Castle Buildings, Womanby Street, Cardiff, CF10 1BR

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1 Castle Buildings, Womanby Street, Cardiff, CF10 1BR Click to Enter >

2 Investment Located in the heart of Cardiff, close to the shopping facilities, bus stops and Cardiff Central railway station. The office comprises 15,006 sq ft (1,394 sq m) of flexible net lettable office space, over four floors. The property is single-let to Lyons Davidson Ltd on two co-terminous FRI leases both subject to a Schedule of Condition, but the tenant has invested heavily in refurbishment of the building over the last 2 years. Each lease will also benefit from a guarantee from The Injury Care Clinics Limited (TICCS). The annual passing rent is 216,740 per annum which equates to an average rent of psf ( per sq m). There are 9.35 years to lease expiry providing a long unexpired lease term secured to a strong covenant. There are 10 car parking spaces providing an excellent city centre office car parking ratio of 1:1500 sq ft (1:139 sq m). Freehold. Various asset management opportunities exist including exploring the buildings future re-development potential to residential / alternative use in the medium to long term (subject to obtaining the necessary planning consents). Our client is seeking offers in excess of 2,628,000 subject to contract and exclusive of VAT which reflects a net initial yield of 7.75%. This price reflects a low capital value of 175 psf, assuming purchaser s costs of 6.40%

3 A4161 MARK STREET River Taff COLDSTREAM TERRACE River Taff CASTLE STREET CASTLE ST DUKE STREET WOMANBY STREET WESTGATE STREET QUAY STREET A4161 CHURCH ST THE FRIARY Travelodge Cardiff Castle QUEEN STREET WORKING STREET St John s Church Cardiff Central Market Queen s Arcade VICTORIA PLACE QUEEN STREET HILLS STREET CHARLES ST CHARLES ST Cardiff Cathedral CHURCHILL WAY The Capitol Shopping Centre WESLEY PLACE N EDWARD ST BRIDGE STREET STATION TERRACE Premier Inn GUILDFORD CRESCENT CHURCHILL WAY Cardiff Queen Street KNOX ROAD HMP Cardiff FITZALAN PLACE ADAM STREET Cardiff Magistrates Court MOIRA TERRACE BROOK STREET THE PROPERTY WHARTON STREET THE HAYES St David s Dewi Sant DAVID STREET University of South Wales Cardiff Campus SANDON STREET MORGAN ST CENTRAL LINK A4234 DESPENSER STREET Cineworld Motorpoint Arena BUTE TERRACE CLARE RD BEAUCHAMP ST BEAUCHAMP ST DESPENSER PLACE PLANTAGENET STREET FITZHAMON EMBANKMENT TUDOR STREET TUDOR STREET TUDOR LANE River Taff River Taff Principality Stadium VUE Cinema WOOD STREET SCOTT RD HIGH STREET ST MARY STREET ST MARY STR ET PARK STREET PARK STREET WESTGATE STREET New BBC HQ Central Square Cardiff Central WOOD STREET GT WESTERN LN SAUNDERS ROAD CAROLINE STREET ST MARY STREET MILL LANE CANAL ST Cardiff Marriot TREDEGAR STREET BUTE STREET BUTE TERRACE Radisson Blue Hotel Cardiff JOHN ST ELLEN ST HERBERT ST TYNDALL STREET ATLANTIC WHARF

4 . Investment Location Cardiff is the capital city of Wales, with an estimated resident population of 346,000 (2011 Census). Capital city status was granted in 1955 and the city has grown to become Wales s economic and political centre along with being the home to the Welsh Government. Significant recent inward investment has enhanced the city s business profile and it is now considered to be one of Europe s premier capital cities and a national and international business location. Cardiff is well served by both road and rail communications. The city is situated on the M4 motorway, and lies approximately 236 km (147 miles) west of London. South Wales links via the M50 and M5 motorways to the Midlands and south west of England. Almost 80% of the UK population lives within a 4 hour drive from Cardiff. High speed rail services give rapid access to all major cities across the UK. Cardiff Central Station is one of the principal stations on the Great Western Line from London to Swansea. Frequent services run to and from London Paddington, with an average journey time of 2 hours, and following electrification of this line in 2017 the journey time will reduce to around 1 hour 45 minutes. Cardiff has its own international airport located 19.2 km (12 miles) from the city at Rhoose. The airport provides mainland and European schedules. London s Heathrow Airport is less than a two hour drive away. Castle Buildings is a modern city centre office development situated in a prominent position in the heart of Cardiff city centre. The property benefits from being situated a short walk from the prime retail and leisure amenities of Queen Street, The Hayes and A483 A483 A465 Brecon A483 Merthyr Tydfil A465 A479 A438 A44 Talgarth Abergavenny Burnham-on-Sea Minehead 42 A A438 Hereford A449 A465 A38 A49 A44 A438 A37 A48 A4 A4103 Great Malvern Aberdare Pontypool M Neath Cwmbran 42 Chepstow 14 Swansea M Pontypridd Caerphilly Newport Port M4 22 Talbot M M Bridgend Porthcawl 1 M CARDIFF 2 M32 Clevedon M BRISTOL Barry Westonsuper-Mare Bath 21 BRISTOL 4 3 M5 2 Tewkesbury M50 Worcester A361 GLOUCESTERSHIRE A46 Frome 11 Gloucester 13 A36 12 Stroud A433 A361 Warminster St David s Shopping Centre and therefore employees in the building benefit from a wide selection of shops, restaurants, gyms and banks. The area around Castle Buildings is a popular city centre office district, with numerous office buildings in the immediate vicinity. The accessibility, central location and surrounding facilities have also seen Womanby Street become very popular for other uses including: Leisure Womanby Street sits at the heart of Cardiff s leisure and music quarter, with numerous bars, restaurants and music venues in the area. Cardiff s Principality Stadium is also approximately 200m from Castle Buildings. Student Accommodation Cardiff s shortage of purpose built student accommodation, together with the presence CATHEDRAL RD N E V I L L E S T MACHEN PL CRADDOCK ST TUDOR ST W E D M O R E R D H E R E F O R D S T C O U R T R D LOWER CATHEDRAL RD A L L E R T O N S T S T A F F O R D R D O R N W A L L S T B R O O K S T CLARE RD A4119 Bute Park COWBRIDGE RD D E SPENSER M A R D Y S T ST P L A N T G E N E T S T FITZHAMON E MBANK. P E N D Y R I S S T D I N A S S T H A F O R D S T CASTLE ST T A F F S M E A D E M B A N K K I N G E D W A R D V I I A V E WOMANBY ST Cardiff Arms Park Cardiff Castle THE PROPERTY W E S T G A T E S T Millennium Stadium WOOD ST M U S E U M A V E C H U R C H S T P A R K S T R E E T CARDIFF CENTRAL P L A S Y P A R C BOULEVARD DE NANTES ST JOHNS ST S T M A R Y S T R E E T G R E Y F R I A R S R D TRESILLIAN WAY ST MARY ST H A N S E N S T P A R K L N Q U E E N S T R E E T W O R K I N G S T R E E T Goresedd Gardens ST DAVID S WAY C H A R L E S S T R E E T St David s Centre THE HAYES S T R Y D B U T E B R I D G E S T C H U R C H I L L W A Y W G R O V E CARDIFF QUEEN STREET NEWPORT RD A4161 A D A M S T HERBERT ST C I T Y R D O X F O R D L N FITZALAN PL of three universities in the city, has seen a growth in the conversion of office space to student accommodation. ADAM S T S C H O O N E R W A Y GLOSSOP RD M O I R A L E TYNDE Hotel the historic Angel Hotel is a short walk away, and JD Wetherspoon have received consent to convert the upper parts of The Gatekeeper on Womanby Street to a 17 bed hotel. Residential there are proposals for conversions of buildings along Womanby Street to residential use, driven by demand from young professionals and a shortage of new high quality residential accommodation in Cardiff city centre. The location offers excellent public transport links, with Cardiff Central Station (Wales busiest station) a 5 minute walk to the south, together with numerous nearby bus routes along Westgate Street. A4234

5 Description The property comprises former Georgian mill buildings of traditional construction with brick elevations which have been converted to provide office accommodation. It is understood that the property was formerly three buildings which have been merged into one with varying floor levels throughout The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following net internal floor areas: Use Area (sq ft) Area (sq m) The property extends to 15,006 sq. ft. (1,394 m sq) over four floors. Internally, the building benefits from suspended ceilings, perimeter trunking and gas fired central heating. Over the last two years, the building has undergone extensive refurbishment works as part of the tenant s obligations to complete various repairs and works. A detailed works schedule can be provided on request, but this includes a new reception, new roof and new windows throughout the property. This major investment by the tenant further reinforces their commitment to the building. 1S N 1, R (N) & 3R (S) 1, S N 1, The car park is located at basement level and provides 10 spaces at a ratio of 1:1,500 sq ft (1:139 sq m). In addition, a multi-storey car park is located within 100m of the subject property. 5R 1, S 1, N 1, Site 7S 1, R 1, The site measures approximately 0.14 acres. 8N 1, Total 15,006 1,394.13

6 Tenancy Schedule The property is let in its entirety to Lyons Davidson Limited on two separate FRI leases both subject to a Schedule of Condition and both guaranteed by The Injury Care Clinics Limited (TICCS). The first lease is from 31 March 2011 and expires in October 2026 at a rent of 104,000 per annum. The second lease commenced on 1 January 2013 and is coterminous at a rent of 112,740 per annum. The combined rent equates to 216,740 per annum which equates to a low base rent of psf ( sq m). The leases are subject to 5 yearly open market reviews, the next being due on 31st March Covenant The tenant is Lyons Davidson Limited which comprises a number of companies in common ownership. The companies are operated on a group basis but without a Group Holding Company with the two principal trading companies being Lyons Davidson Limited and The Injury Care Clinics Limited (TICCS). The Group employs approximately 1,750 staff and provide a range of legal and healthcare services. The legal division has significant joint venture/strategic arrangements with Admiral Group PLC, The AA and Liverpool Victoria. Lyons Davidson Limited holds the borrowing (with cross guarantees) and delivers most administrative and back of house services on behalf of the group of companies and these costs are reflected in the companies audited financial results. Each lease will benefit from a guarantee from TICCS. Where the Tenant and Guarantor companies are no longer under common ownership, the Guarantor will be released provided that the Tenant s audited accounts demonstrate a pre-tax profit exceeding four times the total contracted annual rent for the property for three consecutive years. In the event that the Tenant fails to meet the required financial benchmark, the Guarantor shall have the option to either let the guarantee continue or be replaced by a 12 month rental deposit. In all circumstances, the guarantee will remain in place for a minimum initial period of four years. Lyons Davidson Ltd 31/05/ /05/ /05/2014 Turnover 44,471,641 47,930,635 51,571,293 Pre-Tax Profit 774, ,609 1,543,771 Net Worth (3,154,433) (3,644,910) (4,642,081) TICCS 31/05/ /05/ /05/2014 Turnover 40,387,743 38,606,065 28,687,212 Tenure Freehold. Pre-Tax Profit 5,642,037 6,522,039 5,377,579 Net Worth 24,332,273 22,788,304 21,496,875

7 Cardiff City Centre Office Market Cardiff has a total office market of circa 10 million sq ft, which is split between city centre, Cardiff Bay and out of town locations. City centre prime Grade A headline rents have climbed from psf in 2014 to psf in 2017 as a result of strong demand and shrinking supply. Total city centre take up for 2016 was 63,698 sq m (685,640 sq ft), a record annual level for Cardiff exceeding the 57,325 sq m (617,049 sq ft) in has continued this positive trend for growing tenant demand in Cardiff, with Q takeup hitting 150,500 sq ft, a 57% increase on takeup in Q Supply of Grade A and Grade B accommodation is at a historically low level due to both limited opportunities to develop new Grade A space and the redevelopment of Grade B space for alternative uses. Grade A supply stands at c. 170,000 sq ft (c. 1.70% of total stock), with new speculative development taking place at Central Square and Capital Quarter to capitalise on this limited availability and meet current tenant requirements. Grade B supply stands at c. 479,000 sq ft (c. 4.79% of total stock), a historically low level, as the redevelopment of Grade B office accommodation for uses such as student accommodation has taken available space out of the market and has increased demand for good Grade B space. Building Area sq ft Rent Tenant The Creative Quarter, St Mary's Street 1, psf HLM The Creative Quarter, St Mary's Street 1, psf Cloud IT St Patrick's House, Penarth Road 31, psf Network Rail Helmont House, Churchill Way 1, psf Vectos Haywood House, Dumfries Place 16, psf Slater & Gordon

8 VAT The property is elected for VAT and it is intended that the sale will be treated as a TOGC. Access to the dataroom is available upon request. EPC Proposal The property benefits from an EPC Rating of E(105). A copy of the certificate is available on request. Asset Management Our client is seeking offers in excess of 2,628,000 subject to contract and exclusive of VAT which reflects a net initial yield of 7.75%. This price reflects a low capital value of 175 cv psf, assuming purchaser s costs of 6.40%. On lease expiry, the property is perfect for multiple occupation. In addition, on acquisition our client had an appraisal undertaken proving change of use to residential is viable. Further information can be provided on request. Contact Information For further information or to make viewing arrangements, please contact: Alex Titheridge Tel: Mob: Alex.Titheridge@colliers.com Graham Davies Tel: Mob: Graham.davies@coark.com Nick Lawley Tel: Mob: Nick.lawley@coark.com DISCLAIMER Colliers International gives notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchaser, Lessees or Third Party should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Colliers International has any authority to make any representation or warranty whatsoever in relation to this property. (June 2017). Colliers International is the licenced trading name of Colliers International Capital Markets UK LLP which is a limited liability partnership registered in England and Wales with registered number OC Our registered office is at 50 George Street, London, W1U 7GA. Designed and produced by Creativeworld. Tel