LEEDS ROAD HUDDERSFIELD HD2 1UL Prime Automotive Investment
Investment Summary Purpose built car dealership trading as Volkswagen Let to the strong covenant of Goodman Retail Limited, a subsidiary of Sytner Group Limited, guaranteed by Volkswagen Group United Kingdom Limited Surrounding occupiers include Audi, Mercedes-Benz, Volvo, Land Rover, Toyota, Peugeot and Renault We are instructed to seek offers in excess of 6,000,000 (Six Million Pounds). A purchase at this level would reflect a Net Initial Yield of 6.33%, assuming purchaser s costs of 6.63%. WAULT of 7.75 years Large site area with an extensive road frontage Current passing rent of 405,000 pa subject to five yearly upwards only rent reviews to open market rental value Total accommodation of circa 3,848 sq m (41,316 sq ft) on a site of approximately 2.42 acres (0.98 hectares) Low site coverage of 16% Virtual Freehold
Huddersfield is a large market town in West Yorkshire with a population of approximately 163,000. The town is located approximately 20 miles (32 km) south west of Leeds, 27 miles (43 km) north west of Sheffield and 28 miles (45 km) north east of Manchester. The town benefits from excellent road connectivity with the M62 motorway providing access from Liverpool to Leeds, and the M1 motorway providing access from London in the south to Leeds in the north, as well as the wider national motorway network. Leeds Bradford Airport is located approximately 20 miles north of Huddersfield. Rail services run from Huddersfield to London via Wakefield in approximately 2 hours 50 minutes. The property is situated in an extremely prominent position on Leeds Road, an established dealership location with Audi, Mercedes-Benz, Volvo, Toyota, Land Rover, Peugeot and Renault within close proximity to the subject property. Leeds Road is a busy arterial road providing access from the M62 motorway, Dewsbury and Wakefield in the north east to Huddersfield town centre in the south west. Junctions 23 and 24 of the M62 motorway are located 2 miles north west of the town. The A637 provides access to Junction 38 of the M1, located 11 miles to the east of Huddersfield. Due to its proximity to the wider motorway network, Huddersfield is home to many company headquarters, including national retailers Poundstretcher, situated adjacent to the subject property, and Mamas and Papas, situated to the north. Blackburn M65 Burnley A646 A629 BRADFORD M621 LEEDS M1 A1(M) A666 M66 Rochdale A6033 M62 Halifax Dewsbury HUDDERSFIELD A644 A642 Wakefield M62 A638 LEEDS RD To Huddersfield Bolton M61 A580 A58 M60 MANCHESTER A628 M62 A629 J25 A644 Barnsley M1 A635 LEEDS RD A62 M62 M67 J24 A641 M18 To M62 J25 A56 Stockport A629 A62 LEEDS ROAD A61 M56 A6 A640 Huddersfield A629 SHEFFIELD M1
The property comprises a modern, purpose built vehicle showroom and servicing facility, constructed in 2002. It is principally of steel frame construction with full height glazing and flat panel clad elevations. Internally, the double height showroom is spacious containing a reception desk pod and 11 display spaces, with glazed partitioned offices, a customer waiting area, WCs and storage area. The accommodation benefits from a standard VW dealership fit out which was refurbished to the latest brand standards in 2014. Access to the workshop, MOT, service bays and parts store is via a glazed door from the showroom. Vehicular access to the workshop is via an automated roller shutter door on the frontage. The first floor, accessed via two staircases, is finished to a high standard and comprises a mezzanine open balcony with offices, a boardroom, store rooms and WC s. The lower ground floor is used as a vehicle preparation area and body shop. Access is provided to the north of the site via a vehicle access ramp which also provides access to the under croft car parking below the car display area and car parking at ground floor level. Externally the property benefits from an extensive road frontage with approximately 48 customer spaces and a further two display spaces on brick paviours flanking the showroom entrance. There are two disabled car parking spaces and some 32 marked external display spaces. A large part of the car park is not marked out but utilised for display spaces. To the rear of the property on the lower level, there are car parking spaces for approximately 60 vehicles. There is a secure compound to the south of the site used for staff car parking with 27 marked bays. There is a secure yard to the north of the site utilised by the tenant which lies outside of the demise of the subject property. We understand this site is owned by the tenant.
We have measured the property in accordance with the RICS Code of Measuring Practice (Sixth Edition) to provide the following approximate gross internal areas (GIA): SQ M SQ FT Ground Floor Showroom 523 5,613 Workshop 517 5,553 Workshop Office 33 359 Office 51 548 Parts 74 792 Ancillary 108 1,160 1,306 14,025 First Floor Offices 238 2,555 Ancillary 131 1,407 Parts Mezzanine 73 784 Mezzanine 57 612 499 5,358 Lower Ground Floor Workshop 905 9,712 Open Fronted Wash Bay 79 851 Workshop (valeting) 444 4,767 Warehouse (car storage) 615 6,603 2,043 21,934 Total 3,848 41,316
The property has an approximate site area of 2.42 acres (0.98 hectares) with a low site coverage of approximately 16%. The property is a virtual Freehold, let on a lease of 999 years at a rent of 10 per annum. The property is let to Goodman Retail Limited, guaranteed by Volkswagen Group United Kingdom Limited, on a full repairing and insuring lease for a term of 20 years from 21 December 2004. The passing rent is 405,000 per annum and is subject to review on every fifth anniversary of lease commencement, upwards only, to open market rental value. Covenant Information Goodman Retail Limited (Tenant) The property is let in its entirety to Goodman Retail Limited (company number 3097514). Goodman Retail Limited is a subsidiary of Sytner Group, the UK s largest Prestige Motor Dealer, founded in 1968. For the financial year ending December 2015, the tenant company (Goodman Retail Limited) reported a turnover of 840,424,000 and a pre tax profit of 17,497,000. The tenant has a Dun and Bradstreet rating of 4A2. Goodman Retail Limited s latest published accounting information is as follows: Volkswagen Group United Kingdom Limited (Guarantor) Volkswagen Group United Kingdom Limited (company number 514809) has a Dun and Bradstreet rating of 5A1 indicating a financial strength of 35+ million and a minimum risk of business failure. Volkswagen Group United Kingdom Limited s latest published accounting information is as follows:- Financial Year End 31 Dec 2015 31 Dec 2014 31 Dec 2013 Financial Year End 31 Dec 2015 31 Dec 2014 31 Dec 2013 Sales Turnover 840,424,000 781,224,000 575,956,000 Profit / Loss Before Taxes Tangible Net Worth 17,497,000 16,851,000 11,161,000 28,482,000 16,799,000 19,565,000 Sales Turnover 9,430,300,000 8,868,400,000 7,619,500,000 Profit / Loss Before Taxes Tangible Net Worth 158,600,000 154,700,000 130,000,000 709,400,000 725,300,000 699,800,000
UK Automotive Industry: Occupational Manufacturers and dealer network groups alike continue to improve their portfolios through redevelopment and relocation. Dealers are under increasing pressure to upgrade their portfolios to comply with the manufacturers corporate image requirements and accommodate increasingly larger model ranges. This is certainly fuelling relocations and significant inward investment into upgrading existing facilities. We therefore anticipate continuing strong occupier demand for well-located modern units in key strategic territories. According to the Society of Motor Manufacturers and Traders (SMMT), UK new car registrations in 2016 was in excess of 2.69 million units, (a year on year increase of 2.25%) following five years of consecutive growth, maintaining record levels post referendum. Volkswagen have two best sellers within the top ten of new car registrations in 2016. UK Automotive Industry: Investment The UK and European dealership investment market remains strong for prime assets. Institutional and private equity firms demonstrated a strong appetite to invest in the sector, attracted by the secure income profiles with long leases let to manufacturers or dealer network groups, together with the prevalence of guaranteed rental uplifts in many leases. Manufacturers and dealer network groups continue to drive yields on prime stock achieving Net Initial Yields of sub 4.5% for best in class. In many instances, recent transactions have attracted strong interest resulting in purchase prices ahead of asking levels. With the limited supply of stock currently available, the market is forecast to sustain the strong investor demand, from both experienced institutions and private equity, together with new investors diversifying from other sectors. We set out recent comparable investment transactions below: Date Tenant (Guarantor) Feb-17 Lexus, Leicester Sytner Properties Ltd (Sytner Group Ltd) Term Certain (years) Price Net Initial Yield 6 3,750,000 6.68% Dec-16 VW, Redditch Volkswagen Group UK Ltd 9 3,230,000 6.01% Oct-16 Kia, Solihull Allen Ford (UK) Ltd 4 1,875,000 7.28% Sep-16 BMW & Volvo, Warwick Sytner Group Ltd 6 8,900,000 6.79% Apr-16 Vauxhall, York Pendragon PLC 5 2,350,000 6.50% Mar-16 Tesla, Stockport Tesla Motors Ltd 5 1,858,000 7.09%
VAT EPC The property has been elected for VAT and it is anticipated that the transaction will be treated as a Transfer Of a Going Concern (TOGC). An Energy Performance Certificate for the property is available upon request. We are instructed to seek offers in excess of 6,000,000 (Six Million Pounds). A purchase at this level would reflect a Net Initial Yield of 6.33%, assuming purchaser s costs of 6.63%. Further Information For further information or to arrange an inspection, please contact: Rebecca James 020 7255 8040 rebecca.james@rapleys.com Rick McIntosh-Whyte 020 7255 8064 rick.mcintosh-whyte@rapleys.com Martin Carey 020 7255 8085 martin.carey@rapleys.com Rapleys LLP is registered as a Limited Liability Partnership in England and Wales. Registration No: OC308311. Registered Office at Falcon Road, Hinchingbrooke Business Park, HUNTINGDON PE29 6FG. A full list of Members is available on our website or at any of our offices during normal business hours. Rapleys LLP operates an Environmental Management System which complies with the requirements of ISO 14001:2004. Regulated by RICS. Any maps are for identification purposes only and should not be relied upon for accuracy. Reproduced by permission of Geographers A-Z Map Co. Ltd. Licence No. A0203. This product includes mapping data licensed from Ordnance Survey - Crown Copyright 2001. Licence No. 100017302 and Crown Copyright. All rights reserved. Licence No. ES 100004619. Misrepresentation Act: These particulars are produced in good faith and believed to be correct. Neither Rapleys, their joint agents (where applicable) or their client guarantees their accuracy and they are not intended to form any part of a contract. No person in the employment of Rapleys or their joint agents has authority to give any representation or warranty in respect of this property. All prices or rents are quoted exclusive of VAT. March 2017. Design by carve-design.co.uk 12880