AGENTS PICK THEIR MOST SIGNIFICANT DEALS TO THE END OF SEPTEMBER
HIGHBAY, DOWLAIS, MERTHYR DYDFIL
Type of deal Industrial letting
Landlord Barola/Curzon joint venture
Tenant Tenneco Walker Automotive
Size 166,500 sq ft on 10.8 acres
Terms 10-year lease
Value Quoting rent £2.75 per sq ft
Chosen by Chris Sutton, director, JLL
This deal is not the largest, neither is it the sexiest, nor, indeed, the most valuable property transaction. However, it has a fair claim to have had the greatest economic impact on its local community out of any Welsh property transactions this year.
Tenneco Walker Automotive is a US-owned manufacturer of exhaust systems. The company was seeking to expand its operations in the UK and circulated a requirement for a large unit, ideally close to its existing factory in Tredegar.
The Highbay unit had recently been vacated by Peacocks and was quickly settled upon. Terms were agreed for an unbroken 10-year lease and a successful application made to the Welsh government for grant assistance.
This long-term investment has created 224 skilled and semi-skilled jobs in Merthyr Tydfil and is a huge vote of confidence in an area of traditionally high unemployment and a tough property market in recent years.
2 AND 4 GREEN STREET, NEATH
Type of deal Retail leasing
Landlord Neath town council
Tenants Holland & Barrett & Vodafone
Size 1,440 sq ft and 740 sq ft respectively
Rent £25,000 pa and £20,000 pa respectively
Chosen by Stephen Jones, director, Western Retail (Cardiff)
Plenty has been written in the press about the demise of the high street. This year, however, we have seen a return to activity in many South Wales towns – particularly where landlords have been taking a realistic view and becoming more flexible.
A good example of this trend can be seen in Neath at a block of property in Green Street, owned by Neath town council. It is for that reason that a pair of recent, neighbouring transactions there are my chosen top deals.
The ground floor of 2 Green Street was let to Holland & Barrett, while 4 Green Street was let to Vodafone. Both tenants took new 10-year FRI leases, subject to a rent review at year five.
Each lease had a break option and rent-free was granted. I think that makes this an excellent demonstration of how landlords are now more willing to offer the right product to meet retail demand.
BRITISH AIRWAYS AVIONICS ENGINEERING, TALBOT GREEN, LLANTRISANT
Type of deal Investment
Vendor Private investor
Purchaser Karlin Real Estate
Tenant British Airways
Size 111,087 sq ft
Value £7.8m, representing an NIY of 11.96%.
Chosen by Gareth Lloyd, associate, Knight Frank
The acquisition of a facility occupied by British Airways Avionic Engineering (BAAE) in Llantrisant confirms to the wider UK market that Wales can offer good secondary investments at an attractive yield discount to the South East and most other regional markets
The property is strategically located close to the M4 and British Airways’ other Wales-based facilities in Blackwood and at Cardiff Airport. Its sale attracted healthy interest from a wide range of investors, demonstrating strong interest for good secondary investments in the major regional markets, particularly for institutional quality assets let to recognisable, global companies.
The eventual acquisition by Karlin Real Estate, the real estate investment arm of Los Angeles-based Karlin Asset Management, is also further evidence of acquisitions from overseas investors in Wales. This is a growing trend and demonstrates the level of confidence that investors have in the investment market in Wales and in its growth potential.
QLP bowls in to Cardiff
Mansford Real Estate clinched a deal with leisure operator QLP for a bowling alley, laser quest, diner and bar at its Cardiff Stadium Plaza development.
Uni drives £300m expansion
Cardiff University unveiled plans for a £300m expansion, including the world’s first social science research park.
LSH makes moves
In Cardiff, LSH announced the appointment of Kate Simpson as associate director, while Andrew Nilsen and Thomas Rees were promoted to associate directors in Cardiff and Swansea, respectively.
St Modwen digs deep
St Modwen agreed terms on a £50m deal that will see it build a further 545 student beds at Swansea University’s Bay Campus.
Taylor Wimpey gets BBC signal
The BBC chose Taylor Wimpey to redevelop its 240,000 sq ft Broadcasting House site – and adjacent land – totalling 17 acres at Llandaff, Cardiff.
L&G axes Cardiff move
L&G shelved what would have been Cardiff’s largest office requirement at 100,000-150,000 sq ft – instead extending its leases at existing sites.
Phones 4u stores empty
Around 15 properties across Wales became vacant as a result of the collapse of the Phones 4u chain. Prime Retail, appointed by PwC, has started to dispose of stores including those in Wrexham, Bridgend, Cwmbran, Swansea and Newport.
