THE AVENUE RETAIL PARK NEWPORT ROAD CF23 9AE

PRIME CONVENIENCE-LED SCHEME INVESTMENT HIGHLIGHTS

Cardiff is the capital city of Wales and one of the fastest Newport Road is the most growing cities in the UK. established retail warehousing Newport Road is the most established retail warehousing destination in the city. destination in the city.

Prime convenience-led scheme with circa 60% of the income from retailers deemed essential during COVID-19.

Anchored by M&S Foodhall, B&M and Home Bargains, with other occupiers being Matalan, Sharps Bedrooms, Magnet and Greggs.

119,550 sq ft and site area of 8.16 acres.

Low average rent of just £12.60 per sq ft, with a total current rent of £1,509,752 per annum.

Class E planning consent which was formerly bulky goods consent with various relaxations.

Asset management opportunities including extending the WAULT through lease re-gears and creating a new pod unit development.

Freehold.

We are instructed to seek offers in excess of £16,965,000 (Sixteen Million, Nine Hundred and Sixty Five Thousand Pounds), subject to contract and exclusive of VAT.

This reflects an attractive net initial yield of 8.25%, based on purchaser’s costs of 7.67%. This gives a low capital value of just £142.00 per sq ft. A69 NEWCASTLE UPON TYNE HEXHAM

A68 A694 SUNDERLAND A693

A690

DURHAM A68 A19

A1(M) BISHOPS HARTLEPOOL AUCKLAND A689

A68 MIDDLESBROUGH BARNARD CASTLE DARLINGTON A66 A66 A19

M6 A585

BLACKPOOL M65 M55 A59 BURNLEY BRADFORD A583 PRESTON BLACKBURN A646 HALIFAX M62 CASTLEFORD M65 A56 A59 M62

SOUTHPORT A666 HUDDERSFIELD M6 M61 M66 A570 BOLTON M62 A5758 WIGAN M58 M1 A628 MANCHESTER M6 M57 M62 M60 ROTHERHAM WARRINGTON PEAK DISTRICT SHEFFIELD NATIONAL PARK

M53 M56 A623

NORTHWICH MACCLESFIELD CHESTERFIELD LINCOLN A550 CHESTER M6 A53 A523 M1 MANSFIELD A6 A34 A515 A423 A534

A385 A46 STOKE-ON-TRENT A52 BOSTON NOTTINGHAM A515 DERBY

A453 A50 BURTON UPON TRENT A53 MELTON A46 A515 MOWBRAY KING’S LYNN M1 M6 A38 A41 SHREWSBURY M54 NORWICH M42 LEICESTER GREAT M6 Toll A444 DOWNHAM YARMOUTH MARKET A442 WOLVERHAMTON M69 PETERBOROUGH A49 A458

CORBY LOWESTOFT A458 BIRMINGHAM M6 M1 A1(M) THETFORD M5 M42 COVENTRY KETTERING A141 A14 KIDDERMINSTER RUGBY M42 A14 A46 M45 A49 A456 A508 A423 WELLINGBOROUGH A14 A449 A1 A14 NEWMARKET A6 A14 CAMBRIDGE STRATFORD-UPON-AVON NORTHAMPTON BEDFORD WORCESTER A5 M40 A11 A46 M1 M11 IPSWICH A429 ST GEORGE’S CHANNE L SUDBURY BANBURY MILTON A1 A505 CARDIFF HEREFORD A44 KEYNES FELIXSTOWE M5 M1 A6 A470 M50 Cardiff is one of the fastest growing cities in the UK and is A5 HARWICH A40 M40 LUTON STEVENAGE STANSTED the capital city of Wales, providing the principal retailing and A44 A120 commercial centre for the South Wales region. A40 LUTON COLCHESTER DUNSTABLE A10 CARMARTHEN BRECON BEACONS A429 A41 A1 (M) BISHOP’S NATIONAL PARK HERTFORD WARE STORTFORD A12 ROAD A470 AYLESBURY HEMEL ST CLACTON-ON-SEA ALBANS A48 A483 A40 HEMPSTEAD CHELMSFORD The city is located immediately to the south of the A414 HARLOW GLOUCESTER OXFORD M4 motorway, accessed via junctions 29-33 of the HATFIELD A414 M4 motorway. Cardiff is situated approximately PONYTPOOL AMERSHAM LLANELLI M5 M25 A465 M40 A12 150 miles west of London, 40 miles west of Bristol, A420 HIGH M1 M25 WYCOMBE M25 NORTH 42 miles east of Swansea, 115 miles south of A449 WATFORD SWANSEA A470 SEA Birmingham and 195 miles of south Manchester. M48 PONTYPRIDD M4 BASILDON NEWPORT SWINDON SOUTHEND-ON-SEA M4 SLOUGH WEST A13 RAIL SWANSEA A343 DRAYTON LONDON CITY M4 Cardiff is the closest European capital city to M4 SHEERNESS CARDIFF READING HEATHROW London, soon to be down to under 100 minutes BRISTOL CHIPPENHAM LONDON MARGATE A2 ROCHESTER by train. Other destination and journey times are: A346 M4 BRACKNELL M5 NEWBURY A38 A322 Bristol 50 minutes CARDIFF M20 CROYDON BRISTOL BATH A33 Swansea 53 minutes BRISTOL CHANN EL WESTON-SUPER-MARE M3 M2 A343 Birmingham 1 hour 56 minutes A3 M25 BASINGSTOKE SEVENOAKS A338 A24 MAIDSTONE ANDOVER REIGATE A22 M20 AIR FARNHAM GUILDFORD M23 A39 A361 A303 DOVER Cardiff Airport is located 15 miles south west of MINEHEAD M5 A36 GATWICK ASHFORD A303 M3 ALTON ROYAL the city centre and provides flights to a number of GLASTONBURY A3 CRAWLEY TUNBRIDGE A31 WELLS FOLKESTONE national and international destinations. A22 BRIDGEWATER A361 SALISBURY A26 A37 WINCHESTER BARNSTAPLE A23 A272 UCKFIELD As the capital city of Wales, TAUNTON A350 A36 PETERSFIELD A272 SOUTHAMPTON WELLINGTON A354 Cardiff is the main engine YEOVIL A338 SOUTHAMPTON LEWES M27 of growth in the Welsh A3 (M) CHICHESTER HASTINGS economy, the city has been NEWHAVEN BROCKENHURST BRIGHTON developing as a significantA377 M5 A354 EASTBOURNE E R A338 PORTSMOUTH V service centre and economic D O A386 FISHBOURNE F BOURNEMOUTH T O driver for the widerA30 south A I EXETER DORCHESTER POOLE T R east Wales economy. EXETER ISLE OF WIGHT ENGLIS H CHANN EL S

LAUNCESTON WEYMOUTH A386 EXMOUTH DARTMOOR NATIONAL PARK A380

A388 A38 TORQUAY A385 NEWQUAY

PLYMOUTH DARTMOUTH

PLYMOUTH

FALMOUTH ENGLISH CHANN EL CARDIFF ECONOMY

Cardiff is projected to be one of the UK’s fastest growing cities with 26% population growth over the next 20 years. Cardiff has one of the UK’s It is one of the top cities in the UK for business growth and has fastest growing creative a higher proportion of ‘gazelle’ companies than any other UK city. Cardiff has one of the UK’s fastest growing creative sectors sectors outside of London, outside of London, with around a third of all Welsh creative with around a third of all industry jobs being based in Cardiff. Welsh creative industry jobs being based in Cardiff. HOUSING

Within the next two decades, over 41,000 new homes will be built in Cardiff as part of the city council’s Local Development Plan, making the city around 30% bigger. The biggest impact of this house building period in Cardiff will be the creation of a new £2 billion ‘garden city’ called Plasd to the north west and west of the capital. This will be a new suburb of 7,000 homes covering over 900 acres.

RETAIL SPEND Cardiff ranks 10th in terms of the volume TOURISM of total retail spend available within the Primary Retail Market Area, totalling £4.241 An estimated 20.31 million people visited Cardiff in 2017, a 5% increase on the year before, billion, with per capita retail expenditure of with 2.06 million staying overnight, with a total impact to the economy of £1.3 billion. £5,304 in 2020. QUALITY OF LIFE STUDENT POPULATION Cardiff is consistently ranked as one of the best places to live in the UK for quality of life and There are 75,000 students in the city-region was ranked third in Europe.* Despite being a capital city, Cardiff has more green space per (half the student population in Wales); person than any other core UK city. of which 43,000 live in Cardiff city centre. POPULATION

Avenue Retail Park benefits from a 10 minute drive time catchment population of 168,788 people, extending to 494,467 people within a 20 minute drive time.

Between 2019 and 2039, Cardiff’s population is projected to increase by 20% to 444,700, including 280,700 aged 16 to 64, making it the fastest growing core city in the UK.

* Source: The Quality of Life in European Cities Survey. CITY LINK RETAIL PARK SEAGER RETAIL PARK NEWPORT ROAD RETAIL PARK DRAGON RETAIL PARK Size: 118,623 sq ft Size: 34,000 sq ft Tenants: Currys PC World, Halfords, Tenants: Metro Bank, Wickes Tenants: Dunelm, , TK Maxx, The Food Tenants: Pets at Home, Sofology, Topps Tiles, Dreams Warehouse, TGI, , Home Bargains, Tapi Carpets Argos, Shoe Zone, Costa

CARPETRIGHT SAINSBURY’S & WILKO

THE RANGE GO OUTDOORS

MC DONALD’S BATHSTORE

NEWPORT ROAD

Newport Road is the principal and most established retail warehousing destination for Cardiff. Newport Road is one of the main arterial routes through Cardiff city centre, linking with the A48 Eastern Avenue and also Junctions 29 and 30 of the M4.

The property lies to the eastern side of Newport Road, opposite a 60,725 sq ft Morrisons foodstore with petrol filling station. THE AVENUE RETAIL PARK M4

The Avenue Retail Park is the premier scheme on Newport Road, benefitting from a convenience-led tenant line up including retail stalwarts B&M, M&S Foodhall and Home Bargains. The scheme totals 119,550 sq ft and is arranged in a linear terrace, with a standalone unit of 5,200 sq ft occupied by Magnet at the far end of the car park, benefitting from excellent visibility from Newport Road. Close to the entrance to the car park, opposite

M&S Foodhall and Home Bargains are two ‘pod’ units let to Greggs and Sharps Bedrooms. A470 M4 The scheme presents well, being prominently located on Newport Road, and comprising modern units with entrance features showcasing the tenant signage. Internally, the units are fitted out to the individual tenant’s specification. The B&M unit benefits from having A48 an external garden centre. Whilst there are no trading mezzanines in Units 2-5, there are THE AVENUE RETAIL PARK mezzanines in Units 2-4 used for a combination of storage facilities and staff amenities. A48 M&S Foodhall has a customer café and this, along with Greggs, provides a food offer on the A470 A4161 scheme, helping to increase dwell time. A4232 CARDIFF A4161 The calibre of the tenant line up means the scheme is popular with shoppers, and busy at times, but car parking is located to the front of the Units providing 374 spaces. There is also car parking in the service yard which staff use. A48

The park fronts Newport Road with its access and egress off an adopted side road, Rhymney River Bridge Road, which also provides access to the rear service yard used by units 2-5. A4232

The site extends to 8.16 acres (3.3 hectares), giving a low site cover of 34%.

The calibre of the tenant line up means the scheme is popular with shoppers, and busy at times, but car parking is located to the front of the units providing 374 spaces. TENANCY SCHEDULE

The scheme is well let, predominantly retailers deemed essential during COVID-19, at a low average rent of £12.60 per sq ft and providing a WAULT in excess of 6.5 years.

Areas Lease Term Lease Lease Next Passing Rent Passing Rent Unit Tenant (sq ft) (years) Start Expiry Rent Review (per annum) (per sq ft) Comments

1 Magnet Limited 5,200 15 25/12/05 24/12/20 - £100,000 £19.23 Tenant holding over.

Rent Free until 30/08/2022. Rent review capped at 2 B&M Retail Limited 46,000 10 16/11/20 15/11/30 16/11/25 £411,000 £8.93 £450,000 pa. Service charge capped @ £20,000, to be reviewed annually in line with RPI for the first 5 years. Reversionary lease agreed extending the term from 2024 3 Matalan Retail Limited 29,000 36 24/06/94 23/06/30 24/06/25 £372,736 £12.85 to 2030 in return for rent reduction from £472,388 to £372,736 and 6 months rent free.

4 M&S Simply Food Limited 18,400 15 21/04/08 20/04/23 - £331,416 £18.01

Service charge capped at £18,700 (exclusive of VAT), 5 TJ Morris t/a Home Bargains 18,700 15 05/07/13 04/07/28 05/07/23 £200,000 £10.70 increased annually by 2%.

6 Sharps Bedrooms Limited 1,000 10 04/07/16 03/07/26 04/07/21 £37,500 £37.50

7 Greggs Plc 1,250 20 20/05/10 19/05/30 20/05/25 £42,600 £34.08

Advertising JC Decaux 10 31/07/20 30/07/31 31/07/25 £11,500

119,550 £1,506,752 Average: £12.60 THE SCHEME

The Avenue Retail Park is the premier scheme on Newport Road, benefitting from a convenience-led tenant line up including retail stalwarts B&M, M&S Foodhall and Home Bargains. The scheme totals 119,550 sq ft.

TENURE

The scheme is held freehold as delineated on the plan above. PLANNING

The scheme was originally granted consent in 1989, with a number of variations over the years. Generally, the scheme had a ‘bulky goods’ consent, but this has been varied several times over the years to allow Matalan, Home Bargains and, most recently, in June 2020, to allow B&M to trade. Unit 4 has a consent allowing 10,000 sq ft of food sales and 2,500 sq ft of non-food retail sales. Units 6 and 7 were granted A1 and A3 consent in 2008.

The scheme now has a Class E planning consent in line with the changes to the planning system.

In 2018 planning permission was granted for the development of 2 pod A1/A3 units adjacent to the Magnet unit, and reconfiguration of the car park, improving the layout and traffic flow. The pod units would total 2,500 sq ft.

Further details are available on request.

COVENANT STRENGTH

The park is well let to well-known national retailers as follows: Sales Pre Tax Net D&B Unit Tenant Year Ending Turnover (000’S) Profit / Loss (000’S) Worth (000’S) Rating

31/12/2019 N/A £0 £37,188 1 Magnet Ltd 5A1 31/12/2018 N/A £0 £34,940

28/03/2020 £3,148,497 £262,360 £806,847 2 B&M Retail Ltd 5A1 30/03/2019 £2,801,499 £273,406 £754,389

29/02/2020 £1,129,400 -£22,000 £280,700 3 Matalan Retail Ltd * 5A3 23/02/2019 £1,103,900 £28,300 £305,300

28/03/2020 £630,483 £69,243 £128,441 4 Marks & Spencer Simply Foods Ltd 5A1 30/03/2019 £640,212 £57,757 £153,638

30/06/2020 £2,791,512 £262,774 £1,279,283 5 TJ Morris Ltd t/a Home Bargains 5A2 30/06/2019 £2,470,617 £233,306 £1,086,192

27/09/2020 £87,965 £9,291 £28,344 6 Sharps Bedrooms Ltd ** 4A3 29/09/2019 £105,553 £11,443 £20,527

02/01/2021 £811,300 -£13,700 £309,700 7 Greggs Plc 5A1 28/12/2019 £1,167,900 £108,300 £334,200

31/12/2019 N/A - £35,089 Advertising JC Decaux 5A 31/12/2018 N/A - £35,089

* COVID Industry Impact & COVID Limited Margin Company ** Covid Industry Impact ASSET MANAGEMENT

The Avenue Retail Park trades well, and has thrived during COVID-19, with almost 60% of the income being from ‘covid essential retailers.’ The main asset management opportunities for purchasers involves improving the WAULT through lease re-gears.

Magnet are currently holding over, and there is the opportunity to agree a new lease with them here. Initial discussions have been had with them.

M&S Foodhall have a lease expiry in 2023. Like a lot of out of town foodstores, they have been trading well during COVID-19, with customers preferring to shop at them as opposed to town centre stores. Therefore, there is the opportunity to extend their lease term here.

There is the opportunity to improve the car parking layout and create a drive-thru unit or two pod units, as shown on the plan opposite. Planning permission has been granted for two A1/ A3 pod units adjacent to the Magnet unit, totalling 2,500 sq ft, and revised car parking layout. We believe, given the accessibility and visibility from Newport Road, demand would be high from a number of operators and rents could exceed £40.00 per sq ft.

Potential A1 / A3 units or drive-thru

Anchored by B&M, Home Bargains, M&S Foodhall, with other occupiers being Matalan, Sharps Bedrooms, Magnet and Greggs. FURTHER INFORMATION CONTACTS PROPOSAL ENVIRONMENTAL AML For further information, please contact: An environmental report has A successful bidder will We are instructed to seek offers in excess of been produced by Avison be required to satisfy all Ellie £16,965,000 Young and is fully assignable requirements when heads Retail Investment to the purchaser. Further of terms are agreed. (Sixteen Million, Nine Hundred T: 020 7317 3790 M: 07764 241 898 details available on request. and Sixty Five Thousand Pounds), E: [email protected] subject to contract and exclusive of VAT. VAT EPC’S Carys McCulloch The property is elected EPC’s are available This reflects an attractive Retail Investment for VAT, however, it is on request. net initial yield of 8.25%, based on T: 020 7911 2772 M: 07552 246 069 anticipated that the purchaser’s costs of 7.67%. This gives E: [email protected] transaction will be treated a low capital value of just Richard Howell as a “Transfer Of A Going Avison Young £142.00 per sq ft. Investment Concern”. 22 Ganton Street T: 0117 988 5210 M: 07984 962 968 London W1F 7FD E: [email protected] www.avisonyoungretail.co.uk

Misrepresentations Notice: Avison Young hereby gives notice that the information provided either for itself, for any joint agents or for the vendors lessors of this property whose agent Avison Young is in this brochure is provided on the following conditions: 1) The particulars are set out as a general outline only, for the guidance of intending purchasers and/or lessees and do not constitute an offer or contract, or part of an offer or contract. 2) All descriptions, dimensions and references to this property’s condition and any necessary permission for use and occupation, and any other relevant details, are given in good faith and are believed to be correct. However, any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves of their correctness by inspection or otherwise. 3) No person in the employment of Avison Young, or any joint agents, has any authority to make or give any representation or warranty whatsoever in relation to the property or properties in this brochure. 4) All prices quoted are exclusive of VAT. 5) Avison Young shall have no liability whatsoever in relation to any documents contained within the brochure or any elements of the brochure which were prepared solely by third parties, and not by Avison Young. Anti-Money Laundering: To comply with our legal responsibilities for Anti-Money Laundering, it will be necessary for the successful bidder to provide information necessary to complete these checks before the deal is completed. Information required will include: 1) Corporate structure and ownership details. 2) Identification and verification of ultimate beneficial owners. 3) Satisfactory proof of the source of funds for the buyers/funders/lessee. Avison Young: July 2021 © Produced by Barbican Studio 020 7634 9573