27 HIGH STREET CARDIFF 27 High Street - Savills · AIRPORT WESTON-SUPER-MARE BATH CARDIFF AIRPORT...
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27 HIGH STREET CARDIFF
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27 High StreetCARDIFF CF10 1PU
PRIME LEISURE & RESIDENTIAL INVESTMENT
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Investment Summary
Cardiff, Wales’ capital city, is a major administrative, retail, and commercial centre, with a growing population.
Cardiff boasts a retail catchment of 1.6 million people ranking the city 10th of the Promis centres nationally.
Cardiff benefits from 21 million tourists per annum, who boost local expenditure by almost £1.3 billion a year, in addition to a sizeable student population of 70,000.
The property is situated on the pedestrianised High Street at the heart of The Castle Quarter. The Castle Quarter is a historical part of Cardiff situated between the city’s retail and employment offer.
The basement is let to The Potted Pig, the ground floor to Zizzi and there are six refurbished two bed apartments on the upper floors let on ASTs.
Low leisure and residential rents - totalling £172,244 per annum
64% income is leisure, 36% is residential
Freehold
We are instructed to seek offers in excess of £2,900,000 (exclusive of VAT) for the benefit of our client’s freehold interest, which reflects a 6.25% net initial yield (6.5% purchasers costs) on the commercial income and £227 per sq ft on the residential apartments.
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Location & DemographicsCardiff is Wales’ capital city and is the leading retail and commercial centre in South Wales. The city is situated on the south coast of Wales, lying 42 miles (68 km) east of Swansea and 43 miles (69 km) west of Bristol.
NEWPORT
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SWINDON
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SWANSEA
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A48
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GLASTONBURY
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WESTON-SUPER-MARE
BATHCARDIFFAIRPORT
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Cardiff has a retail catchment population of 1.6 million people, and a shopping population of 791,000 people, ranking the city 10th of all Promis centres. Due to the attractive lifestyle that it offers and its vibrant leisure and restaurant scene, the city boasts an above average proportion of the most affluent AB social group. Cardiff has been identified as a growth hotspot with projected population growth of over 42% in the next 20 years.
Cardiff benefits from 21 million tourists per annum, who boost local expenditure by almost £1.3 Bn a year, in addition to a sizeable student population. Many of the 70,000 students who study at the three universities in the city opt to remain in the city after graduating, attracted by the strong jobs market. This reflects the presence of several large organisations, including PwC, Legal & General, and Eversheds, who are attracted by the highly-educated workforce, 57% of whom are qualified to degree level.
National Rail Train Times Prior to electrification
Bristol 43 MILES 50 MINS
Reading 1 14 MILES 95 MINS
London 147 MILES 127 MINS
road rail
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ConnectivityCardiff’s excellent transport connections are a significant catalyst in the city’s economic strength.
RoadThe M4, accessed via Junction 32 4 miles to the north of the property, provides east-west links from London and Bristol in the east to the rest of South Wales in the west. It provides access to the M5 motorway via Junction 20, which leads north to Birmingham and the wider Midlands region. The Second Severn Crossing that joins Wales and England, now renamed the Prince of Wales Bridge saw the abolition of tolls into Wales as of December 2018, this will benefit 25 million drivers into Wales and we expect increase visitor numbers and bring new occupiers to the South Wales market.
RailCardiff Central station, situated 0.4 miles (600 metres) to the south of the property, is well served by the national rail network and was used by 12.7 million passengers in 2015/16. It provides frequent services to Newport (12 minutes), Bristol (38 minutes), London Paddington (2 hours), and Birmingham New Street (2 hours).
Cardiff Queen Station, situated 0.5 miles (800 metres) to the east of the property, serves the local Valleys and numerous other local destinations. It was used by 2.6 million passengers in 2015/16.
A £1.2 Bn Cardiff Capital Region deal was signed in 2016, £738 million of which has been committed to improving Cardiff’s rail connections to the surrounding towns and cities. Projects include the Valley Lines Electrification programme, and the South Wales Metro Scheme.
BusThe new bus station / interchange building has been approved with it expected to start on site this spring. Plans for a new £11 million bus station were approved by counsellors in late 2018, which will involve a 14 bay bus interchange. It is expected to be operational by 2021.
AirCardiff International Airport, located just 11 miles (18 km) south west of the city, offers direct flights to over 75 international destinations.
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27 High Street CF10 1PUFor reference purposes onlyN
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Cardiff Castle
The Angel Hotel
Holiday Inn
New BBC HQ
Central Square Scheme
St Davids SD2 Shopping Centre
Central Train Station
1 & 2 Central Square
Cardiff MarketHouse of Fraser
Queen’s Arcade
National Principality Stadium
27 High StreetCARDIFF CF10 1PU
Pizza Express
Gin & Juice BarAssador 44
WRU Hotel
New HMRC
Bar 44
Corner Coffee
Rum & Fizz BarLibertine Bar
Alchemist BarTurtle Bay
Fly by Night
Juniper Place
Honest BurgerBotanist
Potted Pig
Cardiff Blues Stadium
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Retailing in CardiffCardiff is the region’s premier shopping destination, boasting one of the strongest and most extensive retail offers in the UK. The city’s 2.22 million sq ft of high quality retail space positions Cardiff 7th and 10th on the basis of its PMA retail and fashion score respectively. This reflects the impressive range of retailers that Cardiff is home to, from international retailers such as Apple, to aspirational retailers such as Hugo Boss and Reiss.
The core retail offer in Cardiff is centred around the pedestrianised Queen Street, The Hayes, and the city’s three shopping centres; St David’s Centre; Queens Arcade; and Capitol Centre. This range of pitches deliver a diverse and varied retail experience. Queens Street, Queen’s Arcade, and the Capitol Centre provide the mass market offer, with tenants including a number of multi-national retailers such as Zara, Primark, and Next, while The Hayes and St David’s shopping centre provide the more aspirational retail offer, including a 260,000 sq ft John Lewis and numerous designer brands such as Kurt Geiger and Karen Millen.
In addition to these more mainstream offers, the city boasts seven historic retail arcades, which are an integral part of the City’s retail landscape and provide a more vibrant and unique shopping experience.
Cardiff also benefits from a lively and thriving restaurant and bar scene, with a number of exciting new arrivals to the sector. This includes Marco Pierre White’s steak house opening in Dominions Arcade, The Alchemist converting the former NatWest on St Mary Street, and The Botanist and Honest Burgers both having pre-let space at Hermes’ development at 6/10 Church Street.
POTTED PIG
LIBERTINE
COCKTAIL BAR
RUM AND FIZZ
CARDIFF INDOOR MARKET
RESTAURANT DEVELOPMENT
TO BE HONEST BURGER, PHO,
MOWGLI, BOTANIST
CARDIFFCASTLE
FLY BY NIGHT
COCKTAIL BAR
UNDER OFFER – RESTAURANT
ENTRANCE TO
PROPSED STUDENt
FLAT SCHEME
For reference purposes onlyN
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SituationThe property is situated on the pedestrianised High Street at the heart of The Castle Quarter. The Castle Quarter is a historical part of Cardiff situated between the city’s retail and employment offer.
The Castle Quarter comprises three outstanding Victorian and Edwardian Arcades and Cardiff Castle. The quarter has historically been home to specialist shops such as drapers, apothecaries, tailors, and jewelers. Over time, the arcades and the surrounding quarter have grown and adapted to the needs of a modern shopping environment.
Today, the Castle Quarter’s outstanding architecture and pedestrianised streets, provide a unique customer experience. Consequently, it is regarded to be the destination of choice for locals wanting to socialise and shop in the town centre, and tourists, looking to soak up the city’s history and cultural heritage.
Retail expenditure exceeded £4bn in 2018 and is diverse in its origins. It is underpinned by Cardiff’s far reaching catchment, the affluent and growing population, the sizeable student population, and the strength of the city’s underlying tourist appeal.
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DescriptionThe property comprises a mixed use asset extending to 12,512 sq ft (1,162 sq m) and is arranged over ground floor, basement, and three upper levels. The property benefits from a prime pitch on Cardiff’s busy High Street, being situated immediately adjacent to Castle Arcade and across the road from the entrance to High Street Arcade.
The property boasts an attractive facade having formerly been a bank, and now houses two restaurants at ground floor and basement level, in addition to six, 2 bed, residential units.
Located in the former bank’s vaults, the restaurant located at basement level boasts a unique character with vaulted ceilings and exposed brickwork. It also benefits from a separate entrance.
The restaurant on the ground floor is located in the former banking hall and offers an appealing dining environment with high ceilings and additional outdoor seating on the High Street.
The six, two bed, residential units are arranged across the three upper floors and benefit from a separate entrance off the High Street. All of the units have recently been refurbished and offer high quality living space.
The property is Grade II listed and is located in the St Mary Street Conservation Area.
Tenure The property is held freehold.
TenanciesIncome highlight include:
Conservative restaurant rents for the quality of pitch (average £15.60 psf)
Six AST tenancies totalling £62,100 per annum (£850-£875 pcm per unit)
64% leisure income and 36% residential income
Address Demise Sq Ft Tenant Lease Start Date Lease Expiry Passing Rent
(per annum)
Zizzi, 27 High Street
Ground Flr Pt Basement
3,730 234
Azzurri Restaurants Ltd with surety from Azzuri Central Ltd t/a Zizzi 20/01/2005 19/01/2030 £78,500
The Potted Pig, 27 High Street Basement 3,068 Voltaire (Cardiff) Ltd
t/a The Potted Pig 17/03/2011 16/03/2031 £31,644
Total Commercial 7,032 £110,144
Flat 1, 27 High Street Upper Floors 938 Private Individual(s) 15/08/2018 14/08/2019 £10,200
Flat 2, 27 High Street Upper Floors 891 Private Individual(s) 21/02/2019 20/08/2019 £10,500
Flat 3, 27 High Street Upper Floors 931 Private Individual(s) 08/11/2018 07/05/2019 £10,200
Flat 4, 27 High Street Upper Floors 891 Private Individual(s) 08/02/2019 07/08/2019 £10,500
Flat 5, 27 High Street Upper Floors 939 Private Individual(s) 23/03/2019 22/09/2019 £10,500
Flat 6, 27 High Street Upper Floors 890 Private Individual(s) 13/09/2018 12/09/2019 £10,200
Total Residential 5,480 £62,100
Total 12,512 £172,244
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Covenant Zizzi was established in 1999 in Chiswick and has since expanded to 140 restaurants nationwide. Zizzi forms part of the market leading Italian casual dining group The Azzuri Group which also owns ASK Italian and Coco di Mama. Zizzi have been trading the subject premises since 2005.
The latest accounts reported by the tenant, Azzurri Restaurants Ltd, are outlined below.
The Potted Pig is a highly regarded bistro and with a French and New York influence which was established in the subject premises in 2011. The restaurant has a 4.5 out of 5 rating on Trip Advisor and has a Certificate of Excellence 2015-2018 winner. The tenant Voltaire (Cardiff) Ltd reported a turnover of £70,552 the year ending August 2017 and a profit of £1,547.
Year Ending 02/07/2017 (£’000)
26/06/2016 (£’000)
28/06/2015 (£’000)
Sales Turnover 249,250 226,636 217,670
Profit / (Loss) Before Taxes 19,289 17,627 17,357
Tangible Net Worth 76,115 60,446 45,592
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Azzurri Restaurants Ltd has a D&B rating of 5A1 which represents a minimum risk of business failure.
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Further InformationFor further information or to arrange an inspection of the property, please contact:
Ross Griffin029 2036 8961 07972 000 113 [email protected]
James Stratton020 7409 8880 07787 513 060 [email protected]
Andrew Phillips011 7910 2354 07972 000 112 [email protected]
Savills Commercial 2 Kingsway, Cardiff CF10 3FD
SUBJECT TO CONTRACT Misrepresentation ActMessrs Savills UK Ltd for themselves and for the vendors or lessors of this property whose agents they are, give notice that:1. The particulars are set out as a general outline only for the guidance of intending purchasers or lessees and do not
constitute, nor constitute part of, an offer or contract.2. All descriptions, references to condition and necessary permission for use and occupation and other details are
given in good faith and are believed to be correct but any intending purchasers should not rely on them as either statements or representation of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them. All dimensions are approximate.
3. No persons in the employment of Messrs Savills (UK) Ltd has any authority to make or give any representation or warranty whatsoever in relation to this property.
4. All correspondence regarding this offer is subject to contract. April 2019
Proposal
We are instructed to seek offers in excess of £2,900,000 (exclusive of VAT) for the benefit of our client’s freehold interest, which reflects a 6.25% net initial yield (6.5% purchasers costs) on the commercial income and £227 per sq ft on the residential apartments.
EPC EPCs are available on request.
VATThe property is elected for VAT. It is envisaged that the transaction will be treated as a transfer of a going concern.
Design by Martin Hopkins | 029 2046 1233 | www.martinhopkins.co.uk
PRIME LEISURE & RESIDENTIAL INVESTMENT