Rockfish CEO Mitch Tonks says its Sidmouth restaurant is still due to open in summer 2025 – explaining why its venue’s ‘long leasehold’ has gone on the market.
Mr Tonks has reassured residents ‘there should be no alarm to anyone’ and the firm is ‘very excited’ about its new £2million seafront eatery.
He spoke to East Devon News after the Sidmouth Drill Hall site appeared on the market for a guide price of up to £1.5million.
Mr Tonks has explained that it is the plot’s ‘long leasehold’ that is for sale.
Rockfish owner Mitch Tonks says he is looking forward to opening an eatery in Sidmouth.
The seafood restaurant group landed planning permission for a Sidmouth eatery in July.
Its new venture will create 30 to 40 jobs and see public toilets next to the Drill Hall demolished and rebuilt as part of the development.
Mr Tonks said: “We acquired both the Drill Hall and toilets over the last few years and are currently developing it as a new Rockfish seafood restaurant and bar, which includes brand-new public toilets.
“We anticipate opening in the Summer of [20]25 when we complete the development and are very excited about being part of the Sidmouth community.
“Once the building is complete, we will sell the long leasehold interest in the building with the benefits of our investment and the rent to a suitable investor who buys this kind of proposition.
“Sale and leaseback, as it is known, is a normal transaction in business and there should be no alarm to anyone!”
A ’sale and leaseback’ typically sees a business sell a commercial property which it owns and occupies to a third party.
The third party then agrees to simultaneously lease the property back to the business so it can remain in place.
The buyer takes ownership of the property and becomes ‘landlord’, with the business becoming a ‘tenant’.
The derelict Sidmouth Drill Hall.
When announcing an agreement with East Devon District Council (EDDC) over the Port Royal loos in September, Mr Tonks said: “We are investing around £2million in the Drill Hall location and will be creating 30 – 40 jobs.
“Once the building is developed, as part of our agreement with the council, we will be looking to ‘sell’ the long leasehold interest in the building by way of an assignment of the lease.
“At the same time Rockfish will be granted a long lease at current market rent.
“This sale and leaseback type of transaction is in the normal course of business for a company like ours whereby we recoup some of our investment in return for paying rent.”
EDDC says upgrading the historic Drill Hall with new, modern facilities ‘will deliver an attractive food destination for residents and visitors which will benefit the town’s economy and beyond’.
Topsham plans ditched
Rockfish announced in late October that it had scrapped plans to open a restaurant at Topsham Quay.
Mr Tonks said at the time: “Unfortunately, this project is impossible for now, mainly just not being able to complete it in a reasonable time due to our other projects taking longer than we thought.
“We know the community has been eagerly awaiting the opening, and it’s with a heavy heart that we’ve decided to step away from this site.
“We believe this is the most responsible choice for us and the people of Topsham.
“We’re in discussions with the landlord to help find a suitable tenant for the space, and we remain hopeful that something exciting will take its place.”
