ENTERPRISE NANTYFFIN ROAD SWANSEA SA7 9RF RETAIL WAREHOUSE INVESTMENT OPPORTUNITY 1
Investment Summary A retail park of six units adjacent to a Tesco Extra supermarket. Swansea City Centre A total floor area of 71,373 sq ft. 304 car spaces (1:235 sq ft). Total net income 1,048,033 per annum. Morfa Shopping Park Liberty Stadium WAULT OF 8.98 years to expiries and 6.12 years to breaks. Outline consent for a drive-thru unit at the front of the site. Seeking offers in excess of 13,100,000 (Thirteen Million, One Hundred Thousand Pounds). A4217 ENTERPRISE A purchase at this level reflects a net initial yield of 7.50% assuming acquisition costs of 6.72%. Phoenix Retail Park Lion Way Retail Park A4217 Nantyffin Road To M4 J44 2
M4 LLANLLIENWEN ROAD A4067 A4067 Junc 45 Location The City of Swansea, which has a population of 240,000 persons, is the second largest city in Wales. It is the administrative and commercial centre of West Wales, and has a catchment population estimated to be 580,000 people, living within a 30-minute drive time. Swansea is located approximately 42 miles west of Cardiff, 85 miles west of Bristol, and 185 miles west of London. PENTREPOETH ROA D CLASE ROAD CLYDACH ROAD NEATH ROAD SWANSEA BLAWD ROAD UPPER FLOREST WAY BLAWD WA LTERS ROAD M4 Cardiff Newport Bristol Junc 44 Swansea benefits from excellent road communications, being located approximately 5 miles south of the M4 motorway with access from junctions 42-47. The mainline railway station provides a direct fast link to London Paddington in approximately 3 hours. There are approximately 106,000 people estimated to work in Swansea, with over 90% employed in the service sector. Swansea is home to the DVLA headquarters which employs around 6,000 people in the city. Other major employers include Admiral Group, HSBC, Virgin Media, BT and Amazon. Virgin Atlantic also maintains its largest worldwide contact centre in Swansea. A4067 PENIEL GREEN ROAD Llansamlet A4230 Swansea is home to two universities - University of Wales Trinity St David and Swansea University, with some 26,000 students in higher education. A4067 VALLEY WAY A4217 NANTYFFIN ROA D ENTERPRISE TRALLWN ROAD Junction 43 (M4) A465, A40 and M50 A40 3 A40 A465 M50 Swansea City Centre JERSEY CAR MEL ROAD HEOL CRYMLYN Not to scale 3 A465 A4042 A449 A40 Situation The property is located in the former Swansea Enterprise Zone, which is an established retail warehouse location, providing a concentration of out-of-town retail to the east of Swansea. The area provides the largest out-of-town shopping district in Swansea, including a 95,000 Asda food store, Valley Way Retail Park, (Currys, PC World, Maplin and Harvey s). Phoenix Retail Park (Home Bargains, Poundworld, B&M Retail, and Iceland). The property benefits from a prominent location overlooking a major roundabout and close to the junction with the, which is a short distance north of the property. The connects with junction 44 of the M4 motorway, two miles to the east, and junction 45 is a similar distance to the north-west. The property is adjacent to a 111,000 sq ft Tesco Extra supermarket and petrol filling station. Swansea B ristol Channel M4 Cardiff International Cardiff Weston super-mare Bridgewater Newport M5 Bristol M5 M4 Bristol Not to scale 3
Description The property comprises a modern retail terrace, configured as six separate units. The units are of steel portal frame construction, with profiled metal sheet cladding to the elevations under a pitched roof. A number of units have mezzanine floors installed. Height Restrictor DRIVE THRU Cycle Rack CANOPY NO PARKING SERVICE BAY There are 304 marked car parking spaces (1:235 sq ft) on the site. Servicing to each unit is provided to the rear of the park, with access from Nantyffin North. Outline planning consent has been obtained for a 3,500 sq ft drive-thru restaurant (Class A3) at the front of the site. STOP NO ENTRY STOP STOP Plan of consent obtained for drive through restaurant 4
Accommodation The property has been measured in accordance with the RICS code of Measuring Practice 6th Edition by Plowman Craven, and extends to a total area of 6,630.71 sq m (71,373 sq ft). The individual unit sizes range from 900.41 sq m (9,692 sq ft) to 1,519.97 sq m (16,361 sq ft). The individual unit sizes are set out in the tenancy schedule. Site Enterprise Retail Park extends to 2.41 hectares (5.97 acres). Planning The property benefits from bulky goods planning consent. Tenure The property is held on 2 long leasehold interests from The Council of the City and County of Swansea for a term of 150 years from 25 December 2001. The ground rent is calculated as being 5% of the rents receivable, but no less than 55,000 per annum. The current ground rent is 55,877 per annum. FENDROD WAY NANTYFFIN ROAD A4217 AREA FOR PROPOSED DRIVE THRU RESTAURANT Not to scale 5
Tenancies The property is let on six occupational leases and will produce a total gross income of 1,103,910 per annum, which equates to 15.47 per sq ft overall. The net rent will be 1,048,033 per annum. Tenancy Schedule Tenant Name Unit Address Floor Area Tenancy Start Tenancy Expiry Next Break Date Rent pa Rent psf Comments Steinhoff UK Group Properties Ltd t/a Harveys Unit 1a 15,000 01/09/2014 31/08/2024 31/08/2019 180,000 12.00 The tenant only wanted to take 12,000 sq ft and the deal has been agreed to rentalise 12,000 sq ft, but also cover the rates and service charge for the entire unit. There is a 12 month rent penalty if they break at the end of the 5th year. The rent free period is for 6 months, plus 36 months at half rent, but no capital contribution. Wren Living Ltd t/a Wren Kitchens Unit 1b 16,361 01/02/2014 31/01/2024 31/01/2019 311,000 19.00 The tenant only required 12/13,000 sq ft but have taken the entire unit. There is a 6 month rent free period, 36 months at half rent plus a 120,000 capital contribution. Carpetright Plc Unit 2 10,139 20/10/2009 19/10/2024-154,772 15.27 A Share & Sons Ltd t/a ScS Upholstery Unit 3 10,188 28/11/2003 30/04/2029-172,856 16.97 Halfords Ltd Unit 4a 9,692 03/04/2011 02/04/2026-145,380 15.00 Tapi Carpets & Floors Ltd t/a Tapi Carpets Unit 4b 9,993 tbc 10 years term from date of entry 5th Year 139,902 14.00 12 month rent free period and a further 6 month rent free period if the break is not exercised. The Agreement for Lease has been signed. Totals 71,373 1,103,910 Long Leasehold based on 5% of the rental value 55,877 Net Rent 1,048,033 6
Covenants Tenant Name D&B Rating Year End Turnover m Pre-Tax Profit m Net Worth m % of income Steinhoff UK Group Properties Ltd 4A1 27/06/2015 80.83 6.32 22.12 16 Wren Living Ltd N2 31/12/2015 257.51 7.43 (2.17) 28 Carpetright Plc 4A1 30/04/2016 456.80 12.80 16.90 14 A Share & Sons Ltd 5A1 25/07/2015 276.73 4.09 37.54 16 Halfords Ltd 5A1 03/04/2015 872.70 96.60 622.30 13 Tapi Carpets & Floors Ltd 1A3 02/01/2016 1.25 N/A N/A 13 Tapi Carpets is the new carpet venture of the Harris Family (formerly of Carpetright). The company has been trading since early 2015 and is due to open its 53rd store in October, with 75 stores targeted to be opened by Christmas and 100 by the middle of next year. The overall target is 150-200 within 4-5 years. Attached is a link to their website www.tapi.co.uk. They have opened 4 High Street stores thus far with terms agreed for a further 12. Retail Warehousing in Swansea Opposite Enterprise Park on the west side of Nantyffin Road is the Phoenix Retail Park, comprising a five unit scheme totalling 64,150 sq ft with tenants including Iceland, Poundland and B&M Retail. Opposite Phoenix Retail Park is the Lion Way Retail Park, which comprises four units totalling 29,650 sq ft and with tenants including Poundstretcher and Farmfoods. Other major retail parks in Swansea are as follows:- Parc Fforestfach was completed in August 2002, and provides approximately 135,000 sq ft of Open A1 retail accommodation and a 110,000 Tesco store. Tenants include Marks & Spencer, Next, Boots, H&M, Dixons, Topshop, JJB Sports, Pizza Hut and Carphone Warehouse. Rents are in the range of 40-45 per sq ft. The Pontarddulais Road Retail Park is opposite Parc Fforestfach and comprises approximately 90,000 sq ft of open A1 retail accommodation. Tenants include Marks & Spencer Food, Argos, Currys, PC World, Carpetright, Pets at Home and Laura Ashley. The latest letting has been agreed at 20 per sq ft for a 17,000 sq ft unit. Both the above parks are located three miles north-west of the city centre close to junction 47 of the M4. The Morfa Retail Park is located to the north-east side of Swansea and comprises approximately 339,000 sq ft of Open A1 accommodation. Tenants include an 85,000 sq ft Morrisons supermarket, 120,000 sq ft B&Q, Next, Sports Direct, New Look and Argos. Rents are in the range of 25-30 per sq ft. The Morfa Retail Park was sold by The Crown Estate to Quadrant Estates in December 2015 for a price of 83.5 million which reflected a net initial yield of 6.25% Parc Tawe Retail Park is located close to the city centre, just south of the railway station and comprises a non food retail warehouse and leisure park of approximately 331,000 sq ft. The tenants include Toys R Us, UCI Cinema, Carpetright, Staples, Megabowl, Bewise, Homebase, JD Sports and Pets at Home. Rents are in the range of 20-25 per sq ft per unit. VAT The Vendor has elected to waive exemption for VAT, and accordingly VAT is charged on the rent. The sale should qualify as a TOGC, subject to a purchaser s status. 7
Proposal We are instructed to seek offers in access of 13,100,000 (Thirteen Million, One Hundred Thousand Pounds) for the long leasehold in the property. A purchase at this level reflects a net initial yield of 7.50% after acquisition costs of 6.72%. Contacts For further information, or if you wish to arrange a viewing, please contact the joint sole agents:- Scott Howie M: 07973 693090 T: 0141 248 2055 E: scott.howie@inglishowie.com Jonathan McManus M: 07540 651383 T: 0141 248 3822 E: j.mcmanus@inglishowie.com Antony Leech M: 07785 114781 T: 0207 495 5550 E: antonyleech@tudortoone.com Hugh Faith M: 07824 810910 T: 0207 495 5550 E: hughfaith@tudortoone.com Notices Relating to Property Misrepresentation and Property Misrepresentation Act. Tudor Toone and Inglis Howie for themselves and for the Vendors of this property whose Agents they are, give notice that:- The particulars are set out as a general outline only for the guidance of intending purchases and do not constitute part of an offer or contract; All descriptions, dimensions, references to condition and necessary permissions for use and occupation and their details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of them; Unless otherwise stated, all prices, rents and other charges are quoted exclusive of Value Added Tax (VAT). Any intending purchasers or tenants must satisfy themselves independently as to the incidence of VAT in respect of any transaction; All plant, machinery, equipment, services and fixtures & fittings referred to in these particulars were present at the date of publication. They have not, however, been tested and therefore, we give absolutely no warranty as to their condition or operation; No person in the employment of Tudor Toone and Inglis Howie has any authority to make or give any representations or warranty whatsoever in relation to this property or these particulars, nor enter into any contract on behalf of the Vendors; No responsibility can be accepted for any expenses incurred by intending purchasers in inspecting properties which have been sold or withdrawn; The date of publication is October 2016. 04667 / 020 7355 2500 / taylerreid.co.uk 8