TY ADMIRAL DAVID STREET
CARDIFF
The Amundi Collection Ty Admiral – Cardiff
INVESTMENT SUMMARY
Admiral Group Plc’s Global Headquarters, a prime landmark headquarters office building completed in 2014.
Located in Wales’ capital city and administrative centre, adjoining the St David’s Shopping Centre and the 280,000 sq ft John Lewis Department Store.
Situated in the heart of Cardiff’s Central Business District with excellent connectivity to the Cardiff Central & Queen Street Railway Stations and planned Transport Interchange.
Grade A office buildingcompleted in 2014 comprising 206,833 sq ft of principally office accommodation together with three retail units and 120 basement car parking spaces.
25 year lease from 15th September 2014 expiring on 14th September 2039, equating to circa 21.25 years unexpired.
5 yearly upward only rent reviews index linked to the Retail Price Index with a collar and cap at 1.5% and 3.0% per annum compounded annually.
Rental to be topped up to £3,705,560 per annum equating to a very low rent of £18.08 per sq ft, which reflects a significant discount to current prime headline office rents of £25.00 per sq ft.
Let to EUI Limited who have a D&B rating of 5 A1.
Guaranteed by Admiral Group Plc who have a D&B rating of 5 A1 and an investment grade covenant with a Moody’s credit rating of A1.
Fully occupied building with up to 3,500 employees based at the property.
BREEAM ‘Excellent’ rating and EPC rating of ‘B 34’.
Opportunity to benefit from substantial capital allowances.
We are instructed to seek offers in excess of £80,900,000 for the entire share capital in the Immo UK Admiral Cardiff S.à.r.l that owns the property, subject to contract and exclusive of VAT. This reflects anet initial yield of 4.50% (assuming acquisition costs of 1.80%).
This reflects alow capital value of £391 per sq ft. PRINCIPALITY SWALEC CARDIFF THE QUEENS CITY HALL STADIUM STADIUM CASTLE HAYES ARCADE LOCATION
TY ADMIRAL DAVID STREET
CARDIFF
CARDIFF QUEEN STREET STATION
CARDIFF CENTRAL STATION
CARDIFF UNIVERSITY CENTRAL CENTRAL ST MARYS CALLAGHAN CENTRAL JOHN ST DAVIDS SHOPPING MOTORPOINT CAPITAL OF SOUTH QUAY SQUARE STREET SQUARE LIBRARY LEWIS CENTRE ARENA QUARTER WALES Ty Admiral – Cardiff 4 | 5
Cardiff is the administrative centre for the Welsh Government and home Cardiff is expected to grow faster than any other UK city in CARDIFF to the internationally recognised Principality (Millennium) Stadium and population terms, 26% over the next 20 years. It is currently ranked Wales Millennium Centre. the 6th best shopping destination in the UK, following the completion of the St David’s Shopping Centre and the largest John Lewis store A CAPITAL CITY The city has a resident population of approximately 358,500, which is outside of central London. swelled by over 80,000 full-time students from the city’s expanding higher education sector. A further catchment population in excess of Cardiff is also consistently ranked top in UK quality of life indices – 1.5 million is situated within a 45-minute travel time from the city centre. including Moneysupermarket.com’s 2014 index, the recent EU Urban Audit, and Legal & General’s best city for young people survey. It was Through the Cardiff Master Plan, both Cardiff City Council and Welsh also voted the 3rd best capital city in Europe to live in, following Government are committed to further improving the infrastructure and a recent EU survey in 2017. RESIDENT POPULATION OF economic profile of both Cardiff and its City Region, to consolidate it as 18 million one of the most important regional centres in the UK for occupiers and The public sector is driving forward on the £1.28bn city deal for Tourist visits annually investors alike. These initiatives include: boosting the economy of the Cardiff Capital Region which combines 10 51% c.350,000 local authorities surrounding and supporting the city. The Cardiff Capital Cardiff Capital Region comprises and home to Premier League with 1.5 million people living Cardiff Central Enterprise Zone Region has a Gross Value Added (GVA) of approximately £25 billion, 51% of Welsh Economy Football team, Cardiff City within a 45-minute drive Centred around Cardiff Central Railway Station. This is the accounting for 51% of the Welsh Economy. only Enterprise Zone in the UK dedicated to attracting and growing the financial and professional services sector. Employment within the city is centred on the retail, finance, media and tourism sectors. Major occupiers within the city include Deloitte, Electrification of the main intercity rail line Eversheds, L&G, KPMG, PWC, Lloyds Banking Group, Cardiff Council, 3 RANKED 6TH This will improve Cardiff’s connectivity via faster journey Welsh Government and, shortly, the BBC. times to London with the work scheduled to be completed by Q4 2018. The city is renowned for hosting some of the world’s most prestigious sporting events such as the UEFA Champions League Final, World & 3rd best European city ALTERNATIVE Investment in Cardiff Central and Queen Street European Rugby Cup Finals, Ashes Cricket Tests and assisting in the TOURIST THE WORLD’S 20% Railway Stations hosting of the 2012 Olympic Games. for quality of life DESTINATION FIRST FREE The UK’s fastest growing Core City with Plans to create new civic scaled public squares to the north and south of the station as high-quality arrival spaces and TRADE CAPITAL EUROPEAN UNION projected population growth of 20% by 2035 “gateways” to the city. Work is already completed on the south side of the station. A1(M) Improved connectivity between the city centre Cardiff is situated 150 miles to the LEEDS M62 and Cardiff Bay west of London and 40 miles to The Arriva Trains Wales franchise has been retendered M18 in 2018. Two parties have been short listed and an M4 the west of Bristol. It benefits from LIVERPOOL M60 30 M56 announcement on the successful operator is imminent. A470 A48(M) excellent transport links, both from M6 M1 As part of their strategy, they will address the Valley A1(M) Line links into Cardiff Central via Queen Street and the 32 A469 the M4 motorway (Junctions 29- A48 NOTTIN HAM introduction of a rapid transport link between the city A470 33) and a mainline rail destination M54 centre and its waterfront. M4 A4054 M42 33 NORWICH A48 with intercity journey times to London IRMIN HAM M6 A470 M11 Cardiff Airport M5 and Birmingham of 2 hours, as well CAM RID E A4232 A1(M) The Welsh Government have acquired the airport looking to M50 CHELTENHAM A4161 CARDIFF CENTRAL as local rail links throughout South boost its profile and increase of the number of airlines and A48 M40 M1 LO CESTER routes around Europe and beyond. This expansion has recently O ORD M25 A4232 Wales. Cardiff Airport is located west CARDIFF BAY M4 LONDON included the addition of new routes by Qatar Airways. A48 SWANSEA CARDIFF of the city and provides direct access CARDIFF RISTOL M4 H A4050 M2 C M3 International Convention Centre & Arena to numerous international destinations, M23 M20 ATH DOVER Work is underway to construct a new Convention Centre M5 which has recently expanded with SO THAMPTON M27 at Celtic Manor Resort in Newport. In addition, a site in A4226 RI HTON Cardiff Bay has been earmarked as a potential location for the addition of a new carrier (Qatar O RNEMO TH A4050 E ETER a new state of the art arena with a capacity of 10,000+. BARRY Airways) in 2018. A4050
A4226 Academic Profile CARDIFF INTERNATIONAL RISTOL BARRY 80,000 students from Cardiff University, Cardiff AIRPORT CHANNEL Metropolitan University, University of South Wales and the Royal Welsh College of Music and Drama. RHOOSE Ty Admiral – Cardiff 6 | 7
LOCATION
Admiral Group Plc’s Headquarters are
A CARDIFF S 4 t
1 a
CASTLE 6 t i situated in a prominent location at the 1 o n
T e t r ee r CARDIFF Str a entrance to the St David’s Shopping en c Que e QUEEN STREET C h u Centre, with the property fronting onto r c h i ll W a y David Street, just off Bridge Street and treet e S H Duk t i e g e h r t S QUEENS S the corner of Churchill Way. t r d e ARCADE r e fo t ld ui G
et re St ge C rid h B u W r e c st h g i l a l t e 4 W St re a et ST DAVID’S y T h SHOPPING e
H CENTRE a y S e t s M t a ree r THE St y m da S A t ARCADES r e e 3 t t r Stree PRINCIPALITY Tredega JOHN LEWIS t STADIUM ree St 2 rk 1 ce KEY Pa ra er CARDIFF CENTRAL e T et ut tre LIBRARY B k S 1 John Lewis Par et tre d S oo W t 2 Cardiff Central Library CENTRAL SQUARE ree CAPITAL St B se u ou t QUARTER Custom H e NEW TRANSPORT S t r 3 Principality Stadium INTERCHANGE e S e t t M
a r y
S 4 St David’s Shopping Centre t t r ee CARDIFF CENTRAL e CALLAGHAN tr e t S t er rb SQUARE He
5 Wales Millennium Centre
B CENTRAL QUAY u t e S t r e e t 1
2 3 4 The property has excellent prominence overlooking St David’s Shopping Centre as well as adjoining the Motorpoint Arena. It is also within close proximity to the Radisson Hotel Tower, Central Square and Callaghan Square, the prime city centre office location, as well as Central Station. The entire area has seen a dramatic transformation since the opening of the second phase of the St David’s Shopping Centre and the on-going Central Square Development.
The area has attracted significant occupiers that include John Lewis who occupy a 280,000 sq ft stand alone retail unit, and in the office sector occupiers include Eversheds, ING, Lloyds Bank, Zurich Insurance, Arriva Trains, Allied Irish Bank, AA, Deloitte, and Network Rail.
Cardiff Council’s objective for Cardiff is to further enhance this entire area, thus consolidating the central business district as well as promoting the ‘Central Area Core’ focussed on Cardiff Central Station and the Principality Stadium. Ty Admiral – Cardiff 8 | 9
5 CONNECTIVITY
Cardiff has outstanding road, rail and air communications. The city is situated on the M4 motorway, and lies approximately 236 km (147 miles) from London in the east. South Wales links via the M50 and M5 motorways to the Midlands and south west of England. Almost 80% of the UK population lives within a 4-hour drive of Cardiff.
DISTANCE BY ROAD NATIONAL RAIL TIMES FROM CARDIFF
London 236 km 147 miles London 2 hours Bristol 69 km 43 miles Bristol 50 minutes Birmingham 182 km 113 miles Reading 1 hour 35 minutes Swansea 67 km 41 miles Birmingham 1 hour 59 minutes Newport 24 km 15 miles Manchester 3 hours 10 minutes
High speed rail services give rapid access to all major cities across the Electrification of the railway between London Paddington and Cardiff UK. Cardiff Central Station is one of the principal stations on the Great Central is set to be completed in Q4 2018 reducing best travel times Western Line. to 1 hour 45 minutes.
Cardiff Central Station is also the hub of an extensive Valley Line Network Cardiff has its own international airport located 19.2 km (12 miles) serving the inland towns of south east Wales, from where a significant from the city at Rhoose. The airport serves many national and European proportion of the city’s work force is drawn. The delivery of an integrated destinations. Cardiff Metro system has been allocated up to £730m from the Cardiff Capital City Region Deal. The project may include the introduction of London’s Heathrow airport is less than a two hour drive or rail journey a light rail system to Cardiff alongside delivery of a major upgrade to from the city. the existing rail network around Cardiff, which will be centred on Cardiff Central Station. A contract will be awarded to an operator in 2018. Ty Admiral – Cardiff 10 | 11
CAPITAL QUARTER CARDIFF JR Smart is currently on site developing Number 3&4 Capital Quarter, a 75,000 sq ft and 96,000 sq ft of speculative office, respectively. This is INWARD INVESTMENT & in addition to the already completed Number 1 & Number 2 Capital Quarter office buildings which are now nearly fully let to tenants including, Finance MAJOR DEVELOPMENT SCHEMES Wales, Parsons Brinckerhoff, Alert Logic and Welsh College of Nursing. A 350-unit student housing block is also under construction with further plans for a 200-unit PRS scheme.
Cardiff has enjoyed substantial development and regeneration in the last 20 years including the creation of Cardiff Bay, the Bute Town Tunnel link road, Principality Stadium and St David’s Shopping Centre.
DUMBALLS ROAD These schemes have helped to draw Vastint (part of the IKEA Group) has bought 24 acres comprising the attention to the city and have provided Embankment site on Dumballs Road where it plans to build a mixed-use the catalyst to further large scale scheme including new and affordable housing. The site previously had planning consent for 2,000 homes. developments with Callaghan Square, the redevelopment of Cardiff Central
Station, Central Square, Central Quay, CENTRAL QUAY and Capital Quarter. All of these Directly to the south of Cardiff Central Station, Brains and Rightacres have entered schemes are within a short distance of into a joint venture on the Brains Brewery site with master planning ongoing for a mixed-use scheme that could provide 3 million sq ft of development. The first phase Ty Admiral. These are the exciting next of this scheme, The Ledger Building, which is a c.260,000 sq ft speculative office phases of development within Cardiff’s building is currently in the planning system. CENTRAL SQUARE Core Area adding up to an ongoing A joint venture between Cardiff Council and Rightacres to comprehensively redevelop the north side of Cardiff £5bn investment programme. Central Station. The 165,000 sq ft BBC Wales Headquarters building, shortly to be completed, is a central feature. One Central Square, a 135,000 sq ft Grade A office building, has already been completed and fully let with Two Central Square, an office building of 145,000 sq ft under construction and fully pre-let. The scheme will extend to over 1 million sq ft with a 270,000 sq ft office building proposed for HMRC to house 2,000 workers and include a 33,000 sq ft public square comprising outdoor cinema and café area.
CARDIFF CENTRAL STATION Network Rail has announced plans for a major redevelopment of the station to increase capacity and significantly enhance services provided. The scheme could include further mixed-use development along with the development of the Network Rail South Car Park to include TRANSPORT INTERCHANGE a multi-storey car park to increase the Adjacent to Central Square is the Interchange site, a former car park site now parking capacity to 1,000 cars and add the subject of a £100m mixed-use scheme. It will become Cardiff’s Central potential for further office, leisure, retail bus interchange and also provide ground floor retail facilities, residential and residential accommodation. accommodation and 80,000 sq ft of offices in a 14-storey building. Ty Admiral – Cardiff 12 | 13
DESCRIPTION
Ty Admiral is a highly specified landmark office building in the heart of central Cardiff with a BREEAM rating of ‘Excellent’. The fourteen storey PROPERTY building was completed in November 2014 as a design and build for Admiral Group Plc’s new corporate headquarters.
The building comprises two levels of basement car parking, two ground floor double height retail units, a third retail unit, office and reception areas, a mezzanine level plus 11 upper floors of office accommodation. The office space benefits from small atria features incorporated on alternating floors on the north and south elevations.
The building provides a total floor area of approximately 206,833 sq ft with offices accounting for around 202,971 sq ft and the retail 3,862 sq ft. The office floorplates typically provide circa 17,100 sq ft of open plan accommodation around a central core with excellent natural daylight.
The elevations are of Portland stone coloured pre-cast concrete framing plus glazed and aluminium curtain walling together with extruded aluminium fins to provide solar shading with flat roofs which are part terraced/paved with views over central Cardiff. The building is of steel frame structure around a central core and in-situ concrete slabs on metal decking and the internal walls are of concrete blockwork, plasterboard and metal or timber studs with acoustic treatment.
Internally the building provides fully accessible raised floors with a minimum 150mm clear void and suspended ceilings throughout. The offices provide a clear floor to ceiling height of circa 2.80 metres and floor level height of 3.96 metres.
The building, arranged around one central core, contains three stairwells two serving all floors and a third serving ground, mezzanine and first floors only. Male, female and disabled WCs together with seven lifts are all provided within the main building core. In addition one lift in the main office is allocated as the service/goods lift accessing all office floors, ground floor and the upper basement level.
The building benefits from a four pipe fan coil air conditioning system to meet the heating and cooling loads of the building. Chillers are located on the roof together with air conditioning units. The fresh air is provided by the air handling units delivered via duct work into the accommodation via ceiling mounted grills. Air is extracted from the office areas through dedicated extractor grills in the suspended ceiling. A high quality lighting scheme has been provided to the entrance reception, atrium areas together with lighting to common parts.
The building benefits from a fire detection system to include sprinklers on the ground and all upper floors, an alarm system, together with lightning protection system. The building benefits from mains electricity, gas, telecoms and water services.
Externally, the building is paved and lit to match the surrounding public landscaped areas. Ty Admiral – Cardiff 14 | 15
SPECIFICATION
The main design features and landlord base build specification include:
• Typical upper floorplate of 17,100 sq ft (NIA)
• Designed for a maximum occupancy of 3,000
• Seven passenger lifts arranged in two separate banks of which six have a loading capacity of 1,600 kg (21 people) and a seventh with a loading capacity of 1,275 kg (17 people)
• Upper basement loading bay facility
• Floor to ceiling height of 2.80 metres in main office areas
• Floor level heights of 3.96 metres in main office areas
• Floor loadings at 3.0 kn/sq m (superimposed load) to the main office floors
• Raised access floors (250mm) to include carpets
• Suspended ceiling tiles to offices are mineral fibre
• High quality lighting systems throughout with LED lighting to the atrium/reception areas and LG7 lighting to the main office accommodation
• Four pipe fan coil high efficiency air conditioning
• Sophisticated BMS control system
• Solar control glazing and solar shading
• Male and female WCs (six each per main office floor) plus disabled WCs provided on all floors
• Secure basement car parking providing 120 spaces including 4 disabled (1: 1,691 sq ft) together with cycle racking and motorbike parking
• High quality external environment and landscape
• Photovoltaic electrical generating system to meet carbon reduction targets Ty Admiral – Cardiff 18 | 19
ACCOMMODATION
The property has been measured in accordance with both the RICS Code of Measuring Practice (6th Edition) and the Funding Agreement by Plowman Craven providing the following internal floor areas:
FLOOR USE NET INTERNAL AREAS FUNDING AGREEMENT AREAS (SQ M) (SQ FT) (SQ M) (SQ FT) Level 11 Office 1,578.7 16,993 1,589.8 17,112 Level 10 Office 1,574.1 16,943 1,585.5 17,066 Level 9 Office 1,579.6 17,003 1,590.7 17,122 Level 8 Office 1,573.8 16,940 1,585.7 17,068 Level 7 Office 1,578.3 16,989 1,589.5 17,109 Level 6 Office 1,572.5 16,926 1,583.8 17,048 Level 5 Office 1,578.3 16,989 1,589.7 17,111 Level 4 Office 1,573.5 16,937 1,584.6 17,056 Level 3 Office 1,579.0 16,996 1,589.9 17,114 Level 2 Office 1,574.1 16,943 1,585.3 17,064 Level 1 Office 1,616.7 17,402 1,624.3 17,484 Mezzanine Comms/Ancillary 403.1 4,339 676.2 7,279 Ground Reception/Office 652.7 7,025 681.7 7,338 SUB TOTAL 18,434.4 198,425 18,856.7 202,971
Ground Retail A 253.9 2,733 253.9 2,733 Ground Retail B 73.6 792 73.6 792 Ground Retail C 31.3 337 31.3 337 SUB TOTAL 358.8 3,862 358.8 3,862
TOTAL 18,793.2 202,287 19,215.5 206,833
The property has been measured in accordance with both the RICS Code of Measuring Practice (6th Edition) and the Funding Agreement. Copies of both measured surveys, undertaken by Plowman & Craven, are provided within the data room and are capable of being assigned and relied upon by the purchaser.
The property has also been measured in accordance with the new RICS Property Measurement (1st Edition), which incorporates the new International Property Measurement Standards (IPMS). The measured surveys have been undertaken by Plowman Craven, copies of which are provided within the data room and are capable of being assigned and relied upon by the purchaser.
The property comprises a site of 0.236 hectares (0.58 acres). Ty Admiral – Cardiff 18 | 19
FLOOR PLANS
GROUND FLOOR LEVELS 2, 4, 6, 8 & 10 11,200 sq ft (1,040.5 sq m) 17,048 - 17,068 sq ft (1,583.8 - 1,585.7 sq m)
Retail C
DAVID STREET DAVID STREET
BRIDGE STREET
BRIDGE STREET
Retail A Retail B
MEZZANINE FLOOR LEVELS 3, 5, 7, 9 & 11 7,279 sq ft (676.2 sq m) 17,109 - 17,122 sq ft (1,589.5 - 1,590.7 sq m)
DAVID STREET DAVID STREET