singerviellesales.com

394394394394----396 The Kingsway, Swansea SA1 5LQ396 The Kingsway, Swansea SA1 5LQ396 The Kingsway, Swansea SA1 5LQ396 The Kingsway, Swansea SA1 5LQ

Retail Investment Opportunity

Let to Specsavers

Secure Income – Shareholders’ Funds £81,515,000

This branch has been established for 30 years in this locationThis branch has been established for 30 years in this locationThis branch has been established for 30 years in this locationThis branch has been established for 30 years in this location

£375,000, subject to contract

9.0% net initial yield

For sale by online auction, unless sold prior

www.singerviellesales.com

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

to 47. In addition, Swansea is connected to the national 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.

Location Situation The property occupies a highly prominent position fronting The Kingsway, in the

heart of Swansea City Centre.

The Kingsway is one of the major arterial routes running through the city centre and

houses a range of commercial occupiers.

The prime retail pitch in Swansea is centred around the pedestrianised Oxford

Street, immediately to the south of the subject property. The Quadrant Shopping

Centre is also within a short walking distance to the south. The premier covered

shopping environment within Swansea, the centre provides 40,877 sq m (440,000

sq ft) of retail space with occupiers including Debenhams, Boots, WH Smith,

Superdrug, Dorothy Perkins and Superdry. The centre also provides a multi-storey

car park with a capacity for 569 vehicles.

Swansea Council is focused on regenerating the city centre, as reflected by the

recently completed £8 million Boulevard project whose aim is to improve links

between the City Centre and its Waterfront, streamline traffic coming into the city

from the East and create a vibrant, tree-lined City street between the River Tawe

bridges and Princess Way.

The interest for sale is a self-contained retail shop arranged on ground and first

floor within a parade of four retail units fronting The Kingsway. Other tenants

in the parade include National Slimming & Cosmetic Clinic, Direct Choice

Home Improvements and Vogue Interiors. These shops are separate to the

adjoining Dragon Hotel.

The unit comprises a retail unit on ground floor arranged as an opticians with

ancillary accommodation at first floor. The unit has been fitted out in the

tenant’s usual corporate image.

In May 2014 the stoIn May 2014 the stoIn May 2014 the stoIn May 2014 the store celebrated three decades in business. The store was re celebrated three decades in business. The store was re celebrated three decades in business. The store was re celebrated three decades in business. The store was

opened in May 1984 and was one of the first Specsavers. Starting out in a opened in May 1984 and was one of the first Specsavers. Starting out in a opened in May 1984 and was one of the first Specsavers. Starting out in a opened in May 1984 and was one of the first Specsavers. Starting out in a

single unit the business has grown into three units remaining in the same single unit the business has grown into three units remaining in the same single unit the business has grown into three units remaining in the same single unit the business has grown into three units remaining in the same

location. In addition to the standard opticians servilocation. In addition to the standard opticians servilocation. In addition to the standard opticians servilocation. In addition to the standard opticians services the store also has nine ces the store also has nine ces the store also has nine ces the store also has nine

testing rooms for both eye and hearing care and is open seven days a week testing rooms for both eye and hearing care and is open seven days a week testing rooms for both eye and hearing care and is open seven days a week testing rooms for both eye and hearing care and is open seven days a week

with over 40 members of staff. with over 40 members of staff. with over 40 members of staff. with over 40 members of staff.

The adjoining 4-Star Dragon Hotel has been a landmark in Swansea City

Centre for over 50 years and has been transformed into an upmarket boutique-

style hotel following a £3.7 million refurbishment in 2005. The hotel comprises

106 en-suite bedrooms together with a piano bar & restaurant on first floor,

the award winning Dragon Brasserie on ground floor, several

conference/meeting rooms and a health & fitness club with an 8 metre pool

and fully equipped gymnasium. For further information see www.dragon-

hotel.co.uk.

Sq FtSq FtSq FtSq Ft Sq Sq Sq Sq MMMM

Zone A 1,093 101.54

Zone B 924 64.94

Zone C 99 9.2

ITZA 1,580 146.79

Ground Floor Total 2,116 175.68

First Floor 1,854 172.74

TotalTotalTotalTotal 3,9703,9703,9703,970 347.92347.92347.92347.92

Description Accommodation The property has been measured by BKR Floor Plans and provides the following floor

areas;

28th February 201428th February 201428th February 201428th February 2014 28th February 201328th February 201328th February 201328th February 2013

Turnover £392,606,000 £346,739,000

Pre-Tax Profits £18,533,000 £15,349,000

Shareholders’ Funds £81,515,000 £106,802,000

Tenure A new underlease expiring on 13 April 2164 (for a term of just less than 149

years) at a peppercorn rent.

Tenancy The property is let to Specsavers Optical Superstores LimitedSpecsavers Optical Superstores LimitedSpecsavers Optical Superstores LimitedSpecsavers Optical Superstores Limited (Co. No.

01721624) on a Full Repairing and Insuring lease for a term from 9th March

2011 expiring on 8th June 2026 with a tenant’s break option on 9th June

2021, subject to 6 months’ notice.

The current passing rent is £35,400 per annum£35,400 per annum£35,400 per annum£35,400 per annum equating to £16.54 Zone A

based on our analysis.

The lease benefits from a rent review on 9th March 2016 and again on 9th

March 2021.

Covenant Specsavers Optical Superstores Limited (Co. No. 01721624) has

reported the following figures:

The principal activities of the Group are to act as a retailer and wholesaler of optical products for Specsavers in the UK and to provide support services to

its UK operations. The ultimate parent company is Specsavers International Healthcare Limited, controlled by the founders, Mr and Mrs Perkins.

Established in 1984 in a single shop in Guernsey Specsavers today is a company with an international presence with more than 1,700 stores in markets

including Australia, Denmark, Spain, Netherlands, New Zealand, Norway, Republic of Ireland, Sweden and the United Kingdom. Please click here for the

company’s 2013-2014 Annual Review.

Market Commentary We analyse the passing rent to equate to £16.54 Zone A.

The subject retail units at 391-397 The Kingsway are let off rents between £15.27 Zone A and £19.20 Zone A. We understand that the current tone on The

Kingsway is between £20.00-£25.00 Zone A. We understand that The Co-operative Bank signed a lease renewal at 34 The Kingsway in December 2013

for a new 5 year term at a rent of £24,000 per annum equating to £25.00 Zone A. Prime rents in the city centre are on Oxford Street, immediately to the

south of the subject property, where the tone is £50.00-£60.00 Zone A. Therefore, we suggest the retail accommodation is let at a discount to rents in the

immediate vicinity and offers good prospects for future rental growth.

Value Added Tax The property has been elected for VAT therefore VAT will be payable on the purchase price. It is envisaged the sale will be treated as a Transfer of a Going

Concern (TOGC).

1.1.1.1. An opportunity to acquire a retail investment An opportunity to acquire a retail investment An opportunity to acquire a retail investment An opportunity to acquire a retail investment occupying a prominent city centre occupying a prominent city centre occupying a prominent city centre occupying a prominent city centre

location;location;location;location;

2.2.2.2. Let to Specsavers Optical Superstores Limited Let to Specsavers Optical Superstores Limited Let to Specsavers Optical Superstores Limited Let to Specsavers Optical Superstores Limited –––– Shareholders’ Funds Shareholders’ Funds Shareholders’ Funds Shareholders’ Funds

£81,515,000;£81,515,000;£81,515,000;£81,515,000;

3.3.3.3. Let at a discount to rents in the immediate vicinity offering good prospects for Let at a discount to rents in the immediate vicinity offering good prospects for Let at a discount to rents in the immediate vicinity offering good prospects for Let at a discount to rents in the immediate vicinity offering good prospects for

future rental growth;future rental growth;future rental growth;future rental growth;

4.4.4.4. The tenant has been in thThe tenant has been in thThe tenant has been in thThe tenant has been in this location for over 30 years;is location for over 30 years;is location for over 30 years;is location for over 30 years;

5.5.5.5. This branch was one of the first Specsavers stores;This branch was one of the first Specsavers stores;This branch was one of the first Specsavers stores;This branch was one of the first Specsavers stores;

6.6.6.6. The property provides an investor with an attractive lot size;The property provides an investor with an attractive lot size;The property provides an investor with an attractive lot size;The property provides an investor with an attractive lot size;

7.7.7.7. A purchase at the asking price provides an investor with an attractive net initial A purchase at the asking price provides an investor with an attractive net initial A purchase at the asking price provides an investor with an attractive net initial A purchase at the asking price provides an investor with an attractive net initial

yield. yield. yield. yield.

Investment Considerations

SUBJECT TO CONTRACT & EXCLUSIVE OF VAT Misrepresentation Act 1967 Singer Vielle 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, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them. 3. No person in the employment of Singer Vielle has any authority to make or give any representation or warranty whatever in relation to this property. 4. All maps are for identification purposes only and should not be relied upon for accuracy. 5. Unless otherwise stated, all prices and rentals quoted are exclusive of Value Added Tax to which they may be subject. Finance Act 1989 Unless otherwise stated, all prices and rents are quoted exclusive of VAT. Property Misdescriptions Act 1991 These details are believed to be correct at the time of compilation, but may be subject to subsequent amendment. Concerning the Properties listed and/or appearing on the Site: 1. Under no circumstances shall we be liable to you for any direct, indirect, consequential, incidental or special damages arising out of your purchase or lease of any Properties on the Site. 2. Under no circumstances shall we be liable for any errors or incompleteness of the information relating to any Property listed on this Site or if any Property has been withdrawn from sale or lease nor shall we be responsible for any inaccurate dimensions of any Properties or price listed. 3. Our website service permits you to enquire about and to purchase or lease Properties appearing on or listed on this Site. Such enquiries, purchase or leasing can only be made and permitted strictly subject to the terms and conditions set out below. 4. We do not accept responsibility or liability for the completeness or accuracy of information appearing on this Site which is provided by the Vendors or Lessors of the Property concerned who are solely responsible for such information. 5. Whilst we believe that the Properties listed are available for purchase or lease we make no guarantee that this is the case or that they have not been withdrawn by the Vendor or Lessor of the same. All Properties appearing or listed on the Site are subject to changes, errors or omissions. We have not verified the accuracy of the information relating to the Properties or any dimensions which have been given by the Vendors or Lessors. 6. All Properties are listed subject to contract and the prices shown are exclusive of VAT if applicable.

Proposal Guide price ££££373737375,0005,0005,0005,000, (Three Hundred and Seventy Five Thousand

Pounds), subject to contract, reflecting a net initial yield of 9999....0000%%%%....

Singer Vielle Street Vendors Solicitor

94-96 Wigmore Street Lawrence Stephens

London W1U 3RF 50 Farringdon Road,

Tel: +44 (0) 207 935 7200 London EC1M 3HE

Neil Singer neil@singervielle.co.uk Tel 020 7936 8888

Dale Henry dale@singervielle.co.uk Stephen Messias smessias@lawstep.co.uk

Richard Wolfryd richard@singervielle.co.uk