CHELTENHAM VOLKSWAGEN - Rapleys · 2019. 7. 24. · CHELTENHAM VOLKSWAGEN I TEWKESURY ROAD I CHELTENHAM I GL51 AH < > Site Area Tenant Covenant Information Tenancy Tenure The

CHELTENHAM VOLKSWAGENTEWKESBURY ROAD I CHELTENHAM I GL51 9AH

PRIME DEALERSHIP INVESTMENT

CHELTENHAM VOLKSWAGEN I TEWKESBURY ROAD I CHELTENHAM I GL51 9AH

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Investment SummaryInvestment Summary

Location

Catchment and Demographics

Situation

Description

Accommodation

Site Area

Tenure

Tenancy

Tenant Covenant Information

UK Automotive Industry

Investment Comparibles

VAT

EPC

Proposal

Further Information

1• Cheltenham is an affluent regency spa town

in Gloucestershire

• Large catchment population and a key territory for the manufacturers

• The property comprises a modern purpose built dealership facility comprising 17,548 sq ft (1,630 sq m)

• Prominent site in a strategic position adjacent to a Tesco Superstore and opposite a Wickes DIY unit

• Established dealership location with other brands operating in the area including Bentley, Porsche, Audi, Toyota, Ford, Vauxhall, Lexus and Aston Martin

• Let to the strong covenant of Inchcape Estates Limited (D&B 5A1) until December 2024 providing an unexpired term in excess of 6 years

• The lease was assigned by VW Group UK Ltd in August 2016 who have total net assets in excess of £717,000,000, providing further security of income

• Current passing rent of £254,567 per annum, reflecting a sustainable £14.51 per sq ft

• 5 yearly rent reviews to Open Market Value

• Strong alternative use residual values, subject to planning

• Freehold

We are instructed to seek offers in excess of £3,885,000 (Three Million, Eight Hundred and Eighty Five Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 6.15%, assuming purchaser’s costs of 6.53%.


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Location

Cheltenham is an affluent regency spa town located in Gloucestershire, approximately 110 miles (177km) west of London, 48 miles (77km) north west of Oxford, 9 miles (15 km) east of Gloucester and 42 miles (68 km) north east of Bristol.

The town benefits from strong road communications being situated 3 miles (5 km) from Junction 11 of the M5 Motorway, which is accessed via the A40. The A40 runs through the town and provides convenient links to Gloucester to the west and Oxford to the east.

Cheltenham mainline railway station provides frequent services to London Paddington with a fastest journey time of 1 hour 50 minutes. There are further direct links to Swindon (1 hour), Bristol (45 minutes) and Birmingham (40 minutes).

Birmingham and Bristol airports are both situated approximately one hour’s drive time from Cheltenham.


The total population within Cheltenham’s primary catchment area is 392,000 people and draws from a wide geographical area ensuring that Cheltenham forms a key territory for both manufacturers and the dealer network groups alike.

The demographic profile of the local area is affluent, with an above average proportion of people characterised in the most affluent AB Social Groups and per capita spending levels above the UK average.

The level of car ownership in Cheltenham is significantly above average at 83% compared with a UK average of 74%, with a particularly high proportion of two car households.

The town also hosts the prestigious Cheltenham Racing Festival in March when the Cheltenham Gold Cup is held attracting in excess of 150,000 visitors each year.

2Investment Summary

Location


Situation

Description

Accommodation

Site Area

Tenure

Tenancy




VAT

EPC

Proposal

Further Information

A30

A39

A39

A38

A38A30

A30A30

A35

A24

A22A21

A28

A12

A10

A49

A55A55 A49

A59

A59

A64A65

A65A19

A19

A66

A68 A19

A68

A69

A68

A68

A66

A75

A75

A76

A71

A78

A71

A92

A90A85

A85

A82

A82

A830

A835

A82

A96

A99

A96

A96

A98

A95

A87

A86

A87

A78A78

A82A82

A830A830

A835A835

A87A87

A87A87

A84

A90

A90

A90

A952

A90

A92

A92

A91

A75

A77

A64

A64

A41

A41

A38A42

A47 A47

A15

A15

A17

A52A46

A46

A16

A16

A16

A47

A40

A40A40A40N22

N72N72

N76

N78

N30

N81

N80

N80

N62

N65

N63

N61

N17

N17

N15

N15

A32

A29

A29

A28

A24

A26

A36

A505

N56

N16

N60

N5

N4

N3

A4

A7

A1

A2

A5

A6

N2

N2

N4

N4

N55

N55

N52

N54

N84

N59

N18 N11

N20

N21

N25

N24

N24

A12

A11

A11

A10

A12

A12

A27

A3

A2

A1

A1

A1

A1

A7

A1

A1

A9

A9

A9

A9

A9

A9

A9

A6

A6

A6

A5

A5

A5

A37

A37A39

A39

A394

A390

A395

A388

A386

A380

A303

A303

A303

A272A259

A229

A131

A140

A146

A148

A1065

A1065

A140

A140

A354

A354A350

A429

A606

A158

A458

A494

A487

A487

A487

A470

A483

A477

A458

A515

A515

A614

A166

A595

A595

A696

A702A725

A737

A1068

A596

A171

A165A1079

A565

A417

A338A386

A377

A361

M27

M25

A1(M)

A1(M)

M180

A1(M)

A1(M)

A74(M)

M11

M11

M25

M23

M25

M40

M40

M50

M69

M54

M62

M58

M74

M77

M90

M53 M56

M62

M42

M25

M26

M20

M5

M5

M5

M6

M6

M6

M1

M1

M3

M4

M7

M9

M8

M50M4

M2

M8

M9

M6

M6

M3

M2

M1

M1

M1

M1

M4M4

Scarborough

HartlepoolDurham

Gateshead

Alnwick

Berwick-upon-Tweed

Galashiels

Dumfries

Stranraer

AYRPrestwick

Kilmarnock

Paisley

Falkirk

StirlingDunfermline

St Andrews

Perth

Inverness

Fort William

Portree

Stornoway

Middlesbrough

Darlington

BlackburnPreston

Warrington

Bolton

Macclesfield

Buxton

WIGAN

Chester

Stockport

Shrewsbury

WorcesterWorcester

HerefordHereford

CHELTENHAM

GloucesterGloucester

Bath

Swindon

Chelmsford

Dover

Canterbury

Maidstone

Tunbridge Wells

Guildford

HOVE

Basingstoke

ReadingReading

Winchester

Chichester

Salisbury

BournemouthNewport

Taunton

Truro

St Austell

Folkestone

Ipswich

Colchester

Kings Lynn

Lincoln

Grimsby

RotherhamBarnsley

HuddersfieldScunthorpe

Doncaster

Beverley

ThetfordHuntingdon

Stamford

BanburyBanbury

BuckinghamBuckingham

MiltonKeynesMiltonKeynes

BedfordBedford

SolihullSolihull

WarwickWarwick

Wexford

Newry

Lisburn

Armagh

Sligo

Antrim

SHEFFIELD

NOTTINGHAM

DERBY

STOKE-ON-TRENT

CoventryCoventry

WolverhamptonWolverhampton

NorthamptonNorthampton

OxfordOxford

BRIGHTONPORTSMOUTH

SOUTHAMPTON

EXETER

NewportNewportSWANSEA

PLYMOUTH

LeicesterLeicester

WAKEFIELD

LEEDS HULL

YORKLANCASTER

CARLISLESUNDERLAND

NEWCASTLE UPON TYNE

BRADFORD

Peterborough

CAMBRIDGE

NORWICH

DUNDEE

ABERDEEN

LONDONDERRY

GALWAY

LIMERICK

CORK

WATERFORD

DUBLIN

EDINBURGHGLASGOW

BELFAST

LIVERPOOL

MANCHESTER

BirminghamBirmingham

BristolBristolCardiffCardiff LONDON

ENGLAND

SCOTLAND

REPUBLIC OFIRELAND

NORTHERN IRELAND

ISLE OFMAN

ORKNEYISLANDS

SKYE

MULL

ISLAY

JURA

ARRAN

JERSEY

GUERNSEY

ISLES OFSCILLY

WESTERN ISLES

NA H-EILEANANSIAR

SHETLANDISLANDS

CATCHMENT AREACAR OWNERSHIP ABOVE UK AVERAGE

83%392,000 PEOPLE


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Situation

The property is prominently located on the A4019, Tewkesbury Road, approximately 1 mile (1.6 km) from the centre of Cheltenham within an established out of town retail and dealership location, adjacent to a Tesco Foodstore and opposite a Wickes DIY unit.

The A4019 serves as a major arterial route through the town and provides a direct link to the M5 situated approximately 2.5 miles (4 km) to the north west. The A4019 also provides convenient links to the A40 and A4013.

Tewkesbury Road serves as the main out of town retail location and dealership cluster for Cheltenham. Gallagher, Kingsditch and Gateway Retail Parks are all in close proximity to the subject property and ensure significant footfall to the location.

In terms of other dealership provision Bentley, Porsche, Audi, Toyota, Ford, Vauxhall, Lexus, Aston Martin and Harley Davison all have representation in the vicinity.

3Investment Summary

Location


Situation

Description

Accommodation

Site Area

Tenure

Tenancy




VAT

EPC

Proposal

Further Information

11

10

M5

A40A40

A40

A4019

A4013

TEWKESBURY RD


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Description

The property comprises a purpose built, recently refurbished dealership facility incorporating showroom, offices, workshop, parts and ancillary accommodation located at ground and first floor level providing a total GIA of approximately 17,548 sq ft (1,630 sq m).

The property is principally of steel portal frame construction incorporating glazed and clad elevations below a part pitched, part flat steel roof structure.

Internally, the property is fitted to a high specification throughout, including a ceramic tiled floor to the showroom which provides display spaces and extensive lighting. Adjacent to the showroom is a customer waiting area, offices and WC’s.

The workshop and parts department are situated to the rear of the showroom with further office accommodation, staff facilities and storage space situated at first floor level.

Externally, the property benefits from extensive road frontage with a mix of customer, display and storage spaces. There is further a secure compound area to the rear of the property.

Accommodation

VW CHELTENHAM

Sq M Sq Ft

GROUND

Showroom 410 4,418

Showroom Offices 43 465

Workshop 427 4,593

Parts 70 758

Ancillary 119 1,283

Handover 47 505

GROUND TOTAL 1,117 12,021

FIRST

First Floor Offices 272 2,926

Ancillary 99 1,061

Parts 143 1,540

FIRST TOTAL 513 5,527

TOTAL 1,630 17,548

CAR PARKING NO. OF SPACES

Display 80

Customer/ Service 32

Storage 50

4Investment Summary

Location


Situation

Description

Accommodation

Site Area

Tenure

Tenancy




VAT

EPC

Proposal

Further Information


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Site Area Tenant Covenant Information

Tenancy

Tenure

The site area comprises approximately 1.54 acres (0.62 hectares).

Inchcape is one of the UK’s leading franchised retailer groups partnering with many of the world’s best known brands including VW, Audi, BMW, Jaguar, Land Rover and Mercedes-Benz.

The Inchcape group was floated on the stock exchange in 1958 and became a PLC in 1978. The company has seen significant growth and now operates in 32 national markets globally with an annual revenue of £8.9bn.

Inchcape Estates Limited (company number 293551) has a Dun and Bradstreet rating of 5A1.

December 2017

December 2016

December 2015

Sales Turnover £29,065,000 £27,681,000 £24,485,000

Pre-Tax Profit (Loss) £7,507,000 £4,835,000 £6,668,000

Tangible Net Worth £53,541,000 £51,233,000 £53,024,000

Volkswagen Group United Kingdom Limited forms part of the Volkswagen Group and is one of the country’s largest importers of vehicles, manufacturing one in every five cars sold in the UK.

Volkswagen Group United Kingdom Limited (company number 514809) has a Dun and Bradstreet rating of 5A1.

December 2017

December 2016

December 2015

Sales Turnover £10,412,700,000 £9,792,900,000 £9,430,300,000

Pre-Tax Profit (Loss) £156,000,000 £125,500,000 £158,600,000

Tangible Net Worth £717,400,000 £701,600,000 £709,400,000

The property is let via assignment to Inchcape Estates Limited on a full repairing and insuring lease for a term of 20 years from 21 December 2004 at a rent of £254,567 per annum, equating to £14.51 per sq ft.

The rent is subject to review on every fifth anniversary of lease commencement to Open Market Value, with the next review on 21 December 2019.

Inchcape Estates Limited took an assignment of the occupational lease from Volkswagen Group United Kingdom Limited in August 2016.

The property is held Freehold.

5Investment Summary

Location


Situation

Description

Accommodation

Site Area

Tenure

Tenancy




VAT

EPC

Proposal

Further Information


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UK Automotive Industry Investment Comparables

Investor demand remains particularly strong for prime dealership assets in affluent geographical locations, let to substantial manufacturers and dealer network groups, off sustainable rental levels. The occupiers remain active and the sector is one of only a few where tenants continue to commit to long occupational leases, with fixed or indexed linked rent reviews.

Strong investor demand together with a lack of prime stock available in the market has seen yields continue to harden in the last few months with examples of sub 4% having been achieved in the sector. With both institutional and private investor demand for dealership assets showing no signs of wavering, we anticipate pricing will remain robust for modern, well located assets situated in key territories for the manufacturers.

Date Address Floor Area Unexpired term

Price NIY

OTM VW Camberley 8,096 sq ft 6.75 £5,150,000 5.25%

Feb-18 Volvo Milton Keynes 11,668 sq ft 8.5 £3,100,000 5.45%

Feb-18 VW Harrogate 30,797 sq ft 10 £5,750,000 5.55%

May-18 Audi Cardiff 33,647 sq ft 7.5 £8,000,000 6.05%

Dec-17 Audi Huddersfield 29,354 sq ft 7.5 £6,300,000 5.89%

Aug-17 BMW High Wycombe 60,212 sq ft 9.5 £26,100,000 5.01%

6Investment Summary

Location


Situation

Description

Accommodation

Site Area

Tenure

Tenancy




VAT

EPC

Proposal

Further Information


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7VAT Further InformationEPC Proposal

It is anticipated that the transaction will be treated as a Transfer of a Going Concern (TOGC).

For further information or to arrange an inspection, please contact:

Rick McIntosh-Whyte 020 7255 8064 [email protected]

Rebecca James020 7255 8040 [email protected]

Martin Carey020 7255 8085 [email protected]

Rapleys LLP is registered as a Limited Liability Partnership in England and Wales. Registration No: OC308311. Registered Office at Falcon Road, Hinchingbrooke Business Park, HUNTINGDON PE29 6FG. A full list of Members is available on our website or at any of our offices during normal business hours. Rapleys LLP operates an Environmental Management System which complies with the requirements of ISO 14001:2004. Regulated by RICS. Any maps are for identification purposes only and should not be relied upon for accuracy. Reproduced by permission of Geographers A-Z Map Co. Ltd. Licence No. A0203. This product includes mapping data licensed from Ordnance Survey – © Crown Copyright 2001. Licence No. 100017302 and © Crown Copyright. All rights reserved. Licence No. ES 100004619. Misrepresentation Act: These particulars are produced in good faith and believed to be correct. Neither Rapleys, their joint agents (where applicable) or their client guarantees their accuracy and they are not intended to form any part of a contract. No person in the employment of Rapleys or their joint agents has authority to give any representation or warranty in respect of this property. All prices or rents are quoted exclusive of VAT. October 2018

A copy of the Energy Performance Certificate is available upon request.

We are instructed to seek offers in excess of £3,885,000 (Three Million, Eight Hundred and Eighty Five Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 6.15%, assuming purchaser’s costs of 6.53%

Investment Summary

Location


Situation

Description

Accommodation

Site Area

Tenure

Tenancy




VAT

EPC

Proposal

Further Information

CHELTENHAM VOLKSWAGEN - Rapleys · 2019. 7. 24. · CHELTENHAM VOLKSWAGEN I TEWKESURY ROAD I CHELTENHAM I GL51 AH < > Site Area Tenant Covenant Information Tenancy Tenure The

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