PRIME RETAIL INVESTMENT LET TO PRIMARK FOR A FURTHER 62 YEARS SWANSEA PRIMARK, ST MARY S SQUARE, SA1 3LP
INVESTMENT CONSIDERATIONS Swansea is Wales second city and widely regarded as the dominant centre in West Wales ranking 29 of the Promis retail centres in the UK. The property occupies a highly prominent standalone position opposite the main entrance to the Quadrant Shopping Centre and in close proximity to Oxford Street, the prime pedestrianised pitch. Retailers in the immediate vicinity include Top Shop, River Island, Marks & Spencer, New Look, H&M and Next. 7 6 1. Subject Property 2. Marks & Spencer 3. Swansea Market 4. Quadrant Shopping Centre 5. Tesco 6. Swansea Marina 7. Sainsbury s 8. Parc Tawe Retail Park 9. St Mary s Church 10. Former St David s Shopping Centre Site 11 Oxford Street 12. Swansea Castle 13. Bus Station The property is let entirely to Primark Stores Limited (5A1 Covenant) for a term of 99 years (less 5 days) from 25th March 1979 providing an unexpired term of 62.4 years. Total current passing rent of 533,360 per annum (equating to 10.00 per sq ft). Primark is the UK s leading fashion retailer and a wholly owned subsidiary of Associated British Foods plc, the diversified international food, ingredients and retail group listed on London Stock Exchange s FTSE 100 index. 8 2 12 11 1 9 3 4 10 5 The property is held long leasehold for a term of 150 years from June 2015 at a peppercorn rent. 13 We are instructed to seek offers in excess of 9,160,000 (Nine Million, One hundred and Sixty Thousand Pounds) subject to contract and exclusive of VAT. This reflects a net initial yield of 5.50%, after deduction of the usual purchaser s costs of 5.80%. SWANSEA PRIMARK, ST MARY S SQUARE, SA1 3LP
LOCATION Swansea is Wales second city and the established commercial and administrative capital of West Wales. The city is approximately 40 miles (64 km) west of Cardiff, 51 miles (82 km) west of Newport and 80 miles (128 km) west of Bristol. Swansea is well connected by road and rail with the motorway approximately 4 miles (6.4 km) to the north with access from junctions 42-47. The main routes into the city from the include the A483 from junction 43, the 67 from junction 45 and the A483 from junction 47. The mainline railway network provides access to Cardiff Central and London Paddington with approximate fastest journey times of 50 minutes and 3 hours respectively. SITUATION The subject property is situated on St Mary s Square opposite the main entrance to the City s largest shopping centre, The Quadrant Centre. Oxford Street, the prime pedestrianised retail pitch is located 50m to the north with car parking to the south. Carmarthen A48 Llanelli 49 SWANSEA 48 47 BRISTOL CHANNEL Llandovery A483 46 45 44 43 42 41 40 39 38 Neath Porthcawl 37 A483 A465 36 35 A470 A470 BRECON BEACONS A470 Bridgend Merthyr Tydfil 34 33 A470 A465 32 A479 A438 30 Abergavenny Pontypool 29 42 26 25 27 28 CARDIFF Barry Westonsuper-Mare 24 21 A438 A449 A465 20 Cwmbran Chepstow Newport Hereford A49 Ross-on-Wye 2 8 1 23 21 22 9 16 17 19 18 1 19 2 M32 M5 3 A38 A417 BRISTOL A37 4 A438 A48 3 14 A BRISTOL A4 2 9 Tewkesbury M50 M5 GLOUCESTERSHIRE Gloucester Bath M5 18 A46 13 A36 12 A433 A361 1 8 10 11 Stroud Chippenham 17 A42 A350 A4 National retailers in the immediate vicinity include Top Shop, River Island, Marks & Spencer, New Look, H&M and Next. TRAIN STATION PARC TAWE RETAIL PARK A4118 99P STORES LLOYDS SWANSEA INDOOR MARKET POUNDLAND WEST WAY H SAMUEL WILKOS TOPSHOP OXFORD STREET (PEDESTRIANISED WATERSTONES THE QUADRANT SHOPPING CENTRE TESCO B4290 M&S NEXT RIVER ISLAND SPORTS DIRECT NEW LOOK BOOTS B4489 ST DAVIDS DEBENHAMS H&M HALIFAX McDONALD S ST MARY S CHURCH PROPOSED DEVELOPMENT SITE STRAND TRAVELODGE OYSTERMOUTH RD PRIMARK ST MARY S SQUARE VUE CINEMA MARITIME QUARTER PREMIER INN PRIME RETAIL INVESTMENT LET TO PRIMARK FOR A FURTHER 62 YEARS
RETAILING IN SWANSEA Swansea City Centre comprises approximately 165 million sq ft of retail accommodation and is considered the dominant centre in the region, ranking 29 of the Promis retail centres in the UK. The prime retail areas are focused on the 440,000 sq ft (40,900 sq m) Quadrant Shopping Centre where anchor tenants include Boots, Debenhams and Superdry and the pedestrianised section of Oxford Street, home to Marks & Spencer, River Island and Top Shop. There is a multi-storey car park which adjoins The Quadrant with 517 spaces. On the south side of St Mary s Church is the former St David s Shopping Centre. The scheme was demolished in 2012 and is now used as a temporary car park. In January 2015, outline proposals for a 500 million redevelopment were approved by the Council. The plans include a major office, residential, retail and leisure complex with a new public square and a car park on the site which will enhance the existing city centre offering and the profile of the Primark store. The scheme will also link with the site of the current Civic Centre HQ offices to provide a new beach front mixed use development. CATCHMENT & DEMOGRAPHICS Swansea has a resident population of 230,000 with an estimated 537,000 people within 30 minutes drive time. This is set to increase by 2.76% by 2018. In retail terms, this is above the Sub regional centre average. The city is of high regional importance, containing a wide variety of shops, businesses and civic services and boasts a large student population of over 18,000 spread across two Universities, namely Swansea University and The University of Wales Trinity St David. Estimates suggest 4.47 million people visited Swansea Bay in 2014 (2.8% increase on 2013), spending 390 million. The tourism industry is an important contributor supporting 5,910 jobs within the local economy. Swansea SWANSEA PRIMARK, ST MARY S SQUARE, SA1 3LP 50 metres Copyright and confidentiality Experian, 2015. Crown copyright and database rights 2015 Ordnance Survey 100017316 Experian Goad Plan Created: 09/09/20 Created By: Lewis Ellis and Partne For more information on our products and servi
DESCRIPTION The subject property was built in 1980 and comprises approximately 53,336 sq ft (4,955.08 sq m) of retail and ancillary accommodation over three floors. The property occupies a standalone plot and is highly prominent. There is one customer entrance located on the western side of the property opposite the Quadrant Shopping Centre, with servicing undertaken at the rear via a dedicated loading bay. Internally the accommodation is arranged as retail sales at ground, lower ground and part first floor levels. The remaining first floor ancillary has a stock room, offices, toilets and staff canteen. Access between floors is facilitated by escalators, staircase and an Otis 25 person 2,000 kg passenger lift. There are also two goods lifts adjoining the loading bay with a 2,000 kg capacity each. Furthermore, the tenant has recently replaced the roof. ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and comprises the following gross internal floor areas: Building/Floor Description GIA (sq ft) GIA (sq m) Ground Floor Retail Sales 16,501 1,532.99 Basement Retail Sales 16,925 1,572.39 First Floor Retail Sales / Ancillary 19,035 1,768.41 Second Floor Ancillary 875 81.29 TOTAL 53,336 4,955.08 *Please note, the second floor extends to 9,200 sq ft but for the purposes of rent review, the floor area is 875 sq ft. TENANCY The property is let to Primark Stores Limited for a term of 99 years (less 5 days) commencing on 25th March 1979 at a current rent of 533,360 per annum equating to 10.00 per sq ft. The unexpired term is 62.4 years. The rent is reviewed every five years on an upward only basis to OMV with the next review due on 1st December 2015. PRIME RETAIL INVESTMENT LET TO PRIMARK FOR A FURTHER 62 YEARS
TENURE The property is held long leasehold from the Council of the City and County of Swansea for a term of 150 years from 23rd June 2015 at a peppercorn. COVENANT INFORMATION Primark is the UK s leading fashion retailer with 278 stores in the UK and Europe trading form 10.7 million sq ft and is expected to continue its expansion across Europe and the US with the first store opening in Boston in September 2015. Primark posted an increase of 15% in sales for the 16 weeks to 3rd January 2015. Primark is a wholly owned subsidiary of Associated British Foods plc, the diversified international food, ingredients and retail group listed on London Stock Exchange s FTSE 100 index. The group operates in 47 countries worldwide and boasts a group revenue of 12.9bn with over 113,000 employees. Primark Stores Limited has a D&B rating of 5A1 equating to a minimum risk of business failure and their last three years trading figures are as follows: 13 Sept 2014 (000 s) 14 Sept 2013 (000 s) 15 Sept 2012 (000 s) Sales Turnover 2,786,250 2,583,515 2,297,946 Profit Before Tax 273,952 237,147 167,507 Tangible Net Worth 293,718 287,336 188,219 VAT The property is elected for VAT and it is proposed that the sale will be treated as a Transfer of Going Concern (TOGC). ENERGY PERFORMANCE CERTIFICATE The property has an EPC rating of D and a score of 96. A copy of the EPC is available on the Lewis Ellis website. SWANSEA PRIMARK, ST MARY S SQUARE, SA1 3LP
RENTAL COMPARABLES Location Occupier Transaction Date GIA (sq ft) Rent (psf) Colchester Primark OML (pre-let) Feb 2016 55,803 12.54 Uxbridge Primark OML Jun 2015 50,946 12.39 Truro Primark OML Nov 2014 50,984 13.73 Worcester TK Maxx RR May 2014 46,930 12.04 York Primark RR Jun 2014 54,528 12.24 York BHS OML Mar 2013 66,963 17.50 Bath Primark RR Jun 2012 48,314 19.00 Brighton Primark RR Mar 2011 48,108 11.43 INVESTMENT COMPARABLES Location Occupier Date GIA (sq ft) Tenure Unexpired Term Price Yield Worcester Debenhams Available 47,597 Freehold 61 years Q 9.30m Q 5.00% Cheltenham Primark U/O 52,971 Freehold 6 years Q 9.85m 5.85% Exeter John Lewis U/O 108,460 LL/H (121 years) 17 years Q 19.45m Q 4.50% Swansea M&S Aug-15 12,405 LL/H (250 years) 37 years 5.26m 5.50% Chesterfield Primark Jun-15 54,563 Freehold 10 years 8.20m 6.20% Canterbury Debenhams May-15 69,808 Freehold 19 years 22.35m 5.63% Edinburgh Debenhams Mar-15 108,200 Freehold 39 years 25.50m 4.79% Leeds Debenhams Aug-14 111,824 Freehold 19 years 38.00m 5.58% PRIME RETAIL INVESTMENT LET TO PRIMARK FOR A FURTHER 62 YEARS
DATA ROOM There is a Lewis Ellis dataroom for the property which contains a copy of the lease, headlease, title plan and EPC. Access to it can be obtained via the current sales page in the Lewis Ellis website: www.lewisellis.co.uk. PROPOSAL We are seeking offers in excess of 9,160,000 (Nine million, One hundred and Sixty thousand pounds) subject to contract and exclusive of VAT. This reflects a net initial yield of 5.50%, after deduction of the usual purchaser s costs of 5.80%. FURTHER INFORMATION Should you require further information or wish to view the property please contact either: Simon Lewis Tel: 020 7493 3330 Mob: 07831 527 960 Email: slewis@lewisellis.co.uk David Kos Tel: 020 7493 3330 Fax: 07709 813 267 Email: dkos@lewisellis.co.uk Matthew Brown Tel: 020 7493 3330 Mob: 07836 724 420 Email: mbrown@lewisellis.co.uk Fred Daeche-Marshall Tel: 020 7493 3330 Mob: 07785 741 700 Email: fdmarshall@lewisellis.co.uk SWANSEA PRIMARK, ST MARY S SQUARE, SA1 3LP Lewis Ellis LLP for themselves or nominees or lessors of this property whose agents they give notice that: (1) the particulars are set out as a general outline only for the guidance of the intending purchasers or lessees, and do not constitute part of an offer or contract; (2) all descriptions, dimensions, 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 any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (3) no person in the employment of Lewis Ellis LLP has any authority to make or give any representation or warranty whatever in relation to the property. Designed and Produced by Creativeworld. Tel: 01282 858200. November 2015.