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Supermarket St Elli Centre Llanelli Sa15 1Bx SUPERMARKET ST ELLI CENTRE LLANELLI SA15 1BX MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY INVESTMENT CONSIDERATIONS z Llanelli is located on the south coast of West Wales in the county of Carmarthenshire, 12 miles west of Swansea. z Llanelli is at the heart of a large catchment area and the St Elli Centre has an excellent footfall with approximately 7.0 million visitors per annum (135,000 thousand visitors per week). z Llanelli town centre and the surrounding area has undergone significant transformation in the last 6 years with an estimated £60 million being committed to improve the town centre streetscape and various other cultural and regeneration projects. z The Asda supermarket is the dominant town centre food store. It extends to approximately 70,000 sq ft and is the principal anchor of St Elli Centre which was built in 1997 and is the major retail destination within the town centre and surrounding area. The supermarket includes a demised 450-space surface car park, immediately adjacent to the main entrance. z The interest to be sold is a 999 year long leasehold interest at a peppercorn. z The property is let in its entirety to Asda Stores Limited by way 3 occupational leases, all expiring between May and November 2032, subject to 5 yearly open market rent reviews. The aggregate current passing rental is £1,322,735 pa, reflecting a rate of £18 psf overall, excluding the petrol filling station. z Unexpired lease term of approximately 14 years. MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY ASDA SUPERMARKET, ST ELLI CENTRE, LLANELLI SA15 1BX The investment offers the following characteristics: z A modern high quality building benefiting from a substantial surface car park. z A long unexpired lease term of approximately 14 years. z Let to the excellent covenant Asda Stores Limited with sales of £22 billion and pre-tax profits of £380 million. z Excellent prospects for securing attractive debt finance given the lease length and covenant strength. z Strong trading store with recent addition of new petrol filling station LLANELLI LOCATION Llanelli is the largest town in the country of Llanelli is linked to the M4 motorway (Junction 48) Carmarthenshire, West Wales and situated within connecting the town to Cardiff, approximately 55 miles the Millennium Coastal Park sitting on the Loughor to the east. The M4 motorway provides fast connection Estuary on the south coast of Wales. The town is to the rest of the UK. Swansea, 12 miles to the south sandwiched between the extremely popular tourist east of Llanelli can be accessed on the A484 and destinations of the Gower peninsular (10 miles to the Carmarthen on the A48 via the A476. south) and the Brecon Beacons National Park (20 miles north). The town is located approximately 12 The town’s bus station, neighbouring the subject miles west of Swansea, 20 miles east of Carmarthen property provides regular local services to the wider and 200 miles west of London. Carmarthenshire towns and villages including Swansea, Carmarthen, Pembrey, Burry Port and Kidwell, as well as National Express services further afield including Cardiff, Bristol and London. MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY ASDA SUPERMARKET, ST ELLI CENTRE, LLANELLI SA15 1BX SITUATION The subject foodstore is situated in the centre of the town, with access onto the pedestrianised Stepney Street via Stepney Precinct. The property and adjoining centre are bounded by Upper Robinson Street to the south which provides the main vehicular access into the Centre and connects with the A404. Llanelli railway station is located south of the town centre. Bus Station Asda PFS MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY ASDA SUPERMARKET, ST ELLI CENTRE, LLANELLI SA15 1BX CATCHMENT The catchment of Llanelli contains a population of approximately 610,000. From this catchment, Llanelli attracts a regular comparison goods shopping population of 54,273. The extent of Llanelli’s significant catchment area can be seen on the map below. Trade Contribution Core: 70% contribution Secondary: 70 -100% contribution The catchment population has the potential to spend approximately £1.8 billion per annum on comparison goods, the current spend is in the region of £154 million, demonstrating an opportunity to attract more spend into the town. The core area provides 70% of the total of the shopping population of Llanelli, with the remaining 30% derived from the blue area. MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY ASDA SUPERMARKET, ST ELLI CENTRE, LLANELLI SA15 1BX The area around Llanelli and East Carmarthenshire is home to a number of manufacturing companies including Tata Steel at Trostre and Dyfed Steels, many of which service the automotive and engineering industries based in South Wales and the West Midlands. As an incubator for business in the automotive, motor sport and aerospace sectors, the Technium Performance Engineering Centre was developed at Llanelli Gate. Local Government has been successful in attracting additional investment and tourism to Llanelli and the surrounding areas over the past decade and have completed successful developments including: z The Millennium Coastal Park z Machynys Peninsular Golf Course (part of Llanelli Millennium Coastal Park) z Out of town retail parks at Trostre and Pemberton z The 2008 rugby stadium Parc y Scarlets, home to Llanelli Scarlets, one of the most famous rugby union clubs in the world. z The only new national racecourse in the UK in 80 years, the £25 million Ffos Las, near Trimsaran z A further 200 million investment (subject to planning) will be made in the Delta Lake - Llanelli Wellness and Life Science Village which will include a Life Style Institute and Laboratory, state of the art sports and leisure centre, Health and Well-being centre, Wellness Hotel and Assisted Living Village. This project is being pioneered by the Council in partnership Abertawe and Swansea Universities and is predicated to create up to 2,000 high quality jobs and boost economy by £467 million over 15 years. z The local development policy for Carmarthenshire has identified a requirement for approximately 15,000 dwellings included a proposed homes number of 10,799 between April 2017 and April 2021. 8 3 1 4 A 8 3 1 4 A MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY ASDA SUPERMARKET, ST ELLI CENTRE, LLANELLI SA15 1BX D A O R F 4 A 8 IS 4 A L E P A C 4 48 4 A 0 RETAIL PARK 3 PARC TROSTRE 4 B 84 A4 4 8 4 A 6 7 4 A 4 8 4 A ST ELLI CENTRE LLANELLI B4304 B4304 FOODSTORE PROVISION The subject property is the dominant foodstore within Llanelli town centre. Within a 5 minute Drive time the competing foodstore provision is Tesco Extra – Parc Trostre Retail Park as follows:- Morrisons – Pemberton Retail Park z Aldi – Swanfield Pace z z The nearest Sainsbury’s is located in Swansea, 12.5 miles away (approximately a 35 minute drive). MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY ASDA SUPERMARKET, ST ELLI CENTRE, LLANELLI SA15 1BX ST ELLI CENTRE The St Elli Centre is the dominant shopping provision within Llanelli and is the only indoor centre west of Swansea. Other national retailers present in the town include Wilkinson, Poundland, Peacocks and Argos. The total Centre extends to approximately 160,000 sq ft (including the foodstore) and is anchored by the 72,460 sq ft subject property with a further 24 retail units situated within the covered mall under a distinctive glass roof creating a light and airy shopping environment for customers. Benefiting from a footfall of 7 million per annum the Centre links directly with the popular and busy Council operated indoor market and two further pedestrianised entrances onto Stepney Street and the town’s bus station, located adjacent. In total the Centre benefits from 980 car parking spaces, of which 530 spaces are contained within a multi-storey car park above the adjoining indoor market. MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY ASDA SUPERMARKET, ST ELLI CENTRE, LLANELLI SA15 1BX THE SUBJECT PROPERTY The Asda foodstore is a purpose-built supermarket extending to 72,460 sq ft. The foodstore fronts the demised 450-space surface car park which is accessed directly off Upper Robinson Street. The surface car park which is demised to Asda operated on the basis of 2 hours free parking, refundable on customers spending over £5 in the foodstore. Servicing for the foodstore is via Murray Street into a demised covered loading bay. adjacent plan. lineonthe within thegreen -ashiglighted peppercorn) Long leashold(999at TENURE BURGER KING CARD CENTRE VODAFONE YOURS CLOTHING BAGZ LTD ROMAN ORIGINALS VACANT URBAN VAPING VACANT Station Petrol Petrol YANKEE STEAMIN MUGS CANDLE MISS LABE For Identification purposesonly For NORTH MAJOR FOODSTORE & PFS INVESTMENT OPPORTUNITY ASDA SUPERMARKET, ST ELLI CENTRE, LLANELLI SA15 1BX TENANCY The property is leased to Asda Stores Limited by way 3 occupational leases outlined below: UNIT 21: Let by way of a 35 year effective FRI lease with effect from 13th November 1997 expiring 12th November 2032 at a passing rental of £29,450 per annum. Reviewed 5 yearly to OMV. UNIT 22: Let by way of a 35 year effective FRI lease with effect from 13th November 1997 expiring 12th November 2032 at a current passing rental of £28,285 per annum. Reviewed 5 yearly to OMV. SUPERSTORE AND PETROL FILLING STATION: Let by way of a 35 year FRI lease with effect from 27th May 1997 expiring 26th May 2032 at a passing rental of £1,265,000 per annum. Reviewed 5 yearly to OMV. There are therefore approximately 14 years unexpired. The aggregate current passing rental is £1,322,735 per annum, reflecting a rate of approximately £18 per sq ft, excluding the petrol filling station, and based upon a total floor area of 72,460 sq ft.
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