ENTERPRISE RETAILENTERPRISE PARK RETAIL PARK NANTYFFIN ROAD SWANSEA SA7 9RF RETAIL WAREHOUSE INVESTMENT OPPORTUNITY 1 ENTERPRISE RETAIL PARK Investment Summary • A retail park of six units adjacent to Swansea City Centre a Tesco Extra supermarket. Liberty Stadium • A total floor area of71,373 sq ft. • 304 car spaces (1:235 sq ft). Morfa Shopping Park • Total net income £1,048,033 per annum. • WAULT OF 8.98 years to expiries and 6.12 years to breaks. A4217 • Outline consent for a drive-thru unit ENTERPRISE RETAIL PARK at the front of the site. • Seeking offers in excess of £13,100,000 (Thirteen Million, One Hundred Thousand Pounds). • A purchase at this level reflects a net initial yield of 7.50% assuming acquisition costs of 6.72%. Lion Way Retail Park Phoenix Retail Park A4217 Nantyffin Road A48 To M4 J44 2 ENTERPRISE RETAIL PARK A4067 Location M4 The City of Swansea, which has a population of 240,000 persons, is the second largest city in Wales. It is Junc 45 the administrative and commercial centre of West Wales, and has a catchment population estimated to be LLANLLIENWEN ROAD 580,000 people, living within a 30-minute drive time. A4067 Swansea is located approximately 42 miles west of Cardiff, 85 miles west of Bristol, and 185 miles west of London. Swansea benefits from excellent road communications, being located approximately 5 miles south of the SWANSEA B PEN LA TREP W M4 motorway with access from junctions 42-47. The mainline railway station provides a direct fast link to OETH D ROA R D OA A48 D London Paddington in approximately 3 hours. D A O R H B C D L D A A A W A There are approximately 106,000 people estimated to work in Swansea, with over 90% employed in the D D O Y O L R R Y C A S Cardi H R W E M4 T service sector. T T C A L Newport S L E E A A N S R W Bristol E O R L O F A R Swansea is home to the DVLA headquarters which employs around 6,000 people in the city. Other major D E P P U employers include Admiral Group, HSBC, Virgin Media, BT and Amazon. Virgin Atlantic also maintains its A48 Junc 44 largest worldwide contact centre in Swansea. A4067 Swansea is home to two universities - University of Wales Trinity St David and Swansea University, with A48 AD N RO Llansamlet some 26,000 students in higher education. PENIEL GREE A4230 D A O ENTERPRISE R IN F Junction 43 (M4) F RETAIL PARK Y T A465, A40 and M50 N Y A A N W D Y A A483 LE AL O V R N W L M50 L A A40 A465 R A40 T A4217 A4067 A483 A40 N LY M Y CR Swansea CA L R MEL ROAD O E City Centre Y H E A465 S R E A4042 A449 A48 J Not to scale M5 Swansea Situation Newport M4 M4 The property is located in the former Swansea Enterprise Zone, which is an established retail warehouse location, Cardiff providing a concentration of out-of-town retail to the east of Swansea. Bristol B ristol Bristol The area provides the largest out-of-town shopping district in Swansea, including a 95,000 Asda food store, Valley Way Cardiff Weston Channel International Retail Park, (Currys, PC World, Maplin and Harvey’s). Phoenix Retail Park (Home Bargains, Poundworld, B&M Retail, super-Mare and Iceland). M5 The property benefits from a prominent location overlooking a major roundabout and close to the junction with the A48, which is a short distance north of the property. The A48 connects with junction 44 of the M4 motorway, two miles Bridgewater to the east, and junction 45 is a similar distance to the north-west. Not to scale The property is adjacent to a 111,000 sq ft Tesco Extra supermarket and petrol filling station. 3 ENTERPRISE RETAIL PARK Description Cycle Rack The property comprises a modern retail terrace, configured as six separate units. The units Height Restrictor CANOPY DRIVE are of steel portal frame construction, with profiled metal sheet cladding to the elevations THRU NO PARKING under a pitched roof. A number of units have mezzanine floors installed. SERVICE BAY There are 304 marked car parking spaces (1:235 sq ft) on the site. Servicing to each unit is provided to the rear of the park, with access from Nantyffin North. Outline planning consent has been obtained for a 3,500 sq ft drive-thru restaurant (Class A3) at the front of the site. STOP NO ENTRY STOP STOP Plan of consent obtained for drive through restaurant 4 ENTERPRISE RETAIL PARK Accommodation The property has been measured in accordance with the RICS code of Measuring Practice 6th Edition by Plowman Craven, and extends to a total area of 6,630.71 sq m (71,373 sq ft). The individual unit sizes range from 900.41 sq m (9,692 sq ft) to 1,519.97 sq m (16,361 sq ft). The individual unit sizes are set out in the tenancy schedule. Site Enterprise Retail Park extends to 2.41 hectares (5.97 acres). A4217 Planning The property benefits from bulky goods planning consent. NANTYFFIN ROAD FENDROD W Tenure AY The property is held on 2 long leasehold interests from The Council of the City and County of Swansea for a term of 150 years from 25 December 2001. The ground rent is calculated as being 5% of the rents receivable, but no less than £55,000 per annum. The current ground rent is £55,877 per annum. AREA FOR PROPOSED DRIVE THRU RESTAURANT Not to scale 5 ENTERPRISE RETAIL PARK Tenancies The property is let on six occupational leases and will produce a total gross income of £1,103,910 per annum, which equates to £15.47 per sq ft overall. The net rent will be £1,048,033 per annum. Tenancy Schedule Tenant Name Unit Address Floor Area Tenancy Start Tenancy Expiry Next Break Date Rent pa Rent psf Comments The tenant only wanted to take 12,000 sq ft and the deal has been agreed to rentalise 12,000 sq ft, but also cover the rates and service charge for the entire Steinhoff UK Group Properties Ltd Unit 1a 15,000 01/09/2014 31/08/2024 31/08/2019 £180,000 £12.00 unit. There is a 12 month rent penalty if they break t/a Harveys at the end of the 5th year. The rent free period is for 6 months, plus 36 months at half rent, but no capital contribution. The tenant only required 12/13,000 sq ft but have Wren Living Ltd taken the entire unit. There is a 6 month rent free Unit 1b 16,361 01/02/2014 31/01/2024 31/01/2019 £311,000 £19.00 t/a Wren Kitchens period, 36 months at half rent plus a £120,000 capital contribution. Carpetright Plc Unit 2 10,139 20/10/2009 19/10/2024 - £154,772 £15.27 A Share & Sons Ltd Unit 3 10,188 28/11/2003 30/04/2029 - £172,856 £16.97 t/a ScS Upholstery Halfords Ltd Unit 4a 9,692 03/04/2011 02/04/2026 - £145,380 £15.00 12 month rent free period and a further 6 month rent Tapi Carpets & Floors Ltd 10 years term from Unit 4b 9,993 tbc 5th Year £139,902 £14.00 free period if the break is not exercised. t/a Tapi Carpets date of entry The Agreement for Lease has been signed. Totals 71,373 £1,103,910 Long Leasehold based on 5% of the £55,877 rental value Net Rent £1,048,033 6 ENTERPRISE RETAIL PARK Covenants Retail Warehousing in Swansea Opposite Enterprise Park on the west side of Nantyffin Road is the Tenant D&B Year Turnover Pre-Tax Profit Net Worth % Phoenix Retail Park, comprising a five unit scheme totalling 64,150 sq Name Rating End £m £m £m of income ft with tenants including Iceland, Poundland and B&M Retail. Opposite Steinhoff UK Group Properties Ltd 4A1 27/06/2015 80.83 6.32 22.12 16 Phoenix Retail Park is the Lion Way Retail Park, which comprises four Wren Living Ltd N2 31/12/2015 257.51 7.43 (2.17) 28 units totalling 29,650 sq ft and with tenants including Poundstretcher and Farmfoods. Carpetright Plc 4A1 30/04/2016 456.80 12.80 16.90 14 Other major retail parks in Swansea are as follows:- A Share & Sons Ltd 5A1 25/07/2015 276.73 4.09 37.54 16 Halfords Ltd 5A1 03/04/2015 872.70 96.60 622.30 13 Parc Fforestfach was completed in August 2002, and provides approximately 135,000 sq ft of Open A1 retail accommodation and Tapi Carpets & Floors Ltd 1A3 02/01/2016 1.25 N/A N/A 13 a 110,000 Tesco store. Tenants include Marks & Spencer, Next, Boots, H&M, Dixons, Topshop, JJB Sports, Pizza Hut and Carphone Tapi Carpets is the new carpet venture of the Harris Family (formerly of Carpetright). The company has been trading since early 2015 and Warehouse. Rents are in the range of £40-45 per sq ft. is due to open its 53rd store in October, with 75 stores targeted to be opened by Christmas and 100 by the middle of next year. The overall The Pontarddulais Road Retail Park is opposite Parc Fforestfach and target is 150-200 within 4-5 years.