27 High Street, Cardiff

2 7 HI G H STR EET CAR DI F F

27 High Street CARDIF F CF10 1PU

PRIME LEISURE & RESIDENTIAL INVESTMENT

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Investment Summary

Cardiff, Wales’ capital city, is a major administrative, retail, and commercial centre, with a growing population.

Cardiff boasts a retail catchment of 1.6 million people ranking the city 10th of the Promis centres nationally.

Cardiff benefits from 21 million tourists per annum, who boost local expenditure by almost £1.3 billion a year, in addition to a sizeable student population of 70,000.

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The property is situated on the pedestrianised High Street at the heart of The Castle Quarter. The Castle Quarter is a historical part of Cardiff situated between the city’s retail and employment offer.

The basement is let to The Potted Pig, the ground floor to Zizzi and there are six refurbished two bed apartments on the upper floors let on ASTs. Low leisure and residential rents - totalling £172,244 per annum

64% income is leisure, 36% is residential Freehold We are instructed to seek offers in excess of £2,900,000 (exclusive of VAT) for the benefit of our client’s freehold interest, which reflects a 6.25% net initial yield (6.5% purchasers costs) on the commercial income and £227 per sq ft on the residential apartments.

2 7 H I G H ST R E E T CA R DI F F

Location & Demographics Cardiff is Wales’ capital city and is the leading retail and commercial centre in South Wales. The city is situated on the south coast of Wales, lying 42 miles (68 km) east of Swansea and 43 miles (69 km) west of Bristol. rail

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Cardiff has a retail catchment population of 1.6 million people, and a shopping population of 791,000 people, ranking the city 10th of all Promis centres. Due to the attractive lifestyle that it offers and its vibrant leisure and restaurant scene, the city boasts an above average proportion of the most affluent AB social group. Cardiff has been identified as a growth hotspot with projected population growth of over 42% in the next 20 years.

Cardiff benefits from 21 million tourists per annum, who boost local expenditure by almost £1.3 Bn a year, in addition to a sizeable student population. Many of the 70,000 students who study at the three universities in the city opt to remain in the city after graduating, attracted by the strong jobs market. This reflects the presence of several large organisations, including PwC, Legal & General, and Eversheds, who are attracted by the highly-educated workforce, 57% of whom are qualified to degree level.

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Connectivity

Bus The new bus station / interchange building has been approved with it expected to start on site this spring.

Plans for a new £11 million bus station were approved by counsellors in late 2018, which will involve a 14 bay bus interchange. It is expected to be operational by 2021.

Cardiff’s excellent transport connections are a significant catalyst in the city’s economic strength.

Road The M4, accessed via Junction 32 4 miles to the north of the property, provides east-west links from London and Bristol in the east to the rest of South Wales in the west. It provides access to the M5 motorway via Junction 20, which leads north to Birmingham and the wider Midlands region. The Second Severn Crossing that joins Wales and England, now renamed the Prince of Wales Bridge saw the abolition of tolls into Wales as of December 2018, this will benefit 25 million drivers into Wales and we expect increase visitor numbers and bring new occupiers to the South Wales market.

Air Cardiff International Airport, located just 11 miles (18 km) south west of the city, offers direct flights to over 75 international destinations.

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Cardiff Queen Station, situated 0.5 miles (800 metres) to the east of the property, serves the local Valleys and numerous other local destinations. It was used by 2.6 million passengers in 2015/16.

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27 High Street C F10

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A £1.2 Bn Cardiff Capital Region deal was signed in 2016, £738 million of which has been committed to improving Cardiff’s rail connections to the surrounding towns and cities. Projects include the Valley Lines Electrification programme, and the South Wales Metro Scheme.

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Cardiff Central station, situated 0.4 miles (600 metres) to the south of the property, is well served by the national rail network and was used by 12.7 million passengers in 2015/16. It provides frequent services to Newport (12 minutes), Bristol (38 minutes), London Paddington (2 hours), and Birmingham New Street (2 hours).

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27 High Street

2 7 H I G H ST R E E T CA R DI F F

CAR D I F F C F 1 0 1 P U

1 & 2 Central Square Central Train Station National Principality Stadium

Cardiff Blues Stadium

New BBC HQ New HMRC

Holiday Inn

Central Square Scheme

The Angel Hotel

Bar 44 WRU Hotel

Assador 44

Gin & Juice Bar

Potted Pig

Alchemist Bar Turtle Bay

Libertine Bar

Rum & Fizz Bar

Pizza Express

St Davids SD2 Shopping Centre

House of Fraser

Cardiff Market

Corner Coffee Botanist

Cardiff Castle

Fly by Night Juniper Place

Honest Burger

Queen’s Arcade

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2 7 H I G H ST R E E T CA R DI F F

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CARDIFF CASTLE

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Retailing in Cardiff Cardiff is the region’s premier shopping destination, boasting one of the strongest and most extensive retail offers in the UK. The city’s 2.22 million sq ft of high quality retail space positions Cardiff 7th and 10th on the basis of its PMA retail and fashion score respectively.

This reflects the impressive range of retailers that Cardiff is home to, from international retailers such as Apple, to aspirational retailers such as Hugo Boss and Reiss.

The core retail offer in Cardiff is centred around the pedestrianised Queen Street, The Hayes, and the city’s three shopping centres; St David’s Centre; Queens Arcade; and Capitol Centre. This range of pitches deliver a diverse and varied retail experience. Queens Street, Queen’s Arcade, and the Capitol Centre provide the mass market offer, with tenants including a number of multi-national retailers such as Zara, Primark, and Next, while The Hayes and St David’s shopping centre provide the more aspirational retail offer, including a 260,000 sq ft John Lewis and numerous designer brands such as Kurt Geiger and Karen Millen.

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In addition to these more mainstream offers, the city boasts seven historic retail arcades, which are an integral part of the City’s retail landscape and provide a more vibrant and unique shopping experience.

Cardiff also benefits from a lively and thriving restaurant and bar scene, with a number of exciting new arrivals to the sector. This includes Marco Pierre White’s steak house opening in Dominions Arcade, The Alchemist converting the former NatWest on St Mary Street, and The Botanist and Honest Burgers both having pre-let space at Hermes’ development at 6/10 Church Street.

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Situation

Today, the Castle Quarter’s outstanding architecture and pedestrianised streets, provide a unique customer experience. Consequently, it is regarded to be the destination of choice for locals wanting to socialise and shop in the town centre, and tourists, looking to soak up the city’s history and cultural heritage.

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The Castle Quarter comprises three outstanding Victorian and Edwardian Arcades and Cardiff Castle. The quarter has historically been home to specialist shops such as drapers, apothecaries, tailors, and jewelers. Over time, the arcades and the surrounding quarter have grown and adapted to the needs of a modern shopping environment.

27 High Street

The property is situated on the pedestrianised High Street at the heart of The Castle Quarter. The Castle Quarter is a historical part of Cardiff situated between the city’s retail and employment offer.

Retail expenditure exceeded £4bn in 2018 and is diverse in its origins.

It is underpinned by Cardiff’s far reaching catchment, the affluent and growing population, the sizeable student population, and the strength of the city’s underlying tourist appeal.

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2 7 H I G H ST R E E T CA R DI F F

Description The property comprises a mixed use asset extending to 12,512 sq ft (1,162 sq m) and is arranged over ground floor, basement, and three upper levels. The property benefits from a prime pitch on Cardiff’s busy High Street, being situated immediately adjacent to Castle Arcade and across the road from the entrance to High Street Arcade.

The property boasts an attractive facade having formerly been a bank, and now houses two restaurants at ground floor and basement level, in addition to six, 2 bed, residential units.

Located in the former bank’s vaults, the restaurant located at basement level boasts a unique character with vaulted ceilings and exposed brickwork. It also benefits from a separate entrance.

The restaurant on the ground floor is located in the former banking hall and offers an appealing dining environment with high ceilings and additional outdoor seating on the High Street.

The six, two bed, residential units are arranged across the three upper floors and benefit from a separate entrance off the High Street. All of the units have recently been refurbished and offer high quality living space.

The property is Grade II listed and is located in the St Mary Street Conservation Area.

Tenure The property is held freehold.

Address

Demise

Zizzi, 27 High Street

Ground Flr Pt Basement

The Potted Pig, 27 High Street

Basement

Total Commercial

Tenancies Income highlight include: Conservative restaurant rents for the quality of pitch (average £15.60 psf) Six AST tenancies totalling £62,100 per annum (£850-£875 pcm per unit) 64% leisure income and 36% residential income

Tenant

Lease Start Date

Lease Expiry

3,730 234

Azzurri Restaurants Ltd with surety from Azzuri Central Ltd t/a Zizzi

20/01/2005

19/01/2030

£78,500

3,068

Voltaire (Cardiff) Ltd t/a The Potted Pig

17/03/2011

16/03/2031

£31,644

Sq Ft

7,032

Passing Rent (per annum)

£110,144

Flat 1, 27 High Street

Upper Floors

938

Private Individual(s)

15/08/2018

14/08/2019

£10,200

Flat 2, 27 High Street

Upper Floors

891

Private Individual(s)

21/02/2019

20/08/2019

£10,500

Flat 3, 27 High Street

Upper Floors

931

Private Individual(s)

08/11/2018

07/05/2019

£10,200

Flat 4, 27 High Street

Upper Floors

891

Private Individual(s)

08/02/2019

07/08/2019

£10,500

Flat 5, 27 High Street

Upper Floors

939

Private Individual(s)

23/03/2019

22/09/2019

£10,500

Flat 6, 27 High Street

Upper Floors

890

Private Individual(s)

13/09/2018

12/09/2019

£10,200

Total Residential

5,480

£62,100

Total

12,512

£172,244 8

2 7 H I G H ST R E E T CA R DI F F

Covenant Zizzi was established in 1999 in Chiswick and has since expanded to 140 restaurants nationwide. Zizzi forms part of the market leading Italian casual dining group The Azzuri Group which also owns ASK Italian and Coco di Mama. Zizzi have been trading the subject premises since 2005.

The latest accounts reported by the tenant, Azzurri Restaurants Ltd, are outlined below.

Year Ending Sales Turnover Profit / (Loss) Before Taxes Tangible Net Worth

02/07/2017 (£’000)

26/06/2016 (£’000)

28/06/2015 (£’000)

249,250

226,636

217,670

19,289

17,627

17,357

76,115

60,446

45,592

Azzurri Restaurants Ltd has a D&B rating of 5A1 which represents a minimum risk of business failure.

The Potted Pig is a highly regarded bistro and with a French and New York influence which was established in the subject premises in 2011.

The restaurant has a 4.5 out of 5 rating on Trip Advisor and has a Certificate of Excellence 2015-2018 winner. The tenant Voltaire (Cardiff) Ltd reported a turnover of £70,552 the year ending August 2017 and a profit of £1,547.

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EPC EPCs are available on request.

VAT The property is elected for VAT. It is envisaged that the transaction will be treated as a transfer of a going concern.

PRIME LEISURE & RESIDENTIAL INVESTMENT

Further Information For further information or to arrange an inspection of the property, please contact:

Proposal

Ross Griffin

Andrew Phillips

029 2036 8961 07972 000 113 rgriffin@savills.com

011 7910 2354 07972 000 112 adphillips@savills.com

James Stratton

We are instructed to seek offers in excess of £2,900,000 (exclusive of VAT) for the benefit of our client’s freehold interest, which reflects a 6.25% net initial yield (6.5% purchasers costs) on the commercial income and £227 per sq ft on the residential apartments.

Savills Commercial 2 Kingsway, Cardiff CF10 3FD

020 7409 8880 07787 513 060 james.stratton@savills.com

SUBJECT TO CONTRACT Misrepresentation Act Messrs Savills UK Ltd for themselves and for the vendors or lessors of this property whose agents they are, give notice that: 1.

The particulars are set out as a general outline only for the guidance of intending purchasers or lessees and do not constitute, nor constitute part of, an offer or contract.

2.

All descriptions, references to condition and necessary permission for use and occupation and other details are given in good faith and are believed to be correct but any intending purchasers should not rely on them as either statements or representation of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them. All dimensions are approximate.

3.

No persons in the employment of Messrs Savills (UK) Ltd has any authority to make or give any representation or warranty whatsoever in relation to this property.

4.

All correspondence regarding this offer is subject to contract.

April 2019

Design by Martin Hopkins | 029 2046 1233 | www.martinhopkins.co.uk

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