Castle Buildings, Womanby Street, Cardiff, CF10

City Centre Investment Opportunity Castle Buildings, Womanby Street, Cardiff, CF10 1BR Click to Enter > Investment Map Location, Description, Site, Tenancy Schedule, Comparable Leasing VAT, EPC, Proposal, Summary Situation Floor Areas Tenure, Covenant Transactions Further Information

Investment Summary PRINT SAVE

Located in the heart of Cardiff, close to the shopping facilities, bus stops and Cardiff Central railway station.

The office comprises 15,006 sq ft (1,394 sq m) of flexible net lettable office space, over four floors.

The property is single-let to Lyons Davidson Ltd on two co-terminous FRI leases both subject to a Schedule of Condition, but the tenant has invested heavily in refurbishment of the building over the last 2 years. Each lease will also benefit from a guarantee from The Injury Care Clinics Limited (TICCS).

The annual passing rent is £216,740 per annum which equates to an average rent of £14.44 psf (£155.43 per sq m).

There are 9.35 years to lease expiry providing a long unexpired lease term secured to a strong covenant.

There are 10 car parking spaces providing an excellent city centre office car parking ratio of 1:1500 sq ft (1:139 sq m).

Freehold.

Various asset management opportunities exist including exploring the buildings future re-development potential to residential / alternative use in the medium to long term (subject to obtaining the necessary planning consents).

Our client is seeking offers in excess of £2,628,000 subject to contract and exclusive of VAT which reflects a net initial yield of 7.75%. This price reflects a low capital value of £175 psf, assuming purchaser’s costs of 6.40%

City Centre Investment Opportunity Castle Buildings, Womanby Street, Cardiff, CF10 1BR Investment Map Location, Description, Site, Tenancy Schedule, Comparable Leasing VAT, EPC, Proposal, Summary Situation Floor Areas Tenure, Covenant Transactions Further Information

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River Taff 6 R The Capitol

1 I ET A E S F 4 TR Shopping Centre R S T Cardiff Queen I

A N A Y Travelodge EE C T Cardiff QU H T Street K Z Cardiff Castle I A Magistrates U O N R T O L E C S N X Court C H C D R A R T O A H A A N T A W E D EE R I D R TR L E R S L L P R EN N R UE E L E T Q W A S A T A C E S C E Y E A R T E T R E S I DUK Queen’s Arcade O M A4 ST W Premier Inn 1 TLE E 61 CAS H S CASTLE STREET L I W G O E R Y H K C W I P HMP Cardiff N H S C O G Cardiff L T A A O M S River Taff R T Cathedral R C L A L E R E D St John’s E N E E S T T E S B S Church T T H S Y C T R W T R E E E S U S H G E A T C M T V U R A M G R I R A C I T K E T L ST T T E S R T EET E E T O ET E D E T E R S ST RE R RE T F A M R T I S C R S S Cardiff Central A ST E O N A R E H R E AY T P LS DG D T D D A U L I U C EN O A T M Market L HI R RESC N C Q A B R A C S E R E C T Y H R S I E

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R T T L T B E R E C OO E E W E K S E R E University of TRE T T A N E T THE PROPERTY S R

Y South Wales T N T O R T T S Cardiff Campus A R H L A ID H E St David’s V L W I H Dewi Sant A M N A D O K Y E R W S G T S CE A D E Motorpoint A N A ESPE REET S M Cineworld R NSER ST T Arena R S 4 River Taff G A TE T 2 B A R TE 3 E T Y BU 4 A E S S U T T C R R F E H E T I E A T E E Z T T E M R H Principality ST P A AR T EG S M Stadium T RED EE EE T T O TR R CE N S T LA K S E R P E AR E E N S M P N N P I E PE L A C S L B E O L A D A A R R N A L T R N T C S E K E L L T T E I A B M R E A N T T M A T E E S G E E C U E A N R D B E S T O L U T S O S L N C K W C R G T E E O A Radisson Blue P T H T N T M T W Hotel Cardiff A S S A M R E T T R VUE Cinema D S P R T Y E T S E S E E River Taff E T R T Cardiff TR T S N R Marriot B LL New BBC HQ E A TU L U ND DO N E T Y C R S T TRE T E F L E R T S A A H T W R T C E Central Square D R TI E A T RE O E AN UD R E L R TU OR T T DO ST S Cardiff Central S T A D R R LANE EET OD ER ST T O ND HN T S W U JO ER SA RB HE

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P C M L I K U A T A44 I S S Y N E G U Y P R A44 M A D E P A483 6 A R D A Location A442 W V R K

A E C Worcester L R N 7 A D

4 V W A4112 7 I A4103 I N

A470 0 G L A V R D Cardiff is the capital city of Wales, with an estimated resident A483 M5 E O R Great O G A438 A438 Bute Park V F L Goresedd Gardens E X 1 O Malvern S O S E 6 S A438 T 1 N 4 O A P L population of 346,000 (2011 Census). Capital city status was A Hereford ULE N O V R C B ARD DE 1 D A T D H R Talgarth granted in 1955 and the city has grown to become Wales’s A470 E T 2 G R E Y F R I A R S R D R F A40 Tewkesbury D O I A479 A465 P R W T Brecon M50 A B NE Z economic and political centre along with being the home to the L R A A49 I 4 3 10 D L R Cardiff Castle A40 G A GLOUCESTERSHIRE D M E T E N O I CARDIFF R Welsh Government. Significant recent inward investment has E C A A40 11 T R S THE PROPERTY N S H Gloucester U E E T QUEEN P A40 Q A A483 STREET L ST R A470 A40 JO L Abergavenny COWBR H enhanced the city’s business profile and it is now considered ID N E G S E S Y S R T A D T W C S ’S S L ASTLE W W ID C A465 V T T Merthyr O O A H 12 O M D R R T U N A S S to be one of Europe’s premier capital cities and a national and E Tydfil K A40 E W N T St David’s Centre R A4042 V B S I E I Y N C M L S H T 13 C H L E T R S G A A48 E W U T I A465 R E H L D international business location. Aberdare S S C S T B M T L A A449 Stroud R T Pontypool C O O G A R K W S T A R E A Cardiff Arms Park T 46 45 E Y E A M5 T S T Y 44 T S T 43 Neath M H D T S Cwmbran A E ST R M C E SPENSER A H E D P T 42 Chepstow E A N D F E H 14 L P I T E Cardiff is well served by both road and rail communications. The 41 2 L A T Millennium Stadium Swansea R Z T H 40 C N E A470 26 25 24 M48 A433 RA A H E A 1 T R 39 27 23 DD A T Y Pontypridd O L G M S E Caerphilly Newport C K S 21 K E 38 28 O R E city is situated on the M4 motorway, and lies approximately 236 22 ST R A D Port M4 N N P N S Y 29 D E T Talbot M4 30 E T E 36 M49 16 T M

32 T 37 17 T B M U S S

Bridgend 35 DOR A S D km (147 miles) west of London. South Wales links via the M50 and 34 33 19 T T A N O O 18 18 K R Porthcawl 1 M4 W . Y 19 2 S T CARDIFF M32 C S M5 motorways to the Midlands and south west of England. Almost 3 CARDIFF T RT M5 L E A Clevedon CENTRAL RB S 20 BRISTOL A46 A HE C 4 H R 2 Barry O 3 80% of the UK population lives within a 4 hour drive from Cardiff. A4 A E O D L 4 R N A38 L T R A37 E E Weston- E R P E N D Y R I S S T A R R Bath T D F S super-Mare 21 O O F T BRISTOL N H W M R S A36 A A D D S M Y A E T F I A S 4 M D Y A T N W O A 1 R E Y 4 A B F R A A F 1 D 7 S H U High speed rail services give rapid access to all major cities D O W D 9 Y T 0 R A N A361 S D S N E D S E A T I R R T S D T M L H T L E across the UK. Cardiff Central Station is one of the principal 22 E R T B I Burnham-on-Sea S S N R U A Frome E O L E Minehead N F C L S O R T A361 A K R T D W . stations on the Great Western Line from London to Swansea. Warminster N

S R T O C Frequent services run to and from London Paddington, with an A361 average journey time of 2 hours, and following electrification of St David’s Shopping Centre and therefore employees in the of three universities in the city, has seen a growth in the this line in 2017 the journey time will reduce to around 1 hour 45 building benefit from a wide selection of shops, restaurants, conversion of office space to student accommodation. minutes. gyms and banks. • Hotel – the historic Angel Hotel is a short walk away, and Cardiff has its own international airport located 19.2 km (12 The area around Castle Buildings is a popular city centre JD Wetherspoon have received consent to convert the upper miles) from the city at Rhoose. The airport provides mainland and office district, with numerous office buildings in the immediate parts of The Gatekeeper on Womanby Street to a 17 bed European schedules. London’s Heathrow Airport is less than a vicinity. The accessibility, central location and surrounding hotel. two hour drive away. facilities have also seen Womanby Street become very popular for other uses including: • Residential – there are proposals for conversions of buildings along Womanby Street to residential use, driven • Leisure – Womanby Street sits at the heart of Cardiff’s by demand from young professionals and a shortage of Situation leisure and music quarter, with numerous bars, restaurants new high quality residential accommodation in Cardiff city and music venues in the area. Cardiff’s Principality Stadium centre. Castle Buildings is a modern city centre office development is also approximately 200m from Castle Buildings. The location offers excellent public transport links, with situated in a prominent position in the heart of Cardiff city centre. Cardiff Central Station (Wales’ busiest station) a 5 minute walk The property benefits from being situated a short walk from the • Student Accommodation – Cardiff’s shortage of purpose to the south, together with numerous nearby bus routes along prime retail and leisure amenities of Queen Street, The Hayes and built student accommodation, together with the presence Westgate Street.

PRINT SAVE Description Floor Areas The property comprises former Georgian mill buildings of The property has been measured in accordance with the RICS traditional construction with brick elevations which have been Code of Measuring Practice (6th Edition) and provides the converted to provide office accommodation. It is understood following net internal floor areas: that the property was formerly three buildings which have been merged into one with varying floor levels throughout Use Area (sq ft) Area (sq m) The property extends to 15,006 sq. ft. (1,394 m sq) over four floors. Internally, the building benefits from suspended 1S 447 41.50 ceilings, perimeter trunking and gas fired central heating. Over the last two years, the building has undergone extensive 2N 1,533 142.40 refurbishment works as part of the tenant’s obligations to complete various repairs and works. A detailed works 3R (N) & 3R (S) 1,235 114.69 schedule can be provided on request, but this includes a new reception, new roof and new windows throughout the 3S 993 92.25 property. This major investment by the tenant further re- 4N 1,795 166.80 inforces their commitment to the building. 5R 1,228 114.12 The car park is located at basement level and provides 10 spaces at a ratio of 1:1,500 sq ft (1:139 sq m). In addition, a 5S 1,561 144.98 multi-storey car park is located within 100m of the subject property. 6N 1,706 158.50

7S 1,595 148.23 Site 7R 1,202 111.68 The site measures approximately 0.14 acres. 8N 1,711 158.99

Total 15,006 1,394.13

PRINT SAVE Tenancy Schedule Covenant The property is let in its entirety to Lyons Davidson Limited on two separate FRI The tenant is Lyons Davidson Limited which comprises a number of companies in common ownership. leases both subject to a Schedule of Condition and both guaranteed by The Injury The companies are operated on a group basis but without a Group Holding Company with the two principal Care Clinics Limited (TICCS). trading companies being Lyons Davidson Limited and The Injury Care Clinics Limited (TICCS). The Group employs approximately 1,750 staff and provide a range of legal and healthcare services. The legal division The first lease is from 31 March 2011 and expires in October 2026 at a rent of has significant joint venture/strategic arrangements with Admiral Group PLC, The AA and Liverpool Victoria. £104,000 per annum. The second lease commenced on 1 January 2013 and is co- terminous at a rent of £112,740 per annum. Lyons Davidson Limited holds the borrowing (with cross guarantees) and delivers most administrative and back of house services on behalf of the group of companies and these costs are reflected in the companies The combined rent equates to £216,740 per annum which equates to a low base rent audited financial results. of £14.44 psf (155.43 sq m). Each lease will benefit from a guarantee from TICCS. Where the Tenant and Guarantor companies are no The leases are subject to 5 yearly open market reviews, the next being due on 31st longer under common ownership, the Guarantor will be released provided that the Tenant’s audited accounts March 2021. demonstrate a pre-tax profit exceeding four times the total contracted annual rent for the property for three consecutive years. In the event that the Tenant fails to meet the required financial benchmark, the Guarantor shall have the option to either let the guarantee continue or be replaced by a 12 month rental deposit. In all circumstances, the guarantee will remain in place for a minimum initial period of four years.

Lyons Davidson Ltd 31/05/2016 31/05/2015 31/05/2014

Turnover 44,471,641 47,930,635 51,571,293

Pre-Tax Profit 774,413 115,609 1,543,771

Net Worth (3,154,433) (3,644,910) (4,642,081)

TICCS 31/05/2016 31/05/2015 31/05/2014

Turnover 40,387,743 38,606,065 28,687,212 Tenure Pre-Tax Profit 5,642,037 6,522,039 5,377,579 Net Worth 24,332,273 22,788,304 21,496,875 Freehold.

PRINT SAVE Cardiff City Centre Office Market Comparable Leasing Transactions Cardiff has a total office market of circa 10 million sq ft, which is split between city centre, Cardiff Bay and out of town locations. City centre prime Grade A headline rents have climbed from Building Area sq ft Rent Tenant £22.00 psf in 2014 to £25.00 psf in 2017 as a result of strong demand and shrinking supply. Total city centre take up for 2016 was 63,698 sq m (685,640 sq ft), a record annual level for Cardiff The Creative Quarter, St Mary's Street 1,059 £23.00 psf HLM exceeding the 57,325 sq m (617,049 sq ft) in 2015. 2017 has continued this positive trend for growing tenant demand in Cardiff, with Q1 2017 takeup hitting 150,500 sq ft, a 57% increase on takeup in Q1 2016. The Creative Quarter, St Mary's Street 1,015 £23.00 psf Cloud IT Supply of Grade A and Grade B accommodation is at a historically low level due to both limited opportunities to develop new Grade A space and the redevelopment of Grade B space for St Patrick's House, Penarth Road 31,519 £21.00 psf Network Rail alternative uses. Grade A supply stands at c. 170,000 sq ft (c. 1.70% of total stock), with new speculative development taking place at Central Square and Capital Quarter to capitalise on this Helmont House, Churchill Way 1,766 £21.00 psf Vectos limited availability and meet current tenant requirements. Grade B supply stands at c. 479,000 sq ft (c. 4.79% of total stock), a historically low level, as the redevelopment of Grade B office accommodation for uses such as student accommodation has taken available space out of the Haywood House, Dumfries Place 16,498 £18.00 psf Slater & Gordon market and has increased demand for good Grade B space.

PRINT SAVE VAT Further Information The property is elected for VAT and it is intended Access to the dataroom is available upon that the sale will be treated as a TOGC. request.

EPC Proposal The property benefits from an EPC Rating of Our client is seeking offers in excess of E(105). A copy of the certificate is available on £2,628,000 subject to contract and exclusive of request. VAT which reflects a net initial yield of 7.75%. This price reflects a low capital value of £175 cv psf, assuming purchaser’s costs of 6.40%. Asset Management On lease expiry, the property is perfect for multiple occupation. In addition, on acquisition our client had an appraisal undertaken proving change of use to residential is viable. Further information can be provided on request. Contact Information For further information or to make viewing arrangements, please contact:

Alex Titheridge Graham Davies Nick Lawley Tel: 020 7487 1617 Tel: 02920 346371 Tel: 02920 346333 Mob: 07834 134 780 Mob: 07768 416 605 Mob: 07736 010 183 Email: [email protected] Email: [email protected] Email: [email protected]

DISCLAIMER Colliers International gives notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchaser, Lessees or Third Party should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Colliers International has any authority to make any representation or warranty whatsoever in relation to this property. (June 2017). Colliers International is the licenced trading name of Colliers International Capital Markets UK LLP which is a limited liability partnership registered in England and Wales with registered number OC392075. Our registered office is at 50 George Street, London, W1U 7GA. Designed and produced by Creativeworld. Tel 01282 858200.

City Centre Investment Opportunity Castle Buildings, Womanby Street, Cardiff, CF10 1BR