LEISURE@CWMBRAN GLYNDWR ROAD, CWMBRAN, TORFAEN NP44 1QS LEISURE INVESTMENT OPPORTUNITY
CWMBRÂN STATION LEISURE@CWMBRAN LEISURE@CWMBRAN BUS STATION NEWPORT 6.5 MILES A5 40 1 TO THE 42 ABERGAVENNY 14 MILES
LEISURE@CWMBRAN Investment Summary Popular leisure complex located in a strong commercial centre in South Wales Freehold Let to 9 tenants at a passing rent of 826,969 pa plus turnover rent of 36,067 Vue cinema account for approximately 30% of the income Long unexpired lease terms with an attractive AWULT of 13.43 years to expiry (11.32 years to break) Leisure @ Cwmbran provides the only leisure complex in Cwmbran Offers are sought in excess of 11,000,000 (Eleven Million Pounds), which reflects a net initial yield of 7% (net initial yield of 7.35% inc. the turnover rent) after the deduction of normal purchaser s costs of 6.70%.
LEISURE@CWMBRAN LEISURE@CWMBRAN provides the only leisure complex in Cwmbran. LOCATION Cwmbran is located in South Wales, approximately 6.5 miles North of Newport, 16 miles north east of Cardiff and 14 miles South of Abergavenny. Junctions 26 and 25a of the M4 motorway are approximately 4 miles to the south, with access being provided via the 51 and 42 respectively. Cwmbran Railway Station is located within a 10 minutes walk of the complex and provides a regular and direct service to Cardiff and Newport with journey times approximately 30 minutes and 10 minutes respectively. Cardiff airport is located 26 miles South West of the subject property and is accessible via the M4, Junction 33. ea A483 A483 A465 M4 Neath SWANSEA Port Talbot A470 Merthyr Tydfil A470 A438 Brecon A465 A438 A479 Brecon Beacons National Park 42 A465 Abergavenny Pontypool CWMBRÂN A449 A438 Hereford A49 A4103 A438 A Ross-on-W A4137 Forest of A48 Chepstow M48 Pontypridd A470 Caerphilly NEWPORT M4 3 M4 A470 A48 A48(M) M49 Avonmouth CARDIFF Pontshead A4 M3 A4232 BRISTO Penarth M5 Cardiff Barry BristolA38 A3 Weston-super-Mare side Way ringvale e Way Maendy Way Greenmeadow Way espeare Road St. Dials Road Maendy Way Springvale Way Greenforge Way oodside Road W S t. D Chapel Street 51 Cwmbrân Drive 51 Stryd Wesley Llywelyn Road ials Road 51 Cwmbrân D Porth Mawr Road Trussel Road Caradoc Road Cwmbrân Shopping Centre Victoria S Glyndwr Road Tudor Road Llywelyn Road St. David s Road St. David s Road St. David s Road Somerset Road Grange Road Llant Cwmbrân Edlogan Way Lesiure @ Cwmbran Glyndwr Road Llanfrechfa W Woodland Road Caernarvon Crescent Llanyr Avon Way Retailing in Cwmbran The town has a primary catchment population of approximately 146,000 significantly above the PROMIS small town average. Cwmbran is the only new town development in South Wales and is an established commercial location with a total working population of approximately 48,000. The town provides a total of 780,000 sq ft of retail accommodation with a further 310,000 sq ft of retail warehouse and leisure accommodation. Cwmbran Shopping Centre, situated adjacent to Leisure @ Cwmbran, provides 700,000 sq ft of retail accommodation and forms the 2nd largest shopping centre in Wales and the 29th largest in the UK. The shopping centre is anchored by House of Fraser (30,000 sq ft), Topshop (4,000 sq ft), Asda (90,000 sq ft) and Marks & Spencer (30,000 sq ft). There are 3,000 free car parking spaces in close proximity to the leisure complex. Cwmbran Retail Park is located on the outskirts of the town to the west of Leisure @ Cwmbran where occupiers include Next, Halfords, CarpetRight, TKMaxx and B&Q.
According to the BFI Research and Statistics Unit, UK cinema admissions in 2015 were 9% higher than the same period in 2014. Total UK spend for film in 2015 was 1.236 billion; up 17% on the previous year. SITUATION Leisure @ Cwmbran is situated within the centre of Cwmbran on Glyndwr Road adjacent to Cwmbran Shopping Centre. LEISURE@CWMBRAN Cwmbran town centre benefits from 3,000 free customer car parking spaces. Leisure @ Cwmbran is located directly between the town s main bus and railway station. The railway station is linked directly to the scheme via a pedestrianised bridge; the link also connects to the Morrison supermarket to the east of the leisure complex. The property provides a frontage onto a pedestrianised walkway leading to Morrisons supermarket from where Frankie and Benny s, Tiffins, Bowlplex, Vue, and Harvester can be accessed. Lollypops & Ladybirds Ltd and Bay Leisure have frontages onto Glyndwr Road. DESCRIPTION The property was constructed in 2008 and comprises a purpose built leisure complex arranged over ground and first floor. The property provides a range of complementary uses with six A3 units, a cinema, bowling alley, gym and a trampoline centre. The property is anchored by Vue cinema comprising 8 screens, including 2 digital 3D screens over 20,000 sq ft of ground and first floor. Bowlplex comprises a 20 lane bowling complex with a late night licensed bar. CINEMA SUPPLY Major cinema supply within a 20 mile radius: NEWPORT - 6 MILES Cineword (Spytty Park) - 13 screens Cineworld (Friars Walk) - 8 screens CARDIFF 16 MILES Cineworld - 15 screens Odeon - 18 screens Vue - 14 screens NANTGARW 20 MILES Showcase - 12 screens
LEISURE@CWMBRAN TENANCY SCHEDULE Unit Tenant Use Area (Sq m) Area (Sq ft) Lease Start Lease Expiry Break Lease Term Review Rent ( p.a) Rent ( psf) Comments 1A Lollypops & Ladybirds Limited A3 132.76 1,429 11/10/2013 11/10/2018 5 N/A 17,000 11.90 1B Kaspa s Cwmbran Ltd A3 191.66 2,063 25/05/2016 25/05/2026 10 25/05/2021 40,000 19.39 Lease subject to guarantee from Kaspas Distribution Limited. 2 City Centre Restaurants (UK) Limited (The Restaurant Group (UK) Limited) Restaurant (Frankie and Bennys)/A3 369.29 3,975 27/07/2009 27/09/2034 27/07/2019 25 27/07/2019 27/07/2024 27/07/2029 70,000 17.61 5 yearly upwards only reviews to Open Market Rental Value. 3A & 3B To be Gareth and Heather Lee t/a Restaurant A3 318.29 3,426 03/01/2017 02/01/2019 2 55,000 16.05 In solicitor s hands and due to complete shortly. 4 Precision Trade Europe Limited (Tiffins) Restaurant/A3 300.54 3,235 04/08/2008 03/08/2033 25 04/08/2018 04/08/2023 04/08/2028 66,000 20.40 5 yearly upwards only reviews to the higher of RPI or Open Market Rental Value. 5 Mitchells & Butler Retail (No2) Limited Harvester Restaurant/A3 438.04 4,715 14/07/2011 14/07/2036 14/07/2026 25 14/07/2021 14/07/2026 14/07/2031 66,819 14.17 RPI Linked increases. Cinema Vue Entertainment Limited Cinema 1,969.52 21,200 18/12/2008 17/12/2028 10 18/12/2018 18/12/2023 243,800 11.50 5 yearly upwards only reviews to Open Market Value. Bowling Bowlplex Limited Ten Pin Bowling Centre 2,781.52 29,940 15/03/2012 03/08/2033 21 14/03/2022 14/03/2027 14/03/2032 170,000 36,067 (1) 5.68 Bowlex Limited has recently been acquired by Hollywood Bowl. Turnover Rent - 12.5% of any turnover over 1m. 2014-10,842, 2015-27,020, 2016-36,067. (1) Turnover Rent terminates on 15/03/2022. 5 yearly upwards only reviews to Open Market Rental Value. Unit 6&7 Simply Leisure Ltd guarantee by Bay Leisure Limited GYM/D2 811.42 8,734 02/11/2015 02/11/2030 15 02/11/2020 02/11/2025 47,850 5.48 5 yearly linked to RPI. Unit 81 Euphoria (Cwmbran) Ltd Salon/A1 181.16 1,950 04/05/2016 03/05/2019 04/05/2017 3 8,000 4.10 Rent increases 03/05/2017 to 10,000, 04/05/2018-12,000 Unit 82 Bounce Zone SA1 Ltd Trampoline Play Area 924.03 9,946 03/01/2017 02/01/2027 10 03/01/2022 42,500 4.27 In solicitor s hands. Rent for 1st year is 20,000 and 42,500 for years 2-5. Vendor to top-up or guarantee 1st year rent. Total 8,418.23 90,613 826,969
COVENANT STRENGTH Vue Entertainment Ltd Bowlplex Limited Mitchells & Butler Plc The Restaurant Group Plc (Parent Company of City Centre Restaurants (UK) Ltd) 29 Nov 2012 28 Nov 2013 27 Nov 2014 28 April 2013 27 April 2014 26 April 2015 29 Sept 2012 28 Sept 2013 27 Sept 2014 30 Dec 2012 29 Dec 2013 28 Dec 2014 Turnover 257,952,000 258,111,000 244,899,000 Turnover 23,665,000 23,893,000 25,339,000 Turnover 1,889,000,000 1,895,000,000 1,970,000,000 Turnover 532,541,000 579,589,000 635,225,000 Pre-Tax Profit 28,893,000 28,034,000 17,888,000 Pre-Tax Profit -16,000-122,000 409,000 Pre-Tax Profit 83,000,000 150,000,000 123,000,000 Pre-Tax Profit 64,561,000 72,685,000 84,927,000 Shareholders Funds 168,258,000 188,736,000 294,137,000 Shareholders Funds 6,298,000 6,427,000 6,741,000 Shareholders Funds 1,088,000,000 1,219,000,000 1,185,000,000 Shareholders Funds 183,848,000 215,965,000 244,524,000 Vue International is the largest cinema group in the world outside of the US and a leader in the premium entertainment cinema sector. Vue has 84 state of the art multiplex cinemas throughout the UK and Ireland with 7 cinemas in Wales. The company was founded in 1976 and comprises 17 family entertainment centres across England, Scotland and Wales. These centres comprise ten-pin bowling, late night licensed bars, video arcades and American pool. Mitchells and Butlers is the largest operator of managed restaurants and pubs in the UK. Principal brands include, All Bar One, Browns, Harvester, Toby Carvery and Vintage Inns. Mitchells and Butlers employ approximately 43,000 people and operate from c. 1,800 predominantly UK managed pubs. Harvester account for 213 of those sites. The Restaurant Group plc operates over 470 restaurants and pub restaurants. Principal brands include, Frankie and Benny s, Chiquito, Coast to Coast and Garfunkel s. Total revenue increased 8% from Q1 to Q2 2015 and The Restaurant Group expect to open 43 48 new sites in 2015. Tenure VAT EPC s DATAROOM Freehold The property is elected for VAT and therefore it is anticipated that the sale will be treated as a TOGC. Further information is available upon request or within the dataroom. For access to the Allsop Dataroom please use the following link: https://datarooms.allsop.co.uk/register/leisurecwmbran Existing users can log in to the dataroom site and register using access code: leisurecwmbran
Proposal Offers are sought in excess of 11,000,000 (Eleven Million Pounds), which reflects a net initial yield of 7% (net initial yield of 7.35% inc. the turnover rent) after the deduction of normal purchaser s costs of 6.70%. For further information or to make arrangements for viewing please contact: Jeremy Hodgson 020 7543 6709 Lottie Hayward 020 7543 6750 Tom Dales 020 7543 6866 jeremy.hodgson@allsop.co.uk lottie.hayward@allsop.co.uk tom.dales@allsop.co.uk www.allsop.co.uk 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 11.16