HSBC
HSBC 56 QUEEN STREET, CARDIFF, CF10 2PX
HIGH STREET BANK INVESTMENT OPPORTUNITY WITH
ANNUAL RPI REVIEWS 3%-5% COLLAR & CAP
HSBC
56 QUEEN STREET
CARDIFF
CF10 2PX
INVESTMENT CONSIDERATIONS
<> Prime city centre high street bank investment
totalling approximately 5,483 sq ft
<> Cardiff has excellent road and rail
communications with direct rail services
to London, Bristol, Birmingham and
Manchester
<> The city is ranked 8th in the PROMIS retail
centres
<> The tenant is consolidating their operations
into the property, demonstrating
commitment to their occupation
<> Freehold
<> Current income of £542,374 per annum
<> Unexpired lease term of
approximately 10.70 years
<> Let to the Dun & Bradstreet 5A1 rated
covenant of HSBC Bank Plc until 20
December 2027
<> The rent is reviewed annually in line with
RPI with a collar and cap of 3% - 5%
<> Offers sought in excess of £8,130,000
(Eight million one hundred and thirty
thousand Pounds) subject to contract
and exclusive of VAT. This equates to an
attractive net initial yield of 6.25%, after
allowing for purchasers costs of 6.67%
<> Assuming the collar of 3% a purchase at
this price gives a reversionary yield in:
2020: 6.83%
2025: 7.92%
HIGH STREET BANK INVESTMENT OPPORTUNITY
WITH ANNUAL RPI REVIEWS
3%-5% COLLAR & CAP
HSBC
56 QUEEN STREET
CARDIFF
CF10 2PX
HIGH STREET BANK INVESTMENT OPPORTUNITY
WITH ANNUAL RPI REVIEWS
3%-5% COLLAR & CAP
LOCATION
As the capital City of Wales, Cardiff is a popular tourist
and shopping destination. The city is strategically
located approximately 150 miles (240 km) west of
London, 109 miles (175 km) south west of Birmingham,
43 miles (69 km) west of Bristol and 42 miles (68 km)
east of Swansea.
Cardiff benefits from excellent road and rail
communications with the M4 (Junctions 29,30 and 32)
5 miles (8km) to the north linking Cardiff to Bristol and
London to the east.
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GLOUCESTER
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Cardiff Central is a mainline station with regular services
to Bristol Temple Meads, Birmingham New Street,
London Paddington and Manchester Piccadilly, with
quickest journey times of 48 minutes, 2 hours, 2 hours
4 minutes and 3 hour 25 minutes respectively. The two
busiest railway stations in Wales are Cardiff Central and
Queen Street with almost 12.5 million passengers a year
passing through.
Cardiff Airport is located south west of the city and
provides services to a number of national and
international destinations.
HSBC
56 QUEEN STREET
CARDIFF
CF10 2PX
RETAILING IN CARDIFF
The estimated shopping population of Cardiff is 592,000 ranking the city 8th of the PROMIS centres.
The city ranks 6th in terms of the volume of comparison retail spend available in the catchment area.
City centre retail floor space in Cardiff is approximately 2.22 million sq ft of which 1.06 million sq
ft is within the St David’s Centre. The retail core in the city centre is largely focussed around the
pedestrianised Queen Street, the Hayes and the city’s shopping centres. The nearby St David’s Centre
was extended by 620,000 sq ft in 2009 and is the premier shopping destination in Cardiff.
Cardiff is an important tourist destination; Cardiff City Council estimates that 20.5 million people visited
the city between 2015-2016.
HIGH STREET BANK INVESTMENT OPPORTUNITY
WITH ANNUAL RPI REVIEWS
3%-5% COLLAR & CAP
HSBC
56 QUEEN STREET
CARDIFF
CF10 2PX
HIGH STREET BANK INVESTMENT OPPORTUNITY
WITH ANNUAL RPI REVIEWS
3%-5% COLLAR & CAP
Cardiff
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DESCRIPTION
SH
The property comprises an attractive Grade
II listed building totalling approximately
5,483 sq ft of accommodation arranged
over basement, ground, mezzanine and
first floors. The ground, mezzanine and part
basement areas are customer facing,
with the remainder of the basement and
first floor used as staff and storage space.
HMV
VACANT
GS
GREG
S
TOY
RU
S
Floor
Area sq m
Area sq ft
Basement
153.4
1,651
Ground
256.7
2,764
ITZA
124.9
1,345
Mezzanine
195.8
2,108
First
Total
© Crown Copyright, ES 100004106. For identification purposes only.
50 metres
Copyright and confidentiality Experian, 2017. © Crown copyright and database
rights 2017. OS 100019885
SITUATION
The property is located on the southern side of the pedestrianised Queen
Street in close proximity to the entrance to the refurbished St David’s Centre.
Queen Street is made up of a mix of national multiple tenants and nearby
occupiers including Primark, Boots, O2, Wilko, JD Sports, River Island, Zara,
Topshop and Nationwide.
The western end of the pedestrianised Queen Street provides an entrance
to the Queens Arcade and the eastern end provides an entrance to the
Capitol Centre.
Cardiff Central station is located approximately 0.5 miles south west of the
property.
Experian Goad Plan Created: 20/02/2017
Created By: Allsop
For more information on our products and services:
www.experian.co.uk/goad | [email protected] | 0845 601 6011
40.5
436
509.3
5,483
HSBC
56 QUEEN STREET
CARDIFF
CF10 2PX
HIGH STREET BANK INVESTMENT OPPORTUNITY
WITH ANNUAL RPI REVIEWS
3%-5% COLLAR & CAP
TENANCY DETAILS
COVENANT INFORMATION
The property is let to HSBC Bank Plc on a 20 year lease from
21 December 2007 and benefits from annual rent reviews
to RPI collared and capped at 3% & 5%, additionally there
is a 5 yearly upward only rent review to the open market
rental value. The passing rent is £542,374 pa with the next
rent review due on 20 December 2017.
HSBC is one of the world’s largest banking organisations serving more
than 37 million customers from 70 countries. The company has
approximately 4,000 offices worldwide and is listed on the London,
New York, Paris and Bermuda stock exchanges.
HSBC are consolidating their city centre operations into
this property and closing the Churchill Way branch,
demonstrating committment to this store.
TENURE
Freehold.
RECENT BANK INVESTMENT SALES
HSBC Bank PLC reported the following accounts for the last 3 years:
Turnover (000’s)
Pre-Tax Profit (000’s)
Total Net Worth (000’s)
31 Dec 2015
31 Dec 2014
31 Dec 2013
£18,630,000
£18,313,000
£20,302,000
£2,971,000
£1,953,000
£3,294,000
£30,486,000
£28,784,000
£24,436,000
Address
Unexpired Lease
Term
Sale Price
NIY
Date
Royal Bank of
Scotland
8.5 years
Asking
£3.95m
5.00%
Under offer
Frankel Portfolio (1)
Lloyds Bank
or Bank of
Scotland
15 years
£39.50m
5.80%
December 2016
Frankel Portfolio (2)
Lloyds Bank
15 years
£33.70m
5.88%
December 2016
13 Cornhill, Ipswich
Lloyds Bank
10 years
£4.10m
6.30%
July 2016
202 High Street, Lincoln
Lloyds Bank
10.8 years
£3.15m
4.50%
June 2016
TSB Bank
9.75 years
£4.61m
5.50%
May 2016
24 Broad Street, Reading
Lloyds Bank
10.5 years
£4.76m
4.40%
May 2016
83-87 High Street, Sutton
Metro Bank
12 years
£3.00m
4.65%
March 2016
26 High Street, Chelmsford*
162 Northumberland Street,
Newcastle
Tenant
*We understand that the property is under offer at around the asking price.
HSBC
56 QUEEN STREET
CARDIFF
CF10 2PX
VAT
The property has not been opted to tax.
PROPOSAL
We are instructed to seek offers in
excess of £8,130,000 (Eight million
one hundred and thirty thousand
Pounds) subject to contract and
exclusive of VAT. This equates to an
attractive net initial yield of 6.25%,
after allowing for purchasers costs
of 6.67%. Assuming the collar of
3%, a purchase at this price gives a
reversionary yield in 2020 of 6.83%
and 2025 of 7.92%.
For further information or to make arrangements
for viewing please contact:
Andy Pointon
020 7543 6720
[email protected]
Richard Lea
020 7543 6832
[email protected]
Lottie Hayward
020 7543 6750
[email protected]
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 04.17