Prime High Street Retail Investment Opportunity 90/92 Queen Street CARDIFF CF10 2GR Well let to Specsavers and Card Factory
INVESTMENT SUMMARY Prime Cardiff City Centre Retail unit let to Specsavers with 15 years unexpired on their lease and Card Factory Both excellent 5A1 Covenants Cardiff is a top 10 UK Retail Centre Located in the heart of the city s 100% prime retail pitch Well configured accommodation Adjoining occupiers include Next, Zara, M&S, Boots, Top Shop and River Island Attractive AWULT of 9.56 years Passing rent of 410,100 pax Offers in excess of 5,650,000 (Five Million Six Hundred and Fifty Thousand Pounds) This reflects an attractive net initial yield of 6.81% after deducting standard purchasers costs at 6.61%
K I N G S WAY G R E Y F R I A R S R O A D LOCATION Cardiff is the capital City and administrative centre of Wales. It is also the principal retail and commercial centre for the South Wales region. Cardiff is located approximately 45 miles west of Bristol, 42 miles east of Swansea and 155 miles west of London. The City benefits from excellent road communications and lies 4 miles south of the M4 motorway, providing direct access to London to the east and much of South Wales to the west. Cardiff is well served by the railway network with direct and frequent services to London Paddington with a fastest journey time of approximately 2 hours. Additionally, an excellent local rail service operates from Queen Street Station (located on the eastern boundary of Queen Street) serving the Valleys (Caerphilly, Cwmbran, Pontypridd, Ebbw Vale and Merthyr Tydfil). MUSIC & DRAMA N O R T H R O A D C I T Y H A L L R D U E LAW COURTS CARDIFF CASTLE CITY HALL B O U L E VA R D D E N A N T E S A 4 1 6 1 N Neath SWANSEA 42 41 41 40 Port 39 Talbot 38 K I N G S WAY A 4 7 0 ( A 4 6 9 ) T O C A E R P H I L LY & M 4 N U E G O R S E D D G A R D E N S R D T H E F R I A R Y A465 37 36 A4061 P A R K P L A C E A4059 35 S T A N D A 4 7 0 S T U T T G A R T E R A465 Tonypandy Tonyrefail P A R K P L A C E M4 A470 Aberdare Llantrisant A4059 A4058 A4119 S T R A S S E P A R K L A N E 34 Cardiff Airport A470 33 BRISTOL Tredegar Pontypridd A470 D R E W S L A N E D U M F R I E S L N W I N D S O R P L A4232 A4050 Barry 32 W I N D S O R L A N E Q U E E N S T R E E T A469 Caerphilly 29 30 CARDIFF A465 Ebbw Vale CHANNEL A467 Cwmcarn D U M F R I E S P L A C E S TAT I O N T E R R A C E A465 Pontypool A468 A467 26 24 23 27 28 NEWPORT A4042 M4 Weston-Super-Mare Abergavenny Cwmbran 22 QUEEN STREET M5 A40 21 A449 M4 20 W E S T G R O V E F I T Z A L A N R D Raglan M5 T H E WA T H E P A R A D E A466 Usk Chepstow 22 18 Avonmouth 19 BRISTOL The City benefits from international communications with Cardiff International Airport providing regular scheduled flights. Cardiff International Airport lies approximately 12 miles to the south west of the City Centre. 90/92 Queen Street A370 M4 A 4 1 6 1 T O N E W P O R T A 4 8 & M 4 Monmouth M49 A38 M48 N E W P O R T R D A 4 1 6 1 F I T Z A L A N P L A C E R I V E R 17 21 E A S T G R O V E SE V E R N 20 15 16 For reference purposes only A37 M5 H O WA R D P L 19 M32 A4 C I T Y R D N E W P O A D A M S T O W N F I T Z A L A N P L A C E DEMOGRAPHICS The City has an estimated shopping population of 573,000 and a primary catchment population of 1,263,000, which ranks the city 6th in the UK (PMA). Cardiff retains a significant share of the available comparison spending within its catchment area and also attracts spending from a wide area beyond this as it provides South Wales s largest and most diversified retail offer. Cardiff is a significant tourism centre, being the most popular visitor destination within Wales. Cardiff City Council estimated that 18.4 million people visited the city in 2013, bringing a total spend of 1.05 billion to the local economy. This has been boosted further this year with the hosting of the UEFA Champions League Final. Cardiff serves an extensive retail catchment area, bordered by Bridgend to the west, Newport to the east and stretching beyond Merthyr Tydfil to the north. The magnitude of the catchment is demonstrative of both the strength of Cardiff s retail offer and the lack of any significant competing centres. The urban area has a higher than average percentage of persons in the A, B and C1 Class Groups and a lower than average percentage in the C2, and E Groups, compared with the rest of the UK. There is a high concentration of young adults which in part reflects the large student population within the City with the three prominent universities being Cardiff University, UWIC, and University of South Wales. Cardiff s excellent shopper population, highlights the high proportion of the retail catchment who see Cardiff as their main shopping destination. In the UK this statistic is surpassed only by London s West End and Glasgow. BUTE PARK E E T W E S T G AT E S T R E E T C ARDIFF R U GBY C LUB M I L L E N N I U M P L A Z A W O M A N B Y S T S C O T T R D C A S T L E D U K E S T R E E T A R C A D E Q U AY S T H I G H S T R E E T W E S T G AT E S T R E E T BT TOWER P A R K S T R E E T H I G H S T A R C A D E G U I L D H A L L P L H AV E L O C K S T C H U R C H S T S T J O H N S T R E E T T R I N I T Y S T R E E T S T M A R Y S T R E E T Q U E E N S T R E E T W H A R T O N S T R E E T G R E AT W E S T E R N L A N E QUEEN'S ARCADE S T M A R Y S T R E E T W O R K I N G S T M O R G A N A R C A D E R O YA L A R C A D E F R E D E R I C K S T T H E H AY E S C A R O L I N E S T R E E T ST DAVID'S CENTRE S T D AV I D ' S H A L H I L L S S T R E E T M I L L L A N E H AY E S B R I D G E R O A D M A R R I O T T C H A R L E S S T R E E T B A R R A C K L A N E T R E D E G A R S T W E S L E Y L A N E ADMIRAL HQ M A R Y A N N E S T B U T E T E R R A C E N O R T H E D WA R D S T C H U R C H I L L WAY B R I D G E S T D AV I D S T MOTORPOINT ARENA G U I L D F O R D S T C H U R C H I L L WAY G U I L D F O R D C R UNIVERSITY OF SOUTH WALES A D A M S T S A N D O N S T HM PRISON CARDIFF E L L E N S T K N O X R D C E N T R A L L I N K A 4 2 3 4 W I N D S O R R D AV I S S T M O I R A T E R R A C E A 4 2 3 4 T O C A R D I F F B AY & M 4 CENTRAL C U S T O M H O U S E S T C A P I TA L Q U A R T E R
For reference purposes only RETAILING IN CARDIFF Cardiff s central shopping area comprises an estimated 2.2 million sq ft of retail floor space which ranks the city 10th in the UK on this measure. This is below the ranking of its retail catchment (6th) demonstrating a positive supply/demand balance. Queen Street is the City s prime shopping thoroughfare with all three of the City s main shopping centres; Capital Centre, Queens Arcade and St David s Centre, being accessed from it. It is a vibrant pedestrianised street with a diverse retail offer. Its retail dominance is secured by the following anchor retailers occupying well configured large space units: Marks & Spencer, Next, Boots, Primark, River Island, Zara, WH Smith and Top Shop. According to footfall figures from Cardiff City Council, Queen Street is the busiest shopping pitch in the City. According to PROMIS, the vacancy rate on Queen Street fell from 11.50% in July 2012, to now standing at only 1.50%.
SITUATION The property is situated in the heart of prime Queen Street s retail offer. The retail unit sits next door to the Next Unit. Retailers in the immediate vicinity include Zara, Marks & Spencer, Boots, Top Shop, Ann Summers, Lush and Wilkinsons. DESCRIPTION The subject property is mid terraced and comprises two well configured retail units with traditional shop frontages, with upper floor sales and ancillary accommodation. The unit also benefits from a 1st and 2nd floor stand alone office suite which has separate access directly off Queen Street. ACCOMMODATION: The property has the following approximate floor areas: 90 QUEEN STREET - SPORTSWIFT LTD (CARD FACTORY) FLOOR SQ FT Ground Floor Sales 2,412 Ground Floor ITZA 762 Ground Floor Ancillary 765 First Floor Ancillary 368 92 QUEEN STREET - SPECSAVERS OPTICAL SUPERSTORES LTD FLOOR SQ FT Ground Floor Sales 2,504 Ground Floor ITZA 968 Ground Floor Ancillary 366 First Floor Sales 1,854 First Floor Ancillary 770 Second Floor Ancillary 148 90A QUEEN STREET - OFFICES FLOOR SQ FT First Floor Offices 2,285 Second Floor ancillary 410 TENURE Freehold.
TENANCY SCHEDULE TENANT LEASE STARTED ENDING UNEXPIRED LEASE TERM BREAK CLAUSE RENT PER ANNUM RENT ZONE A COMMENTS Sportswift Ltd (Card Factory) 27/03/2015 26/03/2020 2.79 150,000 182 Zone A There are annual rent increases in the lease and these will be topped up to the rent pa figure by the Seller. The lease is contracted outside the Landlord and Tenant Act 1954 Specsavers Optical Superstores Ltd Rent guarantee 1st and 2nd Floor offices 29/07/2013 23/06/2032 15 230,000 230 Zone A The tenant has signed a reversionary lease commencing 29th July 2028 and expiring 23rd June 2032. The rent review dates will be 24th June 2022, 24th June 2027. From completion 1 20,000 7.42 per sq ft 1 year rent guarantee to include rent, rates and SC of sale National Westminster Bank Plc 17/12/2014 16/12/2019 2.51 annual 10,000 5 Year Licence for a Fire Escape route. Western Power distribution (South Wales) Plc 31/01/2003 30/01/2024 6.64 100 9.56 410,100 QUEEN STREET 92 SPECSAVERS 90 CARD FACTORY For reference purposes only
COVENANT Sportswift Ltd, trading as Card Factory, are one of the UK s leading retailers in relation to greeting cards and associated party / gift products. The business was opened in 1997 and now operate from over 850 stores across the UK and employ over 6,500 staff. The company has a D and B rating of 5A1 and a minimum risk of business failure. Latest accounts show a turnover of in excess of 362 million and a profit of in excess of 92 million. Specsavers Optical Superstores Ltd is a partnership of nearly 2,000 locally run businesses, with each store part owned and managed by its own directors, they are share holders of their own business but with significant support from the larger brand. It is the UK s leading eye care retailer. The company has a D and B rating of 5A1 and a minimum risk of business failure. Latest accounts show a turnover of in excess of 673 million and a profit in excess of 28 million. VAT The property has been elected for VAT purposes and it is anticipated that the sale will be treated as a transfer of a Going concern. EPC The property has the following EPC ratings: Unit 90 D99 Unit 92 D89 Unit 90A F150
PROPOSAL We are instructed to seek offers for the freehold interest at 5,650,000 (Five Million Six Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT, equating to a net initial yield of 6.81% assuming purchaser s costs of 6.61%. FURTHER INFORMATION For further information, and to arrange an inspection please contact:- ROSS GRIFFIN 029 20368961 rgriffin@savills.com 12 Windsor Place Cardiff CF10 3BY PADDY HALES 0117 910 2203 phales@savills.com SUBJECT TO CONTRACT and Exclusive of VAT June 2017 Misrepresentation Act Messrs Savills Commercial Ltd for themselves and for the vendors or lessors of this property whose agents they are, give notice that: 1. The particulars are set out as a general outline only for the guidance of intending purchasers or lessees and do not constitute, nor constitute part of, an offer or contract. 2. All descriptions, references to condition and necessary permission for use and occupation and other details are given in good faith and are believed to be correct but any intending purchasers should not rely on them as either statements or representation of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them. All dimensions are approximate. 3. No persons in the employment of Messrs Savills Commercial Ltd has any authority to make or give any representation or warranty whatsoever in relation to this property. 4. All correspondence regarding this offer is subject to contract. Design by Martin Hopkins Partnership. Tel: 029 2046 1233 www.martinhopkins.co.uk