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Cwmbran Retail Park, Cwmbran NP44 3JQ

Cwmbran Retail Park, Cwmbran NP44 3JQ

1 Retail Park, Cwmbran NP44 3JQ

TORFAEN, SOUTH CWMBRAN RETAIL PARK

DOMINANT RETAIL PARK INVESTMENT OPPORTUNITY 2 Cwmbran Retail Park, Cwmbran NP44 3JQ 3 Cwmbran Retail Park, Cwmbran NP44 3JQ INVESTMENT HIGHLIGHTS

• Cwmbran is located in , , around 29km Offers are sought in the region of (18 miles) north east of and 88 km (55 miles) east of Swansea. The town has a 10 minute catchment population of 75,320 people which increases to 169,928 people within £33,380,000 15 minutes (CACI Ltd). (Thirty Three Million, Three Hundred and Eighty • Cwmbran Retail Park comprises a purpose-built retail Thousand Pounds), subject to contract and exclusive warehouse park configured in an linear east facing terrace of VAT for the Freehold interest in this property. and stand-alone unit providing in the order of 12,623 sq m (135,870 sq ft) of retail floorspace and parking for 517 vehicles. A purchase at this level would show the following yield profile allowing for purchaser’s costs of 7.74%. • The scheme represents the only out of town retail and DIY offer in the catchment with destination tenants such as Initial Yield 6.25% Next, TK Maxx, Pets at Home, Curry’s/PC World, DW Sports, Halfords and B&Q. Running Yield 2019* 6.47%

• Fully let on FRI terms to 10 occupational tenants, the park Running Yield 2021* 6.54% produces a current annual rent of £2,247,450, reflecting rents psf between £13.58 and £20.00 psf. *yields assume 3% cap achieved on B&Q and DW Sports reviews.

• The income stream provides a weighted average unexpired term of 7.2 to expiry, 6.9 to break and 29% is subject to 5 yearly RPI uplifts (capped at 3% pa compound).

• Recent tenant activity on the scheme underlines its trading dominance and status as the preferred out of town location for retailers in the catchment. Furthermore, the passing rents clearly reflect affordable and sustainable levels for those incumbent occupiers and there are clear opportunities to explore further lease regears in the short to medium term. The subject property is • The park has, and continues to see, very high visitor levels the only retail park with consistent annual footfall showing in excess of Cwmbran Retail Park 2.22 million people coming to Cwmbran Retail Park. Cwmbran Drive Cwmbran in Cwmbran NP44 3JQ SATNAV Longitude: 51.653147 Latitude: -3.027835 4 Cwmbran Retail Park, Cwmbran NP44 3JQ 5 Cwmbran Retail Park, Cwmbran NP44 3JQ

Llanarth LOCATION SOCIO 10 min Drive Time (75,520 people) 15 min Drive Time Raglan Cwmbran is located in the of (169,928 people) Torfaen in South Wales, approximately 9.7 km STOKE ON TRENT ECONOMIC 20 min Drive Time (6 miles) north of Newport, 29 km (18 miles) NOTTINGHAM (261,121 people) Abertillery north east of Cardiff and 88 km (55 miles) east of DERBY Penperlleni Llandenny Llandogo Oswestry M6 Lydney Swansea. M1 PROFILE Llansoy Llangwm Tintern Alvington M54 Within the 10 minute catchment of 75,520 Telford M42 LEICESTER Bargoed The town benefits from excellent road communications people, household ownership is 15% above the with the A4051, which runs immediately adjacent to the WOLVERHAMPTON Blackwood Shepperdine DudleyM6 M69 national average. Within the 20 minute drive CWMBRAN subject property offering direct links to Junction 25A Newbridge Llangybi St Arvans A1(M) time, 169,928 people combine to provide a of the 8km (5 miles) to the south and the Aberystwyth BIRMINGHAM COVENTRY Maesycwmmer Oldbury A4042 which connects to Pontypool and Stourport- total annual comparison goods spend in the Newbridge -on-Severn on-Severn Redditch Royal on Usk to the north. Leamington order of £1.069 billion (CACI Ltd). Spa Crosskeys Parc-Seymour The M4 offers maximum connectivity across South M5 Car and household ownership, together with M48 Worcester Risca Bettws Wales to the west connecting to Cardiff, Bridgend, M1 weekly comparison goods expenditure statistics Penhow Thornbury Evesham Aust Swansea, Llanelli etc. and Bristol and the M5 Motorway have been summarised in the table adjacent. Machen M4 M40 Newport to the east. Tewkesbury Caerphilly Magor More detailed information is available on request. M4 M4 Carmarthen A1(M) Abergavenny Ammanford Milford Cwmbran also enjoys a regular rail service to Haven CWMBRAN M5 Stroud Oxford M4 Llanelli Cirencester A48(M) Pembroke Newport and Cardiff (11 and 30 minutes respectively), Neath Aberdare Chepstow M49 Swansea St Mellons A4042 M48 Chittening which in turn provides access to the wider national Pontypridd rail network. Caerphilly Newport Swindon M4 M4 Bridgend LONDON CARDIFF Chippenham Reading Barry BRISTOL Bath Newbury Weston- super-Mare Trowbridge Basingstoke M25 Frome Ilfracombe Minehead M3 Over the course of the next Weekly Comparison Andover Population Car Ownership (%) Household Ownership (%) Goods Expenditure Bridgwater 10 years, approximately 1,889 Barnstaple M5 Salisbury Winchester Bideford Taunton UK Average 74.1% 62.9% – Eastleigh new homes will be developed Yeovil Tiverton 10 min Drive Time 75,520 74.5% 72.1% £4,063,859 Distances from Cwmbran SOUTHAMPTON within a 10 minute drive time 15 min Drive Time 169,928 72.4% 69.8% £9,259,961 Exeter Bridport Poole catchment, contributing to Cardiff 18 miles Dorchester Bournemouth Sidmouth the area’s population growth. Bristol 33 miles Weymouth 20 min Drive Time 261,121 77.5% 63.6% £14,298,506 We have set out further Newport 6 miles Torquay PLYMOUTH Swansea 55 miles information of page 7. 6 Cwmbran Retail Park, Cwmbran NP44 3JQ 7 Cwmbran Retail Park, Cwmbran NP44 3JQ SITUATION RESIDENTIAL RETAIL

Cwmbran Retail Park is situated a short distance to the west of Cwmbran, fronting the A4051 DEVELOPMENT PROVISION Cwmbran Drive, the main arterial route through Cwmbran linking directly to Newport and the There is significant residential development consented, proposed The subject property represents the only retail M4 Motorway (8 km/5 miles) to the south, and and currently under construction in and around Cwmbran. park in Cwmbran and indeed it is worth noting Abergavenny to the north. Consequently, the All of the UK’s major foodstore operators have Taylor Wimpey are currently developing two residential sites within that the only other non food out of town space scheme benefits from excellent visibility to the town; Edlogan Wharf and Parc Celyn. is the former Homebase, now occupied by B&M. large format representation in Cwmbran, with passing traffic along the main route through the exception of Tesco. Indeed Sainsbury’s, This means that the B&Q at the subject property the town. Phase 1 of Edlogan Wharf, which is located 2 km (1.2 miles) to the north , and are all situated in extremely is the only DIY offer in the catchment – the of Cwmbran Retail Park, is currently under construction and expected to close proximity to the subject property. Surrounding land uses are predominantly industrial and provide approximately 101 homes with a total of 1,200 to be completed Edlogan Wharf nearest other B&Q store is 11.2 km (7 miles) to Residential Development commercial to the north-west at Springvale Industrial over the next 10 years. Parc Celyn, which is situated 1.6 km (1 mile) west of the south in Newport. Wickes and Homebase The provision is identified in its entirety in the Estate, retail to the east in the form of Cwmbran the subject property, is also under construction and will total 219 homes. are not represented in the town, indeed their aerial on page 6. Park Celyn Shopping and Town Centre and residential to the Residential Development It is due to complete within 2 years. nearest stores are 12 km (7.5 miles) and south and west – including the current Taylor Wimpey development at Parc Celyn. Additionally, Redrow Homes have permission to develop 450 dwellings on a 8.5 km (5.3 miles) to the south in Newport. site 5.3 km (3.3 miles) south of the subject scheme, known as The Maltings at A4051 Cwmbran Shopping Centre, situated just to the east of . Phase 1 comprises c. 30 three and four bedroom homes which the retail park, represents the principal ‘in-town’ offer completed at the end of 2017, with phase 2 under construction. with key anchors including Primark, M&S, River Island, Wilko and Matalan. An external refurbishment of the S p p M r r a i i en n d shopping centre has been proposed for later this year. g y v W a Edlogan Wharf l a e y

W Cilgant Ceinwen, Cwmbran NP44 1RL a y Caradoc Road • 2,3 4 and 5 bedroom homes A4051 S

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o L A l a G e d r 4 w ee 0 e n 5 ll m 1 yn The Maltings e R ad o o ad w Newport Road, Llantarnam, Newport NP44 3AY W ay • 3 and 4 bedroom homes • 30 units completed in 2017 – phase 2 under construction This plan is published for the convenience of identification only. Any site boundaries are indicative only and should be checked against Title Deeds. 8 Cwmbran Retail Park, Cwmbran NP44 3JQ 9 Cwmbran Retail Park, Cwmbran NP44 3JQ DESCRIPTION

Cwmbran Retail Park provides approximately 12,623 sq m (135,870 sq ft) of purpose built The stand–alone unit to the front/eastern boundary of the site is occupied by Pets at Home and extends retail accommodation, within the main linear terrace and a single stand-alone unit. to around 643 sq m (6,922sq ft). There are 99 parking spaces situated to the north west of the unit and rear servicing is available, through the car park area. Cwmbran Centre The east facing terrace extends to 11,979.7 sq m (128,948 sq ft) comprising 9 units, with forecourt parking for 312 vehicles (incl. 18 dedicated disabled spaces) and an additional 106 spaces in an overspill car Overall 517 customer car parking spaces provide an overall ratio of 1:24.4 sq m (1:263 sq ft). A4051 park at the northern end. Segregated rear servicing facilities are available from Greenforge Way on the Customer vehicular access is directly from the A4051 Ffordd Cwmbran (Cwmbran Drive) whilst pedestrian westerns boundary. access is also available to the scheme via dedicated footbridges at the eastern and northern boundaries of the site. Internally the units have a maximum eaves height in the order of 6.65m (72 ft) which can comfortably accommodate mezzanine floors as proven by those in the Next, B&Q, TK Maxx, Halfords, The site extends to approximately 4.6 hectares (11.4 acres) in total – the two elements comprising 3.7 Harveys/Bensons for Beds and Dreams stores. hectares (9 acres) and 1 hectare (2.4 acres) respectively.

Greenforge Way

A4051

Garden Centre

Cwmbran Drive (A4051) In 2014 Next effectively doubled the size of their unit taking the former Comet

This plan is published for the convenience of identification only. Any site boundaries are indicative only and should be checked against Title Deeds. 10 Cwmbran Retail Park, Cwmbran NP44 3JQ 11 Cwmbran Retail Park, Cwmbran NP44 3JQ

Since 2014 the scheme has seen consistent footfall in excess of 2.2 million people annually

B&Q represents the only DIY offer in Cwmbran 12 Cwmbran Retail Park, Cwmbran NP44 3JQ 13 Cwmbran Retail Park, Cwmbran NP44 3JQ TENURE SERVICE PLANNING

The property is held Freehold. The original planning consent was granted by the Borough of Torfaen in November CHARGE 1987 permitting what was principally a new bulky goods retail park. Since that time a number of further permissions have followed and we have summarised the planning position today below: TENANCIES The service charge budget for 2017/2018 reflects £0.98 psf. This shows a 3% increase/decrease on the 2016/2017 figure of £0.95 psf. All of the units on the scheme are permitted • No limitation on total floorspace. The scheme is fully let to 10 occupational tenants producing a total annual income of £2,247,450 and offering a WAULT of 7.2 years to expiry and 6.9 years to break. to sell DIY Goods, autocare products, bicycles • No limitation on the creation of mezzanine Unless otherwise stated, all leases are subject to 5 yearly OMV reviews. and car accessories, pets, pet food and accessories, furniture, carpets, floor coverings, floorspace so additional floorspace can be Unit Tenant Trading Fascia GIA Assumed RR Mezz. Term Lease Start Lease Expiry Next RR TOB Passing Passing Comments household appliances and home furnishings. added without planning permission. (sq ft) GIA (sq ft) (appr.) (Yrs) Date Rent (£pa) Rent (£psf) EPCs • Up to 5,233 sq m (56,328 sq ft) of trading Currently we believe there remains an 1 B&Q Plc B&Q Mini- 36,313 – 1,916 15 29/09/2009 28/09/2024 – – £503,821 £13.58 RPI uplifts 5 yrly – 3% pa cap. floor space can be used for non-food A1 element of trading floorspace available for Warehouse Assuming 3% cap is achieved rent Energy Performance Certificates have been produced retailing. Open A1 non food sales and units 3a, 3b, 3c will increase to £584,067 pa for all units, ranging between B and F. and 6 are between 697 sq m (7,500 sq ft) and (£15.74 psf) at review in 2019. • The minimum acceptable unit size across 464 sq m (5,000 sq ft). 2 TJK UK TK Maxx 18,000 – 9,000 15 17/08/2007 16/08/2022 – – £300,000 £16.67 Tenant Break Option for 2017 was the scheme is no less than 697 sq m (7,500 removed in 2016. sq ft) with the exception of up to 4 units As such the park benefits from a wide bulky goods planning consent, with 3a Carpetright Plc Carpetright 7,424 7,424 – 15 27/04/2007 26/04/2022 27/04/2017 – £132,221 £17.81 which can be no smaller than 464 sq m (5,000 sq ft). 56,328 sq ft of permitted open A1 non 3b Halfords Ltd Halfords 6,796 6,796 3,300 15 30/03/2007 29/03/2022 30/03/2017 – £124,571 £18.33 Current discussions around a food trading floor space sales. reversionary lease. 3c Steinhoff UK Harveys/Bensons 5,602 – 4,000 10 28/11/2014 27/11/2024 28/11/2019 27/11/2019 £101,000 £18.03 Current discussion on Group Properties for Beds break removal Ltd 4a & b Next Group Plc Next (inc. Costa 22,261 – 20,000 15 17/03/2014 16/03/2029 17/03/2019 – £413,981 £18.75 Tenant upsized in 2014 to take Coffee) adjacent Comet store and space saw complete refurbishment. ENVIRONMENTAL 4c Dave Whelan DW Sports 7,527 – 1,700 10 06/06/2016 05/06/2026 06/06/2021 – £150,660 £20.02 Review in 2021 – linked to RPI Sports Ltd capped 1%–3%. Assuming cap is achieved rent will increase to CONSIDERATIONS £174,656 pa (£23.19 psf) 5a DSG Retail Ltd Currys/PC World 17,488 17,500 2,077 15 24/06/2003 23/06/2023 N/A – £272,296 £15.56 Reversionary lease documented in An up to date environmental report is available for assignment to the purchaser (feat. Carphone October 2017 – adding further 5 which concludes a low/moderate rating. A copy is available upon request. Warehouse) years to original term. 5b Dreams Ltd Dreams 7,537 – 3,500 15 06/06/2007 05/06/2022 06/06/2019 – £120,000 £15.92 6 Pets at Home Ltd Pets at Home 6,922 – – 30 25/04/1997 24/04/2027 25/04/2017 – £114,200 £16.50 Reversionary lease documented in February 2018 – adding further 5 years to original term. Car Four Seasons Four Seasons – – – 3 03/01/2015 02/01/2018 N/A – £14,700 – Park Caterers Limited Catering Kiosk 135,870 45,493 £2,247,450 14 Cwmbran Retail Park, Cwmbran NP44 3JQ 15 Cwmbran Retail Park, Cwmbran NP44 3JQ ASSET SCHEME FOOTFALL COVENANT INFORMATION

The graph below identifies the consistently high level of footfall Cwmbran Retail Park has enjoyed since 2014. We have summarised available recent financial information for the tenants on the park below: MANAGEMENT More detailed numbers are available on request. B&Q Plc Dave Whelan Sports Ltd Year to D&B Year to D&B In 2013/2014 Next upsized from an existing c. 1,114 sq m Company No. Turnover Pre Tax Profit Tangible Net Worth Company No. Turnover Pre Tax Profit Tangible Net Worth 300,000 Date Rating Date Rating (12,000 sq ft) unit to their current 2,068 sq m (22,261 sq ft) Jan-17 £3,582,800,000 £229,100,000 £4,647,200,000 Mar-17 £203,528,000 -£7,987,000 £26,272,000 floorplate, taking the former Comet unit and refurbished Average annual footfall in excess of 2.2m people 21-706-1019 Jan-16 £3,704,000,000 - £68,900,000 £4,493,200,000 5A 1 21-156-8317 Mar-16 £159,586,000 £3,566,000 £51,804,000 5A 2 the space to provide the GM and Home offer, together 250,000 with Costa Coffee concession, in-situ today. Jan-15 £3,664,000,000 £5,400,000 £4,368,900,000 Mar-15 £154,383,000 £8,244,000 £71,328,000 Carpetright Plc DSG Retail Ltd Following the new letting to DW Sports there has been significant 200,000 Year to D&B Year to D&B occupational activity on the scheme in the last 12 months Company No. Turnover Pre Tax Profit Tangible Net Worth Company No. Turnover Pre Tax Profit Tangible Net Worth including regears/extensions of the DSG and Pets at Home leases Date Rating Date Rating and the removal of 2017 and 2019 break clauses in the TK Maxx Apr-17 £457,600,000 £900,000 £20,700,000 Apr-17 £4,345,700,000 £247,600,000 £477,000,000 and Dreams leases respectively. Following the removal of the 150,000 50-053-2064 Apr-16 £456,800,000 £12,800,000 £16,900,000 4A 1 21-729-1160 Apr-16 £4,237,900,000 £63,000,000 £406,900,000 5A 1 2017 break clause, TK Maxx have refurbished their store including May-15 £469,800,000 £6,600,000 £3,400,000 May-15 £4,314,000,000 £116,800,000 £395,900,00 a slight reconfiguration of the space. 100,000 Halfords Ltd Dreams Ltd 2014 Next upsize to 22,261 sq ft Year to D&B Year to D&B Company No. Turnover Pre Tax Profit Tangible Net Worth Company No. Turnover Pre Tax Profit Tangible Net Worth Date Rating Date Rating 2014 Harveys/Bensons for Beds regear 50,000 Apr-17 £900,100,000 £78,400,000 £709,100,000 Dec-16 £269,544,000 £31,000,000 £8,587,000 2016 New Letting to DW Sports (former Brantano) 21-817-5586 Apr-16 £866,100,000 £86,200,000 £655,900,000 5A 1 21-928-8749 Dec-15 £225,865,000 £13,493,000 -£16,225,000 N2 2016 TK Maxx break option removed Mar-15 £872,700,000 £92,600,000 £622,300,000 Dec-14 £193,575,000 £378,000 -£28,741,000 0 2017 Reversionary lease agreed with DSG Retail January February March April May June July August September October November December Steinhoff UK Group Properties Ltd Pets at Home Ltd Year to D&B Year to D&B 2018 Reversionary lease agreed with Pets at Home 2014 footfall 2015 footfall 2016 footfall 2017 footfall Company No. Turnover Pre Tax Profit Tangible Net Worth Company No. Turnover Pre Tax Profit Tangible Net Worth Date Rating Date Rating Looking forwards, in the short term targets for regear/ Sep-16 £96,124,000 £8,208,000 £28,005,000 Mar-17 £752,374,000 £67,557,000 £650,186,000 lease extension must include Dreams, Carpetright and 21-194-6041 Jun-15 £80,832,000 £6,332,000 £22,123,000 4A 1 22-867-7209 Mar-16 £739,726,000 £81,843,000 £598,310,000 5A 1 TK Maxx. Whilst in the medium term, prospects to regear Jun-14 £76,669,000 £2,924,000 £15,937,000 Mar-15 £689,697,000 £79,920,000 £517,138,000 B&Q are expected to be strong given the dominant trading Next Group Plc TJX UK position they enjoy as the catchments only DIY offer. Year to D&B Year to D&B Company No. Turnover Pre Tax Profit Tangible Net Worth Company No. Turnover Pre Tax Profit Tangible Net Worth Date Rating Date Rating Target Initiatives: Jan-17 £4,097,300,000 £790,200,000 £467,200,000 Jan-17 £2,684,000,000 £111,400,000 £640,500,000 • Halfords reversionary lease. 42-424-7604 Jan-16 £4,176,900,000 £836,100,000 £268,100,000 5A 1 49-101-3975 Jan-16 £2,434,000,000 £142,300,000 £599,400,000 5A 1 • Removal of Harveys/Bensons for Beds 2019 Jan-15 £3,999,800,000 £836,100,000 £278,000,000 Jan-15 £2,195,400,000 £134,300,000 £583,400,000 tenant only break. • Dreams, Carpetright and TK Maxx regears. • Possible gym/pod development in additional car park. VAT

The property has been elected for VAT and it is anticipated that the transaction will be treated as the Transfer of a Going Concern. PROPOSAL

Thirty Three Million, Three Hundred and Eighty Thousand Pounds, subject to contract and exclusive of VAT for the Freehold interest in this property. A purchase at this level would show the following yield profile allowing for purchaser’s costs of 7.74%.

Initial Yield 6.25%

Running Yield 2019* 6.47%

Running Yield 2021* 6.54%

*yields assume 3% cap achieved on B&Q and DW Sports reviews. CONTACTS

Justin Houlihan Tamsin Layton 020 7152 5670 020 7152 5158 07855 792 294 07903 054 706 [email protected] [email protected]

Disclaimer Cushman & Wakefield LLP for themselves and for the vendors of this property whose agents they are, give notice that: (1) The property information is produced in good faith, set out as a general guide only and does not constitute any part of a contract. (2) No person in the employment of the agents has any authority to make or give any representation or warranty whatever in relation to this property. (3) This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing within this information should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. February 2018

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