PRIME CAR DEALERSHIP INVESTMENT. 115 Power Road Chiswick, London W4 5PY

Transcription

1 PRIME CAR DEALERSHIP INVESTMENT 115 Power Road Chiswick, London W4 5PY

2 Chiswick Park Station CHISWICK PARK Gunnersbury Station K IC W IS CH GH HI AD RO ER POW A4 D ROA CHISWICK ROUNDABOUT A406 NORTH CIRCULAR ROAD M4 B&Q Power Road, Chiswick, London W4 5PY

3 Investment Summary Volvo UK s flagship showroom in a prominent location adjacent to the A406 North Circular Road, the Chiswick Roundabout and the M4 Motorway. An established showroom location close to many similar occupiers including Honda, Peugeot, Volkswagen, Mercedes and Audi. Purpose built in 2007 providing showroom and service facilities of 15,949 sq ft and parking for some 100 cars. Entirely let to the substantial covenant of Volvo Car (UK) Limited for 15 years from 7th January 2008 and expiring in January 2023 and providing an initial income of 554,386 per annum exclusive with a fixed increase to 627, per annum exclusive on 7th January years unexpired lease without break. Offers are invited in excess of 8,450,000 subject to contract reflecting an initial yield of 6.2% rising to 7.0% in January 2018 after deduction of normal purchaser s costs of 5.8%. 115 Power Road, Chiswick, London W4 5PY 2

4 HEMEL Location Situation HEMPSTEAD 21 A4010 A413 A40 M25 Chiswick is a popular and successful business location located 5 miles due west of Central London. Communications by air, road and rail are excellent and many substantial national and international companies are located in the area. From the subject property Heathrow Airport can be reached in 18 minutes. The M4 is 1 minute from the building and the M25 London ring road is only 10 minutes drive. The North Circular Road is immediately adjacent to the property providing direct access to the M1 and M40. The South Circular Road is 2 minutes drive giving direct access to the A3 and M3. Gunnersbury Station is 5 minutes walk from the building. The District Line and North London Line provide links to Hammersmith, Richmond, the West End, the City and Stratford. The success of Chiswick as a business location is reflected in the location of Chiswick Park, one of London s most successful business parks. Over 1.8 million square feet are occupied by some 40 companies including Global, European and UK headquarters buildings. Occupiers include Ericcson, Paramount Pictures, The Walt Disney Company, Singapore Airlines and CBS News. Other occupiers closeby include B & Q, Hinduja Global Solutions and The Royal Embassy of Saudi Arabia Power Road, Chiswick, London W4 5PY 12 EALING SOUTH EALING HEATHROW M25 BRENTFORD A315 HIGH STREET SYON PARK READING M4 A423 M40 A329(M) POPES LANE LIONEL ROAD JUNCTION 2 MAIDENHEAD A A404 CAMBERLEY A31 KEW BRIDGE ROAD A307 KEW ROAD GUNNERSBURY AVENUE GUNNERSBURY PARK KEW GARDENS 4 M3 A40 8/9 JUNCTION 1 KEW BRIDGE KEW BRI KEW GARDENS KEW M4 A322 GUNNERSBURY LANE A406 POWER RD MORTLAKE ROAD A205 A4 WOKING GUILDFORD ACTON TOWN GUNNERSBURY WATFORD 1 A40 UXBRIDGE WINDSOR 14 HEATHROW A3095 A315 A STAINES A BRACKNELL M3 A SLOUGH 6 5 M A DORKING SOUTH ACTON CHISWICK PARK CHISWICK SUTTON COURT ROAD ACTON LANE CHISWICK HIGH ROAD WELLESLEY ROAD CEDARS ROAD A4 HOGARTH LANE CHISWICK A M1 EPSOM TURNHAM GREEN BURLINGTON RD THE AVENUE A315 CHISWICK PARK TURNHAM GREEN GREAT CHERTSEY RD BURLINGTON LANE DUKES MEADOIW A406 A3 1 CHISWICK A205 A24 M25 REIGATE GATWICK GREATER LONDON A23 A406 7 M23 CENTRAL LONDON The property is situated at the junction of Gunnersbury Avenue (A406 North Circular) and Power Road in a location that has established itself as a prime destination for flagship car showrooms. Occupiers in the immediate vicinity include Honda, Peugeot and Volkswagen. Mercedes, Audi and Porsche all have prime showrooms within 2 minutes drive. Close to the property are a large number of office buildings including Chiswick Place, Chiswick Green and the substantial Chiswick Park. The Chiswick Roundabout immediately to the south of the site forms the junction between the A406 (North Circular Road) and the A205 (South Circular Road). Site The site totals approximately 0.47 hectares (1.17 acres) providing a site cover of approximately 31%. For indicative purposes only.

5 Description Accommodation The property was purpose built in 2007 and pre-let to Volvo. The contemporary design and high specification provides a spacious ground floor showroom with a further sales area at first floor level, offices and staff accommodation. The showroom is finished to a high standard with air conditioning, suspended ceilings, recessed lighting and double height windows overlooking the North Circular Road. The adjacent service facility includes ancillary offices, staff accommodation and a hydraulic car lift servicing the first floor showroom area. To the rear of the site is a purpose built valeting and tyre bay facility. The ancillary offices have recessed lighting within suspended ceilings, air conditioning and a passenger lift providing access to the first floor showroom, office and staff areas. The tenant parks some 70 cars at the rear of the site with a further 16 fronting Power Road and at least 14 on the North Circular Road elevation. Volvo can exhibit their entire model range within the ground and first floor showroom. The property provides the following approximate Gross Internal Areas (GIA). Ground Floor Showroom, 1, sq m (11,450 sq ft) service workshop and ancillary areas First Floor Showroom, sq m (3,573 sq ft) Offices and ancillary areas Valet and tyre bay sq m (926 sq ft) Total 1, sq m (15,949 sq ft) Front Display Parking Side Parking Rear Sales/Customer/Service Parking 16 spaces 14 spaces 70 spaces 115 Power Road, Chiswick, London W4 5PY 4

6 Tenure The property is held Freehold. Tenancy The entire property was pre-let on a full repairing and insuring lease to Volvo Car (UK) Limited for a term of 15 years from 7th January 2008 expiring on 6th January The initial rent of 490,000 per annum exclusive is subject to a fixed uplift on 7th January 2013 to 554,386 per annum exclusive and a further uplift to 627, per annum exclusive on 7th January The lease has approximately years unexpired without break. The initial rent on completion will be 554,386 per annum exclusive with the vendor providing a rent top-up to 7th January Financial Information Volvo is a world renowned car manufacturer. The company was founded in 1927 and in 2011 global sales were 450,000 cars, an increase of 20.3% on Volvo was purchased in 2010 by Zhejiang Geely Holding Group of China, with a target of achieving annual sales of 800,000 cars by Sweden, Germany and Britain are Volvo s largest European markets. Volvo Car (UK) Limited provide the following latest financial information for the year ended 31st December Turnover 736,680,000 Pre-tax Profit 4,901,000 Tangible Net Worth 30,618,000 Dun & Bradstreet have given Volvo Car (UK) Limited a 4A1 rating, reflecting Minimum Risk. Volvo Cars London occupy the property and are the largest Volvo dealership in London and the South East Power Road, Chiswick, London W4 5PY

7 115 Power Road, Chiswick, London W4 5PY 6

8 VAT The property has been elected for VAT therefore VAT will be payable on the purchase price although it is anticipated that the transaction will be treated as a Transfer of a Going Concern (TOGC). Investment Rationale Chiswick is a popular area commanding high commercial and residential values. A prime 2007 purpose built car showroom. A prominent location on the North Circular Road and adjacent to the M4. Entirely let to the car manufacturer rather than the dealership years of unexpired income from the substantial covenant of Volvo Car (UK) Limited. An attractive initial yield and a guaranteed fixed rental increase in A secure investment with a substantial site value. Pricing We are instructed to seek offers in excess of 8,450,000 (eight million, four hundred and fifty thousand pounds) subject to contract, to reflect an initial yield of 6.2% rising to 7.0% in 2018 after deduction of purchaser s costs of 5.8%. Energy Performance Certificate Non-Domestic Building Volvo Cars London 115 Power Road LONDON W4 5PY Certificate Reference Number: This certificate shows the energy rating of this building. It indicates the energy efficiency of the building fabric and the heating, ventilation, cooling and lighting systems. The rating is compared to two benchmarks for this type of building: one appropriate for new buildings and one appropriate for existing buildings. There is more advice on how to interpret this information on the Government's website Energy Performance Asset Rating More energy efficient A+ A 0-25 B C D E F G Over 150 Less energy efficient Technical information Main heating fuel: Building environment: 2 Total useful floor area (m ): Grid Supplied Electricity Air Conditioning Building complexity (NOS level): 4 2 Building emission rate (kgco 2/m ): Net zero CO 2 emissions 51 This is how energy efficient the building is. Benchmarks Buildings similar to this one could have ratings as follows: If newly built If typical of the existing stock