stop Prominent Well-Let Roadside Retail Scheme Swansea - Singer Vielle Sales

Prominent Well-Let Roadside Retail Opportunity

Silverwing Retail Park | Carmarthen Road | Swansea | SA5 4DL

£1,142,000

subject to contract

SOLD

Summary

• Fronting the principal route linking Swansea City Centre to the M4 Motorway

• Secure Income – American Golf, Domino's & Majestic Wine

• Multi-let - AWULT 7.5 years

• 2 tenants have been in occupation since 1999

• Domino's paid a premium for their lease

• Asset management opportunities

• £1,142,000, subject to contract

• Net initial yield 7.0%

Location

The second largest city in Wales, Swansea is located 64 km (40 miles) north-west of Cardiff, 129 km (80 miles) west of Bristol and 298 km (185 miles) west of London.

Swansea benefits from excellent road communications being situated approximately 8 km (5 miles) from the M4 Motorway, accessed via Junctions 42-47. In addition, Swansea is connected to the railway network with a fastest journey time to London Paddington of approximately 3 hours. The journey time to Cardiff is 55 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.

Situation

The property is in a highly prominent position fronting Carmarthen Road (A483) approximately 5.4 km (3.4 miles) north west of Swansea City Centre. Carmarthen Road is the principal route connecting Swansea City Centre and Junction 47 of the M4 Motorway approximately 2.4 km (1.5 miles) to the north of the property.

The property is situated at the junction of Carmarthen Road and Kingsway and is accessible by car via Kingsway to the rear of the property. Parc Fforestfach and Pontarddulais Road Retail Park are the dominant out of town retail-park for the City which are within 0.5 miles to the north of the subject property. Retail occupiers represented include on Parc Fforestfach are Marks & Spencer, H&M, Next, River Island, New Look, Homebase and Boots. The leisure offering includes Caffe Nero, Costa Coffee, Greggs and also Anytime Fitness which is due to open shortly. Occupiers on Pontarddulais Road Retail Park include Argos, Carpetright, Currys, Hobby Craft, M&S Simply Food, PC World and Poundland.

The immediate surrounding area around the property also comprises mixed-use with high density residential properties and the Swansea West Industrial Park.

Description

The property comprises a three unit out of town roadside retail scheme built in the 1990’s. Construction is of cavity brick and blockwork elevations and profiled metal cladding. Frontages are glazed incorporating customer doors.

Internally, the tenants have fitted out their units to their own corporate styles of their companies. The units have an eaves height of approximately 4.95m.

Externally, car parking is provided to the side and front of the property which provides a shared car park for 35 cars providing a ratio of 1:20.74 sq m / 1:223 sq ft.

Accommodation

The property has been measured by BKR Floor Plans and provides the following gross internal floor areas;

  Sq M Sq Ft
Unit 1 – American Golf 304.53 3,278
Unit 2 – Domino’s 142.33 1,531
Unit 3 - Majestic Wine 279.16 3,005
Total 725.92 7,814

A set of floor plans is available to download and the measured survey report can be re-addressed to the purchaser.

Site

The site occupies an area of 0.26 hectares (0.67 acres) providing a site cover in the order of 28%.

Planning

We understand planning permission was granted in 1998 for demolition of an existing office building and erection of a Class A1 non-food retail building incorporating 3 shop units together with associated car park.

In 2009 planning permission was approved regarding Unit 2 for change of use from retail (Class A1) to food and drink (Class A3).

Tenure

Freehold.

Tenancy

The property is let to 3 tenants.

Unit 1 is let to American Golf Discount Centre Limited for a term of 20 years from 4th October 1999 expiring on 3rd October 2019 on a Full Repairing and Insuring lease at a current passing rent of £33,500 per annum (£110.00 per sq m / £10.22 per sq ft).

Unit 2 is let to DP Realty Limited t/a Domino’s Pizza for a term of 15 years from 15th January 2016 expiring on 14th January 2031 on a Full Repairing and Insuring lease at a current passing rent of £20,655 per annum (£145.12 per sq m / £13.50 per sq ft).

The lease benefits from 5 yearly rent reviews with the next being on 15th January 2021. There is also a tenants’ break option on 14th January 2026. We are advised the tenant paid a premium to go into the unit when they took the lease.

Unit 3 is let to Majestic Wine Warehouses Limited for a term from 7th December 2014 expiring on 24th March 2025 at a current passing rent of £30,500 per annum (£109.25 per sq m / £10.15 per sq ft).

The lease benefits from a rent review on 7th December 2019 and there is a tenants’ break option on 24th March 2020. The tenant has been in occupation since 1999.

In summary;

American Golf £33,500 per annum October 2019 lease expiry 2.9 years unexpired
Domino’s £20,655 per annum January 2026 break option 9.2 years unexpired
Majestic Wine £30,500 per annum March 2020 break option 3.4 years unexpired
Total £84,655 per annum    



Covenants

American Golf Discount Centre Limited (Co. No. 01720832) has reported the following figures;

  24th January 2016  25th January 2015
Turnover £98,213,000 £45,798,000
Net Current Assets £11,217,000 £ 8,237,000
Shareholders’ Funds £22,852,000 £21,118,000

Kingdom and Republic of Ireland. The company stocks a full range of equipment and apparel for golfers of all levels both in-store and online. For further information visit www.americangolf.co.uk.

DP Realty Limited (Co. No. 2882513) has reported the following figures;

  27th December 2015 28th December 2014
Turnover £18,963,776 £18,140,534
Pre-Tax Profit £ 687,601 £ 526,628
Shareholders’ Funds £ 2,027,409 £ 1,609,521

Domino’s Pizza is a franchised business whereby individual franchisees own and operate local Domino’s Pizza stores under the umbrella of the Domino’s Pizza brand. Domino’s Pizza UK and Ireland Limited is the master franchisor for the UK and Ireland and the main operating subsidiary of Domino’s Pizza Group plc, which is a FTSE 250 company. All of their UK and Ireland leases are acquired in the name of DP Realty Limited. The properties are subsequently sublet to their franchisees who operate the stores. For further information visit www.dominos.co.uk.


Majestic Wine Warehouse Limited
(Co. No. 1594599) has reported the following figures;

  30th March 2015 31st March 2014
Revenue £265,956,000 £255,732,000
Pre-Tax Profit £ 18,873,000 £ 21,316,000
Shareholders’ Funds £ 63,334,000 £ 58,877,000

Majestic Vintners opened its first wine warehouse in North London in 1980 and today it is the largest wine specialist in the United Kingdom. Majestic differentiates itself by maintaining high quality customer service and advice, the diversity and quantity of stock it holds, dedicated on-site customer parking, wines to taste for free every day, the ability to order stock in-store or online and the availability of free delivery throughout mainland United Kingdom. For further information visit www.majestic.co.uk
  
 

Asset Management Opportunities

There is potential to develop a pod in the form of either a standalone unit or a drive-thru on the southern boundary of the site. Plans have been drawn up, which are available to download, as Dominos were initially interested in this when the unit they occupy now was let a previous occupier. In addition, there are opportunities for an investor to re-gear the leases with American Golf and Majestic Wine.

Value Added Tax

VAT will be payable on the purchase price. However, it is envisaged the transaction will be treated as a Transfer of a Going Concern (TOGC).

Proposal

Our client is seeking offers of £1,142,000 (One Million, One Hundred and Forty-Two Thousand Pounds), subject to contract, reflecting a net initial yield of 7.0% (assuming standard purchasing costs of 5.88%).

Investment Considerations

1. An opportunity to acquire prominent multi-let roadside retail investment;

2. The property is situated fronting Carmarthen Road; the principal route connecting Swansea City Centre and Junction 47 of the M4 Motorway;

3. The property benefits from open A1 planning consent;

4. The property is let to secure covenants providing an AWULT to breaks of 5.2 years and 7.5 years to expiries;

5. American Golf and Majestic Wine have been in occupation since 1999 establishing good amounts of goodwill in this location and DP Realty (Dominos) paid a £20,000 premium to go into their unit;

6. We understand that each tenant trades well;

7. A purchase at the asking price will provide an investor with an attractive net initial yield;

8. Attractive lot size for an investor.

Contact Us

Singer Vielle   +44 (0) 207 935 7200
Neil Singer neil@singervielle.co.uk +44 (0) 203 478 9120
Dale Henry dale@singervielle.co.uk +44 (0) 203 701 1356
Richard Wolfryd richard@singervielle.co.uk +44 (0) 203 701 1353
Faye Langoulant faye@singervielle.co.uk +44 (0) 203 478 9122
Louanne Malan louanne@singervielle.co.uk +44 (0) 203 701 1386

Vendor's Solicitor

Addleshaw Goddard LLP  
Sophie Roberts Sophie.Roberts@addleshawgoddard.com 020 7160 3343
customer service