LONG INCOME RETAIL WAREHOUSE INVESTMENT OPPORTUNITY

DFS SWANSEA NEATH ROAD, MORRISTON, SA6 8ER

INVESTMENT CONSIDERATIONS

n Freehold

n Prominently located close to Junction 45 of the M4

n Purpose built unit comprising 22,803 sq ftn Let to the D&B rated 5A1 covenant of DFS Trading Limited

n Current rent of £561,249 per annumn Unexpired lease term of over 12.9 yearsn The only DFS Store serving West Wales

with the nearest store being located in Cardiff

n Offers sought in excess of £5,850,000 (Five Million Eight Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 9.00%, after allowing for purchaser’s costs of 6.63%.

A483

A4067

A4217

A40

67

A48

NA

NTO

NG

WAY

B44

89

A4118

B46

03

A483

B4603

Morriston

Clase

PenlanPlasmarl

Liberty Stadium

Manselton

Cwmbwria

St Thomas

Winch Wen

LLANSAMLET

Jct. 47

SWANSEA

Bon-y-maen

Port TennantSWANSEA

M4

M4

CardiffBristol

A483

A470

A465

A465

A449

A449

A417

A465

A438

A479

A470

A438

A470

A483

A4172

A4137

A4103

A4232

A48

A40

A40

A40

A477

A487

A40

A48

A40

A40

A49

A40

A40A40

A350

A429

A429

A433 A419

A417

A46

A424

A46

A48

A403

A4

A4

A4

A37

A46A420

A433

A38

A38

M4 M4

M5

M5

M48

A48(M)

M50

M49

M39

M4

CARDIFF

SWANSEA

BRISTOL

GLOUCESTER

SWINDON

BATH

Port Talbot

Llanelli

GorseinonTenby

Llangenneth

Llanbody

Cardigan

St Davids

PembrokeDock

Camathen

Ferryside

The Mumbles

Neath

Brecon

Pontypridd

Barry

Penarth

MerthyrTydfil

Abergavenny

Hereford

GreatMalvern

Caerphilly

Chepstow

Ross-on-Wye

ChippingSodbury

PontsheadAvonmouth

Eversham

Cheltanham

Cirencester

Stroud

Chippenham

Weston-super-Mare

Brecon Beacons National Park

The Cotswolds AONBForest of Dean

PembrokeshireCoast

National Park

20 mins 30 mins 40 mins 1 hour

LOCATION

The city of Swansea is the second largest city in Wales and is located on the northern shores of the Bristol Channel. Swansea is located approximately 66km (41 miles) north west of Cardiff, 103 km (64 miles) west of Newport and 129 km (80 miles) west across the River Severn from Bristol.

Swansea has good road and rail communications with the M4 motorway passing 4 miles (6.5km) to the north, providing access to Cardiff, Bristol and London to the east and Llanelli to the west.

Swansea railway station provides regular and direct services to Cardiff, Newport and Bristol with fastest journey times of 52 minutes, 75 minutes and 95 minutes respectively. The railway station provides regular direct services to London Paddington with a fastest journey time of approximately 3 hours 5 minutes.

Swansea Marina

DFS SWANSEA LONG INCOME RETAIL WAREHOUSE INVESTMENT OPPORTUNITY

DFS SWANSEA LONG INCOME RETAIL WAREHOUSE INVESTMENT OPPORTUNITY

SITUATION

The property is prominently situated on the western side of Neath Road (A4067), approximately 0.6 miles south of the M4 ( junction 45) and approximately 5.5 miles north of Swansea city centre. The A4067 is the principle access from Swansea City Centre to the M4 Motorway and the store’s location less than one mile from the M4 provides the store with excellent access to the wider region.

CATCHMENT AND DEMOGRAPHICS

The primary retail catchment area for Swansea is 553,000 with an estimated shopping population of 273,000 (PROMIS).

There were 4.56 million visitors to Swansea in 2015 (Source: Swansea City Council), with an estimated expenditure of around £400 million. It is estimated that around 5,700 jobs are supported by tourism in Swansea.

ACCOMMODATION

Description Sq M Sq Ft

Retail Unit 2,118.47 22,803

DESCRIPTION

The property comprises a modern style detached retail warehouse of portal frame construction. Internally the property has been fitted out as a furniture showroom with suspended ceilings, lined walls and predominantly carpet tile floor coverings to public areas.

The retail store has three loading bays to the rear of the warehouse and includes approximately 87 car parking spaces and a service yard for deliveries.

The property has a site area of approximately 0.73 acres (0.3 hectares). 11.3m

B

A 4

067

R PE NRY

P layground

63

42

22

47

45

112

43

19

Gospel Hall

57

55

25

15

71

Salem

35

1

17

Ivy Cottages

22

34

650m 10m 20m 30m

DFS NEATH R OAD, MORR ISTON, SWANSE A, SA6 8ER

Ordnance Survey Crown Copyright 2013. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250

© Crown Copyright, ES 100004106. For identification purposes only.

DFS SWANSEA LONG INCOME RETAIL WAREHOUSE INVESTMENT OPPORTUNITY

TENANCY

The property is let to DFS Trading Limited for a term of 25 years from 24 March 2005 to and including 23 March 2030. The rent is £561,249 per annum, reflecting £24.61 per sq ft.

There are further open market reviews on 24th March 2020 and five yearly thereafter.

COVENANT

Since opening its first store in 1969, DFS has grown to 105 stores in the UK, Republic of Ireland and the Netherlands.

DFS Trading Limited (Company Number: 01735950) is a wholly owned subsidiary of DFS Furniture Company Ltd which itself is a wholly owned subsidiary of DFS Furniture plc.

DFS Furniture plc announced for the 26 weeks ended 28 January 2017 the following results: group revenue increased 6.8% to £379.9m, EBITDA increased 4.5% to £32.4m and profit before tax increased by 3.1% to £16.7m.

DFS Trading Limited - Dun & Bradstreet 5A1

01 August 2015 (£000’s)

02 August 2014 (£000’s)

27 July 2013 (£000’s)

Turnover £729,900 £690,000 £670,800

Pre-Tax Profit £65,700 £64,200 £70,600

Total Net Worth £45,300 £66,000 £49,100

PLANNING

The unit has planning permission for the sale of bulky goods.

TENURE

Freehold.

Misrepresentation Act: 1. Allsop LLP and Savills on its own behalf and on behalf of the instructing party of this portfolio whose agent Allsop and Savills 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 instructing party does not make or give, and neither Allsop or Savills nor any of their 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 instructing party are those contained and expressly referred to in the written contract for sale or agreement for lease between the instructing party 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: Command D - www.commandHQ.co.uk 04.17

Dale Johnstone020 7543 6796dale.johnstone@allsop.co.uk

Lottie Hayward020 7543 6750lottie.hayward@allsop.co.uk www.allsop.co.uk

FOR FURTHER INFORMATION PLEASE CONTACT:

Paddy Hales0117 9102 203PHales@savills.com

Marcus De Minckwitz020 7409 8755MDeMinckwitz@savills.com www.savills.com

PRICING

We are instructed to seek offers in excess of £5,850,000 (Five Million Eight Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 9.00%, after allowing for purchaser’s costs of 6.63%.

EPCAvailable upon request.

VATThe property is elected for VAT, it is assumed the transaction will be treated as a Transfer of a Going Concern (TOGC).