REVERSIONARY MULTI LET INDUSTRIAL INVESTMENT

Gwaelod y Garth Industrial Estate | Junction 32 M4 | | CF15 9AA 02 Gwaelod y Garth Industrial Estate | J32 | | Cardiff

The Opportunity ç ç ç Gwaelod y Garth comprises a prominent, well- ç The recent new headline rent at £5.50 per sq ft established, multi-let industrial / trade counter estate represents a 13.9% increase on previous levels and accessed off the A470 which is the main arterial route offers competitive rents compared to Cardiff City Proposal ç between Cardiff and the South Valley areas. ç centre industrial estates. ç ç The freehold comprises six units in three terraces, ç Diversified income profile with 73% attributable to ç Seeking offers in excess of£3,380,000 totalling a Gross Internal Area of 49,920 sq ft strong tenants with a Fame Credit score of 89% and (Three Million, Three Hundred and Eighty (4,637.68 sq m). The units provide an attractive above (rated Secure), including the Royal Mail, with a Thousand Pounds) reflecting an attractive minimum eaves height of 6m and some of the larger number of asset management opportunities in the Net Initial Yield of 7%, after deducting units have the potential for further sub-division. short to medium term. standard purchaser’s costs of 7.16%, and a ç ç low Capital Value of £68 per sq ft. ç The estate is fully-let to six occupiers with a WAULT of ç Cardiff was recently ranked 2nd in the UK for annual ç 6.91 years to lease expiries (4.13 years to break industrial rental growth at 9.9% (CoStar – 12 months ç Subject to Contract and Exclusive of VAT. ç options). prior to February 2019). ç Current rent of £253,601 per annum and a low average rent of £5.08 per sq ft with reversionary potential. 1 03 Gwaelod y Garth Industrial Estate | J32 | M4 Motorway | Cardiff

M4 Greenmeadow Springs Offices

J32

M4 A470

New £100m Rail Depot Ty Nant Court Offices

Taffs Well Railway Station GWAELOD Y GARTH INDUSTRIAL ESTATE Treforest Industrial Estate

Taffs Well New £100m Railway Station Rail Depot

Taffs Well Industrial Estate A470

GWAELOD Y GARTH INDUSTRIAL ESTATE

For indicative purposes only 04 Gwaelod y Garth Industrial Estate | J32 | M4 Motorway | Cardiff

Location Forecasted Growth ç ç ç ç Located in Cardiff, Wales’ capital city and the prime ç Considerable recent inward investment has propelled Cardiff ç The City is one of a conglomerate of ten Local Authorities commercial hub in the region. firmly into ‘Core City’ status and significantly raised its profile to sign the Cardiff Capital Regional Deal which is a £1.2bn ç through a number of developments around Cardiff Central regional investment vehicle tasked with powering forward Exceptionally well-connected estate in an established ç Station. Much of this redevelopment of the city has decreased major infrastructure projects, create a new innovation hub with industrial, logistics and trade location at the intersection of the the inner-city industrial stock levels. 25,000 new skilled jobs and leverage an additional £4bn of A470 and Junction 32 of the M4 Motorway with easy access ç private sector investment. to Cardiff City centre. ç Cardiff is the fastest growing UK City. Currently at 350,000 ç residents, Cardiff is forecast to grow faster than any other M4 Junction 32 / A470 is regarded as the most important ç UK City in population terms (26%) over the next 20 years – road intersection in Wales. including London. Population growth has already been at 12% over the last 10 years. LEOMINSTER WORCESTER

BRECON M50

A470 GLOUCESTER CHELTENHAM A465 A465 A470 42 SWINDON GWAELOD Y GARTH INDUSTRIAL ESTATE 26 M49 NEWPORT 32 33 BRISTOL CARDIFF BRISTOL CHANNEL BATH WESTONSUPERMARE

BRIDGWATER 05 Gwaelod y Garth Industrial Estate | J32 | M4 Motorway | Cardiff A303 Connectivity YEOVIL

Cardiff is a capital city thriving on its rapid connectivity both TrainRail SHIPSea domestically and internationally by road, rail, sea and air. ç A30 ç EXETER CarRoad ç Mainline rail connectivity is via Cardiff Central Railway ç also has significant shipping infrastructure. Stations with journey times of 2 hours to London and Associated British Ports have ports in Cardiff, Barry, Newport, ç Birmingham New Street. Port Talbot and Swansea which collectively handle more than 12 ç Linked to major national road infrastructure via Junctions ç million tonnes of cargo per annum. 29-33 of the M4 Motorway providing access to Cardiff City ç Journey times will compress to just 1 hour 40 minutes to ç centre and the other major South Wales cities of Newport London following completion of electrification works by the ç In addition, Milford Haven is the 3rd largest port in the UK and the and Swansea. end of 2019 which form part of the £5 bn largest energy port, handling over 30 million tonnes of cargo per year. ç project. ç The A470, leading from Junction 32 of the M4, is the main Distance by road Train times from Cardiff arterial route from Cardiff to the areas ç ç The project also includes replacement of the entire fleet, Newport 15 miles Bristol 50 mins and the Heads of the Valleys (A465) road which has recently electrification of the Valleys lines and extended services. Swansea 41 miles Birmingham 119 mins undergone £800m improvement works to create a new dual- Plane Bristol 43 miles London 127 mins carriageway. Air Birmingham 113 miles Manchester 190 mins ç ç ç The Severn Bridge tolls were also abolished in December ç Cardiff International Airport is located 11 miles south-west Reading 114 miles Journey times to London will 2018 which has boosted industrial occupier confidence in of the City Centre and provides direct flights to an ever- London 147 miles the region. expanding array of global destinations. compress by circa 20 minutes following electrification. Treforest Industrial Estate To Merthyr Tydfil

C a r di f f A470 GWAELOD Y GARTH R d Taffs INDUSTRIAL ESTATE Well

To Newport, Bristol M5 M a and London in R d Castell Coch

Golf Club M4 B4262

Greenmeadow T A470 y Spring Office - N Park a Holiday Inn n

t

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A470 No rt To Swansea 32 he C t rn ory u A ton Roundabo v

e n Village Hotel u

B e 4

M4 2 Whitchurch

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GE Healthcare To Cardiff For indicative purposes only City centre 06 Gwaelod y Garth Industrial Estate | J32 | M4 Motorway | Cardiff

Situation Surrounding Occupiers

The estate is situated in north Cardiff, between the affluent This is evidenced through the calibre of occupiers within the suburbs of Radyr and Gwaelod y Garth. It sits adjacent immediate vicinity which includes the Royal Mail, Phoenix to J32 of the M4, the most important road junction in Wales. Healthcare Distribution, South Wales Police vehicle depot, Travis As such it provides a compellingly attractive location to Perkins, Rhys Davies Logistics, Mon Motors and DHL, amongst occupiers requiring good road access and favourable others. drive time / catchment dynamics. The has recently announced a £100 million Gwaelod y Garth together with Taffs Well Industrial Estate forms investment in Taffs Well to develop a new rail a well-established industrial location within close proximity to depot which will act as a new maintenance and integrated control Wales’ Capital City and convenient access to the main road links centre, as part of the £5 bn South Wales Metro Project. This will providing occupiers with a larger catchment area based on also include a redevelopment of Taffs Well train station to include drive-time. a commuter-hub park & ride facility given its proximity to J32 of the M4 and the A470. LEOMINSTER WORCESTER

DRIVE TIMES 783,000 people 60 MINS BRECON M50 30 min drive time 30 MINS

GLOUCESTER podcast 2,557,000 CHELTENHAM people 60 min drive time MERTHYR TYDFIL SWANSEA NEATH GWAELOD Y GARTH SWINDON affluent INDUSTRIAL ESTATE households within M49 catchment 53% NEWPORT 07 32 BRISTOL 5.6% growth of CARDIFF BRISTOL CHANNEL BATH population within a 30 mins WESTONSUPERMARE drive time by 2028 Car For indicative purposes only 07 GwaelodBRIDGWATER y Garth Industrial Estate | J32 | M4 Motorway | Cardiff

Catchment areas ç ç YEOVIL ç Given the estate’s exceptional connectivity, occupiers have ç Extending this to a 60-minute drive time the total population an enlarged customer base which they are able to capitalise occupiers can access is 2,557,000 which is forecast to grow Severn Bridge on based on drive-times. This has further increased through by circa 4.7% over the next 10 years to 2,668,000. ç the abolition of the Severn Bridge toll in 2018. This previously ç Of this 53% are categorised as affluent households. toll abolished prevented many occupiers from tapping into the South West ç ç There is a growing online shopping base of 21% with customer base. EXETER ç increased forecasted demand for last-mile logistics. ç Using 2018 figures there is a total population of circa in 2018 783,000 within a 30-minute drive and is forecast to increase (Source: CACI/Knight Frank) to 827,000 by 2028 (5.6% growth). Unit 1A - Prior to letting to JD Cleverly Ltd 08 Gwaelod y Garth Industrial Estate | J32 | M4 Motorway | Cardiff

Description

The estate is a multi-let trade counter / light industrial estate comprising 6 units, totalling 49,920 sq ft (4,637.68 sq m), across 3 terraces. The units are on a self-contained site with prominence on to a busy main road. Each unit contains the following specification: ç ç ç Concrete frame construction with brick and profiled ç Level access roller shutter doors ç steel cladding ç External loading / circulation area with dedicated car parking ç ç ç Pitched steel truss roofs with translucent panels ç Each unit has all mains services connected including gas ç ç ç Suspended sodium lighting ç Alternative uses established on the estate such as ç ç Attractive 6m minimum eaves height D1 use (Unit 2C) ç ç ç Single storey offices with WCs ç Unit 3 (Royal Mail) benefits from a demised secure yard 09 Gwaelod y Garth Industrial Estate | J32 | M4 Motorway | Cardiff

Accommodation Planning

The estate has been measured on a Gross Internal Area in The estate benefits from B1, B2 and B8 planning permissions and Unit 2A accordance with the RICS Code of Measuring Practice (6th D1 planning use for a veterinary clinic has recently been approved Edition). on Unit 2C (Valley Vets). Unit 2B

Accommodation Sq Ft Sq M Site Unit 1A Unit 2C Unit 1A 9,769 907.56 The site in its entirety totals approximately 2.79 acres with a low Unit 1B 9,772 907.84 site coverage of 42%. Unit 1B Unit 3 Unit 2A 5,919 549.89 The site is within a Flood Zone 2 with the extent of a flood from Unit 2B 5,803 539.11 rivers or sea with a low risk of up to a 0.1% (1 in 1,000) chance of happening in any given year (Source: Natural Resources Wales). Unit 2C 7,821 726.59

Unit 3 10,836 1,006.69 Tenure Service Charge

Total 49,920 4,637.68 Freehold. An estate service charge is in operation and a copy of the budget is available upon request. 10 Gwaelod y Garth Industrial Estate | J32 | M4 Motorway | Cardiff

Tenancy Schedule

All lettings are on Full Repairing and Insuring leases with a Weighted Average Unexpired Lease Term (WAULT) of 6.91 years to expiries (4.13 years to break options) as set out in the tenancy schedule below:

Area Area Start Review Expiry Break Rent Rent Unit Tenant Comments (sq ft) (sq m) Date Date Date Date (£ per annum) (£ per sq ft) Comprehensively refurbished. Schedule of 28/03/2022 JD Cleverly Condition. 3 months rent free if the tenant does Unit 1A 9,769 907.56 28/03/2019 28/03/2024 27/03/2029 and £53,750 £5.50 Limited not exercise their break option. Tenant break 28/03/2024 subject to 6 months prior written notice. Phoenix Tenant has been in occupation since 2004. Unit 1B Healthcare 9,772 907.84 24/06/2019 - 30/10/2024 - £53,746 £5.50 No rent free. Limited Clarkson Schedule of Condition. Tenant break subject to 6 Unit 2A 5,919 549.89 15/04/2016 15/04/2021 14/04/2026 15/04/2021 £26,550 £4.49 Evans Limited months’ written notice. Direct Source Unit 2B 5,803 539.11 20/03/2019 - 19/03/2024 - £29,070 £5.01 Tenant has been in occupation since 2010. UK Limited Tenant has invested significantly on their 16/01/2024 Valley Vets fit-out. Tenant break subject to 6 months’ Unit 2C 7,821 726.59 16/01/2019 and 10/01/2034 16/01/2029 £39,085 £5.00 Limited written notice. Half rent until 13/01/2021 to be 16/01/2029 topped up by the Vendor. Schedule of Condition. Tenant has been in occupation since 1999. Royal Mail Unit benefits from demised secure yard. Proposal Unit 3 10,836 1,006.69 24/06/2014 24/06/2019 31/08/2020 - £51,400 £4.74 Group Limited has been submitted to regear at a rent of £6.00 per sq ft. £5.08 psf Total 49,920 4,637.68 £253,601 (average)

*All existing rent free periods to be topped up by the Vendor. For the avoidance of doubt, any subsequent rent free period granted after break options will not be topped up by the Vendor. 11 Gwaelod y Garth Industrial Estate | J32 | M4 Motorway | Cardiff

Covenant Analysis J.D. Cleverly Limited Clarkson Evans Limited www.monmotors.com 21.19% of income www.clarksonevans.co.uk 10.47% of income Established in 1971, the Mon Motors Group is now one of the Clarkson Evans is a UK leading electrical contractor and training The estate benefits from a diverse tenant mix with 73% of the largest automotive dealer groups in South Wales and the West specialist. It operates over 20 nationwide branches and have passing income let to covenants with a Fame Credit Score of of . The group has mains dealerships for Audi, Ford, Seat, worked alongside the UK’s major house builders for wiring the 89% or higher, rated ‘Secure’, which represents a minimal risk of Skoda and Volkswagen along with a large used-car operation and bulk of new build homes over the previous 37 years with 16 years business failure. commercial vehicle branch and a number of multi-brand service providing City & Guilds approved training. centres, body shops and trade part specialists. % of Secure Rated Covenants Clarkson Evans generated an annual turnover in September 2017 11.5% JD Cleverly has a Fame Credit Score of 92% ‘Secure’ and of £50.49m which equals to 11.95% growth on the previous year Secure i.e. 89% plus reported a turnover in December 2017 of £506,928, 23% growth with tangible net worth increasing by 17.25% to £7.4m. Credit Rating on the previous year. Similarly, a pre-tax profit of £475,981 and 15.4% 57% plus tangible net worth of £1,661,774 were reported and both show Credit Rating Direct Source UK Ltd healthy growth of 24% and 23% respectively. www.directsourceuk.com 11.46% of income 40% plus Direct Source is an online supplier of trophies and awards Credit Rating Parent company guarantee from Mon Motors Limited reporting: ç covering sporting, school and corporate events supplying an 73.1% ç Turnover of £333.67m in 2017 ç expanding base of both UK and internationally based customers. Source: Fame ç Net worth of £14m Its most recent reported tangible net worth stood at £134,622 ç ç Fame Credit Score of 89% ‘Secure’. as of December 2017.

Royal Mail Group Limited Phoenix Healthcare Distribution Limited Valley Vets www.royalmail.com 20.27% of income www.myp-i-n.co.uk 21.19% of income www.valleyvets.net 15.41% of income The Royal Mail is the UK’s Universal Service provider and can Phoenix has a Fame Credit Score of 99% ‘Secure’ and is an Valley Vets has been providing specialist veterinary care for over deliver to over 30 million addresses across the UK. The wider integrated healthcare provider offering a range of services across six decades on a range of animals from household to exotic pets. group operates in the UK under the Royal Mail and Parcelforce the UK and Europe for pharmacists, hospitals, wholesalers and The practice provides a number of high-end services including Worldwide brands. Over 2017-2018, Royal Mail handled over healthcare providers. A major part of their operation is to provide a 24 hour emergency service, complex surgeries such as 1.2bn parcels and 14.4bn letters. The group is extending its the NHS with a reliable and cost-effective supply chain. orthopaedic, a number of services via its in-house laboratory European logistics network to provide further geographical and specialist diagnostic equipment. Valley Vets has established diversification and growth potential and in March 2018 reported Phoenix reported an annual turnover of £1.11bn in January 2018, itself as a leading veterinary practice and in June 2018 reported a a turnover of £7.6bn, and tangible net worth of £3.57bn. 4.9% growth on the previous year. Pre-tax profit stood at £21.93m tangible net worth of £2.72m. with a tangible net worth of £188.83m, both demonstrating positive growth of 5.4% and 3.8% respectively. * Further accounts information are available upon request. 12 Gwaelod y Garth Industrial Estate | J32 | M4 Motorway | Cardiff

Investment Market Recent comparable investment evidence as follows: Term Capital Commentary Size Date Address Certain Price Value NIY (Sq Ft) (Years) (PSF) The South Wales multi-let industrial market is characterised by a South Wales Regional Comparables shortage of stock which is predicated by a lack of development £4.8m 6.50% Current Neptune Point, Cardiff 60,256 4 £80 in recent years to satisfy occupier appetite. As such, this has (quoting) (quoting) created a backdrop of pent up occupier demand which in part June 2019 Pentwyn Business Park, Cardiff 39,891 3.20 £2.56m £64 6.25% can be attributed to a structural change in the occupier sector particularly around online retailing and last-mile logistics. All December 2017 Severnlink, Chepstow 82,076 3 £4.63m £56 6.75% of which is fuelling rental growth with rents starting from a November 2017 Dominions Way Trading Estate, Cardiff 94,923 2.90 £5.84m £62 7.25% comparatively low base compared to other UK regional markets. August 2017 West Point Industrial Estate, Cardiff 33,372 2.69 £2.6m £78 7% This was recently acknowledged by CoStar who reported that in May 2017 Celtic Business Park, Newport 48,157 5 £3.925m £82 6.33% the 12 months prior to February 2019, Cardiff was second in the UK for the highest industrial rental growth at 9.9% beating the UK Regional Comparables likes of Manchester, Milton Keynes and Kent. Cardiff was second May 2019 Postley Road, Bedford 85,012 6 £9.5m £112 5.52% to Swansea who recorded rental growth of 13.4% and is evidence of the area catching up with the wider UK from its low rental base. February 2019 Canon Industrial Estate, Milton Keynes 191,998 2.6 £18.09m £94 5.56%

December 2018 Hambridge Lane Industrial Estate, Newbury 37,237 4 £4.67m £125 5.44%

December 2018 Riverway Industrial Estate, Alton 41,307 3.4 £5.3m £128 5.50%

June 2018 Kingsditch Trading Estate, Cheltenham 137,940 2.80 £20.5m £148 5.30%

April 2017 Abbeywood Park, Bristol 42,803 3.20 £5.8m £136 5.09% 13 Gwaelod y Garth Industrial Estate | J32 | M4 Motorway | Cardiff

VAT Investment Considerations

ç ç We understand the property has been elected for VAT and ç Cardiff is a rapidly growing Core UK City and the closest ç Strong reversionary potential with recent headline rents anticipate the sale will be undertaken as a Transfer of a Going European capital city to London. of £5.50 per sq ft being achieved on the estate against a Concern (TOGC). ç ç The city is forecast to grow faster than any other UK city in backdrop of a market fundamentals catalysing further rental population terms (26%) over the next 20 years – including growth. ç London. ç Cardiff was recently ranked 2nd in the UK for annual industrial EPCs ç ç Gwaelod y Garth is situated in arguably the most important rental growth at 9.9% (CoStar – 12 months prior to February road intersection in Wales enabling occupiers to tap into a 2019). ç Accommodation EPC Rating larger customer base compared to competing estates. ç Within the estate itself an increase of 13.9% has been ç achieved on headline rental tones compared to previous Unit 1A D(100) ç Within a 30-minute drive-time there is a population of 783,000 which extends to 2.6 million within 60-minute drive, levels. ç Unit 1B D(87) of which 53% are affluent households with a growing online ç The estate’s strategic location provides a rare opportunity shopping base of 21%. This is particularly attractive given to acquire an asset with defensive characteristics with a Unit 2A D(94) the structural change in industrial towards online retailing and platform to achieve further headline growth through the Unit 2B E(101) last-mile logistics. current market fundamentals of pent-up occupier demand, ç shortage of stock and limited new development. Unit 2C D(91) ç The estate is fully-let to six tenants, of which 73% of the income is attributable to ‘Secure’ covenants with a Fame Unit 3 D(99) rating of 89% and above. 14 Gwaelod y Garth Industrial Estate | J32 | M4 Motorway | Cardiff

Proposal Further information

Seeking offers in excess of£3,380,000 (Three Million, Three Hundred and Eighty Thousand For further information or to arrange an inspection please contact: Pounds) reflecting an attractiveNet Initial Yield of 7%, after deducting standard purchaser’s costs Gareth Lloyd Elliot Evans of 7.16%, and a low Capital Value of £68 per sq ft. 029 2044 0141 029 2044 0952 Subject to Contract and Exclusive of VAT. [email protected] [email protected]

Will Gubb 020 7861 1595 [email protected]

Important Notice 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. None of the services or appliances have been tested and no warranty is given or is to be implied that they are in working order. 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 55 Baker Street, London, W1U 8AN, where you may look at a list of members' names. July 2019 Brochure - July 2019 Photography - June 2019 K Designed and Produced by www.kubiakcreative.com 193642 07-19