CARDIFF CF10 1AH PRIME CARDIFF CITY CENTRE RETAIL AND LEISURE INVESTMENT OPPORTUNITY - Knight Frank
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THE HAYES CARDIFF CF10 1AH PRIME CARDIFF CITY CENTRE RETAIL AND LEISURE INVESTMENT OPPORTUNITY
THE HAYES
CARDIFF CF10 1AH
Investment Summary
Cardiff is the capital city of Wales and has a
catchment population of 1.6 million within a 45
minute drive.
20 million visitors to the city annually, spending
circa £1.1bn per annum.
Prime location directly adjacent to St. David’s Hall
and St. David’s Shopping Centre, which attracts 40
million visitors per annum.
70% of income from national operator Mitchells
& Butler t/a Miller & Carter let until 2039 (break in
2029).
Freehold.
Excellent asset management opportunities to let
vacant basement and introduce new tenant at
first floor. Current rent of £505,000 per annum on
ground and first floor accommodation.
We have been instructed to seek offers in excess
of £8,250,000, subject to contract and exclusive of
VAT reflecting a NIY of 5.69% assuming standard
purchasers costs of 7.54%.
Cardiff is expected to grow
faster than any other UK city in
population terms
PRIME CARDIFF CITY CENTRE RETAIL AND LEISURE INVESTMENT OPPORTUNITY
2
THE HAYES Great
Malvern Banbury
CARDIFF CF10 1AH Evesham
A44
A438
Hereford
A44
Brecon 6
70 A4
A4
5
A4
0 A4
6 Tewkesbury
A47
A4
9
A49 4
0
A4
Cheltenham
A40
A483
A48 A4
0 0 Gloucester
A4 A43
6
A4
Abergavenny
70
Ammanford 465 A40
9
A
Witney
2
A4
A4
17
A40
Merthyr Tyd�l Stroud
A404
5
46
8
A4
A
Aberdare M5
9
Cirencester
2
A419
4
A4
Llanelli Pontypool
M4 A420
Neath Cwmbran
SWANSEA Chepstow
Pontypridd M48 33
A4
A4
Caerphilly
1
Port Talbot
9
A4 M4
70 Newport
Swindon
M4
29
A4
M4
Porthcawl Bridgend CARDIFF M4
A346
M32
Situation
M5 Chippenham
Clevedon
BRISTOLA
A4
A350
Barry
6
4
8
A37
Melksham
A3
BRISTOL Bath
Weston-super-Mare Devizes
The subject property occupies the prime position in the heart of Cardiff’s city centre
A36
Trowbridge
retail and restaurant offer. The property benefits from return frontage onto The Hayes
A33
8
61
M5 and Hill Street, directly adjacent to one of the principal entrances to St David’s Shopping
A3
Burnham-on-Sea
Ilfracombe Frome Centre. This development transformed the Welsh Capital into one of the UK’s top retail
Location
Minehead A361 Warminster Andover
A3
destinations with an additional 1.4 million sq ft of retail space, Total footfall for St David’s
A3
61 6 A303
Shopping Centre is approximately 40 million visitors per annum.
Bridgwater
38
A3
9
A3
Barnstaple 7
The subject property is situated on what is regarded as the prime leisure and restaurant
A3
Cardiff is the capital city of Wales and provides the principal retailing and commercial centre pitch inSalisbury
Cardiff, namelyWinchester
The Hayes, Morgan Arcade and Mill Lane.
0
3
for the South Wales region. The city is locatedTaunton
immediately to the south of the M4 motorway,
A35
0
A3
Bideford
Nearby occupiers include
Romsey retailers John Lewis, House of Fraser, TK Maxx, Hugo Boss,
36 A
approximately 44 A3 miles west of Bristol and 42 miles east of Swansea.
61
54
A3
All Saints, Fred Perry, Joules, Urban Outfitters and restaurants including Wahaca, Bills,
Cardiff benefits from good access to the national rail network. Cardiff Central railway station Carluccios, Wagamama and Gourmet Burger Kitchen. The Ivy is also opening its new
provides regular direct trains to London Paddington (1 hour 59 minutes), and Birmingham New restaurant opposite.
Street (2 hours).
The property is also adjacent to St. David’s Hall, a 2,000-seat concert hall which is
Cardiff Airport is located 11 miles south west of the City Centre and provides scheduled flights home to the annual Welsh Proms Cardiff, the Orchestral Concert Series featuring the
to an ever expanding array of global destinations. world’s top orchestras, the bi-annual BBC Cardiff Singer of the World competition and a
multitude of other live entertainment, comedy shows, regular exhibitions and company
conferences.
PRIME CARDIFF CITY CENTRE RETAIL AND LEISURE INVESTMENT OPPORTUNITY
3
THE HAYES
CARDIFF CF10 1AH
Demographics
Cardiff is expected to grow it’s population by 26% over the next 20 years, faster than any
other city in the UK.
Cardiff benefits from a significant primary retail catchment of 1,600,000. Cardiff draws its
catchment from a large area and retains a significant share of the available spend due to the
lack of competition within the catchment. 373,790 people live within a 20 minute drive of
Cardiff City Centre, rising to 2,363,431 within 1 hour.
The catchment has a relatively young and affluent population with 27% of the population
aged between 15-29 (UK average of 19.9%) whilst 56% of the population is social grade ABC
1 (UK average of 53.2%).
The city has a significant student population of approximately 50,000 at three universities:
40 million 50,000+
Cardiff University, Cardiff Metropolitan University and University of South Wales.
20 million visitors to the city annually, spending circa £1.1bn per annum. Tourist attractions
include: Cardiff Castle, the Principality Stadium and the Wales Millennium Centre. annual footfall to St Davids student population
Shopping Centre
Cardiff is rapidly becoming a hub for global sporting events after successfully hosting the
UEFA Champions League 2017 Final which brought 314,264 visitors to the city in a single day,
boosting the local economy by £45m. The city is also set to host the Volvo Oceanic Race in
2018, with Cardiff being the only UK stop of the 46,000 mile global race.
Cardiff is the capital city of Wales and has a catchment
In addition, Cardiff also boasts a number of other sporting events. concerts, exhibitions etc
population of approximately 2.4 million within 1 hour
at the Principality Stadium, Swalec Stadium, Cardiff City Stadium, Cardiff Arm’s Park, the
Motopoint Arena and the Ice Arena Wales which all bring numerous visitors and spend to the
city centre.
PRIME CARDIFF CITY CENTRE RETAIL AND LEISURE INVESTMENT OPPORTUNITY
4
THE HAYES
CARDIFF CF10 1AH
QUEEN
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Cardiff Investment
STREET
QUEEN
CH
Cardiff has experienced significant investment over recent years, which continues
U RC
HI
as the council plans to spend £700m on city infrastructure in the next five years.
LL
LE ST
CAST
WA
The BBC will be developing a 150,000 sq. ft office complex in Cardiff City Centre
Y
QUEENS
HIG
CASTLE ST
ARCADES which will be completed in 2018 and bring 1,200 staff members into the city
HS
CH
centre. In a similar fashion, the UK Government has pre-let 266,000 sq. ft of new
T
AR
W
ES 9-11
LE
THE HAYES
TG
office space at No.6 Central Square and is set to relocate a further 4,000 jobs to
SS
AT
E
T
ST
THE ST the city centre as of 2019 (see adjacent map).
HAYES HIL
LS
T
ES
ST
IDG Other notable developments include plans to construct a new 15,000-seater
MA
W BR
RY
indoor arena in Cardiff, costing £100m. This will further enhance the city’s current
ES
TG
ST
AT
ST
ST DAVID’S
strong retail and leisure offer in the city centre and attract more high spending
E
ST CENTRE
ON
RT
TH
WH
A
visitors.
EH
AYE
THE
The confidence exuberating from Cardiff has resulted in a number of new
S
ARCADES CINEWORLD
entrants entering the food & beverage and leisure sectors such as Marco Pierre
WE
White’s Steakhouse, Brewhouse and Kitchen, a new JD Gym costing £2m with
ST
PRINCIPALITY ST
AR
The Ivy opening soon and The Alchemist investing £1.6m in converting a former
GA
STADIUM ST MARY TRED
EG
TE
FIT
T STREET E
KS AC
JOHN bank. All of these will be each company’s first establishment in Wales.
ST
PAR RR
ZH
LEWIS TE
AM
BREWERY TE
ON
T QUARTER BU
DS
Location Occupier Headline Rent (psf)
EM
S T O
RK WO
SC
PA
BAN
OTT
KM
MILL Zizzi £72.68
RD
CENTRAL
EN
VUE CINEMA
SQUARE LANE
T
Wahaca £62.50
RI
ST
VE
BU
D
OO
R
TUDO
St David’s Centre & Mill Lane Shake Shack £57.80
TE
TA
R ST W
ST
F
S
F
MA
T
Jamie’s Italian £44.00
RY
CARDIFF CENTRAL
ST
Ask Italian £40.00
Five Guys £32.50
The Brewery Quarter & Mill Lane
Wagamama £50.00
A1 Retail Provision A3 Provision Core Office Locations
PRIME CARDIFF CITY CENTRE RETAIL AND LEISURE INVESTMENT OPPORTUNITY
5
THE HAYES
CARDIFF CF10 1AH
Description
The property comprises an attractive Grade II Listed building on a prominent corner
site that sits adjacent to one of the primary entrances to St David’s 2 Shopping
Centre in the heart of Cardiff city centre’s retail and restaurant offer. The property
is of steel frame with stonework elevations under flat and pitched tiled roofs. The
accommodation is laid out over basement, ground/mezzanine, first and second
floors comprising approximately 29,599 sq. ft in total.
Internally, the first floor offers an attractive, well-let, predominantly open plan
unit with high ceilings. The basement benefits from a dedicated entrance directly
off The Hayes, leading to an open plan unit with good floor to ceiling height. The
property has goods lift access to all floors, a DDA compliant lift providing access to
the basement and a passenger lift to the first floor.
Accommodation
The building provides the following approximate Gross Internal Area (GIA):
Floor Sq Ft Sq M
Basement 8,032 746.19
Ground and floor mezzanine 10,293 956.24
First and Second Floor 11,274 1,047.38
TOTAL 29,599 2,749.81
PRIME CARDIFF CITY CENTRE RETAIL AND LEISURE INVESTMENT OPPORTUNITY
6
THE HAYES
CARDIFF CF10 1AH
t
San
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’s D
vid
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PRIME CARDIFF CITY CENTRE RETAIL AND LEISURE INVESTMENT OPPORTUNITY
7
THE HAYES
CARDIFF CF10 1AH
Basement Bar Miller & Carter First Floor
Tenure 70% of income from national operator of
Mitchells & Butler t/a Miller & Carter
Freehold.
Tenancy
Area Lease Lease Unexpired
Unit Tenant Break Rent p.a Rent psf. Comment
sq ft Start Expiry Term (break)
Basement Vacant 8,032 - - - - - - Available to let. Not subject to empty
rates.
Ground floor Mitchells & Butler 10,293 22/04/2014 21/04/2039 21.17 22/04/2029 £355,000 £34.48 The rent is subject to 5 yearly five yearly
and mezzanine Retail (No.2) Ltd t/a upwards only, open market, rent reviews
restaurant Miller & Carter capped at 4% p.a compounded.
First floor Burger & Lobster 11,274 15/09/2014 14/09/2039 21.57 15/09/2029 £150,000 £13.30 The rent is subject to 5 yearly upwards
restaurant Restaurant Group only reviews, linked to a multiple of
Ltd. 1.216652, On this basis the rent will be
reviewed to £182,497 in September 2019.
Burger & Lobster are currently not in
occupation.
TOTAL 29,599 £505,000
PRIME CARDIFF CITY CENTRE RETAIL AND LEISURE INVESTMENT OPPORTUNITY
8
THE HAYES
CARDIFF CF10 1AH
Asset Management
There are numerous opportunities to add value to the asset, including:
Let the vacant basement unit to a restaurant operator or alternative leisure operator such
as a gym or indoor golf/darts/table tennis operator (subject to planning/licences). Initial
interest has already been received from genuine leisure operators such as Escape Rooms.
Burger & Lobster are currently not in occupation of their unit. Whilst still receiving
income from Burger & Lobster, there is therefore an opportunity to secure an alternative
restaurant or bar operator currently without a presence in Cardiff.
Covenant Analysis
Miller & Carter Steakhouse forms part of the Mitchells & Butlers Plc. Mitchells & Butler
runs circa 1,784 managed pubs, bars and restaurants throughout the United Kingdom.
Brands include Miller & Carter, Harvester, Toby Carvery, Nicholson’s, O’Neill’s, All Bar One
and Browns.
In 2017, Mitchells & Butlers Plc reported a Turnover of £2.18 billion generating a Profit
before taxation of £77 million and Shareholders Funds of £1.6 billion.
Mitchells & Butlers Retail (No. 2) Ltd has a Fame Credit score of Secure (89).
Burger & Lobster was founded in 2011 and operates 18 restaurants worldwide, in location
such as, New York, Dubai, Bangkok, Malaysia and 11 restaurants in the United Kingdom.
Burger & Lobster Restaurant Group Limited has a Fame Credit score of Secure (81).
PRIME CARDIFF CITY CENTRE RETAIL AND LEISURE INVESTMENT OPPORTUNITY
9
THE HAYES
CARDIFF CF10 1AH
VAT
We understand the property is elected for VAT. It is anticipated the sale will be
treated as a Transfer of Going Concern (TOGC).
Proposal
We are instructed to seek offers in excess of £8,250,000 subject to contract and
exclusive of VAT. A purchase at this level would reflect a NIY of 5.69% (assuming
standard purchaser’s costs of 7.54% reflecting the effective Stamp Duty change in
Wales from April 2018)
Total income currently received in £505,000 p.a, which includes £355,000 p.a from
Miller & Carter and £150,000 p.a from Burger & Lobster. There is no income applied
to the basement unit.
Contact Information
For further information or to arrange an inspection please contact:
ANDREW MCGREGOR GARETH LLOYD
T: +44 20 7861 1531 T: +44 29 2044 0141
M: +44 7970 971 538 M: +44 7917 503 751
E: andrew.mcgregor@knightfrank.com E: gareth.lloyd@knightfrank.com
DANIEL SERFONTEIN
T: +44 20 3640 7037
M: +44 7891 996 745
E: daniel.serfontein@knightfrank.com
MISREPRESENTATION ACT: Knight Frank LLP give notice to anyone who may read these particulars as follows: 1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the
particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and
accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements
and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must
find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership
registered in England with registered number OC305934. Our registered office is 55BakerStreet, London W1U8AN, where you may look at a list of members’ names. March 2018. Designed and produced by Creativeworld. Tel: 01282 858200.You can also read
