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 VI 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. or an additional floor of approximately 25,000 sq ft could be • Recently refurbished state of the art Pure Gym. added (effectively a level 6); • Cardiff Superbowl providing ten pin • Potential uses for upper parts include: bowling and laser quest experience. The • Hotel accommodation was fitted out in 2015 at a • Media/Offices cost in excess of £1.5m. • Other leisure uses, including trampolining. • Bavarian Bierkeller offering a drinking and • Further income generation via an external digital screen facing dining attraction. The accommodation has Central Square, which has planning consent. extensive fit out to include three separate themed areas. Service Charge The property is accessed through a striking fully glazed atrium, which rises three storeys above Y/E 2017 Y/E 2016 Y/E 2015 ground level. This entrance provides access (Budget) (Budget) (Actual) to the Superbowl, Vue cinema and Pure Gym. £433,950 £407,500 £378,972 Pure Gym also has a separate dedicated access from Millennium Walk and Bierkeller has its own £3.32 £3.12 £2.90 dedicated entrance on Wood Street. The efficient design and layout of the scheme means that the overall service charge is low for a city centre leisure scheme. Floor Plans

GROUND FLOOR FIRST FLOOR THIRD FLOOR Ground floor First floor Third and fourth floor (Bipsync on 3rd floor only) Intercom

SECOND FLOOR FIFTH FLOOR Lower ground floor Second floor Fifth and sixth floors

Offices Tenancy Schedule

Gross % of Income on Lease Lease Rent Term Passing Rent Passing Rent Description Tenant Floors Internal Comments Passing Rent Start Expiry Review Certain (per annum) (per sq ft) Area (sq ft)

Second- Cinema Vue Cinema 63% 62,175* 25-Dec-02 24-Dec-27 25-Dec-17 11.82 £980,000 £15.76 5 yearly upward only open market reviews. Seventh

5 yearly rent reviews linked to RPI. First review cap & Unit 5 - 1st Floor Pure Gym First 11% 22,927 20-Sep-11 19-Sep-26 20-Sep-16 10.55 £165,000 £7.20 collar of 8.16% and 2.01%, thereafter cap and collar of 21.67% and 5.10%.

Unit 3 - Bierkeller Ground 14% 21,000 28-Apr-15 27-Apr-40 28-Apr-20 24.16 £225,000 £10.71 5 yearly upward only OMV rent reviews. Ground Floor

5 yearly rent reviews are higher of OMV and RPI. RPI cap Basement Cardiff Superbowl Basement 8% 21,678 23-Sep-14 22-Sep-39 23-Sep-19 23.56 £132,500 £6.11 and collar of 4% and 2% annually compounded.

Office Suites Vacant Fifth 1% 1,166 - - - - £20,988 £18.00 Vendor shall provide rent guarantee for 12 months.

Office suites. 6 months’ rent free by way of half-rent for Office Suites Bipsync UK Third 2% 1,372** 28-Oct-15 27-Oct-20 - 4.66 £24,696 £18.00 1 year. Index linked service charge. Cap for year 1 is £8,232.

Office Suites Vacant Second 1% 1,166 - - - - £20,988 £18.00 Vendor shall provide rent guarantee for 12 months.

132,047 WAULT 14.26 £1,569,172

* Floor area as stated in lease. ** NIA agreed at time of letting. Covenant

Net Profit/Loss Fame Turnover (FY % of Total Tenant / Guarantor D&B Rating Before Tax Net Worth Comment Rent QuiScore 2014) Income (FY 2014)

Vue Entertainment acquired Ster Century, comprising seven cinemas across the UK, in 2005. Guarantee from Ster Century (UK) Ltd 4A1 89 £31,132,000 -£8,447,000 £28,126,000 - - Vue Entertainment Holdings (UK) Ltd.

Vue has 84 state of the art cinemas throughout the UK and Ireland, with 804 screens. For the Year ending Aug 2015, admissions were up 7.4% to £130.2m. In Q3 2015, they had over 50% share of the total market’s Vue Entertainment 5A1 57 - -£342,000 £100,703,000 GBOR for the top five titles. In June 2013, Omers, the Canadian Pension Fund, acquired Vue Entertainment £980,000 64.0% Holdings (UK) Ltd International Ltd via the special created entity Vougeot Bidco. This has since been superceded by Vougeot Holdco Ltd, the GUO for the corporate group.

Pure Gym is the UK’s leading gym operator, both in terms of the number of clubs and membership numbers. Pure Gym Ltd 5A1 89 £68,596,000 £10,033,000 £69,976,000 They announced a strong set of results for year ending Dec 2014, with group profits growing by 365% to £165,000 11.0% over £10m.

The Bierkeller is a unique German Bavarian drinking and dining attraction with similar concepts in The Light Amountsecured Ltd T/A in Leeds, Manchester Printworks and Liverpool One. Amountsecured Limited is a subsidary of Burningnight 1A3 88 £16,514,000 £370,734 £1,052,766 £225,000 14.7% Bierkeller Limited (Guarantor) whom have 14 UK locations across their four brands, namely Bierkeller, Shooters Sports Bar, Around the World in 80 Beers and The Sand Grounder.

Superbowl UK currently have 6 venues around the UK with the other locations being Great Yarmouth, Hull, Cardiff Superbowl Ltd O3 - N/A N/A N/A Macclesfield, Merthyr Tydfil, Widnes and Newport.First accounts made up to 31st August 2015 are due by £132,500 8.7% April 2016. The ultimate parent company is QL Partnership Limited.

Bipsync provides a research automation platform to maximise the productivity of professional investors. Bipsync UK Ltd F2 34 £20,867 £24,696 1.6% Founded in Silicon Valley in 2012 and developed in Cardiff.

Income by Lease Length Income by Covenant • VUE attendances doubled in 2015; % income with 2% 0 - 10 years remaining % income with Other Income • Successful openings for Bierkeller and 20+ years remaining Superbowl in 2015; 23% 25%

• Almost capacity membership for Pure Gym, 75% 75% who are seeking a second site in Cardiff. % income with 10 - 20 years remaining Income guaranteed from 5A1 covenants Construction has now started on the Rightacres/Legal & General funded Central View from Stadium Plaza roof January 2016 Square Development. Phase 1 offices of 135,000 sq ft are now virtually complete; with construction well underway on the 165,000 sq ft BBC HQ.

Stadium Plaza will be at the heart of this £400 million regeneration scheme, employing up to 10,000 people. This development could have a similar transformational effect on the business and entertainment district as Spinningfields, Manchester and Brindley Place, Birmingham.

Brewery Quarter

St Mary Street

Cardiff Central

Central Square

Wood Street Site The site measures approximately 0.943 acres (0.381 hectares).

PRINCIPALITY STADIUM 6

S CO

T T Cinema R OA

o 9 t 8

o 7 5 t 4 D Stadium Plaza o t t S 1

S C O T T R O AD R IV E R T A F F

Tenure The property is held on a 150 year long leasehold interest from Cardiff County Council until 30 June 2149 at a peppercorn rent.

VAT Whilst VAT will be payable on the purchase price, we anticipate that the sale will be treated as a TOGC (Transfer of a Going Concern).

EPC The premises have an EPC rating of E. A full certificate is available upon request.

Proposal Our client is seeking offers in excess of £21,000,000 (Twenty One Million Pounds) subject to contract and exclusive of VAT for the long leasehold interest. A purchase at this level reflects a Net Initial Yield of 7.00% assuming purchaser’s costs of 6.75% (which takes into account SDLT changes with effect from 17 March 2016).

Further Information For further information or to arrange an inspection please contact:

Andrew McGregor Gareth Lloyd Stephanie Gray Paul Williams Tom Watson Phone: 0207 861 1531 Phone: 029 2044 0141 Phone: 0207 861 1209 Phone: 0207 493 4455 Phone: 0207 493 4455 Mobile: 07970 971 538 Mobile: 07917 503751 Mobile: 07813 535 124 Mobile: 07768 606 185 Mobile: 07850 006 070 [email protected] [email protected] [email protected] [email protected] [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 and Morgan Williams in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition, its value or its ownership structure. 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. 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. 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. 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: Any guide prices quoted or discussed are exclusive of VAT. The VAT position relating to the property may change without notice. 5. Knight Frank LLP and Morgan Williams is not authorised by the Financial Conduct Authority to undertake Regulated Activities, other than insurance mediation, and generally acts as agent in respect of real estate property interests only. This communication is exempt from the restriction in Section 21 of the Financial Services and Markets Act 2000, on the communication of invitations or inducements to engage in investment activity by unauthorised persons, on the basis that it meets the conditions for exemption relating to such activities carried on in connection with the sale of a body corporate as set out in Article 62 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 and the similar exemption relating to all Regulated Activities in Article 70 of The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001. In all instances you should seek your own independent advice in relation to the sale or purchase of shares and on any corporate structure. Knight Frank LLP is not responsible for any information or opinions provided in respect of any such sale or purchase. 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. Date of particulars: April 2016.

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