LONG INCOME MODERN VEHICLE DEALERSHIP INVESTMENT …images1.loopnet.com/d2/7ynQR5lnUpMu-WiD-vRY2DOyygvM6Rgn0S… · 1.28 acres. Use Sq m Sq ft Showroom 597.75 6,434 Offices 62.69
Post on 11-Aug-2020
0 Views
Preview:
Transcript
GLOUCESTER, MILTON KEYNES & SWINDON
LONG INCOME MODERN VEHICLE DEALERSHIP INVESTMENT PORTFOLIO WITH FIXED UPLIFTS
INVESTMENT PORTFOLIO OVERVIEW
SUMMARY
• Rare opportunity to acquire a portfolio of three modern quality purpose built vehicle dealerships.
• Located within affluent cities and towns in the south of England: Gloucester, Milton Keynes & Swindon.
• All properties are located within established motor retailing locations. • All units are held freehold. • The properties will be let to the strong and established covenant of Johnsons
Cars Limited, who have an Experian Delphi score of 99/100 and a 4A2 Dun and Bradstreet rating.
• Johnsons Cars Limited was incorporated in 1999 and they operate 46 showrooms.
• 20 year FR&I leases, with tenant only break at year 15, subject to 12 months notice.
• Guaranteed rental growth with RPI linked reviews, collared at 1% and capped at 3%.
• Combined rental income of £655,000 per annum exclusive.
THE ASSETS
• Johnsons Volvo Gloucester, Cole Avenue, Gloucester GL2 5ER• Johnsons Honda Milton Keynes, Greyfriars Court, Kingston, Milton Keynes,
MK10 0BN• Johnsons Swindon, Forest Park Road, Mead Way, Swindon SN5 5PQ
PROPOSAL
• We are instructed to seek offers in the region of £10,675,000 (Ten Million, Six Hundred and Seventy Five Thousand Pounds) for the portfolio, equating to a NIY of 5.75% assuming purchasers costs of 6.70%.
• The properties are available as a portfolio, although offers for individual properties will also be considered.
GL2 5ER
SN5 5PQ
MK10 0BN
COLE AVENUE, GLOUCESTER, GLOUCESTERSHIRE, GL2 5ER
COLE AVENUE, GLOUCESTER, GLOUCESTERSHIRE, GL2 5ER
LOCATION
The property is located within the affluent city of
Gloucester. At the last Census (2011) the town had a
population of 596,984 inhabitants. Gloucester is located
39 miles north-east of Bristol, 35 miles north-west of
Oxford and 29 miles south of Worcester.
Gloucester is highly accessible benefiting from close
proximity to the M5 Motorway at Junctions 11 and 11a.
The city also benefits from a number of arterial routes
including the A40, which ultimately connects with the
M50 near Ross-on-Wye, the A417 which links with the
south of Worcester and the A38 which links directly to
Bristol.
The property occupies a prominent position fronting
Cole Avenue (A38). The A38 serves the east to west of
the city and links to the A430 which provides access to
the city centre.
The property is located within an established
commercial area and is located within one of the motor
retailing destinations within Gloucester, with Mazda and
Vauxhall opposite and Renault, Ford and Volkswagen all
in close proximity.
Surrounding the property are a number of national
occupiers including Screwfix, Formula One
Autocentres, Euro Car Parks, Pets at Home, Tile Giant,
Wickes, Howdens and Jewsons.
DESCRIPTION
The property comprises a modern, purpose built,
detached vehicle dealership trading with the benefit of a
Volvo franchise. The property is constructed around a
steel portal frame over ground and first floor levels.
The property has been extensively refurbished to
Volvo’s latest global corporate identity and includes
showroom, offices, workshop, parts departments and
valet facilities all on site.
RATEABLE VALUE
The property has a current Rateable Value of £217,000.
EPC
The property has an EPC rating of B-46. A copy can be
made available on request.
SITE AREA
The property benefits from a site area of approximately
1.28 acres.
Use Sq m Sq ft
Showroom 597.75 6,434
Offices 62.69 675
Ancillary 162.60 1,750
Workshop 536.16 5,771
Parts 28.11 303
Valet 51.62 556
Used Car showroom
156.91 1,689
Workshop 374.40 4,030
Ancillary 26.10 281
Parts 179.56 1,933
Stores 24.76 267
Office in used car building
24.76 267
TOTAL 2,225 23,954
Parking Spaces
Display 43
Storage 23
Customer 12
TOTAL 78
COLE AVENUE, GLOUCESTER, GLOUCESTERSHIRE, GL2 5ER
subject property
COLE AVENUE, GLOUCESTER, GLOUCESTERSHIRE, GL2 5ER
GREY FIARS COURT, KINGSTON, MILTON KEYNES, BUCKINGHAMSHIRE, MK10 0BN
GREY FIARS COURT, KINGSTON, MILTON KEYNES, BUCKINGHAMSHIRE, MK10 0BN
LOCATION
The property is located within Milton Keynes, a large
affluent town within Buckinghamshire. At the last
Census (2011) the town had a population of 229,941
inhabitants. Milton Keynes is located 54 miles north-
west of London, 43 miles north-east of Oxford and 20
miles south-east of Northampton.
Milton Keynes is highly accessible benefiting from
close proximity to the M1 Motorway at Junctions 13
and 14.
The property occupies a prominent position between
the Tongwell and Chaffron Roundabouts and has
visibility to Tongwell Street (A4146).
The property is located within a popular and
established commercial area and within one of the
recognised motor retailing destinations for Milton
Keynes, with Mercedes Benz, Volvo, Skoda and
Volkswagen all adjacent.
The property is in close proximity to the Kingston
Retail Centre, which has a number of national
retailers, restaurants and coffee drive thru’s and is
anchored by a Tesco superstore.
DESCRIPTION
The property comprises a modern, purpose built,
detached vehicle dealership trading with the benefit of
a Honda franchise. The property is constructed
around a steel portal frame and is externally clad in
grey/silver sheet metal cladding, with glazing to the
showroom and first floor.
The property includes a showroom, offices, workshop,
parts department and valet facilities all on site.
RATEABLE VALUE
The property has a current Rateable Value of
£141,000
EPC
The property has an EPC rating of XX. A copy can be
made available on request.
SITE AREA
The property benefits from a site area of
approximately 1.26 acres.
Use Sq m Sq ft
Showroom and offices
445.70 4,797
Showroom ancillary
13.30 143
Workshop 294.10 3,166
Parts and ancillary
49.20 530
Valet 24.80 267
Offices 38.50 414
Stores, plant and ancillary
146.00 1,572
TOTAL 1,011.60 10,889
Parking Spaces
Display 50
Parking and storage 60
TOTAL 110
GREY FIARS COURT, KINGSTON, MILTON KEYNES, BUCKINGHAMSHIRE, MK10 0BN
Kingston Retail Centre
subject property
GREY FIARS COURT, KINGSTON, MILTON KEYNES, BUCKINGHAMSHIRE, MK10 0BN
FOREST PARK ROAD, MEAD WAY, SWINDON, SN5 5PQ
FOREST PARK ROAD, MEAD WAY, SWINDON, SN5 5PQ
LOCATION
The property is located within Swindon an affluent
town within the south-west of England. At the last
Census (2011) the town had a population of 182,441
inhabitants. Swindon is located 47 miles south-west of
Oxford, 39 miles east of Bristol and 40 miles west of
Reading.
Swindon is a highly accessible town benefiting from
close proximity to the M4 Motorway at Junctions 15
and 16. The town is also accessed by a number of
arterial routes including the A419 which ultimately
connects with Cirencester, and the A420 which links
with Oxford.
The property occupies a prominent position fronting
Mead Way, (B4006). Mead Way is part of a busy ring
road around the town linking with the A419.
The property is located within an established
commercial area and is within one of the motor
retailing destinations within Swindon with Vauxhall,
Skoda and Nissan close by.
DESCRIPTION
The property comprises a purpose built, single storey
detached vehicle dealership constructed in 2012. It
benefits from Mazda, Fiat, Alfa Romeo, Jeep,
Abarth and Fiat Professional franchises.
The property is constructed around a steel portal
frame and is externally clad in charcoal and
grey/silver sheet metal cladding.
The property includes extensive showrooms, with
offices, workshop, parts department and valet facilities
all on site.
It also benefits from a large amount of parking with
approximately 230 parking spaces on site, with over
110 dedicated for display.
RATEABLE VALUE
The property has a current Rateable Value of
£242,000.
EPC
The property has an EPC rating of A-24. A copy can
be made available on request.
SITE AREA
The property benefits from a large site area of
approximately 2.35 acres.
Use Sq m Sq ft
Showroom 795.06 8,558
Office 35.37 381
Ancillary 85.20 917
Workshop 497.63 5,356
Parts 119.86 1,290
Valet 228.76 2,462
Mez Parts 250.90 2,701
TOTAL 2,012.78 21,665
Parking Spaces
Display 112
Storage 67
Customer/MOT 48
TOTAL 227
FOREST PARK ROAD, MEAD WAY, SWINDON, SN5 5PQ
subject property
FOREST PARK ROAD, MEAD WAY, SWINDON, SN5 5PQ
TENANCY AND COVENANT
TENANCY
All the properties will be let on new Full and Repairing and Insuring leases with Johnsons
Cars Limited. The leases will be for a term of 20 years from legal completion, with a tenant
only break at year 15, subject to 12 months notice. The rent reviews will be five yearly and
RPI linked, annually compounded, collared at 1% and capped at 3%.
See below a break down of the current rent for the properties:
As it can be seen from the above, the properties are currently reversionary, with sensible
and affordable per sq ft values, particularly given the strong locations of the properties and
their purpose built nature. Please see below some leasehold evidence:
COVENANT
Johnsons Cars Limited (Company Number 3716766) is an independent franchised dealer
group established in 1999. They started out with three dealerships and over the last 20
years have expanded through organic and strategic growth with their established
manufacturer partners. The company is currently ranked 46th in the Motor Trader Top 200
Franchised Dealer Survey (2018).
Recently they have acquired a number of businesses and properties, with the last business
acquisition being TH White in Swindon in 2018.
They represent a number of volume and premium franchises including Lexus, Volvo, Abarth,
Fiat, Ford, Hyundai, Skoda, Volkswagen, Alfa Romeo, Fiat, Honda, Jeep, Mazda, SEAT and
Toyota.
At present they operate 46 showrooms across England from Southport to Slough.
Experian has given Johnsons Cars Limited a Delphi Score of 99/100 and a Delphi Band of
‘very low risk’. In addition , they have a 4A2 Dun and Bradstreet Rating representing a
lower than average risk.
The company has reported the following figures over the last three financial years:
Property Proposed Rent £ PSF
Mazda, Jeep, Alfa, Fiat Abarth,Swindon
£250,000 pa £11.54
Honda, Milton Keynes £155,000 pa £14.23
Volvo, Gloucester £250,000 pa £10.43
TOTAL £655,000 pa £11.59
31.12.2018 (000’s)
31.12.2017 (000’s)
31.12.2016(000’s)
Sales/Turnover £432,442 £360,478 £321,597
Profit before taxes £4,071 £1,448 £2,808
Tangible Net Worth £21,169 £15,431 £26,429
Dealership Rent (£psf)
Volvo, Preston £300,000 (£13.50)
Bentley/ Aston Martin, Cheltenham £261,500 (£11.73)
Mercedes, Swindon £455,000 (£12.68)
Audi, Swindon £509,133 (£13.14)
Volkswagen, Swindon £329,402 (£13.78)
SEAT, Milton Keynes £111,000 (£14.14)
Audi, Milton Keynes £575,000 (£13.52)
Audi, Cheltenham £237,000 (£13.75)
Volvo, Milton Keynes £180,000 (£15.62)
VW/Skoda Milton Keynes £520,000 (£14.61)
AUTOMOTIVE MARKET
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
New Car Registrations
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Used Car Sales
Despite the recent negative headlines, the automotive sector has remained resilient to the number of current factors affecting the country and other areas of the property industry, such as Brexit, online shopping and the overall demise in high street retailing.
As it can be seen from the graphs opposite, new car registrations have remained consistent. In 2016 we saw the highest year on record for new cars registered. This bubble was eventually going to burst, after a consecutive 6 year increase year on year. However, the reduction from the highest year has not been substantial by any means, with only a decrease of 5.7% in 2017 and 6.8% in 2018. SMMT have predicted a small decrease in 2019, with only 2%, current year to date figures are showing only a 3.5% decrease year on year and therefore it appears SMMT’s predictions will be close.
There are a number of factors which contributed to the decline in vehicle sales. One of the major contributors was the Worldwide Harmonised Light Vehicle Testing Procedure (WLTP) which left dealerships with a lack of stock to provide their customers. Therefore there was a lack in the supply to meet the demands of the customers. In addition, the continued demonization of diesel vehicles caused a lack in consumer confidence, with customers choosing to not purchase a vehicle till government policies were clearer.
An area of the sector which is often left out of the headlines is used car sales. The graph adjacent highlights that much like new cars sales, used sales have remained resilient and since 2016 have been fairly consistent. 2017 figures saw only a 1% decrease form the record high figures in 2016 and similarly 2018 only saw a 3% decrease. Currently 2019 used car sales figures are only showing a 0.6% decrease year to date. It has been noted as well a large number of franchised dealers are now concentrating on used vehicles in response to a slower new car market. This is having the positive, knock-on effect of keeping the remarketing sector particularly competitive.
INVESTMENT TRANSACTIONS
Property Size
(sq ft)
Price/ NIY Date Tenant Comments
Skoda, Bolton 9,472 £2,650,000 / 5.29% Jul 2019 RRG Group Ltd Sale and leaseback of a new Skoda dealership. 20 year term lease, RPI linked 5 yearly rent reviews, collared at 2% and capped at 5% at a rent of £150,000 per annum. With a tenant covenant of 4A2.
Hyundai, Watford 7,693 £3,300,000 / 5.40% Apr 2019 Spire Automotive Ltd 9.75 years With RPI reviews, 2% and 6%
Volkswagen, Tunbridge Wells 23,816 £4,825,000 / 5.75% Jun 2019 VW Group UK Ltd The property had 6 years remaining on the lease, at a rent of £296,000 per annum. The rent reviews were five yearly and to open market.
Jaguar Land Rover, Bristol 73,196 £24,000,000 / 4.43% Dec 2018 Guy Salmon Ltd Off market forward funding, 5 yearly RPI rent reviews, with 20 years left on the lease. Rent of £1,136,000 which equates to £15.52 per sq ft.
Volkswagen, Camberley 8,048 £5,150,000 / 5.25% Dec 2018 VW Group UK Ltd 5 yearly open market reviews, with 7 years left on the lease. The rent is £288,019 per annum.
Volkswagen, Yeovil 22,221 £4,500,000 / 5.17% Nov 2018 Heritage Automotive Ltd
5 yearly RPI rent reviews, with 20 years left on the lease. The rent is £250,000 per annum which equates to £11.25 per sq ft.
Jaguar Land Rover, Huddersfield
58,000 £13,000,000 / 5.0% Aug 2018 Rybrook Vehicles Ltd Forward funding, with 5 yearly RPI linked rent reviews, with 20 yearsleft on the lease. At a rent of £700,000 per annum, which equates to £12.07 per sq ft.
Vauxhall, Newcastle 30,282 £7,000,0000 / 5.58% Aug 2018 Vertu Motors (VMC) Ltd 5 yearly RPI reviews, with 15 years left on the lease. At a rent of £416,514 per annum, which equates to £13.75 per sq ft.
BMW & MINI, Wolverhampton 60,582 £15,000,000 / 4.64% Jun 2018 Rybrook Vehicles Ltd 5 yearly RPI rent reviews, with 20 years left on the lease. At a rent of £750,000 per annum which equates to £12.38 per sq ft.
www.colliers.com/en-gb/uk/services/automotive-and-roadside
PROPOSAL AND CONTACT DETAILS
Disclaimer
Colliers International gives notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers,
Lessees or Third Party 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. No person employed or engaged by Colliers International has any authority to make any
representation or warranty whatsoever in relation to this property. (Insert date) Colliers International is the licensed trading name of Colliers International Business Space UK LLP which is a limited liability partnership registered in England and Wales with registered number
OC385143. Our registered office is at 50 George Street, London W1U 7GA.
FURTHER INFORMATION
For further information please contact the sole agents, Colliers International:
Name: John Roberts Tel: 0121 265 7553Email: john.roberts@colliers.com
Name: Anthony Keohane Tel: 0207 487 1672Email: anthony.keohane@colliers.com
PROPOSALWe are instructed to seek offers in the region of £10,675,000 (Ten Million, Six Hundred and Seventy-Five Thousand Pounds) for the portfolio equating to a NIY of 5.75% assuming purchasers costs of 6.70%, subject to contract and exclusive of VAT. The properties are available as a portfolio, although offers for individual properties will also be considered.
Name: Tim MeakesTel: 0207 487 1785Email: tim.meakes@colliers.com
top related