NEW BUS STATION -

CITY CENTRE RETAIL / LEISURE INVESTMENT

INVESTMENT OPPORTUNITY

• Situated in , which has a population of 225,000 and a catchment of 1.5 million within an hours drive.

• The investment comprises 3 newly built retail / food and drink units (A1/A3) providing 11,033 sqft (1,025 sqm).

• The units are extremely well situated within a new covered Bus / Coach Station, which generates 10,600,000 passenger movements per annum.

• Adjoining The Quadrant Shopping Centre – Swansea’s prime retail centre.

• Let to Co-op, Costa Coffee and Greggs.

• 50% of the income is from Co-op on a new 15 year lease with 5 year RPI uplifts.

• The remaining income is from Minimum Risk 5A1 rated tenants.

• Strong potential for rental growth.

• Long leasehold interest – through 3 new 250 year leases. Total ground rent £8,700 reviewed every 5 years to 5% of rents receivable.

• We are seeking offers in the region of £2,335,000 (Two Million, Three Hundred and Thirty Five Thousand Pounds), subject to contract and exclusive of VAT, reflecting a net initial yield of 6.7% - with guaranteed uplifts.

A40

A487

M50 LOCATION 4 A40 A465 GLOUCESTER A48 A483 A470 Swansea is the second largest city in Wales, located 30 miles west A477 49 A4042 of . A465 A449 Swansea City benefits from excellent communications. The City can be 23 22 21 SWANSEA 20 accessed directly via Junctions 42 – 47 off the M4 (5 miles to the east M4 CARDIFF 18 M4 BRIS TOL or north). Swansea’s mainline railway station is situated 1 mile to the north of the property. There are approximately 30 trains per day to M5 Paddington, with a fastest journey time of under 3 hours. The journey time to Cardiff by train being 54 minutes.

23 The City is also served by excellent bus communications. In addition Cardiff International Airport is 27 miles to the south-east.

CATCHMENT AND DEMOGRAPHICS

The City of Swansea has a population of around 225,000. However, the catchment population is significantly larger, as the City draws on the whole of South-West and West Wales, generating a catchment of approximately 1,500,000 within an hours drive. QUADRANT TESCO DEBENHAMS SHOPPING CENTRE

WILKINSON

GRAND THEATRE

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IC U N 2 I O A V R 3 D T & G U T 0 U M D C E 21 TS C U 2 Q A 2 B Y I E R N P A T 1 U Y I R W M A E D N O 3 R G E E A R A L L O SP S) N B 0 S O B C 2 A S D R I E R S 5 H S H N U U D O & B ( R R L L E L B O 3 1 A Y G O T L A 2 O 2 2S T N O H S E A A L S 9 FL L T R C L I A T S T A H E D & IL C T L E I D W E T I 4 A G R R C W D B E 2 MO M M O TA E E M H O P S 9 E S E Y D N A D E H Y 1 2 R R T K H M E O O F R 3 I I E E A I L E G (2 H E U I 2 U I E O I R O A E E 2 A F P S S R V L T B B M N C E K C A B T R I U L R M I B A S N R O N E 0 D E S N S 3 S S R A U F 3 S M N G O D W A E O A 2 E N S FO O A N C R M T Y G F A I I T Y E E D O S D N L A N E S 29 S T M I I ( I G T O 6 L E E R W I S R G 2 O C N C V S D L P L W The units are situatedY inN Swansea Bus Station,S a new covered development T I Y E IL R Q N E I Q N E B L U Z A S B T O I T W R E L E L H E T U H B A EL F S U ) E E P R R R Y T K I E E E O S A L R S U S A O L S I A O ) Y E N E 3 `S S E E S E A T E S S D R 8 S E E E X L S I IA R R D ` 6 W N R D I C C M A S 2 22 R T E 3 LA S C C I O 2 S M E C S A A M E T IN E I R E E G 7 C L H W R O D 5 IR C A which has justR been completed. J 2 27 25 S V ES A N A U A S A I R W 2 2 T - I A S N L A R E R HO E N T M C S 4 5 H E T P A C V I L E 2 C N R LE B G L Y E R E I U C R H 4 P 3 A O T E C A F O A R 2 W U /W BO K 2 I L ) L E E S U B T B S O R C 6 IR 3 &M BS N RE 2 J A R R R S I S W B H G L E C C E IN W F E A T B O 8 / D E L T T U C S L G ERK E N I N S IN I N 7 E G 2 R BU 2 B L R R A E C I A ( G U (2 C E T C K N P 5 B C H R T L R H N T S C H 1 T I I O 4 T NT L A 8 A H N F E SH O U I A & O 2 RD S2 D I L G R C T G I U 2 S A ( M R N M O S R V A T K S M S R S N R O O H E 0 9 C E 2 2 G D E Y E T S U DR E 2 F H E C L O E R T H 5 D O The Bus Station generatesH 10,600,000 passenger movements A H S D H A F O T L O S E E T S) S S E 4 S I E H O I Y I S D A R E T E 9 0 I A L C M N F O HE 3 A E I O T V C B S B L 1 OX X E O F E FL 2 N L E A E A I N L O IL O R - F A R S A R R A 8 F X E T U 1 I R T U - R RE G T O O 2 I ` H B 2 N S D H E I C S I ( N D H R E S C 5 E C S V A O A A H S I E SS A R E R E 1 L O per annum. H I V A P E E 5 T R R RB R P U A U F A N E E 0 J C A N H GE A T E H T I D S 31 C T . E C T R I C S L A 3 R L I C H B A I O D L S R T D E A R B 0 T AP A A O O 2 T A I I S B I 5 S O E R N E E G R A 3N B R A N A LE RS S U E N I C P H Z 5 F R A H R B G T E U I A A E O N S E E N M D O M T E L M S H C N 1 H S 7 SH T A F B TA C T T O O S R A C N S T 1 R R R E S R G A L 2 3 P S E U - S 14 E R L C 3 T I I 3 3 P I S O N ) S 4 O O T T O A T S N S G A E S 5 6 S A N 2 S IF G S H H I D E E V O R N . 0 D G E Z R P R T I G 2 & 0 S N I S A &G F E T C T G F F N S O K S R 2 S C E I PER O T B 0 A B R N S W H A D V P E F R 216 T IT P A P A K I S C S P E N A C D U R S IC T G A E S I E I E E 5 E T M 5 J ESW S B E L 1 T E C T I ) R E G R 2 C A R R 6 D L E 8 - N A L M The units also adjoin The QuadrantI Shopping Centre,P Swansea’s prime retailA A B W E S E L N T A R O R F O E 5 M S A E 1 T H M V S G 214 C A S S Y E E TE IC IS W S SWE 1 N D R E YS D A H T TH 2 E O 5 H V T I A A E E R R O I A O ( 3 ( A O D T E F I W R M AL F E N A 1 L P 1 T P A N 7 I O N E A L C C W 2 YG T U M S G T E H S G S N E R D E S A P C I U K A - F T T A A M N O N P E A P A G I O D A A Y 1 MA E A C C C Y N C R 5 S YC C L C Y N F destination. Retailers in The Quadrant include Debenhams, which has anT G Y O T 2 L A G E N S O E A I A D 8 C S R E E E T T T E - N R S R S - E A E V F C E V A D C ` T 3 5 J R N 4 C D H 1 A S A ` S E TR R A E M N E P V 0 I A A S E T J S N 8 S S W L R C G E F T E T N U O I F ` L U L D ) O L S 15 16 I M I A R A E N R 14 17 E E - C R A R R E B S A A A A E A 5 13 E S entrance next to Costa Coffee, WH Smith, New Look, Ernest Jones, L A S V T K N O H H S W T N I N H O W 2 E M N S L L E S P D 5 C E 9 I 12 - O RE T N H 0 N S T E S T & A VAC U 11 H O B 5 S S D S P T E R I 6 M E S A E L B A 10 M - 4 .00PM 1 J A U ER LDERS ONLY 10.30A EL Y O S N 9 (PERMIT HO T E E M S O FO M - 6 .00PM) 1 N P N E AN 8 ADING 4.00P S S AN W H Samuel, Thorntons, Vision Express, The BodyF Shop,ME Boots, T Mobile, TURDAY LO I E D U O A A ONDAY - S A D OR R L 8 7 M M A W C D E Y A A E E 7 M T HE G MH K IE T T L L ) R N 23A T & JW C E - I B T E A P L EE B / G 3 R 1 L 2 C S N C R A A 9 IN A T A 2 O A L Y C E R 1 C V S A NS R O A R E K T V S T L R V R L N ` V G Clarks, Superdrug, Superdry and Republic, among others. SO A I R O L N IND T D E M I A N N V N H M A I T Y R NK T I L S C A A E V N IL R O E H P R S Q A 1 B E O M H K H C G N A B E G S S S S I 1 BO T E U T B O N L 6T R K 3 E A B 1 N E L E S H O IF O S SW N I T M G H O N I E G B R O T V T D A X T S M B ) H S O E I M P I O D G A ) E M T I S Z S & S C YS O E V S Z H L O 0 C P R R O W 1 P U A E T LI E 1 A I N O A 6 C L W N O B T N - (120) (ESTIMATED) 3 H S R 3 C U N K S IC L - A A E O H OR M L 5 A P L S P H 9 E A I D A G E T S O 3 H C A D E E E A F R & O D N T F R L A N I C F I A B The City’s main taxi rank is situated next to the Bus Station.T I A A A 4 & P C K S T R WS R E JU ST C SE CE E T & R ES A 8 R S ( 1 X E I I N E - I E A A B S E N R W V R D 5 SP IA ( L R TA P C 5 A W S T IC E (2 O L S Y U PT 29 V T SE S H A N R O O A EN O E S S R C D M E 7 A R T G ES M E A E N S 1 L R E O T E E FF E J S C S V O V ST 8 S RA C O E R 1 H H OP 2 O T N E R T R LL OE U D G 6 E D IG IN N E E E H B H 29 T T E W R L O LO L JE T S C As a result, the units sit at the junction of Swansea’s busiest transport link A N R C ( Y N 2 R T H L D A C P L C E O O ) R A O A C I C O H IN L C E C S T D ` E T A A B S H E Y N I T G T NS H A E E R S R S R VA A T ID G ( O N A W Y V and the main retail / leisure pitches. O L A 2 S D H K I A I L N E I T O OE P N L E P H E R S S E V & P N E L A E C D F A R & O S R G T T M A S W L R GI R H O K IN A E 2 S I A C D L S C O I E C S N IL N F 4 I S N R A O W - T A T A V S S T S S E H R S E H F 1 N S A C IN 4 A E A I K E U S A R I B S V L L W W A T R R A S OO S R U A ) E WI E Q I S S L U C D S N R & N T P A 40 A G IO R O T E S H E R U 4 AC D S 2 V R R O R Q - & AT O & ) 3 S E S G D E 2 ( E E T B 39 2 U R L H LD R - H F C T H E 7 T P Y O U 3 8 L R S C D H C O A 3 E T N E G O E O A S O R U 5 R 22 R R U 2 V O T O E G O N N T D B T LL H A R A S E A T Y I R I ) W E V F C S L S E S O 6 Y Q M R J N A & 27O A ) E N 3 E 8 - H O A & C - D 2 M N U W W B S 5 A OP V 26 F C O S A I 3 C ( E F T E L i N S I 2 F S n R 9 E S F N I T d A 2 T R C E IL H T T A I L S I O O S E N A IG S E 4 D O R C E T L t IC 3 I N R T r F V Y L I O T WE S E T e I F 1 R O N e N O A 3 Y A A S C O A t D - E S E R 2 F 3 N I A 1 ( F R 3 0 V & L X S L A U 3 E 7 A O L P ) R T T A G A R L S R A R U Plymouth St O N A R C E M D E B R U S M N A A 2 I S & R 3 E E I R T N D D I S S S A I S V G B Princess Wa O E i T A W C l Swansea N w St Mary St C E E H A N A A I y Grand N T E R N n St Marys T R Christina Street Theatre E S T S The Quadrant Church AM t H T re EN e B E H t Yo rk St E R Centre y D O O ST Stryd rhydychen T M EN M A NEW BUS RT ) A S S A4067 Swansea EP OR Garden St Museum D LO GE W L F ID ST W ATION Albert Row AI BR AY ET OT stern Street R FO William Street (2 We S E T N R LA S Madoc Street US E E B R E V Natinal T I C Waterfront T E TESCO W E A rrace Museum E R Te W E UNDER CONSTRUCTION R E T A WAY ST S Clarence N John Chard W E VC House RD Paxton St AY A Glamorgan Street Recorder St P G Road (130) (ESTIMATED) P EY cotira Quay OR Vi ST ) I - AL LT TU MU (AC Tawe 5) 56 Basin ( A4067

ET RE T A S L Meridian N B Oystermouth Road TO E Tower G R IN T D L AR L R E Y WE O 45 metres

DESCRIPTION

The new Bus Station was completed in two phases between April and August 2011. The development comprises a 23 bay bus / coach station, new external circulation areas and a brand new glass covered concourse, with the 3 solus A1 / A3 units inside. It is these 3 units that are for sale.

The concourse and units adjoin The Quadrant Shopping Centre. The Co-op and Greggs units sit either side of the entrance to the shopping centre, whilst the Costa Coffee unit is situated next to the Debenhams entrance.

TOWN PLANNING

As part of the redevelopment of the existing Bus Station, planning permission was granted on the 6 March 2007 for 3 retail / food and drink outlets (Class A1/A3). (Planning Application 2007/0028).

TENURE OCCUPATIONAL LEASES

The property will be sold through 3 new 250 year long leasehold interests All leases are drawn on effectively Full Repairing and Insuring terms, by way at a total ground rent of £8,700 pa from the City & County of Swansea. of a service charge and insurance rent, allowing the long lease holder to The ground rents are reviewed upwards only every 5 years to 5% of the rents recover their contribution to the common areas. receivable. The long leases require the owner to pay a fair proportion of the insurance and maintenance of the common parts, currently totalling 12%.

ACCOMMODATION / TENANCIES

Unit Tenant Floor Area sqft Lease Start Term Lease Expiry Next Review Rent pa Rent psf Comments

A Co-operative G/Floor 4,198 15.09.2011 15 yrs 14.09.2026 15.09.2016 £87,500 £11.37 Guarantor – Co-operative Group Limited Group Food F/Floor 3,498 5 year upward only rent reviews in line with RPI, Limited Total 7,696 subject to a collar of 1% pa and a cap of 4% pa.

B Greggs PLC G/Floor 861 11.03.2011 10 yrs 10.03.2021 11.03.2016 £41,500 £ 24.10 Tenant break 11.03.2016 subject to 6 months F/Floor 861 notice. Open market review. Total 1,722 C Costa Limited G/Floor 1,615 11.03.2011 10 yrs 10.03.2021 11.03.2016 £45,000 £27.86 Tenant break 11.03.2017 subject to 6 months notice. Open market review. TOTAL 11,033 sqft £174,000

TENANT COVENANTS Tenant / Guarantor D&B Ratings Date of Accounts YE Turnover Pre-Tax Profit Net Worth Co-operative Group Lower than average Friendly Society Not required to 100% owned by Food Limited 02 66% publish accounts Co-operative Group Ltd

Co-operative Group Ltd Minimum Risk 01.01.2011 £12,886,100,000 £310,400,000 £2,950,700,000 5A1 100% Greggs PLC Minimum Risk 01.01.2011 £662,326,000 £52,523,000 £184,233,000 5A1 100%

Costa Limited Minimum Risk 04.03.2010 £323,087,000 £34,924,000 £91,434,000 5A1 99%

VAT INVESTMENT RATIONALE

The property is elected for VAT. It is anticipated that the transaction will be • The units are situated alongside Swansea’s main transport dealt with by way of a Transfer of a Going Concern. hub - adjoining the entrance to the City’s prime shopping centre.

• With 10,600,000 passenger movements per annum now PROPOSAL being generated there is very strong potential for rental growth. We have been instructed to seek offers in the region of £2,335,000 (Two Million, Three Hundred and Thirty Five Thousand Pounds), • 50% of the income is to the Co-op for 15 years with subject to contract and exclusive of VAT, for the long leasehold interest. guaranteed increases.

A purchase at this level reflects a net initial yield of 6.7%, with future • The other 50% of the income is from Low Risk 5A1 tenants. guaranteed uplifts. • Valuable retail / food and drink A1/A3 consents.

FOR FURTHER INFORMATION CONTACT

Dan Griffiths [email protected] Matthew Cocks [email protected]

Katy Evans [email protected] Lee Richards [email protected] 01792 636422

Misrepresentation These particulars of sale do not form part of any offer or contract. Whilst the particulars area given in good faith, they are made without responsibility on the part of EJ Hales or Swansea Council and the intended Purchaser/Lessee should satisfy himself as to their accuracy by his own inspection and enquiries. Neither EJ Hales or Swansea City Council or anyone in their employ, make or give any representation or warranty whatsoever in relation to this property. March 2012