LONG INCOME CAR SHOWROOM INVESTMENT OPPORTUNITY

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Maude McDaniel
6 years ago
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1 ON THE INSTRUCTIONS OF THE JOINT FIXED CHARGED RECEIVERS HONDA DUDLEY ROAD, WEST MIDLANDS, B63 3NS LONG INCOME CAR SHOWROOM INVESTMENT OPPORTUNITY PLEASE NOTE THAT THE TENANTS ARE NO LONGER IN OCCUPATION

HONDA DUDLEY ROAD, WEST MIDLANDS, B63 3NS INVESTMENT CONSIDERATIONS A modern purpose-built motor dealership in an established trading location Let to Honda Motor Europe Limited for a further 10.

2 HONDA DUDLEY ROAD, WEST MIDLANDS, B63 3NS INVESTMENT CONSIDERATIONS A modern purpose-built motor dealership in an established trading location Let to Honda Motor Europe Limited for a further 10.5 years. The property is let for a term of 25 years from 27th September 2001 at a passing rent of 223,888 per annum. The rent is subject to five yearly upward only reviews with the next review date being in September Freehold A large site area of 0.44 hectares (1.1 acres) with extensive main road frontage of over 100 metres. Prominent site with 23,000 vehicles passing per day.* We are instructed to seek offers in excess of 2,600,000 (Two Million Six Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 8.09% assuming purchasers costs of 6.4%. *Source: Department of Transport

LONG INCOME CAR SHOWROOM INVESTMENT OPPORTUNITY A515 NOTTINGHAM A52 3 A50 DERBY A46 M1 A453 A518 M6 A607 Burton upon Trent Midlands A51 A38 Airport A6006 A6 A41 A42 A606 Cannock A1 dd M54 M6 TOLL M42

3 LONG INCOME CAR SHOWROOM INVESTMENT OPPORTUNITY A515 NOTTINGHAM A52 3 A50 DERBY A46 M1 A453 A518 M6 A607 Burton upon Trent Midlands A51 A38 Airport A6006 A6 A41 A42 A606 Cannock A1 dd M54 M6 TOLL M42 LEICESTER A47 Wolverhampton Walsall Sutton A454 A5 West Coldfield Bromwich M69 A6003 A449 A6 BIRMINGHAM A442 M6 M1 A491 A6116 Birmingham International Kidderminster Airport COVENTRY A14 A448 M42 A508 6 Coventry M45 M5 A4025 M40 Airport A45 A435 Warwick A423 NORTHAMPTON Worcester A422 A46 A428 Stratford-upon-Avon A5 A44 3 A429 eet Shelah Road ingham Road d Hawne Lane Road Church A459 Haden Hill Road Furnace Lane sway Furnace Hill A458 DUDLEY ROAD, A4099 Coombs Road A459 Dudley Road Earls Way New Road A459 Bromsgrove R A458 A458 Mucklow Hill Leasowes Park SITUATION The subject property is prominently situated fronting the A459 Dudley Road, which serves as the principle north-south carriageway in the area providing access to Halesowen town centre to the south and to Dudley in the north. The area surrounding the subject property is commercial in nature and includes occupiers from the motor industry including Suzuki, Vauxhall, Yamaha, Europcar and ARS. The Vauxhall dealership opposite the property has recently benefitted from significant investment in refurbishment works. The area has benefitted from recent developments in the form of a new Aldi supermarket, Travelodge hotel and KFC restaurant a short distance to the south of the property at the intersection of the A459 and A459. Other national occupiers in the area include Tesco Express, B&Q and Makro. LOCATION Halesowen is a West Midlands town located 13 km (8 miles) to the west of Birmingham City Centre. Wolverhampton is located 16 km (10 miles) to the north and Coventry is located 36 km (22 miles) to the east. The town benefits from excellent road communication links being situated 3 km (2 miles) west of Junction 3 of the M5 Motorway, which in turn gives access to the national Midland s motorway network. The town s main arterial roads are the A458 which leads eastwards into Birmingham, the A456 which is the link to the M5 Motorway and the A459 which connects the town to the Black Country. DESCRIPTION The property comprises a modern, purpose-built motor dealership. A large proportion of the accommodation is customer-facing with a large double-height showroom providing space for the display of eight vehicles in addition to a reception area. Along the perimeter of the showroom are a series of partitioned offices, beyond which is a large nine bay workshop, including a MOT bay, served by seven roller shutter doors. In addition there is a two-bay valeting area located to the rear. The first floor is partitioned to provide a boardroom, offices and stores as well as a viewing gallery over the showroom. Externally there are 50 prime display car spaces and 65 customer parking spaces.

HONDA,, DUDLEY ROAD, WEST MIDLANDS, B63 3NS Shelter 103.9m Lygon Court Garage 104.2m Crown Copyright, ES 100004106. For identification purposes only.

4 HONDA,, DUDLEY ROAD, WEST MIDLANDS, B63 3NS Shelter 103.9m Lygon Court Garage 104.2m Crown Copyright, ES For identification purposes only. Depot SITE AREA The total site area extends to approximately 0.44 hectares (1.1 acres) providing a site coverage of only 23%. TENURE Freehold ACCOMMODATION The property provides the following approximate gross internal areas: Gross Internal Areas Sq m Sq ft Ground Floor Showroom and Offices ,329 First Floor Workshop and Part Stores ,823 Valeting Offices, Boardroom and Stores ,639 Total 1, ,461 TENANCY The property is let in its entirety to Honda Motor Europe Limited on a full repairing and insuring lease, for a term of 25 years from 27th September The unexpired lease term is therefore approximately 10.5 years. The current passing rent is 223,888 pa. The rent is subject to five yearly upward only reviews by reference to open market rent. The next rent review is in September The property was sublet to Honda s main dealer partner for the West Midlands region, W Brindley (Garages) Limited t/a Brindley Honda, on a co-terminus lease on the same terms and at the same rent as the headlease. Brindley Honda are no longer in occupation of the property having vacated at the end of 2015.

LONG INCOME CAR SHOWROOM INVESTMENT OPPORTUNITY COVENANT Honda Motor Europe Ltd is a wholly owned subsidiary of Honda Motor Company (Japan), one of the world s leading manufacturers of motor cars,

The principal function of Honda Motor Europe Ltd is to coordinate Honda s operations in Europe, including the manufacturing of vehicles and components as well as distribution, wholesale and retail

Honda plans to increase UK sales by 12% in 2016 and to double dealer profitability on the back of better supply and increased aftersales penetration.

5 LONG INCOME CAR SHOWROOM INVESTMENT OPPORTUNITY COVENANT Honda Motor Europe Ltd is a wholly owned subsidiary of Honda Motor Company (Japan), one of the world s leading manufacturers of motor cars, motorcycles and power products, with a market capitalisation of $56.5 billion USD. The principal function of Honda Motor Europe Ltd is to coordinate Honda s operations in Europe, including the manufacturing of vehicles and components as well as distribution, wholesale and retail activities. Honda Motor Europe Ltd also manufactures and distributes Honda products across Africa and the Middle East. Honda plans to increase UK sales by 12% in 2016 and to double dealer profitability on the back of better supply and increased aftersales penetration. Honda has also announced that it will invest 200 million into its flagship manufacturing centre in Swindon, further evidencing its commitment to development of its model range and manufacturing in the UK. Honda Motor Europe Limited have provided the following accounts: 31/03/ /03/ /03/2015 Sales Turnover 4,280,066,0000 4,151,048,000 3,820,395,000 Profit/(loss) before Taxes - 31,390, ,344, ,360,000 Tangible Net Worth 29,394,000-81,457, ,825,000 MARKET COMMENTARY New car registrations continued to be positive in February, growing 8.4% compared with the same month in 2015, according to figures released by the Society of Motor Manufacturers and Traders (SMMT). 83,395 new cars were registered in February, marking the largest number of registrations in the month since Car showroom requirements and development activity stand at record levels with investor appetite continuing to be strong for long term income opportunities. INVESTMENT COMPARABLES The table below outlines a number of recent comparable transactions highlighting the attractive pricing of this asset: Property NIY Tenant Unexpired Term (Years) Tesla, Birmingham 7.5% (quoting) Tesla Motors Ltd 15 Under offer at in excess of quoting (March 2016) Ford, Birmingham 6.4% Bristol Street First Investments Ltd 11 February 2016 Nissan, Bristol 4.58% Nissan Motor (GB) Ltd 20 January 2016 Volvo, Sunderland 6.17% Inchcape Estates Ltd 7 December 2015 Mini, Harrogate 5.2% Pendragon Property Holdings Ltd (guaranteed by Pendrago Plc) 10 October 2015 Sold BMW/Mini, Tring 4.85% Specialist Cars Tring Ltd & Malthurst Petroleum Ltd 20 August 2015 VW/Toyota, Crawley 5.00% Motorline Holdings Ltd 20 May 2015 Honda, Orpington 4.35% Honda Motor Europe Ltd 22 January 2015 Honda, Manchester 4.95% Honda Motor Europe Ltd 16 December 2014

VAT The property is subject to an option to tax and VAT will be applicable to the sale. It is expected that the sale will be treated as a Transfer of a Going Concern.

6 VAT The property is subject to an option to tax and VAT will be applicable to the sale. It is expected that the sale will be treated as a Transfer of a Going Concern. EPC The property has an Energy Performance Certificate rating of 101(E). A copy of the Energy Performance Certificate is available upon request. PROPOSAL We are instructed to seek offers in excess of 2,600,0000 (Two Million Six Hundred Thousand Pounds), subject to contract and exclusive of VAT which reflects a net initial yield of 8.09% assuming purchasers costs of 6.4%. Receiver Caveat: The property is being marketed for sale on behalf of Joint LPA Receivers (acting as agent for the registered proprietors of the property) and therefore no warranties, representations or guarantees are given or will be given in respect of the information in this brochure or any matter relating to the property, including VAT. Any information provided is provided without liability for any reliance placed on it and the Receivers are acting without personal liability. The Receivers are not bound to accept the highest offer. For further information or to make arrangements for viewing please contact: Alex Butler alex.butler@allsop.co.uk Jonathan Butcher jonathan.butcher@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

CUSTOMPACK LTD, UNIT F, HALESFIELD 14, TELFORD, TF7 4QR

PRIVATECLIENT CUSTOMPACK LTD, UNIT F, HALESFIELD 14, TELFORD, TF7 4QR CUSTOMPACK LTD, UNIT F, HALESFIELD 14, TELFORD, TF7 4QR EXECUTIVE SUMMARY Located on the well-established Halesfield Industrial Estate