Lakeside Drive, Celtic Springs Business Park, Newport, NP10 8BB

CELTIC SPRINGS RETAIL QUARTER Modern Retail Investment

• Modern Retail Investment.

• Freehold.

• Situated in Celtic Spring Business Park, which sits on J28 of the M4.

• The property occupies a prominent, highly visible position fronting on to the busy A48.

• Multi-let to 4 tenants, including Greggs PLC, in well configured units comprising 5,561 sq ft.

• Producing £97,500 per annum with a WAULT of 6.10 years to lease expiries (3.64 years to breaks).

• Circa 5,000 employees within walking distance and a passing vehicle traffic of 26,000 per day.

• Developed in 2010 so now well established with a strong trading platform providing good prospects for rental growth and opportunities to further improve the tenant line up.

• Seeking offers in excess of £1,150,000, reflecting an attractive Net Initial Yield of 8.00%, after deducting purchasers costs of 5.89%.

SUBJECT TO CONTRACT & EXCLUSIVE OF VAT

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INVESTMENT SUMMARY

Tredegar House

Tredegar Park

NEWPORT

DUFFRYNExpress by Holiday Inn

CLEPPA PARK

Airbus

O.N.S

HM Prison Service

IMPERIAL PARK

Welsh Water

Wales & West Utilities

M4

A48

A48

A48

A48

A48

A48

A48

A48

A48

M4

M4

M4

M4 WEST Cardiff

M4 EAST London

CELTIC SPRINGS RETAIL QUARTER

Newport, is located midway between Cardiff and Bristol

and is one of the principal commercial centres in South

Wales. Newport is one of Britain’s newest cities, and has

a resident urban population of approximately 137,000

people and a catchment population within a 30 minute

drive time of 478,000.

The city benefits from excellent road communications

lying immediately to the south of Junctions 24 to 28

of the M4 motorway which provides access to Cardiff

and Swansea to the west, as well as Bristol and London

to the east.

Newport benefits from regular Intercity rail services

linking the city to London Paddington, Cardiff, Bristol and

Birmingham, with journey times set to reduce once the

electrification of the rail line is completed in 2018. Cardiff

International Airport and Bristol International Airport are

located just 30 miles to the south west, and south east,

respectively.

The profile of Newport has grown considerably recently

following a number of large scale developments and

infrastructure improvements, the largest being the

recently opened Friars Walk Shopping Centre in the

city centre. Celtic Manor Hotel and Golf Resort, which

hosted the 2010 Ryder Cup and the 2014 NATO summit,

is developing a new 4,000 delegate convention centre

which is set to open in 2019. Both these developments

will further raise the profile of Newport.

LOCATION

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In March 2016, Newport was one of the ten

local councils to sign the Cardiff Capital Regional

deal (CCR). The CCR is a regional investment

vehicle aiming to bring together region wide

infrastructure projects.

With a gross value of £1.2 billion, projects include

the electrification of the South Wales Valley rail

network and the creation of a metro system worth

£734 million; creation of 25,000 jobs in the region

and the creation of an innovation hub.

CARDIFF CAPITAL REGIONAL DEAL

Celtic Springs is located at Junction 28 of the M4 motorway, at the western edge of Newport,

close to its borders with Cardiff.

The subject property is situated on the edge of the business park in an attractive parkland setting,

fronting on to the busy A48. Its prominence on to this road provides it with a highly visible location

for passing trade, which is estimated at 26,000 vehicles per day. In addition, adjacent is a 128 bed

Holiday Inn Express and Destination Dragonfly Pub, which further compliment the leisure offer.

Celtic Springs Business Park is regarded as one of the most prestigious office addresses in South Wales

and is home to high profile occupiers including Airbus, Wales & West Utilities, Welsh Water and SSCL

(a JV between the Cabinet Office and Steria Ltd for HM Prisons). In addition Go Compare, Office of

National Statistics, Target and DAC Beachcroft are also in close proximity. In total, it is believed that there

are circa 5,000 employees within walking distance with little other retail provision to satisfy this demand.

SITUATION

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Freehold

TENURE

N

Unit 2142 m2

Retail Units Development

For identificationpurposes only

L A K E S I D E D R I V E

Car Parking

Landscape

Site Boundary

DESCRIPTIONThe property has a modern parade of three retail

units developed in 2009 comprising 5,561 sq ft

of retail space. There is parking for 20 cars

including 2 disabled spaces, within the

development together with a bicycle bay.

The property is of concrete block work construction, with aluminium framed double glazed windows to the southern elevation and brick and cedar wood cladding to the remaining elevations. The roof has a steel beam structure, with an inverted design, clad in insulated profile steel.

The units were constructed to a shell specification, with incoming three phase electricity, water and gas supplies. All the units have been subsequently fitted by the occupier in line with their corporate designs.

The property is multi-let to 4 tenants and benefits from a Weighted Average Unexpired Lease Term (WAULT) of 6.10 years to expiries (3.64 years to break options), as outlined in the tenancy schedule below:

TENANCY SCHEDULE

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Demise Tenant Use Area (GIA sq ft)

Lease Start Term Break Rent (per annum)

Rent (per sq ft)

Comments

Unit 1 A Heather Jones t/a Kumon

Education 1,500 01/10/2012 10 years 01/10/2018 £22,500 £15.00 Only Kumon study facility in Newport

Unit 1 B Carl & Maxime Jones Salon 1,000 01/10/2012 10 years n/a £15,000 £15.00

Unit 2 Kelly Melmoth t/a Vanilla Pod Café Ltd

Coffee Shop

1,533 02/02/2015 10 years 02/02/2020 £30,000 £19.57 Passing rent is £25,000 p.a. with fixed increase to £30,000 p.a. in Feb 2017. Vendor will top up the rent.

Unit 3 Greggs PLC Bakers 1,528 29/09/2009 10 years n/a £30,000 £19.63

Total 5,561 £97,500

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Greggs PLC

With 1,698 shops, 12 bakeries and 20,000 employees who serve millions of customers each week, Greggs is the UK’s leading bakery food-on-the-go retailer.

31% of the current rental income is attached to Greggs PLC who have a Dun & Bradstreet rating of 5A1, the highest achievable rating. In their last financial accounting year ending 2nd January 2016 they reported a Turnover of £835.7m and a Profit before Tax of £73m.

The remaining units are occupied by more local covenants although Heather Jones in Unit 1 trades as Kumon Educational, who are the UK’s largest supplementary education provider.

Now the retail development is established and experiencing positive trading feedback from the existing occupiers there is an opportunity for a purchaser to improve the covenant strength of the tenant line up going forward.

The property has already received interest from national operators subsequent to completion of the existing lettings.

We understand the property is elected for VAT and it is intended that the sale be treated as a Transfer of a Going Concern (TOGC).

An EPC for the property can be provided upon request.

COVENANT PROFILE VAT

EPC

• Freehold.

• Modern, well configured retail development.

• Prominent location fronting on to the A48 and within close proximity to J28 of the M4.

• Only retail provision for Celtic Springs Business Park and Imperial Park.

• Circa 5,000 employees within walking distance and an average of 26,000 vehicles passing daily.

• 31% of the income secured to Greggs PLC.

• Well established retail centre having been developed in 2010.

• Strong trading history as evidenced by Greggs decision not to exercise their break option in 2014.

• Opportunity to drive rental growth and further improve tenant line up.

• Attractive lot size and yield profile.

Seeking offers in excess of £1,150,000 (One Million One Hundred and Fifty Thousand Pounds), reflecting an attractive Net Initial Yield of 8.00%, after deducting purchasers costs of 5.89%.

Subject to Contract & Exclusive of VAT

INVESTMENT CONSIDERATIONS PROPOSAL

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Gareth LloydTel: 029 2044 0141gareth.lloyd@knightfrank.com

Rob JonesTel: 029 2044 0128rob.jones@knightfrank.com

SUBJECT TO CONTRACT & EXCLUSIVE OF VATKnight Frank LLP for themselves and for the vendors or lessors of this property for whom they act, give notice that: 1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. 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. SEPT2016

For further information or to arrange a viewing please contact either of the following: Please do not approach the tenants directly. All viewing or tenant enquires should be directed to the vendors agents.

VIEWINGS