For Sale. 473 Newport Road, Cardiff CF24 1RQ. Leisure Investment Opportunity

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1 For Sale 473 Newport Road, Cardiff CF24 1RQ Leisure Investment Opportunity

2 473 Newport Road, Cardiff CF24 1RQ 02 Investment Summary Detached drive-thru restaurant fronting Newport Road, one of the main out-of-town retail destinations in Cardiff Excellent location on one of the main arterial routes into the city centre and out to the M4 motorway Freehold Let to Burgerking Limited on a lease expiring on 27 July 2024 (approx years unexpired) Rental income 75,000pa Offers sought in excess of 1,050,000 reflecting a net initial yield of 6.75%

3 473 Newport Road, Cardiff CF24 1RQ 03 Location Location Cardiff is the capital city of Wales and is one of the UK s leading commercial and retail centres. It is located 40 miles east of Swansea, 11 miles south west of Newport, 45 miles west of Bristol and is bounded, to the north, by the M4 motorway with connections at junctions 29, 30, 32 and 33. Benefitting from modern infrastructure, access to London is two hours via road and rail. Heathrow airport is an hour and half s drive away and Cardiff Airport has numerous flights a day to UK and European cities, with onward flights to global destinations. Cardiff is the economic driver for a city-region of 1.4 million people, with a pool of 14 million people within a two-hour drive time. It has one of the best student retention rates in the UK, reflecting the city s high quality employment offer and quality of life. The city s retail offer dramatically improved in 2009 with the opening of the St David s II shopping centre and is now rated as the 6th best shopping destination in the UK. This draws shoppers from Swansea, Newport and further afield, many of whom now travel along Newport Road.

4 473 Newport Road, Cardiff CF24 1RQ 04 Situation Situation The property is situated approximately 2 miles east of the city centre on a prominent site on the western side of Newport Road, opposite its junction with Rover Way. The surrounding area comprises an established and popular out-of-town retail location, with the road itself being one of the main arterial routes in and out of the city centre. Access to the M4 is easily accessible via the Southern Distributor Link which connects directly to the A48(M). The area is dominated by retail warehouse occupiers such as Currys, Mothercare, Carpetright, Harveys, Topps Tiles, The Range, Go Outdoors, PC World, Halfords, Pets at Home, Argos, Dunelm, Wren Kitchens & Bedrooms as well as leisure operators such as MacDonald s, KFC, TGI Friday s and Frankie & Benny s. What! George Street Furniture Furniture Direct Just to the north, on Newport Road, Morrisons have constructed a new stilted 6,200 sq m store with 350 car parking spaces. To the rear of the property is an electricity switch station.

5 473 Newport Road, Cardiff CF24 1RQ 05 Planning and Covenant Description The total site area is approximately 0.7 acres, comprising a detached, purpose built single storey drive-thru restaurant constructed in the late 1990 s, with an approximate gross internal area of 2,426sq ft. There are delineated car parking spaces for approximately 24 vehicles, including 2 disabled spaces fronting the entrance. Access from Newport Road is via a shared access road. Covenant Information We understand that Burgerking Limited operate approximately 62 restaurants under the Burger King franchise. The company have not released any accounts since the December 2011 year end, so the following are the most recently available trading results: 31/12/ /06/ /06/ Turnover 81,829,000 59,048,000 58,691,000 Planning Under planning reference number 97/00418R, an application for the erection of a food outlet (A3) and associated car parking was granted consent. There are multiple variations and removal of conditions linked to this consent which are available to view on Cardiff City Council s planning portal. EPC Rating Pre-Tax Profit -9,624,000-6,253,000-7,486,000 Net Worth -17,057,000-9,510,000-17,362,000 Tenure Freehold. Tenancy The property is let to Burgerking Limited on a 25 year unbroken lease from 28 July 1999, expiring on 27 July 2024, therefore leaving approximately 10.5 years unexpired. The lease is drawn on FRI terms with a current passing rent of 75,000pa (reflecting per sq ft) subject to 5-yearly upward only reviews. VAT The property is VAT elected; however, it is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

6 473 Newport Road, Cardiff CF24 1RQ 06 Contact and Viewing Arrangements Proposal Offers are sought in excess of 1,050,000 (One million and fifty thousand pounds) subject to contract and exclusive of VAT, reflecting a net initial yield of 6.75%, after allowing for normal purchasers costs at 5.8%. Further Information For further information or to arrange an inspection please contact the sole agents. Alder King Property Consultants Pembroke House 15 Pembroke Road Clifton Bristol BS8 3BA Oli Stretton ostretton@alderking.com 18 Park Place Cardiff CF10 3DQ Owen Young oyoung@alderking.com Gemma-Jane Ogden gogden@alderking.com SUBJECT TO CONTRACT & EXCLUSIVE OF VAT OJS/77816/Jan2014 Important: Alder King for themselves and for the vendors of this property, whose agents they are, give notice that: 1. The particulars contained herein are for guidance purposes only and do not constitute either part or whole of an offer or contract. 2. All descriptions, dimensions, references to condition and necessary permissions for use and occupation are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact, and must satisfy themselves as to their correctness. 3. No person in the employment of Alder King has any authority to make or give any representations or warranties whatsoever in relation to these properties. 4. No responsibility can be accepted for expenses incurred by intending purchasers in inspecting and considering the properties which are offered. Under the Control of Asbestos Regulations 2006 (CAR 2006), the owner or tenant of the property, and anyone else who has control over it and/or responsibility for maintaining or repairing it, may be under a statutory obligation to detect and manage any asbestos or asbestos related compounds contained within the property. Failure to comply with the CAR 2006 is an offence and could adversely affect the value of the property. The detection and management of asbestos and asbestos related compounds is beyond the scope of our expertise and does not form part of the services that we have agreed to provide in respect of the property. Accordingly: 1. Alder King do not accept any responsibility for, and you should not place any reliance on us in respect of, the detection and/or management of any asbestos and/or asbestos related compounds contained in the property. 2. We strongly recommend that you obtain advice from specialist environmental consultants in respect of asbestos related issues.