FOR SALE PRIME MOTOR TRADE INVESTMENT

Transcription

1 FOR SALE PRIME MOTOR TRADE INVESTMENT Modern commercial vehicle dealership and workshop Located adjacent to Aberdeen International Airport Very low site density Total accommodation comprises 1,405 sq m/15,124 sq ft Lease expires September 2033 (approx years unexpired) Rent secured by 4A1 covenant Offers over 2,350,000 exc VAT Attractive net initial yield of 6.43%

2 aberdeen / A90 Aberdeen is Scotland s third largest city with a population of approximately 225,000 and a regional catchment population of over 500,000. It is the administrative capital of the North East of Scotland and benefits from two universities, an expanding international harbour and airport, seven major research institutes, together with world renowned food, fisheries and agricultural research establishments. A96 Aberdeen has strong communication links with the rest of Scotland, the UK and Europe. The A90 trunk road links Aberdeen with the Scottish motorway network, making Edinburgh and Glasgow accessible in just over 2 hours. The city is also linked to major towns and cities throughout the UK by rail and air travel. Aberdeen International Airport, which lies to the north west of the city, provides frequent daily services to the principal UK cities and direct flights to Europe. The Airport is currently undergoing major construction works to accommodate the increase in passenger numbers and separately it accommodates the world s busiest commercial Heliport. ABERDEEN WESTERN PERIPHERAL ROUTE A90 RIVER DON local economy / Located 120 miles north of Edinburgh, Aberdeen is one of the UK s biggest success stories. An internationally recognised global centre of excellence in the energy industry, the city and the surrounding region is a key engine of the Scottish and UK economies. Many of the world s leading oil producing companies have substantial regional HQ s in the city. Examples include BP, Shell, Total, Chevron, Conoco Philips and Nexen. These multinationals are supported by many oil service companies with a local presence in the city, including Wood Group PSN, Halliburton and Schlumberger. LANG STRACHT RIVER DEE NORTH ANDERSON DRIVE NORTH DEESIDE ROAD ABERDEEN A90 WELLINGTON ROAD (A956) In recent years the city has outperformed the rest of Scotland in terms of economic growth, productivity and business birth rates. Numerous surveys have rated Aberdeen as having the best quality of life in the country. Whilst the recent fall in the oil price has reduced business activity during the last year the city still has much to look forward to. Construction work on the long awaited bypass road has now started and is scheduled for completion by the end of Similarly, a multimillion pound expansion of Aberdeen International Airport is underway which will absorb the increased passenger numbers and international flights. Finally, the City Council have a live Masterplan for a 2.9bn regeneration of the city centre over the next 20 years. A90

3 WELLHEADS DRIVE location / The property is very prominently situated on the west side of Wellheads Drive and immediately adjacent to Aberdeen International Airport. To the east is Wellheads Industrial Estate, Dyce, which is located approximately 6 miles north-west of Aberdeen city centre. The estate is long established and one of the most popular business locations in the Aberdeen area and several high profile companies have established a presence there including Rolls Wood Group, Bond Helicopters, BSS Group, Dril-Quip and Hewden Stuart. The extract from Promap illustrates the location of the property and our understanding of the approximate boundaries respectively. DYCE DRIVE DYCE DRIVE RIVERVIEW DRIVE DYCE DRIVE PITMEDDEN ROAD DYCE STATION VICTORIA STREET description / The property comprises a modern commercial vehicle showroom with administrative offices and workshops built on a site estimated to be approximately 0.91 hectares (2.25 acres). The remainder of the site is tarmac surfaced to provide extensive parking areas. WELLHEADS DR The building is of steel portal frame construction with full height insulated profiled metal clad walls and roofs incorporating translucent sheet panels for natural light. The original building was built in 1997 and subsequently extended in 2010 to increase the size of the showroom and vehicle servicing bays. There are also two ancillary separate units to the rear - a lean-to wash bay and a detached valet bay. Internally the property is divided at the front to form a two storey section with a vehicle showroom and sales offices at ground floor level and further offices above. To the rear there is substantial workshop space which can accommodate up to 12 vehicles. The wallhead height is approximately 6.5m.

4 WOOD GROUP WELLHEADS DRIVE SCIENTIFIC DRILLING INTERCARGO SEAFAB PENTAIR ABERDEEN AIRPORT & ACCESS TO A96 VIA DYCE DRIVE HONEYWELL IRON MOUNTAIN

5 tenure / The property is held on a Heritable title, equivalent of English Freehold. tenancy / The property is let on FRI terms to Clark Commercials (Aberdeen) Ltd until 1st September 2033 at a rent of 160,000 per annum, subject to an open market rent review at 2nd September 2018 and at five yearly intervals thereafter. The tenant has an option to extend the lease for a period of five years beyond the expiry date upon giving one year s notice. The lease is guaranteed by John Clark Holdings Ltd. energy performance certificate / The EPC rating of the property is D and a copy of the Certificate is available upon request. accommodation / The approximate gross internal floor area of the property is set out within the table below: Description Sq M Sq Ft Ground Floor Showroom/Offices ,761 First Floor Offices & Store ,657 Workshops ,980 Mezzanine Stores/Office ,268 Wash Bay Valet Bay Total 1, ,124 Useable Yard 3, ,600

6 rental analysis & mrv / The table below outlines our analysis of the passing rent and MRV calculation. This demonstrates that the property has good reversionary potential. Building Ground Floor Showroom/ Offices First Floor Offices & Store Sq ft Rental Rate Rental MRV Rate MRV 3, , ,609 2, , ,890 Workshops 5, , ,335 Mezzanine Stores/Office 1, , ,804 Wash Bay , ,324 Valet Bay , ,153 Useable Yard 34, , ,600 tenant covenant / Total 160,015 Total 166,714 Say 160,000 Say 167,000 Incorporated in 1978, Clark Commercials is Scotland s leading independent commercial vehicle dealership and specialises in the sales and servicing of VW vans across three locations in the east of Scotland Aberdeen, Edinburgh and Dundee. The company also provides a selection of other makes and models both for purchase and rental. The company is a subsidiary of the John Clark Motor Group. A summary of the headline financials for the Tenant and Guarantor is outlined in the table below: Tenant As at Turnover Pre-tax Profit Net Worth Clark Commercials (Aberdeen) Ltd John Clark (Holdings) Ltd D&B Rating 31/12/14 39,301,244 ( 104,609) 4,018,970 2A1 31/12/14 604,113,818 10,533,770 24,680,779 4A1

7 occupational property market / Viewed over the past 10 years, occupier demand for office and industrial property in Aberdeen has been strong as a direct consequence of high activity levels in the North Sea Oil and Gas industry. This sheltered the city from the worst effects of the UK economic downturn following the 2008 banking crisis. Despite the recent drop in the oil price, long term lettings are still occurring as occupiers continue to expand and improve the quality of their premises. Local developers and landlords have been the main benefactors as there has been significant rental growth in the city in recent years, due to the acute shortage of quality space. The table below illustrates the growth in headline rental rates for industrial space, excluding the office element which is valued separately in Aberdeen. investment property market / With high levels of occupier activity fuelled by a robust local economy, Aberdeen has caught the interest of investors in recent years. UK Funds and international equity investors have been active in the market, with several new entrants acquiring property in recent years. Demand for single let industrial buildings has been strong in recent years. We have listed some relevant transactions in the table below: Date Property Purchaser Price NIY Tenant Comments Aug 15 Gateway Drive, Aberdeen Gateway TIAA Henderson 5.855m 6.29% Oil States New 15 year lease Dec 14 Unit 3A International Way, ABZ, Kirkhill Private Trust 4.1m 5.83% SPX New 15 year lease Dec 14 Gateway Drive, Aberdeen Gateway Ignis 29.78m 5.90% Total New 20 year lease. RENT Oct 14 Gateway Drive, Aberdeen Gateway Ignis m 6.20% Tetra New 20 year lease. Sep 14 Peregrine Road, Westhill AAM 9.80m 6.13% Forum New 15 year lease YEAR Sep 14 Sep 14 Raiths House, Kirkton Drive, Raiths Arctic House, Kirkton Drive, Raiths Ignis 22.35m 6.35% Weatherford Existing lease with 12 years unexpired. NHV 3.50m 5.54% Reel Existing lease with 10 years unexpired. Jul 14 Jun 14 Unit Z3B Badentoy Crescent, Badentoy Park Friends First 2.875m 6.45% Downhole Products New 15 year lease. Moss Road, Aberdeen Gateway Ignis 7.361m 6.50% Ensco New 15 year lease. Jun 14 Badentoy Avenue, Badentoy Park L&G m 6.25% Ramco New 20 year lease.

8 viewing / To arrange a viewing or for further information, please contact: proposal / Our client is seeking offers in excess of 2,350,000 exclusive of VAT for their heritable interest in the property. A purchase at this level reflects an attractive net initial yield of 6.43% after allowing for purchasers costs including LBTT. vat / The property has been elected for VAT and it is anticipated that the sale will be treated as a Transfer of a Going Concern. Ken Shaw ken.shaw@ryden.co.uk Paul Richardson paul.richardson@ryden.co.uk Tel: Fax: Albyn Place Aberdeen AB10 1YL (i) Messrs Ryden LLP for themselves and for vendors or lessors of this property whose agents they are give notice that: the particulars are set out as a general outline only for the guidance of intended purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, reference to condition and necessary permissions for use and occupation, and other details are given without responsibility and any intending purchasers or tenants 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; (iii) no person in the employment of Messrs Ryden LLP has any authority to make or give any representation or warranty whatever in relation to this property. Date of publication October 2015