Stadium Plaza Cardiff PRIME LEISURE INVESTMENT OPPORTUNITY
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Stadium Plaza Cardiff PRIME LEISURE INVESTMENT OPPORTUNITY IN THE HEART OF A NATION’S CAPITAL Cardiff International Arena Queens Arcade St David’s Shopping Centre Shopping Centre John Lewis The Arcades Brewery Quarter St Mary Street Stadium Plaza Central Square Cardiff Central Principality Stadium Blake Morgan LLP Stadium Plaza Executive Summary • Stadium Plaza is now fully open for trade with tenants including VUE, PureGym, Cardiff CF10 1LA Cardiff Superbowl and the exciting Bierkeller bar and restaurant. • Situated adjacent to the iconic Millennium Stadium and the new £400 million redevelopment of Central Square (the new home for BBC Wales) which will Successful New provide 750,000 sq ft of offices, up to 400 residential units, a new Transport Openings in Interchange and a hotel. • Attractive WAULT of 14.26 years to break with a current contracted income of 2015 £1,569,172 per annum. Bierkeller & • 75% of income guaranteed from 5A1 covenants. Superbowl UK • Excellent prospects for rental growth with PureGym’s rent being only £6.97 per sq ft (with RPI linked rent reviews), Bierkeller on the prime ground floor being let off only £10.73 per sq ft and Superbowl at a rent of only £6.16 per sq ft (with RPI linked rent reviews). • Very low service charge of only £3.12 per sq ft, also helping growth prospects. Coming to Central Square, • Gross Internal Area of approximately 132,047 sq ft reflecting a capital value of BBC Wales Headquarters £159 per sq ft. together with production • We are seeking offers in excess of £21,000,000 (Twenty One Million Pounds) and studio areas after subject to contract and exclusive of VAT for the long leasehold interest. A 60 years outside the purchase at this level reflects a Net Initial Yield of 7.00% assuming purchaser’s city centre costs of 6.75% (which takes into account SDLT changes with effect from 17 March 2016). Central Square & Central Square Masterplan Stadium Plaza Stadium Plaza will form an integral part of the Central Square regeneration. The WESTGATE ST 2015 lettings to Biekeller and Superbowl reflect their confidence in this location and we anticipate even more PARK ST HAVELOCK ST complementary demand and ultimately ST MARY STREET rental growth in the Central Square area. PRINCIPALITY Up to 400 The Central Square scheme has now STADIUM Residential Units been funded by Legal & General, who will work with the developers, Office or Rightacres and the extremely proactive Hotel Cardiff City Council to ensure that Central Square becomes the destination WOOD ST of choice for major employers. Office Central Square Stadium Office Transport R I V E R T A F F Plaza WOOD ST Interchange Approximately 1 million sq ft of offices (ground floor) to include: MILLENNIUM WALKWAY • 165,000 sq ft Foster & Partners designed FITZHAMON EMBANKMENT BBC Wales HQ (PC April 2018) Offices (first floor) Office • 135,000 sq ft offices, due for PC March 2016 (1 Central Square). WOOD ST MILLENNIUM WALKWAY • Future phases to include an additional 750,000 sq ft offices; hotel; 400 1 CENTRAL residentialTUDOR units ST and new Foster + Partners Transport Interchange with SQUARE (Pre Let to Blake (PC March 2016) Morgan LLP) ground floor retail. • 280,000 sq ft of public realm, linking CARDIFF CENTRAL Central Station with the retail and leisure hubs of Cardiff city centre. • 13m wide ‘Wembley Way’ style Millennium Walkway, linking Central Station and The Millennium Stadium, via Stadium Plaza. • More information at: www.centralsquarecardiff.co.uk Stadium Plaza Phase 1 Central Square Phase 1 office -135,000 sq ft due for completion Spring Millennium Walkway Central Square 2016. Blake Morgan LLP have committed to 28,000 sq ft so far, Transport Interchange with 100,000 sq ft under offer (Feb16). In total, up to seven phases of Cardiff Central offices which could accommodate up to 10,000 new employees. Up to 400 new residential units by 2018. Location • The capital city of Wales has a rapidly improving profile as a tourist and shopping destination; as a University town and significantly as an attractive and accessible place to live and work. • Cardiff benefits from excellent transport infrastructure and is the focus of a number of major arterial road and rail routes. The city can be accessed directly via Junctions 29, 30 and 32 of the M4, which links Cardiff to Bristol and London, 5 miles (8 kilometres) to the north. • Cardiff’s mainline railway is one of the busiest in the UK, boasting over 11.5 million passengers every year, and provides frequent and direct services to a number of major destinations throughout England and Wales. There are approximately 25 trains per day to London Paddington, with a fastest journey time of 1 hour 59 minutes. Tourism Catchment and Demographics Cardiff has a thriving tourism trade with the three year annual • 1.5 million catchment. average between 2012-2014 at 1.1million overnight trips. • Cardiff is projected to grow by a further 26% over the next 20 years, one For domestic day visits, from the period 2011-2014, Cardiff of the fastest growing of the UK’s cities. received 17.4 million visits. • Over a quarter (26.9%: CACI) of the city’s primary population is The Millennium Stadium considered an ‘Affluent Achiever’. The Millennium Stadium (now known as Principality Stadium) is located immediately adjacent to Stadium Plaza. It has % of ‘Rising Prosperity’ Acorn Groups in Primary Catchment a capacity of 72,500 and since opening in June 1999, The 14% 12.1% Millennium Stadium has welcomed an average of 1.3 million 12% visitors per year for sports and music events. The Millennium 10.0% 10% 9.3% Stadium is also one of Cardiff’s best equipped conference 8.8% venues. 8% 6.6% 6.4% 6% 5.7% Students 4% The University sector is worth in excess of £800m to the local 2% economy with students comprising over a fifth of the primary catchment. Cardiff’s universities achieve one of the best 0% UK Leeds graduate employability rates in the UK. The city’s universities Bristol Cardiff Newcastle are home to 75,000 students, with over 110,000 students Manchester Birmingham in South Wales in total. Leisure spending in the city is also bolstered by the higher than average proportion of 18-24 year 10% (CACI) are considered ‘Rising Prosperity’ which is the demographic group that are most likely olds in the primary catchment. to be patrons of the scheme. Leisure in Cardiff Rental Commentary Location Occupier Headline Rent (psf) Shake Shack £57.80 St David’s Centre & Wahaca £51.55 The Hayes Miller & Carter £39.00 Jamie’s Italian £44.00 Five Guys £32.50 The Brewery Quarter & Wagamama £40.00 Mill Lane Brewhouse £19.50 S T A T I O N KNOX RD QUEENS T CARDIFF CHURCHILL WAY E STREET R QUEEN ST QUEEN ST R A C St Mary Street, Brewery Quarter & Mill Lane E • St Mary Street has become the centre of Cardiff’s nightlife with over 40 pubs and bars in CASTLE ST HIGH ST CASTLE ST and around St Mary Street alone. Occupiers include Walkabout, Missoula and Be At One. CASTLE ST QUEENS ARCADES CHARLES ST • Mill Lane connects St Mary Street to The Hayes and occupiers include Las Iguanas, Cote, Wagamama and Carluccios as well as various other locally operated bars and restaurants. WESTGATE ST CHURCHILL WAY • The Brewery Quarter is located in the former Brains Brewery which was developed in THE SANDON ST ST MARY ST 2003. Occupiers now include La Tasca, Chiquitos, Nandos, Five Guys and Starbucks. HAYES HILLS ST St David’s Centre WESTGATE ST BRIDGE ST • Occupiers include Pizza Express, Gourmet Burger Kitchen, Shake Shack, Wahaca (their ST DAVID’S THE HAYES CENTRE first store outside of London) and Jamie’s Italian. Cineworld Cardiff is a 15 screen cinema located adjacent to St David’s Centre. WHARTON ST THE Cardiff Bay ARCADES CINEWORLD ADAM ST WESTGATE ST • Cardiff Bay is a vibrant area which offers an alternative social venue to the city centre. T PRINCIPALITY R S Restaurant and bars at Cardiff Bay include Zizzis, Wagamama, Carluccios and Cote. EGA FITZHAMON EMBANKMENT STADIUM ST MARY TRED STREET PLANTAGENET ST PARK ST JOHN Rental Commentary Stadium BREWERY LEWIS QUARTER BUTE TERRACE • Prime restaurant rents in St David’s Centre are firmly established at approximately £50.00 Plaza SCOTT RD WOOD ST per sq ft. PARK ST STADIUM MILL • The Old Brewery Quarter on St Mary Street has established rents at over £30.00 per PLAZA CENTRAL RIVER TAFF SQUARE LANE sq ft and even in the Bay at Mermaid Quay and Red Dragon Centre rents have been BUTE ST established at over £30.00 per sq ft. TUDOR ST ST MARY ST WOOD ST TYNDALL ST • Due to retail demand in the city centre the larger space leisure accommodation tends to be provided at lower or upper floors. Therefore the low rents secured on the ground CARDIFF CENTRAL and basement at Stadium Plaza off only £10.73 per sq ft and £6.16 per sq ft show strong HERBERT ST growth potential. PENDYRIS ST BUTE ST CALLAGHAN SQ Description and Asset Management Accommodation Vue are not currently trading from their upper level (floor 5 and Stadium Plaza was completed in 2001 and mezzanine), which presents an opportunity in terms of active comprises 12,268 sq m (132,047 sq ft) of leisure asset management. space arranged over basement, ground and • The 5th floor can be accessed from the ground floor, via a seven upper floors. The scheme provides: separate lift and stair core; • 14 screen cinema complex operated by Vue • The 5th floor would provide 30,000 sq ft of open plan space, cinema, located on the upper floors.