Well Secured Freehold Leisure Investment Opportunity
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Well Secured Freehold Leisure Investment Opportunity Let to Scottish and Newcastle Ltd, 10 Wind Street, Swansea, SA1 1DF investment summary • Prime Swansea Leisure Pitch • The property comprises of 32,698 sq ft over 5 floors • Freehold • Let to the excellent Scottish and Newcastle Ltd covenant • AWULT of just over 6 years • Net income of £145,000 per annum (£4.43 per sq ft) • Asset management and alternate use opportunities • Offers are sought in excess of £1,518,000 (One Million Five Hundred Eighteen Thousand Pounds) subject to contract and exclusive of VAT • A purchase at this level reflects an Net Initial Yield of 9.00% after allowing for purchaser’s costs of 6.11% • Low capital value of only £47 per sq ft location tourism Swansea, Wales’s second city, is the commercial and administrative centre for The City is situated on the sandy South West Wales coast, the county area includes the South West Wales. The City is located 42 miles (69 km) west of Cardiff, 81 miles Gower Peninsula a popular and beautiful tourist destination. (131 km) west of Bristol and 187 miles (301 km) west of London. the liberty stadium The city has excellent road communications lying just 4 miles (6 km) south of the The Liberty Stadium, Swansea, is home to the Football premiership team Swansea City M4 Motorway with access to multiple junctions. The M4 provides a direct link to Football Club, as well as the Ospreys regional rugby team. The stadium holds in excess Cardiff, London and the wider motorway network. Swansea train station provides of 20,000 people. a direct service to Cardiff, Bristol Parkway and London Paddington with a fastest journey time to London of 2 hours 55 minutes. Network Rail are set to modernise students the line from the Severn Tunnel to Swansea which will reduce the journey time to London by 20 minutes. Cardiff International Airport is located 64 km (40 miles) The University sector is worth in excess of £150m to the local economy with students to the south-east and provides scheduled daily flights to a number of UK and expected to soon grow to over 30,000 students between Swansea University and Trinity mainland European destinations. College St David’s. Clydach Leisure spending in the city is also bolstered by the higher than average proportion of 18-24 year olds in the primary catchment. PENLLERGAER FOREST A4063 J47 Gorseinon J46 J45 catchment and demographics M4 Penllergaer north Llangyfelach A48 Swansea is the second largest city in Wales and has an estimated catchment population A4240 A483 VALLEY of 241,000 people with a wider urban population of circa 462,000, equating to nearly WOOD Morriston one third of the Welsh population. A4489 J44 A4217 Cadle A483 GRENFELL PARK RD M4 A4067 Neath MOUNT PLEASANT HOMEBASE MACKWORTH TER A4118 STRAND PLANTASIA Gowerton HIGH STREET KINLEY ST J43 TENNANT RD A483 PORT B4295 A483 A483 PARC TAWE LEWIS ST Manselton RETAIL PARC VILLAGE HOTEL, PRINCESS WAY SWANSEA Waunarlwydd CASTLE STREET Cocket A4118 LANGDON RD A4067 CASTLE A4216 Briton Ferry SQUARE STRAND S W A N S E A THE KINGSWAY J42 SAINSBURY’S UNION ST DYLAN THOMAS SWANSEA PRINCESS WAY WIND STREET CENTRE MARKET KINGS RD OXFORD STREET SAIL BRIDGE A483 QUADRANT A483 SHOPPING CENTRE A48 WEST WAY M4 NATIONAL Marina WATERFRONT LEISURE MUSEUM VETCH CENTRE FIELD OYSTERMOUTH ROAD A4067 A4067 MARINA Black Pill The city has recently seen a significant £450 million development along Fabian Way, by Swansea University of a new 69-acre campus which opened in 2015 which focuses on science and innovation as well as providing student residences. St Modwen are currently undertaking the final phase of development at Bay Campus, with the aim of delivering 2,000 units by autumn 2017. The development is the largest ‘knowledge economy’ project in Europe at present. Other significant development schemes taking shape include Swansea Bay Tidal Lagoon as well as the £500 million re development in part of Swansea city centre in and around Oxford Street which will include a new 3,500 capacity indoor arena and the re-development of the old St David’s Shopping Centre, this is a development between the council and Rivington Land, with a view to delivery of 2021. Clydach PENLLERGAER FOREST A4063 J47 Gorseinon J46 J45 M4 Penllergaer Llangyfelach A48 situation A4240 A483 VALLEY The subject property is situated on Wind Street in a prime location WOOD Morriston within Swansea’s city centre leisure circuit a short distance from Castle Square and Oxford Street being the prime retail pitch for the City. A4489 J44 Wind Street is a blend of restaurants, bars and nightclubs with A4217 Cadle adjoining occupiers including Yates’s, Pitcher & A483 GRENFELL PARK RD M4 Piano, Ask, Walkabout, TGI Fridays, Nando’s A4067 Neath MOUNT PLEASANT HOMEBASE and Revolution. At the southern end of Wind MACKWORTH TER A4118 Street is ‘The City Gates’, a leisure and STRAND PLANTASIA Gowerton HIGH STREET entertainment development which has KINLEY ST J43 TENNANT RD A483 tenants including a 116-bedroom Premier PORT B4295 Inn Hotel, Frankie & Benny’s, Chiquito A483 A483 PARC TAWE LEWIS ST Manselton RETAIL PARC and a 12 screen Vue Cinema including VILLAGE HOTEL, PRINCESS WAY SWANSEA Waunarlwydd CASTLE STREET additional eating and drinking venues Cocket A4118 LANGDON RD A4067 plus car parking. CASTLE A4216 Briton Ferry SQUARE STRAND S W A N S E A THE KINGSWAY J42 SAINSBURY’S Swansea is a popular, busy retailing UNION ST DYLAN THOMAS SWANSEA PRINCESS WAY WIND STREET CENTRE destination with an estimated town MARKET KINGS RD OXFORD STREET SAIL BRIDGE centre retail floor space of 1.65 A483 QUADRANT A483 SHOPPING CENTRE A48 million sq ft. Swansea also benefits from a thriving and growing student WEST WAY M4 NATIONAL Marina population. WATERFRONT LEISURE MUSEUM VETCH CENTRE In addition, the council have recentlyFIELD OYSTERMOUTH ROAD A4067 invested £2 million refurbishing the market in the centre of town. As a consequence,A4067 a number of food operators and craft beer sellers MARINA have begun trading in the space along with the legacy tenants (butchers, bakers, cobblers etc). Black Pill description The property is an end of terrace property of traditional construction with an attractive gothic stone facade, which we believe to be Grade 2 listed. The property comprises of ground, basement and 3 upper floors, with it trading as a nightclub on ground and 1st floor. Previously the second floor has been utilised for residential purposes and has a separate access onto green Dragon lane. We believe the asset could be used for varying uses, including leisure, residential and offices subject to any necessary consents. Swansea For reference purposes only Experian Goad Plan Created: 30/08/2017 50 metres Created By: Savills Copyright and confidentiality Experian, 2017. © Crown copyright and database For more information on our products and services: rights 2017. OS 100019885 www.experian.co.uk/goad | goad.sales@uk.experian.com | 0845 601 6011 tenure Freehold tenancy The property is let in accordance with the tenancy schedule below: floor areas tenant lease terms term certain yrs % of income rent per sq ft rent per annum comments (sq ft approx) Scottish and 25 years from 6.09 100% 32,698 £4.43 £145,000 Sub let to Blackwater Bars Ltd t/a Idols Bar Newcastle Ltd 11/09/1998 6.09 100% 32,698 £4.43 £145,000 rental commentary In January 2017, Chiquito sub-let their lease to Jamaican Jills on a 4,123 sq ft restaurant at The City Gates which is 150 metres from the subject property. We have been advised that the lease expires in December 2030 and the passing rent is £17.94 per sq ft. The sub-tenant was granted a 6 month rent free period. In addition, we understand that in 2015 Las Iguanas entered into a new 25 year lease on a 5,000 sq ft (464.51 per sq m) restaurant at Castle Quarter which is 20 metres from the subject property. We have been advised that the commencing headline rent was £18 per sq ft (£193.75 per sq m) and the tenant was granted an 18 month rent free period. Our enquiries have indicated that office accommodation on Wind Street is available at £8.00 per sq ft (£86.11 per sq m). We believe the asset is off a very low base rent at only £4.43 per sq ft providing opportunity for rental growth with the next review in September 2018. covenant The property is let to the excellent Scottish and Newcastle Ltd covenant which Dun and Bradstreet Rate as 5A1 with minimum risk of business failure. Their latest accounts show a profit of £74 million for year ending December 2015 which was a £5 million increase on the previous year. They have a net worth of £2.9 billion. The property has been sub let to Blackwater Bars Ltd who Dun and Bradstreet Rate as having a C2 rating and a lower than average risk of business failure. vat The property is elected for VAT and as such we anticipate the transaction can be treated as a TOGC (Transfer of a Going Concern) epc EPC available on request. further information For further information, and arrangements to inspect the premises are to be made through the agents: ross griffin Director Savills Commercial 12 Windsor Place Cardiff Tel: 02920 368961 Email: rgriffin@savills.com SUBJECT TO CONTRACT Misrepresentation Act proposal 1. Messrs Savills UK Ltd for themselves and for the vendors or lessors of this property whose agents they are, give notice that: We are instructed by our client to seek offers in excess of £1,518,000 (One Million Five Hundred 2.