CARDIFF CARDIFF CF11 8A2 CAPITAL SHOPPING PARK A PRIME SHOPPING PARK INVESTMENT
// CAPITAL SHOPPING PARK CAPITAL // SUMMARY INVESTMENT 1
THE OPPORTUNITY MAJOR DESTINATION FASHION LED SCHEME A very rare opportunity to acquire an established but The retail park provides approximately 153,543 sq ft maturing fashion dominated scheme with the following (14,265 sq m) of modern, high quality out of town retailing WITH MORE TO GO… key attributes: space which is complemented by the adjacent Asda The scheme is now anchored by a large full range Next foodstore and Costco. In total there is approximately store (40,000 sq ft), Arcadia t/a Outfit (circa 20,000 sq ft) 377,000 sq ft (25,024 sq m) of retail space in this location. and the soon to be rebranded Marks & Spencer store which BEST IN CLASS The location is soon to be strengthened by the proposed will include a fashion and food offer (circa 47,000 sq ft). In our opinion, this is the strongest out of town retail addition of a Lidl foodstore in close proximity, together These are accompanied by other attractive retailers, in destination serving the major conurbation of Cardiff. with the adjacent recently developed 27,000 seat Cardiff particular Smyths Toys, Mamas & Papas, Hobbycraft and It benefits from the highest concentration of fashion City Stadium. SCS together with Les Croupier (casino) and DW Sports. retailers, with the majority of competing schemes being of a more secondary nature with restricted planning consents and a traditional “bulky goods” line up. CAPITAL SHOPPING PARK // INVESTMENT SUMMARY 2
STRONG SCOPE TO GROW ASSET MANAGEMENT There has been a significant improvement in the tenant COMPLEMENTARY line up and this will be continued following the opening POTENTIAL of the rebranded Marks & Spencer store. In our opinion There are clear opportunities to capitalise on the POD OFFER these fashion retailers will further strengthen this as the improving nature of the retail park. These include The growing importance of small pod retail units is well most dominant and growing out of town retail destination attracting new retailers with the potential relocation served here, with a range of smaller ground floor units serving the city, and will continue to attract other fashion of SCS and the casino. occupied by retailers including Greggs, Subway, Costa, type occupiers creating the environment for rental and Game and Carphone Warehouse, together with a standalone capital growth in the future. KFC restaurant. // CAPITAL SHOPPING PARK CAPITAL // PROPOSAL 3
PROPOSAL We are instructed to seek offers in excess of £56.5 million subject to contract and exclusive of VAT, which would reflect anet initial yield of 5.75% (assuming purchaser’s costs at 5.80%). CAPITAL SHOPPING PARK //
CREWE LOCATION WREXHAM DERBY NOTTINGHAM
SHREWSBURY M1
M54 M6 M42 WOLVERHAMPTON M1 ABERYSTWYTH LOCATION M6 Cardiff is the capital city of Wales and, as such, provides BIRMINGHAM the principal retailing and commercial centre for the COVENTRY South Wales region. KIDDERMINSTER M45 Cardiff is located immediately to the south of the M4 motorway, approximately 44 miles west of Bristol and M40 42 miles east of Swansea. M5 4 The city is well served by a major road network, lying adjacent to the M4 motorway, with access to the north east of the city via the A48(M), which leads directly to Junction 29, and via the A48 to the HEREFORD west of the city providing access to Junction 32. M50 The M4 intersects with the M5 motorway north of Bristol, providing fast access CHELTENHAM to the Midlands and the South-West GLOUCESTER of England. NEATH OXFORD Cardiff benefits from good transport links, M5 with regular train services to a number of destinations including: SWANSEA M4 LONDON PADDINGTON (2 hours, 5 minutes) M4 SWINDON NEWPORT M4 M4 BRISTOL SWANSEA (50 minutes) CARDIFF BATH NEWBURY M5
BIRMINGHAM (2 hours)
TAUNTON YEOVIL MANCHESTER (3 hours 10 minutes)
M5 BEDWAS
A468 RHIWDERIN NEWPORT A468 A4119 CAERPHILLY BASSALEG
TONTEG A48
M4 DUFFRYN
BEDDAU
A470 EFAIL ISAF THORNHILL
M4 COEDKERNEW LLANTRISANT
BRYNNA LLANHARAN M48 TALBOT GREEN MARSHFIELD // CAPITAL SHOPPING PARK CAPITAL AREA // CATCHMENT PENTWYN A48 PENTYRCH LLANISHEN ST MELLONS A4119 CREIGIAU PENCOED PONTYCLUN LLANRUMNEY GROES-FAEN RADYR A470 LLANEDERYN M4 LLANHARRY M4 WHITCHURCH RUMNEY
LLANDAFF ROATH FAIRWATER A48 YSTRADOWEN A4232 TREMORFA ST FAGANS E LY PENDOYLAN
5 CARDIFF
ABERTHIN GRANGETOWN
A48
A48
BONVILSTON
WENVOE PENARTH SIGINGSTONE DINAS POWYS
LLANTWIT MAJOR SULLY ST ATHAN BARRY CACI ESTIMATE THERE ARE 243,242
RHOOSE PEOPLE LIVING WITHIN A 10 MINUTE DRIVE TIME OF CAPITAL SHOPPING PARK, EXTENDING TO 483, 283 PEOPLE WITHIN A 20 MINUTE DRIVE TIME. BEDWAS
A468 RHIWDERIN NEWPORT A468
A4119 CAERPHILLY CAPITAL SHOPPING PARK // BASSALEG
TONTEG A48
M4 DUFFRYN
BEDDAU
A470 EFAIL ISAF THORNHILL DEMOGRAPHICS CATCHMENT AND
M4 COEDKERNEW LLANTRISANT
BRYNNA LLANHARAN M48 TALBOT
GREEN MARSHFIELD PENTWYN A48 PENTYRCH LLANISHEN ST MELLONS A4119 CREIGIAU PENCOED PONTYCLUN LLANRUMNEY GROES-FAEN RADYR A470 LLANEDERYN M4 LLANHARRY M4 WHITCHURCH RUMNEY CATCHMENT AND DEMOGRAPHICS LLANDAFF ROATH Economic Centre for Wales FAIRWATER A48 YSTRADOWEN Cardiff is the capital and the largest city in Wales, as well as being the country’s A4232 TREMORFA ST FAGANS chief commercial centre, contributing over 20% of the Welsh GDP. Major national and E LY international firms based in the city include Legal & General, British Airways Maintenance, PENDOYLAN CARDIFF KMPG, Barclays Bank and BT. Over 78,000 people commute into the city for work from 6 the surrounding towns. Total average gross weekly wages totalled £396 in Cardiff in 2011, above the PMA Regional City average of £379 for the same period.
ABERTHIN GRANGETOWN Extensive catchment population Cardiff has a primary catchment population of 1,247,000 people and a shopping population A48 of 584,000 people ranking the city 6 and 8 respectively out of the top 200 PMA Centres. A48 The city also has a large student population; in the 2012 academic year Cardiff was home to BONVILSTON over 42,000 students, worth over £1.3 billion annually to the local economy. Academy of sport Top 5 retail destination in the UK Cardiff has benefited from a significant amount of retail regeneration, most substantially WENVOE Land Securities £675 million regeneration of St David’s Shopping Centre in 2009. This 200 New Homes PENARTH provided a total of 1.4 million sq ft of shopping centre space, making it one of the largest SIGINGSTONE shopping centres in the UK. Cardiff is now one of the top 5 retail destinations within the UK. DINAS POWYS Cardiff City FC stadium Total in-store comparison expenditure in Cardiff in 2012 was £2,575 million, significantly above the PMA retail average of £795 million. Cardiff is likely to retain a significant proportion of available spend within its catchment area due to its strong communication links and superior retail offer compared to anywhere else in Wales. As a result, Cardiff also attracts spending from a wider area beyond its catchment. The nearest competing city with a comparable retail offer is Bristol, 44 miles east. LLANTWIT MAJOR European Capital of Sport 2014 SULLY Cardiff plays host to many high-profile sporting events at local, national and international ST ATHAN Lidl Development Site BARRY level. In recognition of the city’s commitment to sport Cardiff has been awarded the title of European Capital of Sport 2014. The development of Cardiff City Stadium and Cardiff International Sports Village, both situated in close proximity to Capital Shopping Park, have been instrumental in helping to achieve this. RHOOSE Top tourist destination New Cardiff Cardiff is an important tourist destination with the Millennium Stadium, Cardiff Bay and Athletics Stadium St David’s Shopping Centre enhancing this over recent years. Tourism has increased year on year with 18.9 million tourists visiting Cardiff in 2012, creating a total revenue of £1.012 billion, of which over £137 million was spent on shopping. RHIWDERIN A467 PORSET A468 UPPER BOAT BASSALEG
MAESGLAS A469 A4042 NANTGARW DUFFRYN
M4
A469
M4 A48
THORNHILL M48
// CAPITAL SHOPPING PARK CAPITAL IN CARDIFF // RETAIL 5 RETAIL IN CARDIFF PONTPRENNAU Capital Shopping Park has established itself as the prime out of town retail location for Cardiff and has attracted high quality brand names sitting adjacent to the key anchors B4239 A48 of Asda, Costco and Cardiff City Football Club. The majority of the retail warehousing M4 in Cardiff is either more secondary in nature or has a more bulky goods occupier PENTWYN ST MELLONS line up. No other retail park in the city has a higher concentration of fashion retailers A469 LLANRUMNEY than Capital Shopping Park, and we consider it to be the strongest out of town retail A470 destination serving the city. CYNCOED
1 CAPITAL SHOPPING PARK WHITCHURCH LLANDEYRN • 370,000 sq ft A4119 CARDIFF RUMNEY • Asda, Costco, Marks & Spencer, Outfit, Hobbycraft, Next, J33 A4054 Smyths Toys, Mamas & Papas and DW Sports.
7 LLANDAFF NORTH 9 A48 A4119 A469 PENYLAN 2 AVENUE RETAIL PARK 7 CULVERHOUSE CROSS A4232 • 117,000 sq ft • 450,000 sq ft • Homebase, Matalan and • Marks & Spencer, Tesco, B&Q, A469 M&S Simply Food TK Maxx, Carpetright, Mothercare LLANDAFF and DSG • Open A1 non-food planning BLACKWEIR consent • Mixed planning consent FAIRWATER ROATH 3 CARDIFF BAY RETAIL PARK 8 SEAGAR RETAIL PARK ST FAGANS TREMORFA • 194,425 sq ft • 33,500 sq ft A4161 • BHS, Sports Direct, Pets at Home, • Pets at Home, Capetright and CANTON Wren Kitchens A4232 Boots, Argos, Brantano, Costa, A48 A4161 B&M and Staples. • Bulky goods consent • Mixed planning consent 9 WESTERN AVENUE RETAIL PARK A470 4 CARDIFF GATE RETAIL PARK • 81,898 sq ft E LY A4119 • 148,882 sq ft • Wickes, Staples and Bingo 3000 • Bulky consent A4232 • B&Q, Harveys, DFS and ScS A4160 • Mixed planning consent 1 5 TY GLAS SHOPPING PARK • 67,900 sq ft GRANGETOWN A48 • M&S Simply Food, Laura Ashley, Homesense, Boots, DW Sports and A4160 Pets at Home A4232 • Predominately bulky goods consent with exceptions 3 7 A4232 6 CITYLINK RETAIL PARK • 142,200 sq ft • Dunelm, Carpetright, Maplin, A4050 Mothercare, Argos, Harveys etc A4160 A4055 • Bulky goods consent LLANDOUGH RHIWDERIN A467 PORSET A468 UPPER BOAT BASSALEG
MAESGLAS A469 A4042 NANTGARW DUFFRYN
M4 CAPITAL SHOPPING PARK // SITUATION
A469
M4 A48
THORNHILL M48 4
PONTPRENNAU
B4239 A48 M4 PENTWYN ST MELLONS A469 LLANRUMNEY A470 CYNCOED
WHITCHURCH LLANDEYRN A4119 CARDIFF J33 A4054 RUMNEY
LLANDAFF NORTH 8 2 SITUATION A48 The subject property is located approximately 1.4 miles south west A4119 A469 PENYLAN of Cardiff city centre and 1.2 miles north of Cardiff Bay. A4232 8 The shopping park is situated in a prominent position overlooking A469 Leckwith Road, which links to the A1461 to the north, providing LLANDAFF access to Cardiff city centre situated 1.4 miles north east. Leckwith BLACKWEIR Road intersects with the A4232 to the south, which in turn links to FAIRWATER ROATH Junction 33 of the M4, 7 miles north west of the subject property. ST FAGANS TREMORFA The scheme is therefore highly accessible to the population of A4161 Cardiff itself and the wider catchment via M4 and road links to CANTON the north. A4232 A48 A4161 6 The scheme benefits from two points of access from Leckwith Road, both via roundabout junctions, which also provide access and egress to Cardiff City Stadium opposite. A470 E LY A4119 Capital Shopping Park has been developed in an area which has benefited from a substantial amount of investment and regeneration A4232 A4160 to include: • Cardiff City Stadium, home to Cardiff City FC, which has over 27,000 seats and a further 6,000 seat extension planned. GRANGETOWN A48 • A new athletics stadium and training pitches. A4160 • Substantial residential development. A4232 CAPITAL SHOPPING PARK HAS BEEN • Cardiff International Sports Village, comprising an Olympic A4232 DEVELOPED IN AN AREA WHICH HAS sized swimming pool, ice rink, white water canoeing and BENEFITED FROM A SUBSTANTIAL kayaking centre. A4050 AMOUNT OF INVESTMENT Cardiff City Council has announced plans to bid for Cardiff to host A4160 A4055 the 2026 Commonwealth Games, which would incorporate all these AND REGENERATION. sporting facilities and further increase investment in the area. LLANDOUGH DESCRIPTION AND ACCOMMODATION The property comprises a modern purpose built shopping park, // CAPITAL SHOPPING PARK CAPITAL // having been developed in 2008 as part of the overall Cardiff City Stadium development.
Jeffrey Ross The shopping park provides a total GIA of 153,543 sq ft (14,265 sq m) and is configured as a continuous terrace comprising units DESCRIPTION ranging from 7,500 sq ft to 24,000 sq ft GIA in size, occupied by Marks & Spencer, Outfit, Next, Mamas & Papas, Smyths Toys, SCS, Hobbycraft, Les Croupier casino and DW Sports, who have a full AND ACCOMMODATION format store with a gym on the ground floor and retail on the first. Fronting the main access road to the shopping park, between the two entrances are two terraces of pod units, comprising retail on the ground floor with first floor office accommodation above. There are a range of A3 food and drink operators, including Costa Coffee, Greggs and Subway, together with a number of retailers such as Carphone Warehouse who occupy these units. The addition of these occupiers enhance the retailer customer experience the park can offer, thereby encouraging further footfall and dwell time. Adjacent to Cardiff City Stadium, is a standalone restaurant unit occupied by KFC which is included in the sale. Adjacent is a Marstons pub and a site which is under offer to Lidl, both of which are not included within the sale. 9 Located at each end of the scheme are two units occupied by Costco and Asda. The Asda also benefits from a petrol filling station, located close to the entrance of the scheme. Both of these occupiers attract a high volume of customers to the scheme. The units are under separate ownership and are not included within the sale of the property. Internally, all the units are fitted to the individual tenants specifications. The majority of the units benefit from significant mezzanine floor coverage. Servicing is located to the rear of the units with this area being accessed via Hadfield Road. There is also the potential to allocate staff car parking within the service yard. Car parking is located to the front of the units. We have been advised 1,850 spaces are provided, equating to a parking ratio of 1 : 204 sq ft. The site extends to approximately 12.9 hectares (31.9 acres). CAPITAL SHOPPING PARK // TRADING PROFILE TRADING PROFILE Since the main shopping park was completed in 2008, the scheme has THE INCREASING ATTRACTIVENESS OF THE PARK TO CUSTOMERS HAS progressively improved as a trading destination by securing a more open BEEN MIRRORED BY AN INCREASING NUMBER OF CARS VISITING THE PARK planning consent and lettings to a range of retailers who have created an ever improving retail environment. Major highlights are as follows: WHICH SHOWS A SIGNIFICANT IMPROVEMENT ON A YEAR ON YEAR BASIS AS INDICATED BELOW. April 2009/May 2011 – Completion of the two “pod” developments, providing attractive complementary A3 and retail offers. Occupiers including Greggs, Subway and Costa, have considerably increased dwell 1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER time and improved the overall retail experience offered by the park.
March 2012 – Next doubled the amount of floor space they occupied by taking a new lease on Units 5a & 5b, creating a fashion and home store with a full cover mezzanine. They now trade from a store extending to a 863,400 total floor area of circa 40,000 sq ft. 847,889 832,260 781,826 762,511 767,989 761,716
August 2012 – Following the letting to Next, Arcadia were secured in 745,303 744,445 735,438 Unit 2 and are now trading under their Outfit fascia, which includes their 727,382 683,618 full range of fashion brands. They also benefit from having a full cover 690,623 mezzanine, providing a total floor area of just under 20,000 sq ft. 619,446
July 2013 – Following discussions with Marks & Spencer, planning consent has been obtained to allow the retailer to expand their range to include a full fashion offer, together with the successful M&S Simply Food range. With a full cover mezzanine Marks & Spencer will then be trading from over 47,000 sq ft. Following the relaunch of this store, their unit at Culverhouse Cross will become a home sales only store, making this the main out of town Marks & Spencer serving Cardiff. 10
Each of these developments/lettings have provided a significant step forward in establishing this as a prime fashion park, with the majority of retailers reporting steadily improving sales as the scheme has matured. In particular, trading patterns improved significantly following the opening of the new Next and Outfit stores in 2012. 2010 2011 2012 2013 2010 2011 2012 2013 2010 2011 2012 2010 2011 2012 We anticipate this will further increase when Marks & Spencer introduce their fashion range to their store. Please note that the 2013 car count is for Q1 and Q2 only. July and August 2013 figures are available on request. UNIT TENANT SQ FT UNIT TENANT SQ FT
2 Outfit 9,998 POD A Ladbrokes 1,109
3 ScS 10,093 POD B Greggs 1,206
4 Marks & Spencer 24,000 POD C Subway 1,206 // CAPITAL SHOPPING PARK CAPITAL // 5 Next 20,100 POD D Game 1,493
6 Smyths Toys 20,015 POD E Costa 1,600
7A Mamas & Papas 7,500 Carphone POD F 1,500 Warehouse 7B Hobbycraft 7,500 POD G Jeffrey Ross 997 8 Les Croupier 10,000 POD H Maplin 3,500 ASSET MANAGEMENT ASSET 9 DW Sports Fitness 22,500 TENANT ENHANCEMENT/ TENANT ENHANCEMENT/ FOOD KFC 3,019 TENURE The main retail park is held on a long leasehold basis, with a 999 year lease granted on 4 May 2007, at a rent of £1 per annum. The KFC, Marstons and Lidl sites are held on similar leases for a term of 150 years from 26/12/2010. The freehold is held by Cardiff City Council. The Asda unit and associated car parking has been sold off on a 999 year lease to the supermarket. There is a restriction against any unit within the retail park being used for the sale of food in an area in excess of 5,000 sq ft (there is a specific exemption with regard to Marks & Spencer). The footprint of the Costco unit has similarly been sold on a 999 year lease to the occupier, as has the McDonald’s drive thru restaurant and associated car parking. There is a section of land situated to the north west of the access road serving the stadium, part of which has been sold on a 125 year lease to Marston’s pubs. Adjacent to this is the KFC drive thru, which is included within the sale and Jeffrey Ross is let on a lease for 15 years from 2011. The site to the rear of this is vacant and is currently under offer to Lidl for a long leasehold disposal on a subject to planning basis. This is excluded from the sale. 11 A detailed tenure plan can be provided upon request.
TENANT ENHANCEMENT/ ASSET MANAGEMENT In our opinion, the opening of a full range Marks & Spencer store to complement the existing retailers will have a substantial positive effect on the park. It should significantly increase trading levels and, we believe, will result in new fashion led occupiers seeking representation on the scheme, which should in turn result in an increase in rents. Given the success the current owners have had in ‘widening’ the existing planning consent, we believe further ‘relaxations’ may be obtainable which would provide the opportunity to expand the range of fashion occupiers on the scheme. There are a number of original occupiers who may offer the possibility for surrenders/relocations TO BE and their units could provide accommodation to attract new retailers onto the park. In particular, PFS SCS currently occupy a unit of 10,000 sq ft, with a mezzanine of 7,500 sq ft, and have a second store in the city at Cardiff Gate Retail Park, situated 8 miles north east of the subject property. We believe it is possible they would consolidate into this second unit, given that it is situated on a furniture orientated scheme. In addition, we understand that the casino operator, Les Croupier, who occupy a unit of 10,000 sq ft with a full cover mezzanine, have previously enquired about relocating from the park too, and this could also offer an opportunity to improve tenant mix. The same applies to DW Sports who, whilst providing an attractive leisure destination, could equally be relocated elsewhere in the vicinity. Whilst planning consent has only just been obtained for fashion sales in the Marks & Spencer unit, the landlord has recently received interest from Nike seeking representation on the scheme. Historically, there has also been strong interest from a number of the discount retailers. Prior to the letting to Outfit, terms were agreed in March 2012 to 99p Stores at a rent of £28.50 per sq ft. We are of the opinion that Costco’s car park is under utilised. It may be possible to acquire part of this which could be used to create a further A3 pod development, subject to planning.
A4232
A4232 CAPITAL SHOPPING PARK // TENANCY
TENANCY The property is fully let on full repairing and insuring leases and benefits from an income weighted average unexpired lease term of over 11.25 years.
UNIT TENANT AREA MEZZANINE LEASE START TERM LEASE EXPIRY NEXT CURRENT RENT RENT RAT COMMENTS (SQ FT) AREA (SQ FT) (YEARS) RENT REVIEW (PER ANNUM) ( PER SQ FT)
2 Arcadia t/a Outfit 9,998 9,500 31/08/12 15 30/08/27 31/08/17 £299,940 £30.00 Rent reviews capped at 3.00% pa compounded. Break at year 10.
3 A Share & Sons Limited t/a ScS 10,093 7,500 07/07/0 8 25 06/07/33 07/07/ 1 3 £232,139 £23.00 Outstanding rent review.
4 Marks & Spencer plc 24,000 23,000 05/09/08 15 04/09/23 05/09/13 £440,000 £18.33 Upwards only rent review capped at 1.077284 ( 1.5% pa).
5a & 5b Next Group plc 20,100 20,000 23/04/12 10 22/04/22 23/04/17 £452,250 £22.50 Option to take 10,000 sq ft garden centre as a supplemental lease (not yet exercised).
Reviews are to the lower of open market value or the rent increased by 113.14081 (2.5% pa 6 Smyths Toys UK Limited 20,015 5,000 22/08/08 15 21/08/23 22/08/13 £350,263 £17.50 compounded). Outstanding rent review.
Open market review at first review, capped at 2.5% p.a. compounded. Fixed uplift at second review 7a Mamas & Papas (Retail) Limited 7,500 6,000 05/01/09 15 04/01/24 05/01/14 £210,000 £28.00 to 2.5% p.a. compounded.
7b Hobbycraft Trading Limited 7,527 6,500 07/07/0 8 15 06/07/23 07/07/ 1 3 £206,993 £27.50
8 Les Croupier 10,000 10,000 27/08/09 10 26/08/19 27/08/14 £180,000 £18.00 Fixed rental increase to £200k p.a. from 27/08/2014 to end.
9 Dave Whelan Sports Limited 22,500 22,500 07/07/0 8 25 06/07/33 07/07/ 1 3 £509,134 £22.63 Rent reviews to 2.5% p.a. compound. 12
POD 1 Ladbrokes Betting & 1,109 06/04/09 10 05/04/19 06/04/14 £33,270 £30.00 UNIT A Gaming Limited
POD 1 Greggs plc 1,206 06/04/09 15 05/04/24 06/04/14 £36,180 £30.00 Break option 05/04/2019. UNIT B
POD 1 Subway Reality Limited 1,206 06/04/09 15 05/04/24 06/04/14 £36,180 £30.00 Break option 05/04/2019. UNIT C
POD 1 Game Retail Limited 1,493 06/04/09 10 05/04/19 06/04/14 £48,523 £32.50 UNIT D
POD 1 Costa Limited 1,600 06/04/09 10 05/04/19 06/04/14 £49,600 £31.00 UNIT E
1ST FLOOR Mutual break 30/11/2012 (not exercised). Tenant in liquidation. Rent being paid by Full Circle Full Circle Limited 1,850 30/11/09 10 29/11/19 30/11/14 £27,750 £15.00 SUITE A Facilities Management Limited.
1ST FLOOR Mutual break 30/12/2012 (not exercised). Tenant in liquidation. Rent being paid by Full Circle Aqua Clean Limited 833 20/07/11 8.3 29/11/19 30/11/14 £12,495 £15.00 SUITE B Facilities Management Limited.
1ST FLOOR Creative Risk 1,278 10/07/12 5 10/07/17 n/a £15,336 £12.00 Break option 10/07/2014. SUITE C
FAST FOOD KFC (Great Britain) Limited 3,019 21/01/11 25 20/01/36 21/01/16 £81,513 £27.00 Break option 21/01/2026.
POD 2 UNIT 1 The Carphone Warehouse Limited 1,500 09/05/11 10 08/05/21 09/05/16 £45,000 £30.00
POD 2 Jeffrey Ross 1,000 04/01/13 10 03/01/23 04/01/18 £37,500 £37.50 Break option 04/01/2018. UNIT 2
POD 2 Maplin Electronics Limited 3,500 09/05/11 10 08/05/21 09/05/16 £105,000 £30.00 UNIT 3
OFFICE RAS Security 2,245 28/03/12 10 27/03/22 28/11/17 £29,185 £13.00 Reviews are 5 yearly to RPI. SUITE 1
TOTAL 153,572 110,000 £3,438,249 £22.39 TENANTS’ COVENANTS The scheme benefits from being fully let, with 94% of the income to ‘A’ rated D&B covenants. We set below the most recent company accounts for each tenant:
UNIT TENANT NAME YEAR ENDING SALES TURNOVER PROFIT / LOSS NET WORTH D&B RATING PLANNING (000’S) PRE TAXES (000’S) (000’S) The retail park is subject to an original overall planning consent which has been subsequently
25/08/12 £133,196 £20,962 £1,135,645 amended together with various S106 agreements. We would briefly summarise the planning 2 Arcadia t/a Outfit 5A1 27/08/11 £139,006 £26,006 £1,115,152 conditions effecting the principle units of the retail park as follows:
28/07/12 £208,284 –£1,100 £19,109 Units 2 – 9 3 A Share & Sons Limited t/a ScS 4A2 30/07/11 £186,345 –£5,746 £20,109 This accommodation benefits from a base planning consent allowing it to be used for no other purposes than DIY products, plumbing and hardware, timber and tooling products, // CAPITAL SHOPPING PARK CAPITAL // GENERAL INFORMATION 03/31/12 £9,934,300 £658,000 £4,787,800 4 Marks & Spencer plc 5A1 02/04/11 £9,740,300 £780,600 £4,767,400 paint and wallpaper, garden supplies, coverings, soft furnishings, homewares, electrical goods, gas supplies, computers, computer equipment and supplies, pet products and 26/01/13 £212,300 £322,500 £1,747,900 5a & 5b Next Group plc 5A1 accessories, motor parts and bicycles and accessories. There is a minimum unit size 28/01/12 £195,000 £530,600 £1,951,000 of 10,000 sq ft.
31/12/12 £97,356 £2,434 £4,714 6 Smyths Toys UK Limited 2A2 75,013 sq ft (GIA) can be used for the sale of toys, games, play equipment, baby care 31/03/11 £84,415 £2,110 £5,931 products, baby food, maternity wear, children’s clothing and footwear, any floor space
01/04/12 £98,315 –£1,011 £8,575 devoted to the sale of pharmaceuticals. Baby food, children’s clothing and footwear and 7a Mamas & Papas (Retail) Limited 3A2 03/04/11 £99,819 –£95 £8,027 maternity wear shall not be more than 20% or 5,000 sq ft of any unit, whichever is less. None of this floor space is to be sub-divided into more than 4 units. 19/02/12 £106,522 £11,519 £42,447 7b Hobbycraft Trading Limited 5A4 20/02/11 £95,188 £7,450 £31,895 Not more than 35,000 sq ft (GIA) should be used for the sale of sports clothing or sportswear and sports equipment. 31/03/12 £18,460 –£655 £3,346 8 Les Croupier 2A1 31/03/11 £20,500 –£164 £4,034 Not more than 12,000 sq ft (net floor space) of a single unit of 40,000 sq ft (GIA) to be used
01/04/12 £143,110 £7,387 £9,302 for the sale of men’s/womens, children’s fashion and sports clothing/footwear, provided the 9 Dave Whelan Sports Limited 3A2 13 27/03/11 £139,437 £3,857 £3,493 remaining floorspace is used for the sale of DIY products, print and wallpaper and other similar products. 31/12/11 £694,139 £111,963 £885,620 POD A Ladbrokes Betting & Gaming Limited 5A1 31/12/10 £683,636 £67,274 £774,890 A single unit of up to 20,807 sq ft (GIA) (or 5% of the permitted retail and warehouse floor space) may be used exclusively for the sale of men’s and/or women’s fashion, clothing, 29/12/12 £734,502 £53,342 £234,148 POD B Greggs plc 5A1 31/12/11 £701,088 £60,500 £206,063 footwear and fashion accessories. In addition a recent consent allows a single unit of up to 48,000 sq ft (GIA) to be used 31/12/12 £28,059 £2,021 £2,507 POD C Subway Reality Limited 2A2 31/12/11 £26,626 £1,491 £3,983 for the retailing of a wide range of goods which include clothing, footwear and fashion accessories. Up to 8,000 sq ft net sales area of the same unit can be used for the sale of 29/01/11 £662,534 £11,159 £107,048 POD D Game Retail Limited O4 convenience goods. 30/01/10 £760,176 £51,171 £113,702 The casino operates under a D2 consent, whilst the ground floor of DW Sports has a Health 01/03/12 £458,596 £62,624 £173,052 POD E Costa Limited 5A1 and Fitness consent. 03/03/11 £377,284 £49,468 £127,214 Pod 1 1ST FLOOR Full Circle Limited n/a n/a n/a n/a n/a SUITE A The ground floor area benefits from an unrestricted A1/A2/A3 planning consent but with a limit on total retail floor space with B1 for the first floor. 1ST FLOOR Aqua Clean Limited n/a n/a n/a n/a n/a SUITE B Pod 2 Units 1 & 2 benefit from an unrestricted planning consent and Unit 3 benefits from a 1ST FLOOR 31/01/12 £281 Creative Risk n/a n/a B4 restricted A1 planning consent. SUITE C 31/01/11 £218
FAST 04/12/11 £394,244 £47,232 £63,782 KFC (Great Britain) Limited 5A1 FOOD 28/11/10 £371,215 £38,389 £60,100 ENVIRONMENTAL POD 2 31/03/12 £1,513,072 -£108,239 £781,204 The Carphone Warehouse Limited 5A1 UNIT 1 02/04/11 £1,623,364 £188,529 £884,974 A report from Arup reviewing the historical ground conditions at the site, together with works undertaken during the development process can be provided to purchasers POD 2 Jeffrey Ross n/a n/a n/a n/a n/a UNIT 2 upon request.
POD 2 29/12/12 £213,518 £16,193 £156,136 Maplin Electronics Limited 5A1 UNIT 3 31/12/11 £205,025 £24,784 £143,711
OFFICE EPCs RAS Security n/a n/a n/a n/a O3 SUITE 1 EPCs are available on request. CAPITAL SHOPPING PARK // PROPOSAL VAT The property has been elected for VAT and therefore VAT is payable. However, we anticipate the transaction to be treated by way of a TOGC.
STRUCTURE The property is currently held within an English Limited Partnership (ELP), The Capital Retail Park Partnership. The opportunity exists for a purchaser to acquire shares in the companies owning the ELP and take on the existing debt, which would result in significant savings in acquisition costs. Alternatively, our clients will equally consider the sale of the existing long leasehold interests out of the LLP, which will attract standard rates of SDLT. 14
PROPOSAL Our clients are seeking offers in excess of £56.5 million for the long leasehold interest in the property, subject to contract and exclusive of VAT. This would reflect anet initial yield of 5.75% assuming purchaser’s costs of 5.80%. MILES MARTEN T: 020 7317 3777 M: 07770 748290 E: [email protected]
ELLIE KIRKBY T: 020 7317 3790 M: 07764 241989 E: [email protected]
Wilkinson Williams, Heathcoat House, 20 Savile Row, London, W1S 3PR WWW. WILKINSONWILLIAMS. CO.UK
SIMON WATSON JAMES T: 029 2034 7112 M: 07775 910991 E: [email protected]
DANIEL GRIFFITHS T: 029 2034 7133 PROPERTY MISREPRESENTATION ACT M: 07818 55350 Wilkinson Williams LLP and EJ Hales give notice to anyone who may read these particulars as follows: Any areas, measurements or distances referred to herein are approximate only. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give Where there is reference in the particulars to the fact that alterations have been carried out or that a E: [email protected] a fair overall description of the property but are not intended to constitute part of an offer or contract. particular use is made of any part of the property. Descriptions of the property are inevitably subjective and the descriptions contained herein are given in good faith as an opinion and not by way of statement Any information contained herein (whether in the text, plans or photographs) is given in good faith but of fact. should not be relied upon as being a statement of representation or fact. EJ Hales, 28 Windsor Place Plans are published for convenience of identification only and although believed to be correct, their Nothing in these particulars shall be deemed to be a statement that the property is in good condition or accuracy is not guaranteed and they do not form part of any contract. Cardiff, CF10 3SG otherwise nor that any services or facilities are in good working order. The photographs appearing in this brochure show only certain parts of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore, no WWW. assumptions should be made in respect of parts of the property which are not shown in the photographs. EJHALES.
CO.UK REF: 11538.001 | CAPITAL SHOPPING PARK | CARDIFF | SEPTEMBER 2013 Designed and produced by THE GROUP www.completelygroup.com