Highly-secure, Long-term Income Investment Opportunity
Lloyds Bank | 802 Oxford Street | Swansea | SA1 3AF
subject to contract
Let to Lloyds Bank plc
In excess of 38 years unexpired lease term
Lease provides Privity of Contract
Prime retailing pitch
Offers in the region of £5,100,000, subject to contract
5.0% Net Initial Yield
Swansea, Wales’s second City, is the commercial and administrative centre for South West Wales. The City is located approximately 69 km (42 miles) west of Cardiff, 131 km (81 miles) west of Bristol and 301 km (187 miles) west of London.
The City has excellent road communications lying just 6 km (4 miles) south of the M4 Motorway with access to multiple junctions. The M4 provides a direct link to Cardiff, London and the wider motorway network. Swansea train station provides a direct service to Cardiff, Bristol Parkway and London Paddington with a fastest journey time to London of 2 hours 43 minutes. Cardiff International Airport is located 64 km (40 miles) to the south-east and provides scheduled daily flights to a number of UK and mainland European destinations.
Swansea currently has a population of 246,500, with 600,000 within a 30 minute drive time. Over 32,600 people commute into the City daily. 87.5% are employed in the service sectors - with 36% of the population educated to degree level or higher. Swansea is also a popular tourist destination with 4.8 million visitors to the area in 2019 and an estimated expenditure of £461.48 million (Source: Swansea City Council).
Swansea also benefits from a thriving and growing student population with over 24,000 students studying at Swansea University or University of Wales Trinity St David. Working in partnership with Swansea University, St Modwen has developed the 65-acre Bay Campus site, delivering over 1 million sq ft of accommodation, teaching and state-of-the-art academic and research space for over 5,000 students and 1,000 staff. Over 2,000 rooms of student accommodation were built in three phases, with the most recent units opening to new students in September 2017.
In 2020 Swansea Council, in conjunction with the Welsh Assembly, announced Shaping Swansea – which is part of a £1Bn regeneration initiative. The first phases are already under construction – with £130M invested in the construction of a 3,500 capacity digital indoor arena, a digital square featuring digital artworks and increasing the City’s digital connectivity. Together with the construction of 71/72 Kingsway - a bespoke city centre office building for Tech SMEs. The same initiative includes doubling Swansea’s green infrastructure – the first phase being the Green Artery connecting Swansea Railway Station with the beach – and coastal park beyond.
Swansea is a popular, busy retailing destination and the subject property occupies a prime retailing pitch on the pedestrianised Oxford Street within the heart of the city centre.
Swansea indoor market is immediately adjacent and the entrance to The Quadrant Shopping Centre is also in close proximity. Surrounding occupiers include Primark, Marks & Spencer, Next, River Island, Sports Direct, H&M and Carphone Warehouse.
Swansea Market is the largest indoor market in Wales, an award-winning historic market that is open 6 days a week with over 100 stalls. It was crowned ‘Britain’s Best Large Indoor Market 2020’ and recognised for its place within the city centre regeneration programme. The Market’s facilities are currently being extensively upgraded.
The Quadrant Shopping Centre comprises over 440,000 sq ft of retail shops, stores and cafes with 569 car parking spaces. With a reported footfall of 9.7 million per annum, tenants include Boots, JD Sports, Ernest Jones, Superdrug and Holland & Barrett.
The property comprises a banking hall on ground floor with ancillary accommodation on basement, first and second floors. Internally, the front of house Banking Hall has been fitted out by Lloyds to their usual corporate style.
The property has been measured by BKR Floor Plans and provides the following Net Internal floor areas:
|Net Frontage||9.22 m||30’3”|
|Gross Frontage||18.97 m||62’3”|
|Zone A||96.89 sq m||1,043 sq ft|
|Zone B||97.36 sq m||1,048 sq ft|
|Zone C||105.07 sq m||1,131 sq ft|
|Remainder||20.35 sq m||219 sq ft|
|Total Ground Floor||319.67 sq m||3,441 sq ft|
|Basement||213.39 sq m||2,297 sq ft|
|First Floor||225.38 sq m||2,426 sq ft|
|Second Floor||149.01 sq m||1,604 sq ft|
|Total||907.45 sq m||9,768 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 £595 + VAT.
A new long leasehold interest expiring 17th December 2127 (107 years unexpired) at a peppercorn rent. The superior interest is a long leasehold interest between Swansea City Council (the freeholder) and Swansea SA 1 LLP which expires 24th December 2127.
The property is let to Lloyds Bank plc on effectively a full repairing and insuring lease for a term of 99 years from 25th December 1959, expiring on 24th December 2058. Therefore, the unexpired lease term is in excess of 38 years, without breaks.
The current passing rent is £272,500 per annum. The lease benefits from 14 yearly upwards only rent reviews, next due December 2029 and then December 2043. The rent review of 25th December 2015 is currently outstanding.
The lease provides an investor with the benefit of Privity of Contract.
The tenant must pay a fair proportion of the expense of repairing, rebuilding, painting and cleansing all party walls, fences, sewers, drains, roads, pavements, passage way, fire escapes and other things which are used in common with other premises.
Lloyds Bank plc (Co. No. 2065), has reported the following figures;
|31st December 2019||31st December 2018|
|Total Income||£16,608 million||£16,974 million|
|Pre-Tax Profits||£3,474 million||£4,929 million|
|Shareholders’ Equity||£36,354 million||£49,057 million|
Lloyds Bank was founded in 1765 and is one of the leading British retail and commercial banks with over 1,000 branches across England and Wales. The bank is the principal subsidiary of Lloyds Banking Group which is a publicly quoted company and the largest UK retail and commercial financial services provider with around 26 million customers. The Group’s main business activities are retail and commercial banking, general insurance and long-term savings, provided through well recognised brands including Lloyds Bank, Halifax, Bank of Scotland and Scottish Widows. For further information visit www.lloydsbankinggroup.com.
The property has been elected for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
We are instructed to seek offers in the region of £5,100,000 (Five Million, One Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 5.0%, assuming standard purchaser’s costs of 6.59%.
Please note that a purchaser will be re-charged the costs of surveys and searches which are provided in the data room.
Investment opportunity let to the undoubted covenant of Lloyds Bank plc;
In excess of 38 years unexpired lease term, without breaks;
Lease provides full Privity of contract;
The property occupies a prime pitch within the city centre;
A purchase at the asking price will provide an investor with an attractive net initial yield for a highly secure freehold investment;
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.
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