GRIFFIN ISLAND NEWPORT

Transcription

1 GRIFFIN ISLAND NEWPORT HIGH STREET / SKINNER STREET WALES NP20 1GH HIGH YIELDING RETAIL INVESTMENT OPPORTUNITY

2 INVESTMENT SUMMARY Multi-let city centre retail investment located in central Newport. Situated on a busy retail pitch at the Northern end of Commercial Street in close proximity to Friars Walk Shopping Centre and Newport railway and bus station. Newport is undergoing one of the largest regeneration programmes in the UK, with 2bn of public and private investment in the last 20 years. Comprises a unique town centre investment totalling 36,744 sq ft, comprising 19 retail units with ancillary accommodation and Highbury Chambers providing 3,529 sq ft of offices. Excellent diversity and security of income, no tenant represents more than 15.5% of the total income. Attractive WAULT of 4.57 years to expiry, 3.9 years to break. Key tenants include Greggs, William Hill, BetFred and Principality Building Society. Currently 52% let by area producing a rental income of 321,765 per annum. Re-letting the vacant areas at re-based rents could provide a further 106,943 of annual income. Numerous outstanding asset management opportunities including letting vacant accommodation and further residential conversion of the upper floors. Freehold. Seeking offers in excess of 2,520,000 (Two Million Five Hundred and Twenty Thousand Pounds), subject to contract and exclusive of VAT, reflecting a net initial yield of 12.00%, a triple net yield of 11.19% and a reversionary yield of 15.00% on letting the remaining vacant units allowing for standard purchaser s costs. Multi-let city centre retail investment located in central Newport.

3 Campus Living Villages Student Accommodation University of South Wales Campus Newport Leisure Centre Kingsway Shopping Centre Friars Walk Shopping Centre GRIFFIN ISLAND NEWPORT Admiral House Newport Railway Station Newport Market Taylor Wimpey City Vizion Residential Development Riverfront Theatre Newport Bus Station REASONS TO INVEST IN NEWPORT Newport is the third largest city in Wales and part of the Bristol/Cardiff/ Newport powerhouse. 2 billion of public and private regeneration/investment over the last 20 years has transformed the city. 100m Friars Walk Shopping Centre has made the city a retail and leisure destination. Catchment expected to grow from 211,000 to 367,000 with an estimated footfall of million per annum (Source: Javelin/DTZ). sales expected to double in the city to 100 million per annum. Quick access to Bristol and Cardiff, 20 minutes and 15 minutes by direct train. Close proximity to the motorway, Severn Crossing and M5 interchange make Newport very accessible. Home to numerous blue-chip companies including Admiral, Wates, Lloyds Bank and Virgin Media. Trains to London Paddington every 30 minutes. Electrification of the mainline in 2018 will reduce train times to London Paddington to only 1.5 hours.

4 LOCATION Newport is located in South East Wales approximately 12 miles north east of Cardiff, 29 miles west of Bristol and 40 miles east of Swansea. The city has a population of 145,736 (2011 Census) and an urban population of 306,844. The city forms part of the Cardiff-Newport metropolitan area which has a population of 1,097,000. The city centre can be accessed via junctions 24 to 28 inclusive of the Motorway. Providing swift access to London, South West, Midlands and South Wales. Newport benefits from frequent train services to London Paddington, Birmingham, Cardiff and Bristol. The fastest journey time to London Paddington is 1 hour 45 minutes, which is due to reduce to 1 hour 30 minutes following the electrification of the mainline railway line in Port Talbot BRECON BEACON S NAT I O NAL PAR K A A4221 Glynneath Neath SWANSEA Hirwaun 36 A4061 Bridgend A A470 A465 A4059 A4058 A4119 Llantrisant Maps not to scale. For indicative purposes only. Merthyr Tydfil 34 Cardiff International Airport A470 Pontypridd A A4232 A A4046 A469 Caerphilly Barry A A465 A467 A468 Pontypool 29 NEWPORT A465 CARDIFF Penarth Abergavenny A Weston-Super-Mare A40 BRI S TOL C HANNEL 21 A449 Usk Monmouth 23 M5 20 Raglan A370 A466 Chepstow Avonmouth 19 A A40 S E V E R N 17 BRISTOL A A37 Bristol International Airport M32 19 M5 A The city forms part of the Cardiff-Newport metropolitan area which has a population of 1,097,000.

5 TR E T SITUATION Griffin Island is situated in the centre of Newport at the Northern end of Commercial Street, at the intersection with High Street and Skinner Street. Within the immediate area is an extensive retail and leisure provision including The Victorian Newport Indoor Market (recently the subject of a 5m refurbishment GRIFFIN ISLAND NEWPORT to improve the internal units and provide external restaurants and cafés, together with enhancing the surrounding public realm) and the prime retail pitch of Friars Walk shopping centre and Commercial Street. Newport railway station is within a 5 minute walk. A NEWPORT REGENERATION KEY CITY CENTRE DEVELOPMENT AND LANDMARKS GODFREY ROAD CLYTHA PARK To Cwmbran J26 To Cardiff GRIFFIN ISLAND 2 Admiral House 3 Newport Market 4 Railway Station 5 Fear Group Student Accommodationand Mixed Use Development 6 Taylor Wimpey CityVizion Residential Development 7 Bus Stations 8 Friars Walk Shopping Centre 9 University of South Wales Campus 10 Campus Living Villages Student Accommodation 11 Rodney Parade Rugby and Football Stadium 12 Residential Development 13 Riverside Theatre 14 Newport Leisure Centre 15 Kingsway Shopping Centre B4591 A4051 BRIDGE STREET Q U E EN S HILL M ILL STREE T 4 TRAIN STATION QUEENSWAY N O RTH MALPAS RD TRAIN STATION S E CAMBRIAN Rd. HIGH St. A4042 HEIDENHIEM DR MARKET St CAMBRIAN CENTRE RE-DEVELOPMENT GRIFFIN St. STO W HILL Brynglas Tunnels DOCK St. SKINNER St. SCHOOL La. CORN St. CHARLES St. A TALBOT LANE CLARENCE PLACE R I V E R U S K KINGSWAY B4591 U K W A 14 6 S Y foot bridge 9 11 CH EPSTO W ROAD UNIVERSITY OF NEWPORT COR POR ATION RO AD To London J25 O N O AD CAERLE R CHRISTCHURCH ROAD To J24 W HARF ROAD STO W PA RK AVENU E To J27 STOW HILL CLIFTO N D D EW SL AN BEL A LE L VU E RO AD P ARK ROA D HILL St. PARK Sq. PARK Sq. K E Y CLYTHA SQUARE COMMERCIAL STREET N SH AM AV. K IN G SW AY L E OW O C E GEO R G E ER K TR D S RUPERRA STREET STREET T 10 GEORGE STREET BRIDGE N E 12 FRIARS RO AD BELLE VUE PARK CARDIFF RO AD To Cardiff J28 COMMERCIAL ROAD USK WAY Maps not to scale. For indicative purposes only.

6 DESCRIPTION Griffin Island is highly prominent island site in central Newport, providing 19 retail units with ancillary accommodation on parts of the upper floors. Included within the ownership is Highbury Chambers which totals 3,529 sq ft of offices. Highbury Chambers is self-contained with direct access to Skinner Street and along with additional ancillary accommodation above the existing retail units would offer excellent potential for residential uses (subject to the necessary consents). 62% of the floor area of Griffin Island is Grade 2 Listed, resulting in no empty rates being payable. The property provides a strong diversity of unit sizes, appealing to a wide range of retailers. Current tenants include a mix of both local and national occupiers such as Greggs plc, Principality Building Society, Betfred, Supernews and William Hill. Various upper parts of Griffin Island have been sold off on long leases and are currently being redeveloped as modern apartments by Seren Group as part of the Newport city centre regeneration. Seren Group has been granted permission for a total of 27 modern apartments in the upper parts, with the first phase of 11 apartments to be completed 2016/2017 following which the second phase of 16 apartments will be started. KEY: Sold off on long leasehold

7 TENANCY HIGHLIGHTS Let to 14 retail tenants. 52% let by area producing 321,765 per annum. Attractive WAULT of 4.57 years to expiry, 3.90 years to break. Substantial additional income upside of circa 106,943 per annum by letting the 6 vacant units and Highbury Chambers at re-based rentals. 62% of the floor area (14 out of 19 units) are Grade 2 listed buildings no vacant rates payable. 52% let by area producing 321,765 per annum No vacant rates payable on 14 out of 19 retail units

8 TENANCY SCHEDULE Unit Tenant Use Accommodation Area (sq ft) Rent ( pa) Rent Analysis ( psf) Start Break Expiry Next Review EPC Uppers Sold Off LH Comments 27 High Street Hoss Beauty Ltd t/a Celly's Hairdressing Basement , Aug Aug Aug-2016 F130 Yes Schedule of condition on basement. 27a High Street The Optic Shop Ltd (Guarantee Russel Evan Jones & Helen Mary Jones) Third Floor , Mar May-2017 G186 No Outside 1954 act. 28 High Street Bibi Bags Ltd (Guarantee Duffryn Express Convenience Store Ltd) , Aug Aug Aug-2020 E104 Yes 29 High Street Done Brothers (Cash Betting) Ltd t/a Betfred , Sep Sep-2023 C75 Yes 30 High Street Ty Hafan , Nov Nov Nov Nov-2017 D89 Yes Schedule of condition. Break linked to review. 31 High Street Greggs Plc , Sep Sep-2015 C70 Yes 32 High Street Supernews Stores Ltd , May May-2019 D85 Yes 33 High Street Principality Building Society Basement , Nov Mar-2018 E118 Yes 11 Griffin Street Vacant F132 Yes 2a Skinner Street Tudor John Dodd t/a Hello Hello Mobile Phones , Dec Nov-2018 G195 Yes Outside 1954 act. 2-4 Skinner Street Vacant D95 Yes 5/6 Skinner Street William Hill (Western) Ltd t/a William Hill , Feb Feb Feb-2019 D86 No

9 TENANCY SCHEDULE CONTINUED Unit Tenant Use Accommodation 7 Skinner Street Vacant 9 Skinner Street Vacant 10 Skinner Street Laximidevi Global Services Solutions Ltd t/a Boomers 11 Skinner Street Vacant 12 Skinner Street Vacant 13 Skinner Street Arnold's Electricals Ltd t/a Arnold's Lighting (Guarantee Nigel Merret) 180 Upper Dock Street Alan Harbud Highbury Chambers Room 1 Highbury Chambers Room 2 & 3 Pt 1,2 3 Fl, Highbury Chambers Third Floor Third Floor Third Floor Area (sq ft) Rent ( pa) Rent Analysis ( psf) Start Break Expiry Next Review EPC Uppers Sold Off LH - - D81 No - - E108 No Comments 10, Oct Oct Oct Oct-2020 E123 No 6M notice on break. - - D90 No - - D90 No 11, Dec Dec Dec-2020 G203 No 5, Sep Sep-2019 G168 No Tenant to benefit form 6m half rent on completion of tenant works? J.G. Payne Office Jan Dec-2002 G156 No Outside 1954 act. J.G. Payne Office 247 1, Mar Dec-2002 G156 No Vacant Office G156 No TOTAL 321,765 Void rates - 21,749 Triple Net Income 300,016

10 MARKET RENTAL VALUE Griffin Island is currently producing an annual income of 321,765 off rentals between ITZA depending on pitch. On letting the 6 vacant retail units (all fronting Skinner Street) and Highbury Chambers the income could be enhanced by 106,943 to 428,708 per annum. We have adopted an ERV of psf ITZA for the vacant retail units fronting Skinner Street and 5.00 psf for Highbury Chambers. TENURE The property is held freehold. Copies of the registered titles are available on request. All buildings except 11 Griffin Street, 11/12/13 Skinner Street and 180 Upper Dock Street are Grade 2 listed. VAT The property is elected for VAT, it is envisaged the transaction will be treated as a TOGC. EPC EPC reports are available on request. PROPOSAL We are seeking offers in excess of 2,520,000 (Two Million Five Hundred and Twenty Thousand Pounds), subject to contract and exclusive of VAT, reflecting a net initial yield of 12.00%, a triple net yield of 11.15% and an attractive revisionary yield of 15.00% on letting the vacant units, allowing for standard purchasers costs. ASSET MANAGEMENT We detail below the key asset management opportunities: Re-gear the leases with Greggs and J.G Payne both of which are currently holding over. Let the 6 vacant retail units, enhancing the income by a further 106,943 per annum. Seek change of use of Highbury Chambers (3,529 sq ft) into residential. Consider change of use of remaining upper parts to residential. FURTHER INFORMATION Peter Flanders peter.flanders@joinercummings.co.uk John Blackwell john.blackwell@joinercummings.co.uk Simon Martin simon.martin@joinercummings.co.uk Telephone: Fax: Disclaimer Notice Messrs Joiner Cummings for themselves and (and their joint agents where applicable) for the vendors or lessors of this property whose agents they are give notice that; (i) the particulars are set out as a general outline for the guidance of the intending purchasers and do not constitute part of an offer or contract; (ii) all descriptions, dimension references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but are given without responsibility and any intending purchasers or tenant should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of them; (iii) all plant, machinery, equipment, services and fixtures and fittings referred to in these particulars were present at the date of preparing these particulars, they have not however been tested and therefore we give absolutely no warranty as to their condition, operation or fitness for the purpose of an intending occupier or purchaser; (iv) no investigations have been undertaken by Joiner Cummings in respect of asbestos, issues concerning pollution and potential land, building, air or water contamination and any intending purchasers or tenant must satisfy themselves by inspection; (v) unless otherwise stated, all prices rents and other charges are quoted exclusive of Value Added Tax (VAT) and any intending purchaser or tenant must satisfy themselves as to the incidence of VAT in respect of any transaction; (vi) no person in the employment of Joiner Cummings has any authority to make or give any representations or warranty whatever in relation to this property; (vii) no responsibility can be accepted for any expenses incurred by intending purchasers in inspecting properties which have been sold, let or withdrawn. The date of this publication is February createwithimpact.com (E5252/WH)