27-32 COMMERCIAL STREET & 1-2 AUSTIN FRIARS, NEWPORT, NP20 1YD HIGH YIELDING PRIME RETAIL INVESTMENT OPPORTUNITY 27-32 COMMERCIAL STREET & 1-2 AUSTIN FRIARS, NEWPORT, NP20 1YD INVESTMENT CONSIDERATIONS • Located in the City of Newport, which benefits from a substantial shopping catchment population of approximately 370,000 • 22,232 sq ft of retail accommodation with an attractive AWULT of 5.46 years • Freehold • Four large retail units let to the strong covenants of The Bank of Scotland, The Co-Op Bank, The Entertainer and Specsavers • Current passing rent of £508,000 pa • Approximately £2,800,000 of contracted rent remaining on current leases • The property is situated on the pedestrianised retailing thoroughfare of Commercial Street and Austin Friars directly adjacent to one of the principal entrances of Friars Walk Shopping Centre PROPOSAL We have been instructed to seek offers in excess of £4,100,000 (Four Million, One Hundred Thousand) subject to contract. An offer at this level would show a purchaser a net initial yield of 11.63% after purchaser’s costs of 6.57%. 27-32 COMMERCIAL STREET & 1-2 AUSTIN FRIARS, NEWPORT, NP20 1YD RIVER USK UNIVERSITY OF >>> SUBJECT SOUTH WALES FRIARS WALK ENTRANCE PROPERTY AUSTIN FRIARS COMMERCIAL STREET Outline for indicative purposes only. <<<< NEWPORT RAILWAY STATION 5 MINUTES 27-32 COMMERCIAL STREET & 1-2 AUSTIN FRIARS, NEWPORT, NP20 1YD Great Malvern A4103 A438 A449 A470 A438 Hereford A438 A483 A4172 A49 A438 A449 A40 Brecon A479 A417 M50 A40 A40 A465 Ross-on-Wye k A4137 nal Par A40 Brecon Beacons Natio GLOUCESTER A40 A40 A483 Abergavenny Forest of Dean A465 A48 A470 LOCATION SITUATION Merthyr Merthyr A4042 Newport is a University City in the county of Gwent, in south east Units 27-32 of the property are situated on the pedestrianised Tydfil Wales. The City is located 22.5 km (14 miles) north east of Cardiff section of the eastern side of Newport’s traditional prime pitch, A48 50 km (31 miles) north west of Bristol and 9.6 km (6 miles) south of Commercial Street. Units 1 and 2 are situated on the newly created A465 Pontypool A449 Cwmbran. The City has a population of approximately 139,000 with a thoroughfare, Austin Friars, which leads to the west entrance of shopping catchment population of approximately 370,000. Friars Walk Shopping Centre. Commercial Street benefits from M4 M5 Neath Newport benefits from good road communications with access to junctions 26, 27 strong pedestrian flow comprising a wide variety of retail, leisure, Cwmbrân Chepstow and 28 of the M4 connecting to Cardiff to the west and Bristol to the east. Newport financial and professional services. Surrounding occupiers include; Debenhams, Waterstones, WHSmith, Santander, Boots, Burger King Swansea SWANSEA Railway Station provides regular services to Cardiff Central, Bristol and London Paddington M48 and Costa Coffee, amongst others. Pontypridd NEWPORT with a fastest journey time of 15 minutes, 20 minutes and 113 minutes respectively. Port Talbot Newport railway station is located within a 15 minute walk A470 Caerphilly M4 Cardiff airport is located 40 km (25 miles) south west of Newport and is accessible via the A433M4. Cardiff airport has one terminal which sees over 1.9 million passengers per year travel (0.8 miles) to the north west of the subject property. A403 Chipping to over 60 destinations. M49 A470 A48 A48(M) Sodbury M4 Avonmouth M4 Pontshead M32 CARDIFF A4 TRAVEL TIMES / DISTANCES FROM NEWPORT A4232 A46 BRISTOL A420 Penarth M5 CARDIFF 12 MILES 18 MINUTES LONDON 138 MILES 100 MINUTES CARDIFF 27.2 MILES Cardiff A4 A4 Barry BristolA38 BRISTOL 30 MILES 30 MINUTES (PADDINGTON) BRISTOL 36 MILES A37 BATH Weston-super-Mare A38 Newport (Wales) 27-32 COMMERCIAL STREET & 1-2 AUSTIN FRIARS, NEWPORT, NP20 1YD FORMER BHS STORE DESCRIPTION The property comprises four large retail units arranged over ground and first floors. Two of the units front Commercial Street and two front Austin Friars. The two units on Commercial Street comprise banking halls with customer/staff/storage facilities on first floor. We understand that unit 26 (Halifax) is due to be refitted shortly to provide a ‘Super-branch’ serving a much wider area. Bank of Scotland have created a small kiosk, which is currently under offer. UNDER OFFER Units 1 and 2 Austin Friars were completely (SUB-LET BY HALIFAX) redeveloped in 2015 and they are situated directly opposite the one of the main entrances to the new Austin Friars Shopping Centre. They comprise two modern, well configured units over ground and first floors with unit 2 benefiting from a long return frontage to Upper Dock Street. The Specsavers unit trades over ground and first floors though they have sub-let part of their first-floor space to a Local NHS Health Board who undertake eye treatments. All the units interconnect to the rear and share fire escapes with the modern units sharing loading access. TENURE Freehold © Crown Copyright, ES 100004106. For identification purposes only. Experian Goad Plan Created: 18/08/2017 50 metres Created By: Allsop Copyright and confidentiality Experian, 2017. © Crown For more information on our products and services: copyright and database rights 2017. OS 100019885 www.experian.co.uk/goad | [email protected] | 0845 601 6011 27-32 COMMERCIAL STREET & 1-2 AUSTIN FRIARS, NEWPORT, NP20 1YD SCHEDULE OF ACCOMMODATION AND TENANCIES The property is let in accorance with the schedule below: Unit Tenant Accommodation Size (NIA) Lease Start Rent Review Lease End Years until expiry Rent p.a Comments Sq Ft Sq M Ground Floor Sales 2,805 261 Bank of Scotland PLC 26 Commercial Street 1st Floor 3,314 308 20/05/2008 20/05/2018 19/05/2023 5.47 £225,000 Kiosk is currently under offer. t/a Halifax ITZA 1,348 125 Ground Floor Sales 2,355 219 26-29 Commercial Street Co-operative Bank Plc 1st Floor 635 59 29/09/2006 28/09/2016 28/09/2021 3.84 £175,000 ITZA 997 93 Ground Floor Sales 3,270 304 There is a fixed increase in place to £58,000 p.a 1 Austin Friars The Entertainer (Amersham) Ltd 1st Floor 3,500 325 04/11/2015 See Comments 26/01/2026 8.16 £52,500 on 04/11/2020. Index linked service charge cap of £10,299. ITZA 1,880 175 Ground Floor Sales 2,853 265 Part of the first floor has been sublet to Aneurin 2 Austin Friars Specsavers Optical Superstores Ltd 1st Floor 3,500 325 04/11/2015 04/11/2020 03/11/2025 7.93 £55,500 Bevan University Local Health Board. Open market rent review. ITZA 1,099 102 Total 22,232 2,065 £508,000 rising to £513,500 pa in Nov 2020 The leases are full repairing and insuring since they allow for a contribution to the repair and maintenance of the building via the service charge. 27-32 COMMERCIAL STREET & 1-2 AUSTIN FRIARS, NEWPORT, NP20 1YD NEWPORT - A CITY ON THE MOVE Newport as a city has seen considerable development and investment in recent years resulting in one of the most significant regeneration programs in the UK. No more evident of this is the substantial investment into the town’s retail and leisure offering. A major catalyst for this investment has been the opening of the £117 million Friars Walk Shopping Centre in the centre of the city. The impressive 389,976 square foot shopping centre was completed in 2015 resulting in a new retail and leisure destination in the region. The shopping centre includes a 90,000 sq ft department store (Debenhams), an 8 screen multiplex cinema, shops, restaurants, car park and a council funded bus station. Whilst the new shopping centre has now become the prime pitch for Newport’s retail it has had a positive effect on the traditional prime and secondary retail pitches of Commercial Street and High Street. The centre has attracted more shoppers to the city and helped to grow Newport’s retail catchment area from approximately 211,000 to 367,000. The estimated footfall per annum is now approximately 10-12 million, doubling the overall expenditure for Newport to an estimated £100 million per annum. In total the investment into the city’s retail has resulted in a Newport centre retail floor space of an estimated 1.25 million sq ft. Further future developments within the Newport catchment area expected to help boost the local economy include the £100 million International Convention Centre Wales at the Celtic Manor Resort and the £1 billion construction project at the former Llanwern Steelworks. The Convention Centre is expected to result in a £70 million economic windfall boasting a 1,500-seat auditorium and 43,000 sq ft exhibition hall: when completed it will provide the largest pillar-free ballroom in Europe. The construction project at the former Llanwern Steelworks will be known as Glan Llyn and will transform the 600 acre former steelworks into a sustainable community which is set to deliver 4,000 new homes and 6,000 new jobs over the next 20 years (Newport City Council Website). 27-32 COMMERCIAL STREET & 1-2 AUSTIN FRIARS, NEWPORT, NP20 1YD COVENANT STRENGTH BANK OF SCOTLAND PLC Bank of Scotland plc is the principal banking subsidiary of HBOS plc, which is in turn a wholly owned subsidiary of Lloyds Banking Group plc. Halifax is the leading Bank of Scotland Brand. The Royal Bank of Scotland plc is rated 5A1 by Dun and Bradstreet. The business produced the following headline accounts over the last 3 years: 31 Dec 2014 31 Dec 2015 31 Dec 2016 Turnover £13,192,000,000 £11,305,000,000 £10,576,000,000 Pre-Tax Profit £3,108,000,000 £2,653,000,000 £3,395,000,000 Total Net Worth £20,420,000,000 £14,684,000,000 £13,330,000,000 SPECSAVERS OPTICAL SUPERSTORES LTD Specsavers Optical Group Ltd is a leading British optical retail chain.