Former S4C Media Centre – Industrial Investment Brochure

THE OPPORTUNITY

→ An opportunity

Investment

Part

→ Strategically located in north Cardiff, situated within the popular business park, Parc Ty Glas, within 3.5 miles of the Cardiff City Centre and 3 miles from Junction 32 of the M4 Motorway

→ The Freehold property has a Net Internal Area of 38,659 sq ft and comprises two buildings on a site of 3.94 acres

→ The well-specified office block of 18,106 sq ft is currently let to 11 Tenants, with an improving rental tone and an excellent car-parking ratio

→ Office block income of £130,564 per annum

→ 8,383 sq ft is currently let with a further 3,435 sq ft under offer, this will increase the occupancy rate to 67%

→ The ‘Tech Block’ measures 20,680 sq ft and is currently undergoing works to be stripped back to a ‘shell’ therefore offering opportunities for conversion, including industrial uses

→ The ‘Tech Block’, if refurbished for industrial purposes, could have an ERV in excess of £7 psf (subject to specification)

→ Blue Self Storage premises is under-rented at £15,000 per annum

→ The 1.4 acres to the north of the premises offers development potential and could accommodate business units or attract a Design & Build opportunity (Subject to Planning)

Cardiff is the capital city of Wales and is the principle industrial and commercial centre for South Wales. The city is located to the south of the M4 Motorway and is approximately 44 miles west of Bristol and 42 miles east of Swansea.

Cardiff is the UK’s eleventh largest city with an estimated population of 364,000 (ONS, 2019) and a wider catchment of 1.5m in the Cardiff Capital Region. Cardiff is well served by a major road network, lying adjacent to the M4 motorway, with access to the north-east of the city through the A48(M) via Junction 29. To the west of the city, the A4232 proves access to the M4 via Junction 33. Junction 32 provides access between the M4 and the North of the city and the A470 which provides access northward to the valleys. The M4 motorway intersects with the M5 motorway north of Bristol, providing quick access to the Midlands and the South-West of England.

Cardif (City Centre) 5 miles Newport 12 miles Swansea 40 miles Bristol 42 miles Birmingham 115 miles Reading 108 miles London 149 miles

M4 (J32) 2.9

(J22)

(J15)

Bristol Parkway

London Paddington

International

SURROUNDING OCCUPIERS

North Cardiff and specifically Cardiff Business Park is a well-established and popular industrial location within Wales’ Capital.

The property occupies a prominent position within Cardiff Business Park, approximately 3.5 miles north of the city centre and 3.7 miles south-east of Junction 32 of the M4 Motorway. Access to both the city centre and Junction 32 are via the A470.

Parc Ty Glas Railway Station is within walking distance of the property (9 minutes), the rail service provides connections to Cardiff Queen Street within eight minutes and Cardiff Central in 16 minutes. The nearest bus stop is within an easy walking distance and provides access to the city centre as well as the wider suburbs of Cardiff.

The well-occupied business park is the prime industrial and trade park for north Cardiff, occupiers include Pelican Healthcare, Royal Mail, Screwfix and Toolstation. To the north of the estate is Llanishen Leisure Centre and the Lifestyle Shopping Park which includes occupiers such as Marks & Spencer, Boots and Pets at Home.

The immediate vicinity has witnessed a range of recent developments including a Retirement Living Plus scheme from McCarthy and Stone, residential development by Barratt Homes and Bellway as well as the construction of a McDonalds Restaurant. The new Llanishen High School is due to be built on the former Gleider House site.

FORMER S4C MEDIA CENTRE

TY-GLAS RD

JUNCTION 32, M4 A470

LLANISHEN LEISURE CENTRE

WALES & WEST HOUSING HEAD OFFICE

TY GLAS RAILWAY STATION

LLYS FAITH BY MCCARTHY & STONE

CARDIFF BUSINESS PARK

CARDIFF DRIVING TEST CENTRE

Parc Ty Glas, Cardiff, CF14 5DU

SITE OF NEW LLANISHEN HIGH SCHOOL

OPPORTUNITY: LAND

The land to the north-east of the site measures 1.4 acres and offers an opportunity for further commercial development, the site would be suitable for a purposebuilt industrial unit, a speculative business unit scheme, open storage or further Self Storage options.

There is limited supply of industrial units in the north Cardiff area, whilst suitable for a range of commercial uses, both an industrial/distribution unit and a small business park would be well-received.

INDUSTRIAL /DISTRIBUTION UNIT

With a 40% site density the site could accommodate an industrial unit of 20,000 sq ft.

Examples of comparable new build schemes include:

UNIT SIZE QUOTING RENT

N17, ST. MODWEN PARK, NEWPORT 17,000 sq ft £7.95 psf

N24, ST. MODWEN PARK, NEWPORT 24,000 sq ft £7.95 psf

N30, ST. MODWEN PARK, NEWPORT 30,000 sq ft £7.95 psf

AXIS 32, JUNCTION 32, CARDIFF 40,000 sq ft £8.50 psf

CENTRAL PARK, BRIDGEND 33,000 sq ft £8.00 psf

BUSINESS UNITS

If a development of new-build industrial units was considered, adopting a 40% site density the site could accommodate up to 18 trade / business units, each with a floor plate of 1,300 sq ft.

Comparable evidence for trade / business units:

UNIT TENANT DATE RENT COMMENT

CHARNWOOD PARK, CARDIFF – UNIT 9A Severn Screen Ltd December 2022 £8 psf 1,984 sq ft Lease renewal 3-year term

FAIRFIELD INDUSTRIAL ESTATE, JUNCTION 32 –UNITS 10 & 11

FAIRFIELD INDUSTRIAL ESTATE, JUNCTION 32 –UNIT 13

MSC Nutrition October 2020 £9.95 psf 1,960 sq ft 5 year lease

New build business unit

Hard Lines Coffee Roasters

FAIRFIELD INDUSTRIAL ESTATE, JUNCTION 32 –UNIT 14

November 2020 £10.00 psf 1,250 sq ft 5 year lease with option to break at end of year 3

New build business unit

RJ Flooring November 2020 £10.00 psf 1,250 sq ft

5 year lease with option to break at end of year 3

New build business unit

ATLANTIC BUSINESS PARK, BARRY – UNIT 4 Key Home Staging Ltd January 2022 £8.95 psf 1,453 sq ft

5 year lease with option to break at end of year 3

New build business unit

DEVELOPMENT OPPORTUNITY: TECH BLOCK

The Tech Block is currently fitted out as a series of recording studios, arranged over two floors. The Landlord has commenced works on the full strip out of the building, back to a shell specification. This presents the opportunity for conversion for a range of commercial uses – such as further office workspace or conversion for industrial uses.

The building comprises 20,680 sq ft of space over two floors. The floorplate for the building is circa 10,340 sq ft and could accommodate a single industrial premises or be sub-divided into smaller units.

Comparable evidence for industrial units in Cardiff:

UNIT TENANT DATE RENT COMMENT

SPRING MEADOW BUSINESS PARK, CARDIFF – UNITS 6/7

Confidential N/A £6.40 psf Under offer 10 year lease 18,773 sq ft

STUART CLOSE, CARDIFF –UNITS 3A & 3B Confidential N/A £7.75 psf Under offer

10 year lease with option to break at end of year 6 11,901 sq ft

TAGOMAGO PARK, CARDIFF – UNIT Pirate Studios March 2022 £7.85 psf 7,960 sq ft

15 year lease, break at end of year 10 New Build

FREEMAN’S PARC, CARDIFF – UNIT 21 Farsight Health Ltd February 2022 £8.00 psf 3,466 sq ft

5 year lease with break at 3.5 years

CARDIFF INDUSTRIAL PARK, CARDIFF – UNIT 9C UK Windows and Door Group Limited June 2022 £8.00 psf 3,097 sq ft

10 year lease with break at end of year 5

SPECIFICATION OF WORKS

The purpose of the works is to strip-out the bespoke recording studios and associated services to allow the future developer a clear space that could be utilised for a range of uses.

The Specification of Works include but are not limited to the following:

→ Stripping out of obsolete ventilation and air-conditioning equipment

→ Removal of all:

→ Non-load bearing walls

→ Doors

Wiring

Lighting

Plumbing

Suspended ceilings

Raised floor panels

Ductwork and insulation

→ Kitchen and bathroom facilities

Certain areas containing plant are to be retained. The full specification of works is available upon request.

SCHEDULE

SUITE TENANT FLOOR AREA (SQ FT) PASSING RENT (PA) NEXT REVIEW

TERM LEASE START LEASE END BREAK DATE BREAK TYPE NOTES

101 L J Aherne Limited 373 £5,022 3 Year 03/12/2021 02/12/2024 03/12/2022 Mutual Flexible Break Break rolling from break date, 1 month notice

102104 National Learning and Work Institute 1,484 £19,409 5 Year 28/08/2020 27/08/2025 28/08/2023 Tenant Break

105 Tenneco Management (Europe) Limited 470 £8,400 5 Year 18/09/2019 17/09/2024

106 The Weight Loss Doctor Ltd 178 £1,549 08/07/2022 5 Year 08/04/2022 07/04/2027 07/04/2025 Mutual Break Rental step to £3,097.50 from 8th July 2022

107 Reddrum Limited 146 £1,998 5 Year 03/12/2021 02/12/2026 03/12/2023 Mutual Flexible break Break rolling from break date, 1 month notice

108 B2B IT Services Ltd 312 £4,225 5 Year 03/12/2021 02/12/2026 Mutual Flexible Break

109 Sugar Creative 794 £17,010 5 Year 16/04/2018 15/04/2023 Mutual Flexible Break

110 Sugar Creative 538 Part of lease above

111 Vacant 320

112113 The Ubiquity Group Limited 944 £10,723 04/03/2024 8 Year 6 Month 17/08/2020 03/03/2029 Mutual Flexible Break

114 Under offer 1,037

115 Vacant 651

116 Under Offer 1,290

201 Cardiff AM2 Ltd 1,521 £27,128 11/05/2026 10 Year 11/05/2021 11/05/2031 Flexible from 11/05/2026 Mutual Flexible Break

202 Vacant 3,348

203 Under offer 314

204 Vacant 1,552

205 Alzheimer’s Society 2,527 £35,100 5 year 08/11/2019 07/11/2024 08/11/2022 Tenant Break

206 Under Offer 307

Measurements undertaken in accordance with the RICS Code of Measuring Practice 6th Edition.

1 month notice on or after second anniversary of the Lease

Under offer to Redrum at £15.50 psf (5 year lease, 3 year break) – 9 months at half-rent.

Existing lease to Sugar Creative to be surrendered.

Under offer to Sugar Creative, who have downsized. 5 year lease, 2 year break. £13.50 psf.

6 months’ break notice.

Under offer to Okazaki Manufacturing Company UK Limited. £13.50 psf. 5 year lease, 3 year break.

Under offer to Urban Pursuit Education Ltd on the basis of an Agreement for Lease on a Subject to Planning basis. £13.50 psf.

Lease to be co-terminus with suite 203.

Under offer to Urban Pursuit Education Ltd. £13.50 psf.

5 year Lease.

Under offer to B2B IT Services Ltd

COMPARABLE EVIDENCE MARKET COMMENTARY

CARDIFF OFFICE MARKET

Cardiff is the principal office market within Wales and is one of the major UK regional centres. It is the closest capital city to London with an estimated office stock of approximately 12.5 million sq ft.

The Cardiff office market benefits from strong underlying fundamentals. Long term availability has been limited, particularly of prime stock, high profile developments have added new landmark Grade A buildings, while a number of secondary offices have been converted to alternative uses and removed these from the supply chain. Pre pandemic annual take-up has been consistently higher than the longterm average for several years, which has contributed to rental growth.

OFFICE COMPARABLE EVIDENCE

UNIT DATE TENANT RENT COMMENT

KIMBERLEY HOUSE, TY GLAS AVENUE, LLANISHEN, CARDIFF, CF14 5DX

OAK TREE COURT, MULBERRY DRIVE, CARDIFF GATE BUSINESS PARK, CARDIFF, CF23 8RS – UNIT 7

OAK TREE COURT, MULBERRY DRIVE, CARDIFF GATE BUSINESS PARK, CARDIFF, CF23 8RS – UNIT 3

THORENS HOUSE, BECK COURT,

Q3 2021 Pure Advisory Group Ltd

Q3 2021 Dandara Wales and West Ltd

£13.95 psf 3.620 sq ft Modern, mid-sized Out of Town office unit

£14.90 psf 1,140 sq ft Modern, smaller Out of Town office unit

Q2 2021 Righton Blackburn £15.80

PART

INVESTMENT COMPARABLE EVIDENCE

FURTHER INFORMATION OVERAGE

Whilst we understand that the land is not currently suitable for residential development.

Any sale will include an overage provision to protect against future residential development on this site.

SERVICE CHARGE

There is currently a Service Charge on the Estate.

Details available upon request.

TENURE

The property is held Freehold under title no: WA848080.

EPC

The property has an EPC rating of C(74).

Certificate available upon request .

DATA-ROOM

Data-room access available upon request.

VAT

The property is elected for VAT.

INVESTMENT CONSIDERATIONS

→ An opportunity to acquire a Part Let Income Producing Investment with Asset Management Opportunities

→ Strategically located in north Cardiff, situated within the popular business park, Parc Ty Glas, within 3.5 miles of the Cardiff City Centre and 3 miles from Junction 32 of the M4 Motorway

→ The Freehold property has a Net Internal Area of 38,659 sq ft and comprises two buildings on a site of 3.94 acres

→ The well-specified office block of 18,106 sq ft is currently let to 11 Tenants, with an improving rental tone and an excellent car-parking ratio

→ Office block income of £130,564 per annum

→ 8,383 sq ft is currently let with a further 3,435 sq ft under offer, this will increase the occupancy rate to 67%

→ The ‘Tech Block’ measures 20,680 sq ft and is currently undergoing works to be stripped back to a ‘shell’ therefore offering opportunities for conversion, including industrial uses

→ The ‘Tech Block’, if refurbished for industrial purposes, could have an ERV in excess of £7 psf (subject to specification)

→ Blue Self Storage premises is under-rented at £15,000 per annum

→ The 1.4 acres to the north of the premises offers development potential and could accommodate business units or attract a Design & Build opportunity (Subject to Planning)

VAT: The VAT position relating to the property may change without notice.

5. Financial Crime: In accordance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 and Proceeds of Crime Act 2002 Knight Frank LLP may be required to establish the identity and source of funds of all parties to property transactions.

6. To find out how we process Personal Data, please refer to our Group Privacy Statement and other notices at https://www.knightfrank.com/legals/privacystatementals/privacy-statement. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members’ names. Brochure dated: July 2022. Photos dated: June 2022.

Designed and produced by 029 2046 1233 | studio@martinhopkins.co.uk martinhopkins.co.uk