CF10 1AH PRIME RETAIL AND LEISURE INVESTMENTTHE OPPORTUNITY HAYES THECARDIFF HAYES CF10 1AH

Investment Summary

Cardiff is the capital city of and has a catchment population of 1.6 million within a 45 minute drive. 20 million visitors to the city annually, spending circa £1.1bn per annum. Prime location directly adjacent to St. David’s Hall and St. David’s Shopping Centre, which attracts 40 million visitors per annum. 70% of income from national operator Mitchells & Butler t/a Miller & Carter let until 2039 (break in 2029). Freehold. Excellent asset management opportunities to let vacant basement and introduce new tenant at first floor. Current rent of £505,000 per annum on ground and first floor accommodation. We have been instructed to seek offers in excess of £8,250,000, subject to contract and exclusive of VAT reflecting a NIY of 5.69% assuming standard purchasers costs of 7.54%.

Cardiff is expected to grow faster than any other UK city in population terms

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Bren A46 A470 A40 A479 A465 Teesury

A44 A49 A40 Cheltenham Carmarten A40 A40 A48 A483 Gloucester A40 A470 A40 A436

Aeravenny A40 A465 A417 Ammanrd A429 A40 itney A4042 ertyr Tyd� Strud A465 A48 M5 A419 Aerdare A449 Cirenester anei nty M4 A420 eat Cmran SANSEA Cest A419 M48 ntyridd A470 A433 rt Tat Caeriy M4 ert Sindon A429 M4

M4 A346 M4 rta Bridend CARDIFF M32 M5 Cienam Cevedn A46 A350 Barry BRISTOLA4 A38 A37 BRISTOL Bath esam Situation estnsuerare A36 evizes A338 Trride The subject property occupies the prime position in the heart of Cardiff’s city centre

A361 retail and restaurant offer. The property benefits from return frontage onto The Hayes M5 and Hill Street, directly adjacent to one of the principal entrances to St David’s Shopping BurnamnSea Frme Irame A361 Centre. This development transformed the Welsh Capital into one of the UK’s top retail ineead arminster Andver A36 A303 destinations with an additional 1.4 million sq ft of retail space, Total footfall for St David’s A361 A39 Shopping Centre is approximately 40 million visitors per annum. Bridater A338 Location A37 Barnstae The subject property is situated on what is regarded as the prime leisure and restaurant

Cardiff is the capital city of Wales and provides the principal retailing and commercial centre A303 Saisury A350 pitch in Cardiff, namelyineste The Hayes,r Morgan Arcade and Mill Lane. Biderd for the South Wales region. The city is locatedTaunt immediatelyn to the south of the M4 motorway, A36 A361 approximately 44 miles west of Bristol and 42 miles east of Swansea. A354Nearby occupiers includemsey retailers John Lewis, House of Fraser, TK Maxx, Hugo Boss, All Saints, Fred Perry, Joules, Urban Outfitters and restaurants including Wahaca, Bills, Cardiff benefits from good access to the national rail network. Cardiff Central railway station Carluccios, Wagamama and Gourmet Burger Kitchen. The Ivy is also opening its new provides regular direct trains to London Paddington (1 hour 59 minutes), and Birmingham New restaurant opposite. Street (2 hours). The property is also adjacent to St. David’s Hall, a 2,000-seat concert hall which is Cardiff Airport is located 11 miles south west of the City Centre and provides scheduled flights home to the annual Welsh Proms Cardiff, the Orchestral Concert Series featuring the to an ever expanding array of global destinations. world’s top orchestras, the bi-annual BBC Cardiff Singer of the World competition and a multitude of other live entertainment, comedy shows, regular exhibitions and company conferences.

PRIME CARDIFF CITY CENTRE RETAIL AND LEISURE INVESTMENT OPPORTUNITY 3 THECARDIFF HAYES CF10 1AH

Demographics Cardiff is expected to grow it’s population by 26% over the next 20 years, faster than any other city in the UK. Cardiff benefits from a significant primary retail catchment of 1,600,000. Cardiff draws its catchment from a large area and retains a significant share of the available spend due to the lack of competition within the catchment. 373,790 people live within a 20 minute drive of Cardiff City Centre, rising to 2,363,431 within 1 hour. The catchment has a relatively young and affluent population with 27% of the population aged between 15-29 (UK average of 19.9%) whilst 56% of the population is social grade ABC 1 (UK average of 53.2%). The city has a significant student population of approximately 50,000 at three universities: Cardiff University, Cardiff Metropolitan University and University of South Wales. 20 million visitors to the city annually, spending circa £1.1bn per annum. Tourist attractions include: , the Principality Stadium and the . 40annual footfall million to St Davids 50,000+student population Shopping Centre Cardiff is rapidly becoming a hub for global sporting events after successfully hosting the UEFA Champions League 2017 Final which brought 314,264 visitors to the city in a single day, boosting the local economy by £45m. The city is also set to host the Volvo Oceanic Race in Cardiff is the capital city of Wales and has a catchment 2018, with Cardiff being the only UK stop of the 46,000 mile global race. population of approximately 2.4 million within 1 hour In addition, Cardiff also boasts a number of other sporting events. concerts, exhibitions etc at the Principality Stadium, Swalec Stadium, Cardiff City Stadium, Cardiff Arm’s Park, the Motopoint Arena and the Ice Arena Wales which all bring numerous visitors and spend to the city centre.

PRIME CARDIFF CITY CENTRE RETAIL AND LEISURE INVESTMENT OPPORTUNITY 4 THECARDIFF HAYES CF10 1AH

QUEEN CHURCHILL W SQUEENTREE STT Cardiff Investment Cardiff has experienced significant investment over recent years, which continues

A as the council plans to spend £700m on city infrastructure in the next five years. CASTLE ST Y HIGH ST CASTLE ST QUEENS CHARLES ST The BBC will be developing a 150,000 sq. ft office complex in Cardiff City Centre ARCADES which will be completed in 2018 and bring 1,200 staff members into the city WEST

G centre. In a similar fashion, the UK Government has pre-let 266,000 sq. ft of new A TE ST office space at No.6 Central Square and is set to relocate a further 4,000 jobs to THE THE HAYES ST MARY ST HAYES HILLS ST the city centre as of 2019 (see adjacent map).

WEST BRIDGE ST Other notable developments include plans to construct a new 15,000-seater G ATE ST ST DAVID’S indoor arena in Cardiff, costing £100m. This will further enhance the city’s current ON ST THE HA CENTRE strong retail and leisure offer in the city centre and attract more high spending WHART YES visitors. THE ARCADES CINEWORLD The confidence exuberating from Cardiff has resulted in a number of new WEST entrants entering the food & beverage and leisure sectors such as Marco Pierre PRINCIPALITY G T A R S TE ST EGA White’s Steakhouse, Brewhouse and Kitchen, a new JD Gym costing £2m with FITZHAMON EMBANKMENT STADIUM ST MARY TRED STREET CE The Ivy opening soon and The Alchemist investing £1.6m in converting a former PARK ST JOHN BREWERY LEWIS bank. All of these will be each company’s first establishment in Wales. QUARTER BUTE TERRA SCO WOOD ST PARK ST TT RD Location Occupier Headline Rent (psf) MILL CENTRAL Zizzi £72.68 RIVER T VUE CINEMA SQUARE LANE BUTE ST Wahaca £62.50 AFF OOD ST ST MARY ST TUDOR ST W St David’s Centre & Mill Lane Shake Shack £57.80

CARDIFF CENTRAL Jamie’s Italian £44.00 Ask Italian £40.00 Five Guys £32.50 The Brewery Quarter & Mill Lane Wagamama £50.00 A1 Retail Provision A3 Provision Core Office Locations

PRIME CARDIFF CITY CENTRE RETAIL AND LEISURE INVESTMENT OPPORTUNITY 5 THECARDIFF HAYES CF10 1AH

Description The property comprises an attractive Grade II Listed building on a prominent corner site that sits adjacent to one of the primary entrances to St David’s 2 Shopping Centre in the heart of Cardiff city centre’s retail and restaurant offer. The property is of steel frame with stonework elevations under flat and pitched tiled roofs. The accommodation is laid out over basement, ground/mezzanine, first and second floors comprising approximately 29,599 sq. ft in total. Internally, the first floor offers an attractive, well-let, predominantly open plan unit with high ceilings. The basement benefits from a dedicated entrance directly off The Hayes, leading to an open plan unit with good floor to ceiling height. The property has goods lift access to all floors, a DDA compliant lift providing access to the basement and a passenger lift to the first floor. Accommodation The building provides the following approximate Gross Internal Area (GIA):

Floor Sq Ft Sq M Basement 8,032 746.19 Ground and floor mezzanine 10,293 956.24 First and Second Floor 11,274 1,047.38 TOTAL 29,599 2,749.81

PRIME CARDIFF CITY CENTRE RETAIL AND LEISURE INVESTMENT OPPORTUNITY 6 THECARDIFF HAYES CF10 1AH

St David’s Dewi Sant

PRIME CARDIFF CITY CENTRE RETAIL AND LEISURE INVESTMENT OPPORTUNITY 7 THECARDIFF HAYES CF10 1AH

Basement Bar Miller & Carter First Floor

70% of income from national operator of Tenure Mitchells & Butler t/a Miller & Carter Freehold.

Tenancy Area Lease Lease Unexpired Unit Tenant Break Rent p.a Rent psf. Comment sq ft Start Expiry Term (break) Basement Vacant 8,032 ------Available to let. Not subject to empty rates. Ground floor Mitchells & Butler 10,293 22/04/2014 21/04/2039 21.17 22/04/2029 £355,000 £34.48 The rent is subject to 5 yearly five yearly and mezzanine Retail (No.2) Ltd t/a upwards only, open market, rent reviews restaurant Miller & Carter capped at 4% p.a compounded. First floor Burger & Lobster 11,274 15/09/2014 14/09/2039 21.57 15/09/2029 £150,000 £13.30 The rent is subject to 5 yearly upwards restaurant Restaurant Group only reviews, linked to a multiple of Ltd. 1.216652, On this basis the rent will be reviewed to £182,497 in September 2019. Burger & Lobster are currently not in occupation. TOTAL 29,599 £505,000

PRIME CARDIFF CITY CENTRE RETAIL AND LEISURE INVESTMENT OPPORTUNITY 8 THECARDIFF HAYES CF10 1AH

Asset Management There are numerous opportunities to add value to the asset, including: Let the vacant basement unit to a restaurant operator or alternative leisure operator such as a gym or indoor golf/darts/table tennis operator (subject to planning/licences). Initial interest has already been received from genuine leisure operators such as Escape Rooms. Burger & Lobster are currently not in occupation of their unit. Whilst still receiving income from Burger & Lobster, there is therefore an opportunity to secure an alternative restaurant or bar operator currently without a presence in Cardiff.

Covenant Analysis Miller & Carter Steakhouse forms part of the Mitchells & Butlers Plc. Mitchells & Butler runs circa 1,784 managed pubs, bars and restaurants throughout the United Kingdom. Brands include Miller & Carter, Harvester, Toby Carvery, Nicholson’s, O’Neill’s, All Bar One and Browns. In 2017, Mitchells & Butlers Plc reported a Turnover of £2.18 billion generating a Profit before taxation of £77 million and Shareholders Funds of £1.6 billion. Mitchells & Butlers Retail (No. 2) Ltd has a Fame Credit score of Secure (89). Burger & Lobster was founded in 2011 and operates 18 restaurants worldwide, in location such as, New York, Dubai, Bangkok, Malaysia and 11 restaurants in the United Kingdom. Burger & Lobster Restaurant Group Limited has a Fame Credit score of Secure (81).

PRIME CARDIFF CITY CENTRE RETAIL AND LEISURE INVESTMENT OPPORTUNITY 9 THECARDIFF HAYES CF10 1AH

VAT We understand the property is elected for VAT. It is anticipated the sale will be treated as a Transfer of Going Concern (TOGC).

Proposal We are instructed to seek offers in excess of £8,250,000 subject to contract and exclusive of VAT. A purchase at this level would reflect a NIY of 5.69% (assuming standard purchaser’s costs of 7.54% reflecting the effective Stamp Duty change in Wales from April 2018) Total income currently received in £505,000 p.a, which includes £355,000 p.a from Miller & Carter and £150,000 p.a from Burger & Lobster. There is no income applied to the basement unit.

Contact Information For further information or to arrange an inspection please contact:

ANDREW MCGREGOR GARETH LLOYD T: +44 20 7861 1531 T: +44 29 2044 0141 M: +44 7970 971 538 M: +44 7917 503 751 E: [email protected] E: [email protected]

DANIEL SERFONTEIN T: +44 20 3640 7037 M: +44 7891 996 745 E: [email protected]

MISREPRESENTATION ACT: Knight Frank LLP give notice to anyone who may read these particulars as follows: 1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55BakerStreet, London W1U8AN, where you may look at a list of members’ names. March 2018. Designed and produced by Creativeworld. Tel: 01282 858200.