High Yielding, Well Secured Retail Investment

Unit 1 | 12-14 Adare Street | Bridgend | CF31 1EJ

£285,000

subject to contract

EXCHANGED
Click To Purchase

Summary

  • Let to Vodafone

  • Highly secure income - Shareholders’ Funds £5,848 million

  • Tenant has committed to a new lease during COVID-19

  • New 5 year lease from March 2020

  • Re-based rent

  • Prime town centre retailing pitch

  • Freehold

  • £285,000, subject to contract

  • 8.5% Net Initial Yield

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Location

Bridgend is located in Wales, approximately 37 km (23 miles) west of Cardiff and 37 km (23 miles) south-east of Swansea.

The town benefits from good road communications, being served by the A4061 which links directly with Junction 36 of the M4 Motorway, approximately 4 km (2.5 miles) to the north. The A473 connects with Junction 35 to the east and the A48 with Junction 37 to the west.

Bridgend is also connected to the national railway network with a fastest journey time to London Paddington of 2 hours and 13 minutes. There are also regular services to Cardiff with a journey time of only 20 minutes. Cardiff International Airport is approximately 27 km (17 miles) to the south-east.

Bridgend College offers courses in building and construction, engineering and business. The University of South Wales, Swansea and Cardiff Universities are easily accessible, giving employers the potential to source skilled employees and apprentices.

Situation

The property is located in the heart of the town centre, occupying a prime and prominent corner position on the pedestrianised Adare Street, at its junction with Elder Street.

Surrounding occupiers include Greggs, Superdrug, Specsavers, Holland & Barrett, H Samuel, 02, Lloyds Bank, Poundland, NatWest and The Works.

A public car park is situated immediately to the rear of the subject property.

The Rhiw Shopping Centre is immediately to the south. Comprising over 20 shops plus the historical Indoor Market, occupiers include Boots, WH Smith, Game, Card Factory and Warren James.

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Description

The property comprises a ground floor retail unit with ancillary accommodation on first floor. Internally, the retail floor area has been fitted out by the tenant to their usual corporate style and is predominantly open plan with ancillary areas.

Accommodation

The property has been measured by BKR Floor Plans and provides the following Net Internal floor areas:

Net Frontage 5.79 m 19’0”
Gross Frontage 6.48 m 21’3”
     
Zone A 36.51 sq m 393 sq ft
Zone B 35.77 sq m 385 sq ft
Zone C 35.86 sq m 386 sq ft
Remainder 0.28 sq m 3 sq ft
ITZA   682
Total Ground Floor 108.41 sq m 1,167 sq ft
     
First Floor Ancillary   113.99 sq m 1,227 sq ft
     
Total 222.40 sq m 2,394 sq ft

A set of floor plans is available to download and the measured survey report will be re-addressed to a purchaser at a cost of £525 + VAT.

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Tenure

Freehold.

Tenancy

The entire property is let to Vodafone Limited on a full repairing and insuring lease from 25th March 2020, expiring on 30th August 2025. The current passing rent is £25,000 per annum and rent payments are monthly.

The tenant has been in occupation for at least 10 years and entered into a lease renewal in September 2020, demonstrating their desire to remain in the property. The rent has been rebased from £30,000 per annum to £25,000 per annum.

The property is underlet to a franchisee, PVM Communications Limited.

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Covenant

Vodafone Limited (Co. No. 01471587), has reported the following figures;

  31st March 2019 31st March 2018
Revenue £5,512.9 million £6,253.6 million
Pre-Tax Profits (Loss)* (£679.5 million) (£339.9 million)
Shareholders’ Funds £5,848,4 million £6,246.0 million

*Includes reorganisation expenses as a result of restructuring under a three-year programme.

The company added 330,000 mobile contract customers in the year (compared to 106,000 the previous year) and 193,000 broadband customers, increasing the total customer base to 575,000. In July 2019 their 5G UK network went live and they launched a new range of speed-differentiated mobile date and convergent offers.

The ultimate parent company is Vodafone Group Plc. For the year ending 2020 the Group’s revenue grew by 3.0% to €45.0 billion and adjusted EBITDA grew by 2.6% to €14.9 billion.

Vodafone is a leader in technology communications through mobile, fixed, broadband and TV. Since making the first mobile call in the UK in January 1985, Vodafone has grown into an international business and one of the most valuable brands in the world. The Group has mobile operations in 22 countries, partners with mobile networks in 42 more, and provides fixed broadband in 17 markets. As of 30 June 2020, Vodafone Group had approximately 300+ million mobile customers, 27 million fixed broadband customers and 22 million TV customers, including all of the customers in Vodafone’s joint ventures and associates (www.vodafone.com).

VAT

The property has been registered for VAT. It is anticipated that the sale of this property will be treated as a Transfer of a Going Concern (TOGC).

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Proposal

We are instructed to seek a figure of £285,000 (Two Hundred and Eighty-Five Thousand Pounds), subject to contract, reflecting a net initial yield of 8.5%, assuming standard purchaser’s costs of 2.76%.

Please note that a purchaser will be re-charged the costs of surveys and searches which are provided in the data room.

Please note that a purchaser will be charged a Transaction Fee of £5,000 plus VAT.

Investment Considerations

  1. The property occupies a prime position in the town centre;

  2. New letting at a re-based rent;

  3. Freehold;

  4. Securely let to Vodafone Ltd (Shareholders’ Funds £5,848,4 million);

  5. Vodafone have been in occupation for at least ten years and renewed their lease during COVID-19, demonstrating their commitment to the property;

  6. A purchase at the asking price reflects an attractive net initial yield;

  7. Attractive lot size to an investor.

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Data Room and clicktopurchase®

Access to the data room and for the ability to purchase online with speed and ease, please click the clicktopurchase® “C” icon or the clicktopurchase® side bar. Purchasers will be able to access the complete legal package, clear verification and submit legally-binding offers to acquire the property.

Purchasers benefit from the trust, security and transparency provided by the platform. All activities, including the online contract execution, will form part of the electronic audit trail which is anchored in the clicktopurchase® Blockchain.

clicktopurchase® provides the opportunity for any investor, whether located UK or abroad, to uniquely purchase online with ease and certainty. To learn more about clicktopurchase®, click here.

finance

Finance

We have established relationships with a number of leading finance companies who are in a position to quote terms for suitable situations. To learn more, please visit our “Finance” section.

Contact Us

Singer Vielle   +44 (0) 207 935 7200
Dale Henry dale@singervielle.co.uk +44 (0) 203 701 1356
Neil Singer neil@singervielle.co.uk +44 (0) 203 478 9120

Vendors Solicitor

W Legal Limited +44 (0) 161 214 4001
Michael Lopian michael.lopian@wlegal.co.uk