Modern Car Dealership Investment TJ VICKERS & SONS, KNIGHTS WAY, BATTLEFIELD ENTERPRISE PARK, SHREWSBURY, SY1 3AB

Modern Car Dealership Investment TJ VICKERS & SONS, KNIGHTS WAY, BATTLEFIELD ENTERPRISE PARK, SHREWSBURY, SY1 3AB

INVESTMENT SUMMARY Modern car dealership investment in prime car showroom location 16,770 sq.ft on site of 1.01 acres Let to TJ Vickers and Sons Limited until 30th September 2030 (break 30th September 2025) Low passing rent of 120,000 per annum Reviews to higher of open market or compounded RPI (collar of 2% and cap of 4%). Offers in excess of 1,675,000. A purchase at this price would represent a net intial yield of 6.75%. Assuming 3% per annum compound the reversionary yield would be 7.82%. (purchasers costs of 6.19%). LOCATION Shrewsbury is the county town of Shropshire, located 47 miles to the north west of Birmingham, 41 miles south of Chester and 15 miles west of Telford. The town benefits from good communication links with the M54 motorway linking the M6 motorway and the national motorway network beyond. The M54 connects to the A5 Shrewsbury southern relief road and also the A49 eastern ring road extension to the east of the town. Shrewsbury railway station is located 0.3 km to the northeast of the town centre and provides direct services to Telford (20 minutes), Crewe (30 minutes), Wolverhampton (40 minutes) and Birmingham New Street (55 minutes). Services to London Euston are via Crewe, Birmingham New Street or Wolverhampton, with a fastest journey time of 2 hours and 30 minutes.

SITUATION The property sits in a very prominent position on Knights Way at the front of Battlefield Enterprise Park, the prime car dealership, trade and retail park location for Shrewsbury. Car dealerships in close proximity include Jardine Audi directly adjacent, BMW, Toyota, Nissan, Honda, Subaru, Ford, Mercedes and Peugeot. DESCRIPTION The property comprises a modern car dealership with two interlinked showrooms for Fiat and Suzuki. There are integral offices and wc facilities within the showroom. To the rear of the showroom is a large workshop (6 bays) and separate MOT station, accessed via a roller shutter door from the side of the property within a secure fenced yard. There are offices and a parts store at first floor accessed from within the main showroom and there is also a passenger / goods lift. Externally the site provides 78 display spaces to the front of the showroom, 23 customer spaces and a compound area to the side of the workshop providing a further 15 spaces. SITE The site area is 0.41 hectares (1.01 acres) with a low site density of 38%.

ACCOMMODATION The property has been measured in accordance with the RICS code of measuring practice 6th Edition and comprises the following gross internal floor area: Floor Use Area sq.m Area sq.ft Ground Showroom 419.92 4,502 Workshop 595.42 6,409 Offices 118.27 1,273 Ancillary 77.11 830 First Floor Offices 136.57 1,470 Ancillary/Storage/Plant 71.91 774 Parts 140.47 1,512 Spaces Display 78 Customer Parking 23 Compound 15 Total 1,559.67 16,770 TENURE The property is held virtual freehold for a term of 999 years at a peppercorn rent. TENANCY The property is let to T J Vickers and Sons Limited on a full repairing and insuring basis for a term of 15 years with effect from 1st October 2015. There is a tenant only break option at the tenth year of the term. There are 5 yearly rent reviews on the basis of an open market rent or compounded RPI subject to a collar of 1% and cap of 4%. The current rent is 120,000 per annum. This equates to a very low passing rent of 7.15 per sq.ft without an allowance for display spaces. RENTAL VALUE Assuming RPI of 3% per annum growth, the rent at review in 2020 could rise to 139,112 per annum.

T J Vickers and Sons (Co No.) 30/04/2016,000s 30/04/2015,000s 30/04/2014,000s COVENANT T J Vickers and Sons Limited was founded in the 1960 s operating from two sites in Shrewsbury and Teflord. The company represents Alfa Romeo, Jeep, Chrysler, Fiat and Suzuki from the two sites. A summary of the tenant s full year accounts is set out opposite. Turnover 24,700,871 21,945,438 Pre-tax Profit / (Loss) 52,775 348,052 Net Assets 439,681 420,110 439,044

UK CAR DEALERSHIP INVESTMENT MARKET Set out below are recent comparable transactions: Location Tenant WAULT yrs Audi, Wheatley Hall Rd, Doncaster Audi, Trident Business Park, Huddersfield VW, Saint James BP, Knaresborough, Harrogate Mercedes, Drake s Way, Swindon Audi, Broadleys BP, Stirling VW, Leeds Road, Huddersfield Peugeot & Citreon, Centurion Park, York Bentley, Modderley Road, Knutsford VW, Washford Drive Redditch Sytner Group Goodman Retail Pendragon Property Holdings Sytner Group Transaction Date Price Yield % Comments 8.5 Under Offer 4.3m 6.10% OMV reviews. Sublet to JCT 600. Comparable location and 7.5 Under Offer 6.09m 6.10% OMV reviews. Sublet to Sytner. Comparable location and 8.5 Under Offer 5.80m 5.50% OMV reviews. Better location but inferior 7.5 Sold Sep 8.75 Sold Sep 7.75 Sold Jun 13 Sold May 11 Sold Mar 10.5 Sold Jan 2016 8.82m 5.65% OMV reviews. Better location but comparable 3.44m 6.01% OMV reviews. Inferior location but comparable 6.33m 6.00% OMV reviews. VWG UK guarantor. Inferior location and 3.92m 5.75% Open market reviews. Purchased by Custodian. Better location but inferior 7.00m 4.92% 50 years from June 2008 with breaks in 20th, 30th and 40th years. 5 yearly reviews to RPI capped at 13.14%. Purchased by CCLA. Better location and 3.225m 6.04% OMV reviews. Sublet to Trust Group. Inferior location and

VAT The property is elected for VAT and VAT will be chargeable on the purchase price. It is anticpated that the sale will be treated as a TOGC. EPC The property has an EPC rating of C57. PROPOSAL We are instructed to seek offers in excess of 1,675,000 (One Million Six Hundred and Seventy Five Thousand Pounds) which reflects a net initial yield of 6.75%, after purchaser s costs of 6.19%. Based on RPI growth of 3% per annum and an ERV of 139,112 per annum, the reversionary yield could rise to 7.82%. FURTHER INFORMATION For further information or if you wish to arrange a viewing please do not hesitate to contact: BEN BLACKWALL 0121 513 0893 ben.blackwall@fspproperty.co.uk ANDREW FRANCK-STEIER 0121 513 0891 andrew.franck-steier@fspproperty.co.uk Franck Steier Price Third Floor, Victoria House 114-116 Colmore Row, Birmingham, B3 3BD Misrepresentation Clause: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price, nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the condition of such equipment for their requirements.