FREEHOLD CAR DEALERSHIP INVESTMENT

Transcription

1 FREEHOLD CAR DEALERSHIP INVESTMENT Tesla Motors Wellington Road (A) Stockport SK 5AE Investment Summary Location Situation Description Accommodation Tenure Motor Retail Investment Market Further Information

2 Investment Executive Summary Summary Location Situation Description Accommodation Tenure Motor Retail Investment Market Further Information Investment Summary A purpose-built vehicle dealership that has been recently redesigned and refurbished to a high specification. Located in Stockport, prominently situated on the A Wellington Road, the main link road between Manchester and Stockport. Buildings of 5, sq ft, on a site of.8 acres. Let to Tesla Motors Limited (guaranteed by Tesla Motors Netherlands BV) on a new 5 year FRI lease from 8 September 205, with tenant break options after five and ten years. The rent is to be reviewed five yearly, upward only in accordance with RPI, collared and capped at %-%. The initial rent is 0,000 per annum, reflecting only 8.5 per sq ft overall. We are instructed to seek offers in excess of,75,000 for the freehold interest, subject to contract and exclusive of VAT, reflecting a Net Initial Yield of 7.5%.

3 Location Stockport is located 7 miles south of Manchester city centre with, as at 20, a resident district population of approximately 28,000. Given the property s proximity to the wider Manchester conurbation, the population within five miles of the subject property is estimated to be around 7,000. The town has excellent road communications being served by Junctions and 27 of the M0 Manchester Orbital Motorway. Stockport railway station is on the West Coast mainline with regular services to London, Manchester and Birmingham. SKIRK 5058 M58 M57 5 RIVER MERSEY Ellesmere Port A5 0 Skelmersdale 5 A570 A500 A5 Liverpool John Lennon Airport A57 A520 M5 St Helens 7 A557 2 M 27 2 Widnes M2 A57 Chorley A5 A5 M A 2 M A7 M5 M M2 A57 A55 A 8 Bolton Altrincham 2 M A5 A M Tenure 2 A5 7 5 Rochdale M2 Manchester Manchester Airport A Oldham A27 2 A50 M0 A 25 5 A Stockport A A52 A A50 BARLOW MOOR RD 2 A800 OXFORD ROAD WILMSLOW ROAD MAULDETH ROAD W. Didsbury Golf Club Manchester M5 A A5 0 A55 STOCKPORT ROAD KINGSWAY A DIDSBURY A57 HYDE ROAD ALB ERT RD CROSSLEY ROAD ELMWOOD Parrs Wood M0 2 Cheadle A RD Heaton Moor Golf Club ROAD HEATON MOOR RD STOCKPORT STOCKPORT ROAD A RD BARLOW ROAD A2 GORTON ROAD B7 Denton Golf Club REDDISH ROAD 27 Stockport 2 A 2 M0 STOCK PORT ROAD WEST A50 A2 25 Denton A07 2 M7 A 2 A27

4 Situation The property is situated in a prominent location on the A Wellington Road, the main link road between Manchester and Stockport, just north of its junction with the A2. The A and A2 lead directly to Junctions and 27 of the M0 respectively, two miles to the south. There is a range of commercial occupiers located close by on the A including, to the north, Aldi, Morrisons, KFC, McDonald s and Texaco and Shell branded forecourts, all within ½ mile of the subject site. Similarly, to the south, occupiers within a mile include Mercedes and Ford car dealerships, Topps Tiles, Boots Opticians, Safestore and an Esso branded filling station. Tenure

5 Description The property comprises a purpose-built car dealership facility with a showroom building to the front of the site, together with a larger self-contained workshop building to the rear. The tenant has invested heavily in the refurbishment and fitting out of the property. Internally, the showroom provides display for three vehicles (it previously had capacity for seven display vehicles prior to refurbishment), and benefits from full height glazing to the front and sides. Ancillary offices are provided on both ground and first floors. The rear building has been redesigned and refurbished to accommodate a workshop with seven vehicle service bays (it previously had nine), storage accommodation and a rear valet area. Both buildings have undergone extensive fit out works by Tesla in accordance with its corporate branding. To the front of the site there is generous vehicular display provision for approximately 2 vehicles. There is additional parking to the rear, including a secure parking compound, which in total can accommodate around a further 0 vehicles.

6 Accommodation The property has the following approximate gross internal areas: Showroom Building: Sq Ft Sq M Ground floor showroom/ offices,875 sq ft 0 sq m First floor offices/ancillary,8 sq ft 7 sq m Subtotal 5,7 sq ft 5 sq m Rear Workshop:,25 sq ft 22.0 sq m Total GIA 5, sq ft,5.0 sq m The property has an approximate site area of.8 acres (0.8 hectare), giving a footprint site cover of 27%.

7 Tenure Covenant Freehold. Tenant Tesla Motors Limited (Company No: 8008); guaranteed by Tesla Motors Netherlands BV. Lease The property is let for a term of 5 years from 8 September 205 at a commencing rent of 0,000 per annum. This rent reflects only 8.5 psf overall. The lease is on full repairing and insuring terms, subject to a Schedule of Condition. The rent is reviewed five yearly in an upward only direction in accordance with the increase in the Retail Prices Index, subject to a cap of % per annum and a collar of % per annum compounded. The tenant has break options after five and ten years, subject to six months written notice. In the event of the tenant breaking the lease after only five years, it shall pay a penalty to the landlord of 5,000. The tenant s obligations under the lease are guaranteed by Tesla Motors Netherlands BV. The property is subject to a lease in favour of Electricity North West Limited in respect of a substation for a term of years from 8 September 205. A copy of the Lease is available upon request. Tesla Motors Limited is the UK subsidiary of Tesla Motors, Inc., the world leader in the manufacture of electric vehicles. Tesla Motors, Inc., is quoted on the NASDAQ Stock Exchange and as at December 205 the company had a market capitalisation of $.bn. Tesla Motors Limited was founded in 200 in Silicon Valley, California. The first Tesla Roadster was launched in 2008 and, in 202, the company produced the Model S, a luxury saloon car which was named Motor Trend s Car of the Year and Best Overall Car by Consumer Reports. In 20, Tesla delivered two dual motor all-wheel drive configurations and, in the first half of 205, Model S became the best-selling electric vehicle in the US. In September 205, Tesla launched its third vehicle, the Model X crossover. It is developing further models, with the Model design, a mass-market compact saloon, due to launch in Q 20. Tesla has invested heavily in its retail experience in its stores and now has more than 25 sales and service locations globally. In the UK, Tesla operates stores in Edinburgh, Stockport, Knutsford, Birmingham, Bristol, Crawley, Kent, Weybridge, West Drayton, Brent Cross and Westfield London, with further stores planned. Tesla Motors Limited has a Creditsafe rating of 2 (Very Low Risk). The company is at the start of an aggressive growth curve, as reflected in the last two years accounts summarised below: Year to Date Turnover Pre Tax Profit Shareholder Funds /2/20 8,7, 2,7,78,55,08 /2/20,57,52 2,75 2,75,2

8 Motor Retail Investment Market Both institutional and private investors continue to be attracted to the sector due to the strong financial standing of the majority of tenants, the opportunity for guaranteed rental uplifts and the long term commercial viability of the majority of sites due to their prominent roadside locations. We set out below a schedule of recent investment transactions (further details are available upon request): Property Lease Tenant Date Price (NIY) Ford, Birmingham Expires May 2027 Bristol Street First Investments Ltd Under Offer Quoting offers of,500,000 (.8%) Nissan, Bristol Expires January 20 Nissan Motor (GB) Ltd January 20,025,000 (.58%) Volvo, Sunderland Expires September 2022 Inchcape Estates Ltd December 205,700,000 (.7%) MINI, Harrogate Expires July 2025 Pendragon Property Holdings Ltd October 205,25,000 (5.2%) (guaranteed by Pendragon Plc) BMW/MINI, Tring Expires 20 & 20 Specialist Cars Tring Ltd and Malthurst Petroleum Ltd August 205 7,20,000 (.85%) Tesla, Crawley Expires August 202 Tesla Motors Ltd July 205 2,5,000 (7.7%)

9 Further Information VAT The property is elected for VAT, which will therefore be payable on the purchase price. It is intended that the sale will be treated as a TOGC. Further Information For further information or to make arrangements for a viewing, please contact: EPC The property has an EPC rating of C. The full EPC certificates are available upon request. Price We are instructed to seek offers in excess of,75,000 (One Million, Seven Hundred and Sixty Five Thousand pounds) subject to contract and exclusive of VAT, reflecting a net initial yield of 7.5%. Paul Taylor Bilfinger GVA paul.taylor@gva.co.uk Tel: Chelsey Henderson Bilfinger GVA chelsey.henderson@gva.co.uk Tel: Richard Harding HSM rjh@hsmuk.com Tel: DISCLAIMER Date: February 20 GVA is the trading name of GVA Grimley Limited, conditions under which Particulars are issued GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that: i.) The particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. ii.) All descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details, are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. iii.) No person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. iv.) All rentals and prices are quoted exclusive of VAT. Reproduced by courtesy of the Controller of HMSO. Crown Copyright reserved. Licence No 775. If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co Ltd and/or The Automobile Association. For identification purposes only.