HSBC,, WITH ANNUAL RPI REVIEWS
INVESTMENT CONSIDERATIONS <> Prime city centre high street bank investment totalling approximately 5,483 sq ft <> Cardiff has excellent road and rail communications with direct rail services to London, Bristol, Birmingham and Manchester <> The city is ranked 8th in the PROMIS retail centres <> The tenant is consolidating their operations into the property, demonstrating commitment to their occupation <> Freehold <> Current income of 542,374 per annum <> Unexpired lease term of approximately 10.70 years <> Let to the Dun & Bradstreet 5A1 rated covenant of HSBC Bank Plc until 20 December 2027 <> The rent is reviewed annually in line with RPI with a collar and cap of 3% - 5% <> Offers sought in excess of 8,130,000 (Eight million one hundred and thirty thousand Pounds) subject to contract and exclusive of VAT. This equates to an attractive net initial yield of 6.25%, after allowing for purchasers costs of 6.67% <> Assuming the collar of 3% a purchase at this price gives a reversionary yield in: 2020: 6.83% 2025: 7.92%
A48 wansea A483 A483 A465 Neath SWANSEA Port Talbot A470 Merthyr Tydfil A470 Brecon A465 A479 Brecon Beacons National Park 42 A465 Abergavenny Pontypool Cwmbrân A449 Hereford A49 A4103 A4172 A449 Ross-on-Wye A4137 8 Pontypridd A470 Caerphilly NEWPORT A433 3 Chipping A470 A48 9 A48(M) Sodbury Avonmouth Pontshead M32 A4 A4232 A46 BRISTOL A420 Penarth M5 Cardiff Bristol A4 A4 Barry A38 A37 BATH Weston-super-Mare A38 Chepstow A48 M50 Forest of Dean M5 Great Malvern A449 A417 GLOUCE A4161 Castle St Duke St PRINCIPALITY STADIUM Womanby Street CASTLE Westgate Street Park Street Park Street Central Sq Wood Street A4161 St Mary Street The Friary Wharton Street Greyfriars Road Working Street Great Western Lane CENTRAL Bakers Row St Mary Street Crockherbtown Lane Frederick Street The Hayes Caroline Street Hills Street Park Lane Queen Street ST DAVIDS DEWI SANT SHOPPING CENTRE Canal Street Hope Street Charles Street Churchill Way THE CAPITOL SHOPPING CENTRE Wesley Lane Bridge Street Bute Terrace John St N Edward St Station Terrace Churchill Way MOTORPOINT ARENA Guildford Crescent Herbert Street A4161 QUEEN STREET Sandon Street Adam Street Knox Road A4160 Ellen Street Schooner Way Newport Road Tyndall Street Fitzalan Road Atlantic Wharf Moira Terrace Davis Street Central Link A4234 LOCATION As the capital City of Wales, Cardiff is a popular tourist and shopping destination. The city is strategically located approximately 150 miles (240 km) west of London, 109 miles (175 km) south west of Birmingham, 43 miles (69 km) west of Bristol and 42 miles (68 km) east of Swansea. Cardiff benefits from excellent road and rail communications with the (Junctions 29,30 and 32) 5 miles (8km) to the north linking Cardiff to Bristol and London to the east. Cardiff Central is a mainline station with regular services to Bristol Temple Meads, Birmingham New Street, London Paddington and Manchester Piccadilly, with quickest journey times of 48 minutes, 2 hours, 2 hours 4 minutes and 3 hour 25 minutes respectively. The two busiest railway stations in Wales are Cardiff Central and Queen Street with almost 12.5 million passengers a year passing through. Cardiff Airport is located south west of the city and provides services to a number of national and international destinations.
RETAILING IN The estimated shopping population of Cardiff is 592,000 ranking the city 8th of the PROMIS centres. The city ranks 6th in terms of the volume of comparison retail spend available in the catchment area. City centre retail floor space in Cardiff is approximately 2.22 million sq ft of which 1.06 million sq ft is within the St David s Centre. The retail core in the city centre is largely focussed around the pedestrianised Queen Street, the Hayes and the city s shopping centres. The nearby St David s Centre was extended by 620,000 sq ft in 2009 and is the premier shopping destination in Cardiff. Cardiff is an important tourist destination; Cardiff City Council estimates that 20.5 million people visited the city between 2015-2016.
HSBC Cardiff T AN VAC P CU ND ES CO FE SE COF RY RA NT CA VA O MP TE E LU B TO DESCRIPTION SH The property comprises an attractive Grade II listed building totalling approximately 5,483 sq ft of accommodation arranged over basement, ground, mezzanine and first floors. The ground, mezzanine and part basement areas are customer facing, with the remainder of the basement and first floor used as staff and storage space. HMV VACANT GS GREG S TOY RU S Floor Area sq m Area sq ft Basement 153.4 1,651 Ground 256.7 2,764 ITZA 124.9 1,345 Mezzanine 195.8 2,108 First Total Crown Copyright, ES 100004106. For identification purposes only. 50 metres Copyright and confidentiality Experian, 2017. Crown copyright and database rights 2017. OS 100019885 SITUATION The property is located on the southern side of the pedestrianised Queen Street in close proximity to the entrance to the refurbished St David s Centre. Queen Street is made up of a mix of national multiple tenants and nearby occupiers including Primark, Boots, O2, Wilko, JD Sports, River Island, Zara, Topshop and Nationwide. The western end of the pedestrianised Queen Street provides an entrance to the Queens Arcade and the eastern end provides an entrance to the Capitol Centre. Cardiff Central station is located approximately 0.5 miles south west of the property. Experian Goad Plan Created: 20/02/2017 Created By: Allsop For more information on our products and services: www.experian.co.uk/goad goad.sales@uk.experian.com 0845 601 6011 40.5 436 509.3 5,483
TENANCY DETAILS The property is let to HSBC Bank Plc on a 20 year lease from 21 December 2007 and benefits from annual rent reviews to RPI collared and capped at 3% & 5%, additionally there is a 5 yearly upward only rent review to the open market rental value. The passing rent is 542,374 pa with the next rent review due on 20 December 2017. HSBC are consolidating their city centre operations into this property and closing the Churchill Way branch, demonstrating committment to this store. TENURE Freehold. COVENANT INFORMATION HSBC is one of the world s largest banking organisations serving more than 37 million customers from 70 countries. The company has approximately 4,000 offices worldwide and is listed on the London, New York, Paris and Bermuda stock exchanges. HSBC Bank PLC reported the following accounts for the last 3 years: 31 Dec 2015 31 Dec 2014 31 Dec 2013 Turnover (000 s) 18,630,000 18,313,000 20,302,000 Pre-Tax Profit (000 s) 2,971,000 1,953,000 3,294,000 Total Net Worth (000 s) 30,486,000 28,784,000 24,436,000 RECENT BANK INVESTMENT SALES Address Tenant Unexpired Lease Term 26 High Street, Chelmsford* Royal Bank of Scotland Frankel Portfolio (1) Lloyds Bank or Bank of Scotland 8.5 years Asking 3.95m Sale Price NIY Date 5.00% Under offer 15 years 39.50m 5.80% December 2016 Frankel Portfolio (2) Lloyds Bank 15 years 33.70m 5.88% December 2016 13 Cornhill, Ipswich Lloyds Bank 10 years 4.10m 6.30% July 2016 202 High Street, Lincoln Lloyds Bank 10.8 years 3.15m 4.50% June 2016 162 Northumberland Street, Newcastle TSB Bank 9.75 years 4.61m 5.50% May 2016 24 Broad Street, Reading Lloyds Bank 10.5 years 4.76m 4.40% May 2016 83-87 High Street, Sutton Metro Bank 12 years 3.00m 4.65% March 2016 *We understand that the property is under offer at around the asking price.
VAT The property has not been opted to tax. PROPOSAL We are instructed to seek offers in excess of 8,130,000 (Eight million one hundred and thirty thousand Pounds) subject to contract and exclusive of VAT. This equates to an attractive net initial yield of 6.25%, after allowing for purchasers costs of 6.67%. Assuming the collar of 3%, a purchase at this price gives a reversionary yield in 2020 of 6.83% and 2025 of 7.92%. For further information or to make arrangements for viewing please contact: Andy Pointon 020 7543 6720 andy.pointon@allsop.co.uk Richard Lea 020 7543 6832 richard.lea@allsop.co.uk Lottie Hayward 020 7543 6750 lottie.hayward@allsop.co.uk www.allsop.co.uk Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandhq.co.uk 04.17