Lakeside Drive, Celtic Springs Business Park, Newport, NP10 8BB
CELTIC SPRINGS RETAIL QUARTER Modern Retail Investment
• Modern Retail Investment.
• Freehold.
• Situated in Celtic Spring Business Park, which sits on J28 of the M4.
• The property occupies a prominent, highly visible position fronting on to the busy A48.
• Multi-let to 4 tenants, including Greggs PLC, in well configured units comprising 5,561 sq ft.
• Producing £97,500 per annum with a WAULT of 6.10 years to lease expiries (3.64 years to breaks).
• Circa 5,000 employees within walking distance and a passing vehicle traffic of 26,000 per day.
• Developed in 2010 so now well established with a strong trading platform providing good prospects for rental growth and opportunities to further improve the tenant line up.
• Seeking offers in excess of £1,150,000, reflecting an attractive Net Initial Yield of 8.00%, after deducting purchasers costs of 5.89%.
SUBJECT TO CONTRACT & EXCLUSIVE OF VAT
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INVESTMENT SUMMARY
Tredegar House
Tredegar Park
NEWPORT
DUFFRYNExpress by Holiday Inn
CLEPPA PARK
Airbus
O.N.S
HM Prison Service
IMPERIAL PARK
Welsh Water
Wales & West Utilities
M4
A48
A48
A48
A48
A48
A48
A48
A48
A48
M4
M4
M4
M4 WEST Cardiff
M4 EAST London
CELTIC SPRINGS RETAIL QUARTER
Newport, is located midway between Cardiff and Bristol
and is one of the principal commercial centres in South
Wales. Newport is one of Britain’s newest cities, and has
a resident urban population of approximately 137,000
people and a catchment population within a 30 minute
drive time of 478,000.
The city benefits from excellent road communications
lying immediately to the south of Junctions 24 to 28
of the M4 motorway which provides access to Cardiff
and Swansea to the west, as well as Bristol and London
to the east.
Newport benefits from regular Intercity rail services
linking the city to London Paddington, Cardiff, Bristol and
Birmingham, with journey times set to reduce once the
electrification of the rail line is completed in 2018. Cardiff
International Airport and Bristol International Airport are
located just 30 miles to the south west, and south east,
respectively.
The profile of Newport has grown considerably recently
following a number of large scale developments and
infrastructure improvements, the largest being the
recently opened Friars Walk Shopping Centre in the
city centre. Celtic Manor Hotel and Golf Resort, which
hosted the 2010 Ryder Cup and the 2014 NATO summit,
is developing a new 4,000 delegate convention centre
which is set to open in 2019. Both these developments
will further raise the profile of Newport.
LOCATION
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In March 2016, Newport was one of the ten
local councils to sign the Cardiff Capital Regional
deal (CCR). The CCR is a regional investment
vehicle aiming to bring together region wide
infrastructure projects.
With a gross value of £1.2 billion, projects include
the electrification of the South Wales Valley rail
network and the creation of a metro system worth
£734 million; creation of 25,000 jobs in the region
and the creation of an innovation hub.
CARDIFF CAPITAL REGIONAL DEAL
Celtic Springs is located at Junction 28 of the M4 motorway, at the western edge of Newport,
close to its borders with Cardiff.
The subject property is situated on the edge of the business park in an attractive parkland setting,
fronting on to the busy A48. Its prominence on to this road provides it with a highly visible location
for passing trade, which is estimated at 26,000 vehicles per day. In addition, adjacent is a 128 bed
Holiday Inn Express and Destination Dragonfly Pub, which further compliment the leisure offer.
Celtic Springs Business Park is regarded as one of the most prestigious office addresses in South Wales
and is home to high profile occupiers including Airbus, Wales & West Utilities, Welsh Water and SSCL
(a JV between the Cabinet Office and Steria Ltd for HM Prisons). In addition Go Compare, Office of
National Statistics, Target and DAC Beachcroft are also in close proximity. In total, it is believed that there
are circa 5,000 employees within walking distance with little other retail provision to satisfy this demand.
SITUATION
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Freehold
TENURE
N
Unit 2142 m2
Retail Units Development
For identificationpurposes only
L A K E S I D E D R I V E
Car Parking
Landscape
Site Boundary
DESCRIPTIONThe property has a modern parade of three retail
units developed in 2009 comprising 5,561 sq ft
of retail space. There is parking for 20 cars
including 2 disabled spaces, within the
development together with a bicycle bay.
The property is of concrete block work construction, with aluminium framed double glazed windows to the southern elevation and brick and cedar wood cladding to the remaining elevations. The roof has a steel beam structure, with an inverted design, clad in insulated profile steel.
The units were constructed to a shell specification, with incoming three phase electricity, water and gas supplies. All the units have been subsequently fitted by the occupier in line with their corporate designs.
The property is multi-let to 4 tenants and benefits from a Weighted Average Unexpired Lease Term (WAULT) of 6.10 years to expiries (3.64 years to break options), as outlined in the tenancy schedule below:
TENANCY SCHEDULE
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Demise Tenant Use Area (GIA sq ft)
Lease Start Term Break Rent (per annum)
Rent (per sq ft)
Comments
Unit 1 A Heather Jones t/a Kumon
Education 1,500 01/10/2012 10 years 01/10/2018 £22,500 £15.00 Only Kumon study facility in Newport
Unit 1 B Carl & Maxime Jones Salon 1,000 01/10/2012 10 years n/a £15,000 £15.00
Unit 2 Kelly Melmoth t/a Vanilla Pod Café Ltd
Coffee Shop
1,533 02/02/2015 10 years 02/02/2020 £30,000 £19.57 Passing rent is £25,000 p.a. with fixed increase to £30,000 p.a. in Feb 2017. Vendor will top up the rent.
Unit 3 Greggs PLC Bakers 1,528 29/09/2009 10 years n/a £30,000 £19.63
Total 5,561 £97,500
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Greggs PLC
With 1,698 shops, 12 bakeries and 20,000 employees who serve millions of customers each week, Greggs is the UK’s leading bakery food-on-the-go retailer.
31% of the current rental income is attached to Greggs PLC who have a Dun & Bradstreet rating of 5A1, the highest achievable rating. In their last financial accounting year ending 2nd January 2016 they reported a Turnover of £835.7m and a Profit before Tax of £73m.
The remaining units are occupied by more local covenants although Heather Jones in Unit 1 trades as Kumon Educational, who are the UK’s largest supplementary education provider.
Now the retail development is established and experiencing positive trading feedback from the existing occupiers there is an opportunity for a purchaser to improve the covenant strength of the tenant line up going forward.
The property has already received interest from national operators subsequent to completion of the existing lettings.
We understand the property is elected for VAT and it is intended that the sale be treated as a Transfer of a Going Concern (TOGC).
An EPC for the property can be provided upon request.
COVENANT PROFILE VAT
EPC
• Freehold.
• Modern, well configured retail development.
• Prominent location fronting on to the A48 and within close proximity to J28 of the M4.
• Only retail provision for Celtic Springs Business Park and Imperial Park.
• Circa 5,000 employees within walking distance and an average of 26,000 vehicles passing daily.
• 31% of the income secured to Greggs PLC.
• Well established retail centre having been developed in 2010.
• Strong trading history as evidenced by Greggs decision not to exercise their break option in 2014.
• Opportunity to drive rental growth and further improve tenant line up.
• Attractive lot size and yield profile.
Seeking offers in excess of £1,150,000 (One Million One Hundred and Fifty Thousand Pounds), reflecting an attractive Net Initial Yield of 8.00%, after deducting purchasers costs of 5.89%.
Subject to Contract & Exclusive of VAT
INVESTMENT CONSIDERATIONS PROPOSAL
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Gareth LloydTel: 029 2044 [email protected]
Rob JonesTel: 029 2044 [email protected]
SUBJECT TO CONTRACT & EXCLUSIVE OF VATKnight Frank LLP for themselves and for the vendors or lessors of this property for whom they act, give notice that: 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 as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP 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 55 Baker Street, London, W1U 8AN, where you may look at a list of members names. SEPT2016
For further information or to arrange a viewing please contact either of the following: Please do not approach the tenants directly. All viewing or tenant enquires should be directed to the vendors agents.
VIEWINGS