BETHEL SQUARE, BRECON, LD3 7JP · Bethel Square therefore particularly well placed for future...

BETHEL SQUARE, BRECON, LD3 7JPFREEHOLD PRIME RETAIL INVESTMENT

INVESTMENT CONSIDERATIONS ■ Pre-eminent Town Centre Retail Investment in a highly popular

tourist destination

■ Brecon is the Northern Gateway to Brecon Beacons National Park attracting over 4 million tourists per annum

■ Prime Retail Pitch adjacent to the main car parking provision for the Town Centre

■ Comprises an attractive open scheme providing 17 retail units and 5 office suites totaling 3,001 sq m (32,300 sq ft)

■ Freehold

■ Total Contracted Rent of £314,074 p.a.

■ WAULT of 4.55 years to expiry (3.03 to breaks)

■ 73% of income is secured to national multiple retailers including WH Smith, Boots, Mountain Warehouse, Edinburgh Woollen Mill and Holland & Barrett

■ 46% of new lettings and lease renewals have been completed within the previous 3 years, with further asset management opportunities

PROPOSAL

We are instructed to seek offers in excess of £3,270,000 (Three Million, Two Hundred and Seventy Thousand Pounds) subject to contract and exclusive of VAT for our client’s freehold interest. A purchase at this level would reflect a net initial yield of 9.00% and a low capital rate of £101 psf assuming standard purchaser’s costs.

DATAROOM

For access to the Allsop Marketing Dataroom, please use the following link:

https://datarooms.allsop.co.uk/register/bethelsquare

For identification purposes only.

CARDIFFBRISTOL

A483

A470A465

A449

A449A438

A479

A470

A438

A4042

A4172

A4103

A4232

A40

A40

A49

A40

A48

A4

A4

A37

A46

A38

M4

M4

M4

M5

M5

M32

M50

M49

M48

A48(M)

CARDIFF

SWANSEA

BRISTOL

BATH

Port Talbot

Neath

Pontypridd

Barry

Penarth

MerthyrTydfil

Abergavenny

Hereford

GreatMalvern

Pontypool

Cwmbrân

Caerphilly

Chepstow

Ross-on-Wye

ChippingSodbury

PontsheadAvonmouth

Brecon Beacons National Park

Forest of Dean

NEWPORT

BRECON

DRAFTLOCATIONBrecon is an affluent and quaint market town and is the northern gateway to the Brecon Beacon National Park. Brecon is located in the county of Powys, which has a population of 133,000 people (2011 Census), an increase of 5.3% from the 2001 Census.

Brecon is located 64 km (40 miles) north east of Swansea, 68 km (42 miles) north of Cardiff and 63 km (39 miles) north west of Newport.

The traditional market town is supported by the A40 and A470, which provides an interchange 2.5 km (1.6 miles) south west of the town centre. The A470 provides direct access to the M4, lying 60 km (37 miles) to the south.

Communications are further enhanced with Cardiff International Airport lying 85 km (53 miles) to the south, providing direct access to 50 destinations and supporting 1 million passengers each year.

Brecon Beacons National Park has an estimated 4 million visitors each year, making Brecon ideally located to benefit from the influx of tourists.

SITUATIONBethel Square provides 100% prime retail pitch within the heart of Brecon Town Centre. Bethel Square benefits from dual access to Lion Street to the South and the two main car park servicing the Town Centre (260 spaces) to the north providing the primary pedestrianised route to additional retailing provision within the town.

In addition to adjacent high street retail provision, Bethel Square is situated adjacent to two large food stores operated by The Co-Operative and Morrison’s and is opposite to the Brecon Visitor Information Centre.

Bethel Square is located 1.6 km (1 mile) north east of the A40 / A470 intersection. The River Usk lies 0.3 km (0.2 miles) south of the centre, providing a scenic backdrop for the town centre’s retail provisions.

M4 (WEST)

SWANSEA 39.3 MILES

CARDIFF 41.6 MILES

NEWPORT 39.2 MILES

M4 (EAST)

BRISTOL 69.2 MILES

BATH 81.8 MILES

LONDON 176 MILES

M50 (M5)

GLOUCESTER 67.0 MILES

CHELTENHAM 82.3 MILES

BIRMINGHAM 108 MILES

AIRPORTS

CARDIFF INTERNATIONAL 50.5 MILES

SWANSEA AIRPORT 53.0 MILES

BRISTOL INTERNATIONAL 72.4 MILES



The Brecon Beacons National Park provides 520 square miles of protected land and is regarded as the closest mountainous area to London.

THE BRECON BEACONS NATIONAL PARKThe Brecon Beacons National Park was established in 1957, under the National Parks and Access to the Countryside Act of 1949. It was the tenth area in Wales and England to be given such status.

The Brecon Beacons National Park provides 520 square miles of protected land and is regarded as the closest mountainous area to London.

Within one hour’s drive of the national park there are an estimated 2 million people, living within South Wales and Bristol.

TOURISMBrecon has a thriving community and is an extremely popular holiday destination, being on the northern edge of the Brecon Beacons National Park, affording among the best views of the Brecon Beacons themselves.

Brecon attracts over 4 million tourists per annum. This translates into an estimated tourist spend of approximately £200 million each year, a significant proportion of which is in the Brecon town centre (source: Brecon Beacons National Park Authority).

About 250,000 people use the National Park Authority’s three Visitor Centres each year. The National Park’s main Visitor Centre sits next to the Bethel Square.



For identification purposes only.

Brecon

VISITORINFORMATIONP160

P120

VACANT

VACANT

COFFEE

BOX

The retail income is let at very modest rental levels with 46% of leases commencing in the previous 36 months. Bethel Square therefore particularly well placed for future rental growth.

■ NATIONAL■ REGIONAL

73%

27%

■ RETAIL■ OFFICE

4%

96%

■ LONG TERM INCOME■ 3-7 YEARS■ <3 YEARS

51%

11%

38%

INCOME BY TENANT PROFILE INCOME BY ACCOMMODATION TYPE INCOME BY TERM CERTAIN

TENANCIESThe scheme is let in accordance with the Schedule of Accommodation and Tenancies.

In summary the Centre provides:

Contracted Rent £314,074

Landlord Service Charge Liability £12,277

Landlord Rates Liability £14,448

Landlord Insurance Liability £585

Net Operating Income £286,764

SERVICE CHARGEThe service charge is apportioned on a weighted floor area basis. The following table sets out the service charge expenditure in recent years;

Year End Expenditure Budget % Change

2018 (Budget) £124,257 1.43%

2017 £122,502 -8.54%

2016 £133,945 -6.14%

DRAFT

DRAFT

DESCRIPTIONA Dominant Community Retail Investment providing purpose build mixed use accommodation totalling 3,000.8 sq m (32,300 sq ft), arranged over ground and first floors. The ground floor provides 100% prime retail accommodation consisting of 17 retail units surrounding a central courtyard and two part-covered malls with frontage on to Lion Street, visible from the High Street.

The office element is situated at the northern end of the scheme and provides self-contained office arranged over first and second floors.

Bethel Square is particularly well located within the Town Centre providing the primary pedestrianised link between the main car parking provision for the Town Centre and the High Street.



Tenancy Schedule

Demise Floor Areas Lease Management

Demise Unit Tenant Trading Name

Lease Start

Lease Expiry

Review Break Contracted Rent

(£ PA)

Zone A Rent (£ Psf)

Net Operating

Income (£ PA)

Service Charge

(£ PA)

Rateable Value (£ PA)

CommentsITZA (Sq Ft)

GF Sales (Sq Ft)

F1 Anc. (Sq Ft)

Other Total

Retail 1 Greggs Plc Greggs 590 553 1,108 1,661 01/07/11 30/06/21 £13,500 £22.88 £13,500 £4,846 £13,000

Retail 2 & 3 WH Smith Retail Holdings Limited WH Smith 1,948 2,925 3,829 6,754 29/09/17 28/09/22 £46,500 £23.87 £46,500 £33,947 £50,500

Retail 4 Mountain Warehouse Limited

Mountain Warehouse 1,219 2,156 2,156 29/06/10 28/06/20 £32,800 £26.91 £32,800 £7,865 £27,250

Retail 5 & 6 The Edinburgh Woollen Mill Limited

The Edinburgh Woollen Mill 1,361 1,975 965 2,940 05/02/13 04/02/23 05/02/18 £32,000 £23.51 £32,000 £11,506 £29,250 2018 Rent Review Outstanding

Retail 7 Vacant 390 480 480 -£6,988 £1,963 £10,250

Retail 8 Beacons Crafts Ltd Beacons Crafts 389 524 524 22/06/14 21/06/19 £11,500 £29.56 £11,500 £1,963 £10,000

Retail/Storage 9 Andrew Jones Bethal Electrics 440 483 252 735 24/06/18 23/06/20 £9,100 £20.68 £9,100 £1,454 £10,250 Mutual 3 months notice required for break

Retail 10 & 11Stephen Covington and Helen Covington

Giglios Restaurant 715 756 756 08/05/18 07/05/28 08/05/23 07/05/23 £20,170 £28.21 £20,170 £2,908 £17,000

Retail 12 Boots UK Limited Boots 1,660 2,924 526 3,450 14/07/17 13/07/27 14/07/22 14/07/22 £36,500 £21.99 £36,500 £14,600 £31,500

Retail 13 Holland & Barrett Retail Limited Holland and Barrett 734 1,286 429 1,715 24/06/17 23/06/22 £17,000 £23.16 £17,000 £7,803 £19,000

Retail 14 & 15 The Works Stores Limited The Works 1,034 1,230 659 1,889 22/02/16 21/02/26 22/02/21 22/02/21 £25,000 £24.18 £25,000 £7,890 £22,500

Turnover Rent subject to 8% of Gross Turnover, above £375,000 p.a.Tenant break option, subject to 3 months noticeRent payable by monthly instalments

Retail 16 Vacant 490 550 363 913 -£10,265 £3,964 £12,750

Retail 17 Under Offer (Tenvous) 598 772 590 1,362 £16,000 £26.76 £16,000 £5,554 £13,250

New 10 Year Lease in Solicitors Hands. Fixed rent increase to £16,000 p.a. in Y2, to be topped up by the Vendor. Lease subject to OMV rent review and tenant only break option in Y5 (6 month notice period)

Retail 18 Sportswift Limited Card Factory 770 1,094 835 1,929 18/09/14 17/09/19 £21,000 £27.27 £18,179 £7,157 £16,750Service Charge Cap: £4,000 p.a. on lease commencement, subject to annual RPI increases.Current Service Charge Cap: £4,336 p.a.

Retail 19First Optic Limited (Guarantor: Keith Coakham)

First Optic Brecon 532 919 919 02/11/12 01/11/22 02/11/17 01/11/18 £15,250 £28.67 £15,250 £3,442 £11,7502017 Rent Review OutstandingTenant break option subject to 6 months’ notice and a penalty of £7,000

Retail 20 Vacant 585 645 645 -£2,597 £2,460

Retail 30 Coffee Box Solutions Limited 458 576 576 24/04/17 23/04/22 £6,000 £13.10 £6,000 £2,100

Sub-Total 19,848 9,556 29,404 £302,320 £279,648 £121,424 £295,000

Office - Lion House F1 - Suite 7A Vacant 450 450 -£2,378 £435 £3,900

Office - Lion House F1 - Suite 7B The Vincent Wildlife Trust 373 373 01/04/17 31/03/19 £2,750 £2,750 £360 £3,150

Office - Lion House F1 - Suite 7C International Teams UK Trust 687 687 24/01/16 23/01/20 £4,000 £4,000 £634 £5,700

Office - Lion House F2 - Suite 7D Brecknock Wildlife Trust Limited 815 815 01/01/18 31/12/19 01/07/18 £5,000 £5,000 £770 £5,000

Office - Lion House F2 - Suite 7E Vacant 571 571 -£2,260 £634 £3,200

Sub-StationWestern Power Distribution (South Wales) Plc

01/08/95 31/07/20 £4 £4Tenant may terminate the lease at any time, subject to 3 months’ notice, if the premises cease to be used as an Electricity Sub-Station

Sub-Total 2,896 2,896 £11,754 £7,116 £2,833 £20,950

19,848 9,556 2,896 32,200 £314,074 £286,764 £124,257 £315,950

FirstOpticBrecon

Further covenant information available on the Allsop Marketing Dataroom.



COVENANTS

Greggs PLC (Company Number: 00502851) D&B Rating: 5A1

Year Ending 31 Dec 2016 02 Jan 2016 03 Jan 2015

Turnover £894,195,000 £835,749,000 £803,961,000

Pre-Tax Profit £75,142,000 £73,028,000 £49,743,000

Total Net Worth £250,406,000 £262,097,000 £248,537,000

WH Smith Retail Holdings Ltd (Company Number: 00471941) D&B Rating: 5A1

Year Ending 31 Aug 2017 31 Aug 2016 31 Aug 2015

Turnover £181,024,000 £175,131,000 £169,626,000

Pre-Tax Profit £67,219,000 £75,302,000 £62,392,000

Total Net Worth £449,954,000 £461,234,000 £472,209,000

Edinburgh Woollen Mill Limited (Company Number: SC024081) D&B Rating: 5A1

Year Ending 28 Feb 2017 27 Feb 2016 28 Feb 2015

Turnover 171,307 168,701 166,230

Pre-Tax Profit 23,627 24,680 24,938

Total Net Worth 159,138 144,097 125,599

Holland & Barrett Retail Limited (Company Number: 02758955) D&B Rating: 5A1

Year Ending 30 Sep 2016 30 Sep 2015 30 Sep 2014

Turnover £444,127,000 £424,662,000 £368,823,000

Pre-Tax Profit £112,823,000 £129,456,000 £89,463,000

Total Net Worth £229,510,000 £326,224,000 £260,473,000

Sportswift Limited (Company Number: 03493972) D&B Rating: 5A1

Year Ending 31 Jan 2017 31 Jan 2016 31 Jan 2015

Turnover £379,540,000 £362,226,000 £336,676,000

Pre-Tax Profit £81,718,000 £92,210,000 £62,320,000

Total Net Worth £62,010,000 £80,967,000 £58,862,000

The Works Stores Limited (Company Number: 06557400) D&B Rating: 4A1

Year Ending 30 Apr 2017 01 May 2016 26 Apr 2015

Turnover £166,421,000 £154,398,000 £141,684,000

Pre-Tax Profit £5,154,000 £9,796,000 £6,733,000

Total Net Worth £23,037,000 £18,258,000 £16,756,000

Brecknock Wildlife Trust Limited (Company Number: 00824844) D&B Rating: 1A2

Year Ending 31 Mar 2017 31 Mar 2016 31 Mar 2015

Turnover £183,629 £162,509 £156,612

Pre-Tax Profit (£83,215) (£34,261) (£30,218)

Total Net Worth £71,852 £66,617 £113,304

Boots UK Limited (Company Number: 00928555) D&B Rating: 5A1

Year Ending 31 Aug 2016 31 Aug 2015 31 Mar 2014

Turnover £6,876,000,000 £9,198,000,000 £6,340,000,000

Pre-Tax Profit £523,000,000 £542,000,000 £507,000,000

Total Net Worth £150,000,000 £367,000,000 £456,000,000

First Optic Limited (Company Number: 08186290) D&B Rating: C2

Year Ending 31 Mar 2017 31 Mar 2016 31 Mar 2015

Turnover - - -

Pre-Tax Profit - - -

Total Net Worth £121,976 £9,981 (£32,042)

EPCEPC certificates available upon request.

VATThe purchase of the property will be subject to VAT although it is anticipated the property will be treated as a Transfer of a Going Concern (TOGC).

DATA ROOMFor access to the Allsop dataroom please use the following link:

https://datarooms.allsop.co.uk/register/bethelsquare

PROPOSAL

We are instructed to seek offers in excess of £3,270,000 (Three Million, Two Hundred and Seventy Thousand Pounds) subject to contract and exclusive of VAT for our client’s freehold interest. A purchase at this level would reflect a net initial yield of 9.00% and a low capital rate of £101 psf assuming standard purchaser’s costs.

Jeremy Hodgson020 7543 [email protected]

Tom Dales020 7543 [email protected]

Jonathan Butcher020 7543 [email protected]

Mark Dansky020 7543 [email protected]

For further information or to make arrangements for viewing please contact:

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 05.18

www.allsop.co.uk

BETHEL SQUARE, BRECON, LD3 7JP · Bethel Square therefore particularly well placed for future...

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