Property Description

5-10 Church Street is a purpose-built multi-level leisure scheme completed in 2019, providing five restaurant and leisure units totalling 25,683 sq ft GIA arranged across basement, ground, first, and second floors. The property is held freehold under title numbers WA134113 and WA940637. The building was purpose-designed for the leisure and food-and-beverage sector and includes the largest external terrace in Cardiff (approximately 3,605 sq ft appurtenant to Unit E). The scheme anchors a new leisure pitch on Church Street in Cardiff city centre.

Location

The property is located on Church Street in Cardiff city centre, postcode CF10 1BG, overlooking St John Church. It sits within a 5-minute walk of Cardiff Castle, a 7-minute walk of St Davids Shopping Centre, and a 10-minute walk of Principality Stadium, placing it at the heart of Cardiff's leisure and tourism pitch. Cardiff is Wales' capital and largest city, ranked among the UK's top 5 retail destinations and attracting approximately 21 million visitors per year. The city benefits from excellent road connectivity via the M4 motorway (4 miles to the south), a direct rail service to London Paddington (approximately 2 hours), and Cardiff International Airport (approximately 11 miles southwest).

Market Context

Cardiff's leisure market is underpinned by a large local catchment, a substantial student population (over 33,000 enrolled at Cardiff University alone, with three universities in total), and significant tourist footfall. Leisure activity has historically been concentrated in St Mary Street, Brewery Quarter, and Mill Lane; Church Street represents an extension of this pitch, with the subject property creating a new leisure cluster. Key regeneration initiatives — including the £100m mixed-use redevelopment of the Howells building and £6.5m transformation of Cardiff Market — are expected to enhance footfall and sub-market vibrancy in the immediate vicinity. In the first nine months of 2023, estimated retail and leisure spend in Cardiff city centre reached £390 million.

Key Risks

The brochure is a selling-agent marketing document and does not contain formal DD risk commentary. Principal risks identifiable from the brochure are: (i) leisure sector covenant concentration — all five tenants are F&B operators, with Rosa's London Limited and New World Trading Company flagged RED in GCCP's credit-monitoring pipeline as at May 2026; (ii) service charge shortfall on Unit A (Honest Burgers) due to an RPI-linked cap, creating a landlord irrecoverable cost of approximately £15,010 per annum; (iii) EPC ratings not disclosed ('upon request'), creating potential MEES exposure that cannot be assessed from this document; and (iv) Unit B (Pho Trading, 20-year term) and Unit D (Rosa's London, 15-year term) are excluded from the Landlord and Tenant Act 1954, removing security of tenure and complicating re-letting strategy on expiry.

Headlease Structure

The Property is held freehold. Comete SCPI acquired freehold title to the whole of the Property, registered at HM Land Registry under two title numbers: WA940637 and WA134113, each with freehold title absolute (the best class of title available). The registered proprietor (seller) was HPUT A Limited and HPUT B Limited acting as nominees for NatWest Trustee and Depositary Services Limited as trustee of Federated Hermes Property Unit Trust, registered since 27 June 2016. There is no headlease or sublease structure; the interest acquired is the freehold reversion subject to the five occupational leases and a 99-year electricity substation lease from 5 April 2019. The property comprises the land and building at 5-10 Church Street, Cardiff CF10 1BG as shown edged red on Plans 1 and 2.

Restrictive Covenants

Two restrictive covenants affect the Property, both prohibiting the sale of alcohol: (1) A covenant contained in a 1947 conveyance prohibiting the whole Property from being used as a public house or for the sale of alcohol. Given the current A3 restaurant use of the units, this is a significant issue. The Seller had obtained an indemnity insurance policy providing cover of up to GBP 685,000 for loss of profits only, which was insufficient. A new policy providing cover up to the full purchase price (GBP 5,181,887) has been obtained at the Seller's cost. (2) A covenant contained in a 1968 conveyance prohibiting the part of the Property edged brown on Plan 2 from being used for the sale of alcohol — this is the same underlying issue and the new indemnity policy covers this risk as well. The report notes there are no matters benefiting the Property that are considered material in the context of use and occupation (Section 5).

Easements & Rights

Multiple easements and third-party rights affect the Property: (1) Right of passage of services (water, soil, gas, electricity) over the part within title WA940637 in favour of proximate land — the Seller has experienced no issues and received no access requests. (2) Right of escape on foot in emergency across parts shown on Plans 3-5 to Church Street, granted November 2017 in favour of 14 High Street, Cardiff — the owner of 14 High Street contributes to maintenance costs; the route may be changed subject to conditions. (3) Fire escape licence with the owner of 15 High Street, Cardiff (dated 2010) allowing emergency escape across the roof and ground floor, including an opening in the parapet wall and fire escape staircase — the Seller does not believe this has been exercised; terminable on 3 months' notice for redevelopment and expires 24 June 2035 in any event. (4) Licence dated 17 November 1994 permitting the owner of St John the Baptist Church to install and maintain two floodlights on the Property — the Seller is not aware of any floodlights being on the Property nor of any access requests. (5) Electricity substation lease over the part shown pink on Plan 8 for 99 years from 5 April 2019, located in the service yard at the north-eastern corner, with usual rights of access and cable installation; the landlord must keep the locking gate in good repair.

Charges & Encumbrances

No registered charges or mortgages are specifically identified as affecting the Property in the Report on Title. The index map search (dated 23 May 2025) revealed registered leasehold title numbers CYM772256, CYM834574, CYM773205, CYM774047, CYM776742 and CYM778056, which relate to the five occupational leases and the electricity substation lease and are noted as being of no concern. The agreement for sale provides for a purchase price of GBP 5,181,887 with Land Transaction Tax of GBP 288,663 payable within 30 days of completion. The transaction is structured as a TOGC (transfer of a going concern) so no VAT is payable; HMRC has been notified of the option to tax.

Planning

The Property has an extensive planning history involving major refurbishment, recladding, partial demolition, and construction of replacement space including the second floor level. The original planning consent (16/00945/MJR, granted 12 July 2016) was not implemented. A Conservation Area Consent (16/00946/MJR) was also granted on the same date. A S73 variation consent (16/02343/MJR, granted 7 November 2016) varying approved plans is now the main planning consent; it is assumed to have been implemented given practical completion on 9 August 2019 within the 5-year implementation window. Various conditions have been discharged (Conditions 3, 5, 6, 7, 8, 16, 18, 21). Ongoing conditions include: Condition 4 (use restricted to A3/A2/A1 with 542 sqm at second floor also permitted for D2); Condition 13 (no hot food takeaway except ancillary); Condition 14 (A3 units principally for food with ancillary drinks only); Condition 15 (no public access 01:00-07:00); Condition 17 (noise limits per BS 4142:2014); Condition 18 (extraction maintenance); Condition 19 (terrace closed 23:00-10:00); Condition 20 (amplified music approval required); Condition 21 (refuse storage per approved details). Additional consents: shopfront alterations for Honest Burgers (19/00568); advertisement consent for Unit D (A/21/00123/MNR, 5-year period from 2 September 2021). No CIL charging schedule applies. No enforcement action taken, threatened, or intimated.

Overage

An overage deed has been agreed between the Seller and Buyer in relation to any uplifts in value of the Property arising due to the implementation of the outstanding rent reviews under the Occupational Leases. This was agreed at the last minute and the solicitors have corresponded separately on the details. The Report on Title does not set out the specific terms, duration, percentage share, or trigger mechanisms of the overage deed — separate correspondence is referenced.

Summary

Final Report on Title dated 16 July 2025 prepared by Cripps LLP for Comete SCPI in connection with the acquisition of the freehold interest in 5-10 Church Street, Cardiff CF10 1BG from HPUT A Limited and HPUT B Limited (nominees for Federated Hermes Property Unit Trust) for GBP 5,181,887. The Property is registered under two freehold title absolute numbers (WA940637 and WA134113) and is let to five tenants: Honest Burgers Ltd (Unit A, GBP 79,500 pa, 15 years to May 2034, not excluded from LTA 1954), Pho Trading Limited (Unit B, GBP 106,500 pa, 20 years to June 2039, excluded, break June 2034), Mowgli Street Food Limited (Unit C, GBP 82,000 pa, 15 years to April 2034, not excluded, rent deposit GBP 27,640), Rosa's London Limited (Unit D, GBP 60,000 pa, 15 years to October 2036, excluded), and New World Trading Company (UK) Limited (Unit E, GBP 175,000 pa, 25 years to April 2044, not excluded). Key issues raised: (1) 1947 and 1968 restrictive covenants prohibiting alcohol sales — significant given A3 restaurant use; new full-value indemnity policy obtained at Seller's cost. (2) Unit A service charge cap (GBP 5,906 base, RPI-linked, cumulative drafting error causing rapid escalation) creating landlord shortfall of approximately GBP 15,010 pa and tenant overpayment of approximately GBP 15,500 historically. (3) Unit A rent review assumptions artificially reduce floor areas to 2,500 sq ft versus 2,870 sq ft stated in sale brochure, potentially depressing rental value at review. (4) Incomplete refurbishment documentation from the Seller's 2017-2019 works (JCT D&B Contract, GBP 3,462,732). (5) Overage deed on rent review uplifts. (6) EPCs: Units A, B, D, E rated B; Unit C rated C — all above current MEES E threshold. (7) TOGC for VAT; LTT of GBP 288,663 payable. (8) Stone Cladding International Limited (sub-contractor collateral warranty for stone cladding) dissolved January 2023 — warranty now redundant. Subject to report contents, the Seller has good and marketable title to the freehold interest.

ROT Key Facts

ROT Action Items