise Loch Ness was awarded Best Visitor attraction at the Highland and Islands Tourism Awards, winner of Best Family Business (small/medium) at The Herald Scottish Family Business Awards and winner of Outstanding Performing small Business at the Highland Business Awards.

  • LOCATION

  • Cruise Loch Ness is located to the south of Loch Ness where the loch interconnects with the Caledonian Canal in the village of Fort Augustus. It is situated midway between Inverness to the north and Fort William to the south in the Scottish Highlands and accessed via the A82, the main arterial road linking Glasgow to Inverness.

    Fort Augustus boasts a selection of niche tourist boutiques, cafes, restaurants, pubs and accommodation. The village also benefits from having local shops, a supermarket, post office, petrol station and has a nursery, primary and a secondary school for locals, living and working in the area.

    Loch Ness is a large, freshwater loch within the Scottish Highlands and extends to approximately 23 miles southwest of Inverness. Due to its depth, it is the second-largest Scottish loch by surface water and reportedly the largest in the UK by volume.

  • The area is a tourism destination attracting visitors travelling from across the UK and internationally to enjoy the impressive scenery and spectacular views from around the loch and to enjoy a cruise on Loch Ness itself, perhaps the biggest draw being the legend of the Loch Ness monster. The surrounding area is popular for cycling and walking with Fort Augustus being one of the key locations of interest along The Great Glen Way, a 79-mile trail stretching from Fort William in the south west to Inverness in the north east. Other popular places of interest include medieval Urquhart Castle, the waterfall at Falls of Foyers which feeds into Loch Ness and Inverness Museum and Art Gallery. According to VILN (Visit Inverness Loch Ness), the area benefitted from 1.6 million visitors to the area, 2019 pre-pandemic.

    The business is based and operated from Canal Side to the entrance to Loch Ness.

  • The property is accessed directly off the A82 into a car parking area for staff and access to the ticket office and vessels.

    The closest international airport is Inverness Airport situated some 43 miles from Fort Augustus.

    Invergarry 7.5 miles
    Drumnadrochit 18.8 miles
    Spean Bridge 22.8 miles
    Fort William 31.5 miles
    Inverness 35 miles
    Edinburgh 160 miles
    (all distances are approximate)

  • Not to scale. For identification purposes only.

  • THE BUSINESS

  • The Cruise Fleet

    The business has expanded over the years by increasing the fleet to four vessels, upgrading the boats to accommodate more passengers to cruise in comfort and to also offer exhilarating passenger rides in Rigid Inflatable Boats (RIBs). All vessels are owned by the limited company and benefit from the appropriate insurance, certificates and licences.

    The Spirit of Loch Ness

    This is the flagship vessel and the most recent addition to the fleet in 2018. This bespoke commissioned Incat Crowther, Class V catamaran passenger cruise boat of aluminium construction is 21m in length with a top speed of 20knots. It can accommodate a maximum of 210 passengers over two decks. The lower deck accommodates 118 passengers and is enclosed with double glazed windows with a drinks bar and WC facilities to the rear. Leather seating is provided for guests to cruise in comfort. The upper deck has a covered roof, but is otherwise open providing lightweight aluminium seating and stainless steel safety railings. The boat has perimeter heating, CCTV and Wi-Fi and benefits from on-board state of the art solar equipment with 14 monitors over the two decks for customers to view whilst enjoying their cruise.

    A Premises Licence dated 18th March 2018 permits the sale and consumption of alcohol both on and off the vessel between the hours of 11:00hrs and 24:00hrs Monday to Sunday (on the premises) and between the hours of 10:00hrs and 22:00hrs Monday to Sunday off the premises.

  • The Legend of Loch Ness

    This passenger cruise boat was built in 1999 and is a Mustang Marine/Mainstay Marine Class V passenger cruise boat built of steel construction and is 18.64m in length with a top speed of 9knots. It has a maximum capacity of 108 passengers, 61 on the main lower deck and 47 on the upper deck and also three crew members for daytime sailing and four crew members for night sailing. The vessel has a drinks bar, two toilets and baby changing facilities allowing guests to cruise in comfort and also benefits from CCTV, Wi-Fi and on-board state of the art solar equipment facilities. It has recently undergone a scheme of refurbishment.

    A Premises Licence dated 11th August 2015 permits the sale and consumption of alcohol both on and off the vessel between the hours of 11:00hrs and 24:00hrs Monday to Sunday (on the premises) and between the hours of 10:00hrs and 10:00hrs Monday to Sunday off the premises.

  • Rigid Inflatable Boats (RIBs)

    There are two RIBS in the fleet, both permitted to carry a maximum of 12 passengers and two crew members each.

    ‘Ness Quest’ is the newest edition to the fleet, manufactured by Ribcraft in 2020. It is a custom-designed, top of the range craft, 11.5m in length and providing passengers with a high level of comfort.

    ‘Ness Express’ was manufactured by Humber/Quinquari in 2009 and is 10m in length.

    Further information in relation to the specification of all the boats is available via our online data room.

  • CANAL SIDE AND BUILDINGS

  • Ticket Office

    32.5 sq. m. (350 sq. ft.) G.I.A.

    Situated at Canal Side and built in 2018 is a bespoke, architect designed ticket office of timber frame construction with cedar cladding under a pitched zinc panelled roof and with uPVC double glazed windows and doors.

    The building is approached at the front to a visitor window under a porch for the sale of excursion tickets, via a side entrance and steps up to an office with trade-counter service for coach drivers and visitor guides and along a raised balustrade walkway into the rear of the ticket sales area for staff. A third room is utilised as a manager’s office.

    Parking is provided for staff vehicles within an area adjacent to the ticket office, in accordance with the lease plan. Public parking is close by in public car parks.

    Business Rates

    The current Rateable Value for Cruise Loch Ness is £2,000.

    Services

    Water: Mains to the ticket office and shore side buildings
    Electricity: Mains
    Wi-Fi: Fibre broadband connection to the ticket office

  • Shore Side Building

    Providing storage for safety equipment and RIB engine spares and equipment, a store is located at the shore side and accessed via a pontoon. The structure is of timber construction, lined and insulated internally, with a felt covered pitched roof. It is connected to mains electric, has indoor and outdoor lighting and a Fujitsu heating/air conditioning system installed.

    A second store is provided of steel construction within an enclosed wooden compound. This is also insulated and lined internally and benefits from mains water and electricity with interior lighting, CCTV and has a vessel shore electricity distribution and water hose fitted externally. This unit is used for storing bar and souvenir supplies and cleaning equipment for the vessels.

    The enclosed compound provides storage space for various pieces of equipment and also houses a 2,300 litre bunded fuel tank with an electric pump, meter and 30m of fuel hose and also a 2021 LeeSan vessel waste pump-out system.

    Gangway and Pontoons

    Access to the floating pontoons is via a concrete pier owned by Scottish Canals. Cruise Loch Ness own the 60m of pontoons which are manufactured by ‘Gael Force’, the most recent installation at the property took place in 2018. They have fibreglass decking, are operated by hydraulics and have electric and water points for connection to the vessels.

  • TRADING INFORMATION

  • Cruise Loch Ness operates all year round and is popular with day-trippers, stay-cationers and overseas visitors. Additional trade bookings are provided by UK national coach tour and Scottish-based day tour operators for large groups and extended tours from overseas visitors to the UK.

    Cruise Loch Ness support other local and surrounding businesses, providing employment in the local area and the attraction is therefore recognised as playing an important role in the community.

    The business is a member of VILN and also of UKinbound trade association.

    The business is operated profitably and at a sustainable level by Cruise Loch Ness Limited with primary income generated from ticket sales with approximately 50% booked online.

  • The business offers scenic 50 and 60 minute daytime and evening cruises aboard the Spirit of Loch Ness and the Legend of Loch Ness and 60 and 90 minute speed exhilarating RIB excursions.

    All boats are also available for charter cruises for private hire and further income is generated from bar and souvenir receipts.

    A summary of the breakdown of the income streams for the past four years is available in the online data room.

    A summary of the last four years adjusted accounts is provided below:

    • Y/E 31.03.2020 Y/E 31.03.2019 Y/E 31.03.2018 Y/E 31.03.2017
    Turnover £1,758,385.00 £1,689,800.00 £1,646,418.00 £1,441,477.00
    Cost of sales £148,512.00 £130,112.00 £97,570.00 £87,072.00
    Gross Profit £1,609,873.00 £1,559,688.00 £1,548,848.00 £1,354,405.00
    Expenses £1,271,029.00 £1,213,757.00 £1,248,994.00 £877,005.00
    Adjusted net operating profit £671,559.00 £639,453.00 £840,795.00 £646,124.00

  • TENURE AND BASIS OF SALE

  • Offers are invited for 100% shareholding in Cruise Loch Ness Limited subject to the following conditions

    • Fixtures, fittings and equipment required for the day to day operation of the business are included in the sale and are itemised within the online data room
    • Any deposits for future bookings of events and accommodation will be apportioned between the vendor and purchaser upon completion
    • In addition to the purchase price, all consumable, gift and diesel stock is to be purchased at valuation upon completion
    • The business is subject to an occupational lease between British Waterways operating as Scottish Canals and Cruise Loch Ness Ltd, details of the lease are noted below

    Access to Caledonian Canal is provided by way of a lease in favour of British Waterways Board Operating as Scottish Canals and comprises the pier and land as identified on the lease plan.

    A summary of the Lease is provided as follows and a full copy of the Lease is available to interested parties via our online data room:

  • Lease Summary
    Subjects: The subjects of the Lease are a quayside at Caledonian Canal, Fort Augustus, shown (a) outlined in red and shaded yellow, (b) outlined in red, partly shaded yellow and partly cross-hatched and (c) shaded blue on the plan attached to the lease.
    Landlord: British Waterways Board, operating as Scottish Canals, Canal House, 1 Applecross Street, Glasgow
    Tenant: Cruise Loch Ness Ltd (Company Number SC245820), Clava House, Cradlehall Business Park, Inverness, IV2 5GH
    Duration: 1 April 2017 to 31 March 2037, with a tenant-only break option exercisable on 31 March 2027 on giving 3 months’ notice.
    Rent and Rent Payment Dates: During the turnover period (the first 10 years of the lease until 31 March 2027), the tenant must pay the Base Rent of the higher of either £25,000 per annum or £25,000 + an RPI-linked increase per annum, plus the top-up rent. The top-up rent is 6% of the business turnover less the Base Rent.
    For the remainder of the lease the tenant must pay rent at the higher of the Base Rent or a rental figure calculated on an open market value basis applying standard assumptions and disregards
    Rent is payable monthly in advance on the first day of each calendar month.
    Rent Review: Upwards-only on a RPI basis for the turnover period, thereafter on a higher of RPI/open market value upwards-only basis.
    RPI reviews for the purpose of determining the Base Rent take place on 1 April annually. The review date on which the open market value of the subjects will be determined is 1 April 2027.
    Permitted Use: Operation of a commercial cruising business and ancillary facilities.
    Repair: Full repairing lease, with the tenant obliged to keep the leased subjects in good and substantial condition and to repair, maintain and renew as necessary.
    This repairing obligation is limited by a Schedule of Condition in respect of the existing pier only, and the tenant shall not be obliged to keep the existing pier in any better condition than as evidenced by the Schedule of Condition.

  • Tupe

    The business currently operates with five salaried members of staff and three staff employed on zero hour contracts who are comprised of master skippers, RIB skippers and crew members, all of which hold the relevant qualifications in accordance with their job descriptions and also a booking administrator/ticket office assistant.

    Further information in relation to the staff and a copy of each contract of employment is provided in the online data room.

    Purchasers will be required to comply with the relevant legislation in respect of current employees, where applicable.

    Directions

    The postcode to Canal Side, Cruise Loch Ness is PH32 4BD. The attraction is situated in the centre of Fort Augustus at the gates of the Caledonian Canal.

    OWNER’S ACCOMMODATION ‘Knockburnie’

    An impressive two storey detached house providing spacious family accommodation ideal for an owner or manager or alternatively would make high quality letting accommodation.

  • Further Information and Viewings

    An Online Data Room providing detailed information in relation to the property and business is available to seriously interested parties, subject to signature of a confidentiality agreement.
    Visit Data Room

    All viewings are to be undertaken strictly by appointment through the selling agent, in order to avoid disruption to the business or intrusion upon visitors to the attraction.

    Should interested parties wish to experience a Loch Ness excursion, please contact the selling agent in order for this to be arranged in advance.

    For further information or to arrange a viewing, please contact Savills, 16 Grosvenor Court, Foregate Street, Chester, CH1 1HN:-

    Contact: Richard Prestwich
    +44 (0) 1244 702 053
    rprestwich@savills.com

    Contact: Katherine Wigham
    +44 (0) 1244 702 058
    kwigham@savills.com

    Contact: Gill Davies
    +44 (0) 1244 702 057
    gdavies@savills.com

  • Important Notice

    Savills, their clients and any joint agents give notice that:

    1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact.
    2. Any areas, measurements or distances are approximate. The text, images and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise.

    Photographs taken October 2021
    Sale particulars prepared February 2022
    Capture Property 01225 667287

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    Savills Chester
    16 Grovsvenor Court
    Foregate Street
    Chester
    CH1 1HN