FOR SALE CAR DEALERSHIP INVESTMENT. 12,535 sq ft (1,165 sq m) ON 1.41 ACRES (0.57 HA)

Size: px

Start display at page:

Download "FOR SALE CAR DEALERSHIP INVESTMENT. 12,535 sq ft (1,165 sq m) ON 1.41 ACRES (0.57 HA)"

Joseph Spencer
5 years ago
Views:

1 FOR SALE CAR DEALERSHIP INVESTMENT West Way Nissan, Brettell Lane Brierly Hill, Stourbridge, DY5 3LS 12,535 sq ft (1,165 sq m) ON 1.41 ACRES (0.57 HA) 1

9m within a 45 minute drive. Totaling 12,535 sq ft (1,165 sq m), on a site area of 1.41 acres (0.57 hectares) representing only 20% site density.

2 Investment Summary Location Modern dealership fronting the A461 Brettell Lane, located between Stourbridge and Merry Hill Centre. Stourbridge is located 12 miles south west of Birmingham,and has a population of 55,480 which extends to 443,949 within 10km of the town centre. The nearby Merry Hill Centre boasts a catchment of 2.9m within a 45 minute drive. Totaling 12,535 sq ft (1,165 sq m), on a site area of 1.41 acres (0.57 hectares) representing only 20% site density. New Lease to Nissan Motor (GB) Limited (D&B 5A1) for a term of 20 years at a starting rent of 145,000 per annum ( psf overall). 5 yearly rent reviews to RPI collared and capped at 1.0% p.a. 4.0% p.a. respectively. The area is well connected by road and is served by the A449, A491, A456 and the A458. The is situated 5.8 miles (9.3 km) to the East which provides access via junction 3 & 4 to the wider UK motorway network. The dealership is located fronting Brettell Lane, approximately 1.8 miles to the north east of Stourbridge town center. The property is mainly surrounded by residential housing to the north and west with Stourbridge canal running to the east of the dealership. To the rear is a wooded area. Other dealerships along Brettell lane include Toyota and Fiat. Volkswagen, Peugeot, Kia, Vauxhall, Land Rover, Honda, are all located in Stourbridge. Price 2,700,000 (5.00% NIY assuming Purchasers costs of 7.8%) 2

>> TO DUDLEY & J2 Description The property comprises a recently refurbished

valeting, along with both canopy vehicle display, and external car parking.

eastern elevations, providing 12,535 sq ft (1,165 sq m) on a site area of 1.

3 >> TO DUDLEY & J2 Description The property comprises a recently refurbished Nissan car showroom, containing showroom, offices, workshop, parts and valeting, along with both canopy vehicle display, and external car parking. The property has a glazed frontage and glazed return to the western and eastern elevations, providing 12,535 sq ft (1,165 sq m) on a site area of 1.41 acres (0.57 hectares). A461 BRETTELL LANE Tenure Freehold. TO STOURBRIDGE >> 3

Accommodation The property comprises the following approximate Gross Internal Areas: SQ FT SQ M Showroom 3,323 308.7 Showroom (Lower Height) 346 32.2 Offices 668 62.1 Ancillary 264 24.

4 Accommodation The property comprises the following approximate Gross Internal Areas: SQ FT SQ M Showroom 3, Showroom (Lower Height) Offices Ancillary Workshop 4, Workshop Ancillary Workshop Control Offices/Parts Valeting Bay 1, First Floor Parts Mezzanine 1, TOTAL GIA 12,535 1,165 Parking Display Parking 60 Canopy Display Parking 16 Customer Parking 20 Rear Parking 26 Rear Compound Area Parking 51 TOTAL 173 The property sits on a site of 1.41 acres (0.57 hectares) representing 20% site density. N 1.41 acres (0.57 hectares) 4

TO STOURBRIDGE >> TO DUDLEY & J2 A461 BRETTELL LANE >> Tenancy The property is to be let to Nissan Motor (GB) Limited on full repairing and insuring lease for a

The lease will be subject to 5 yearly rent reviews to RPI collared and capped at 1.0% to 4.0% per annum compounded respectively.

Planning The site is located in a regeneration corridor identified in the Dudley Borough Strategy 2017, this follows through from the Joint Black Country Core

5 TO STOURBRIDGE >> TO DUDLEY & J2 A461 BRETTELL LANE >> Tenancy The property is to be let to Nissan Motor (GB) Limited on full repairing and insuring lease for a term of 20 years commencing from completion of the lease at a starting rent of 145,000 per annum ( psf overall). The lease will be subject to 5 yearly rent reviews to RPI collared and capped at 1.0% to 4.0% per annum compounded respectively. The premises are to be underlet to Aprite (GB) Limited trading as West Way, who will operate the Nissan Business. Aprite are a wholly owned subsidiary of Nissan. Planning The site is located in a regeneration corridor identified in the Dudley Borough Strategy 2017, this follows through from the Joint Black Country Core Strategy. Whilst the site currently has no specific allocation, within the regeneration corridor the main focus of development is for housing and along the canal network is specifically identified as a suitable location for housing. 5

6 Covenant Nissan Motor Company Limited manufacture vehicles in 20 countries and offers products and services in 160 countries. Nissan was founded in 1933, headquartered in Yokohama Japan, and is part of the wider Nissan, Renault and Mitsubishi Alliance, which also includes Infiniti, Renault Samsung Motors, Dacia, Alpine, Datsun, Venuia and Lada. As a whole this alliance employs c.450,000 people and is responsible for approximately 1 in 10 cars sold worldwide. This alliance is a strategic partnership that allows each participant to benefit from lower costs though economies of scale and increased synergy. As a group, Nissan, Renault, Mitsubishi are the world s second highest selling motor vehicle manufacturer selling c million vehicles in 2017 (behind only Volkswagen). In the UK, Nissan had a 2018 market share of 4.34%, while the Nissan Qashqai was the 4th best-selling car in the UK Nissan foresaw the movement of the public sentiment away from conventionally fuelled vehicles (CFVs) towards AFVs and EVs, and was therefore able to gain first mover advantage and a significant foothold in this sector. Consequently, Nissan are seen by many as leading the high volume zero-emissions car market. As far back as 2010 Nissan introduced the Nissan Leaf, the world s first mass-market all electric vehicle. In the UK Nissan products and service are distributed by a franchised dealer network made up of 191 dealerships. Nissan Motor (GB) Limited has a Dun & Bradstreet rating of 5A1 (October 2018) meaning it represents a minimum risk of business failure. A Financial Summary for Nissan Motor (GB) Limited is set out below: Nissan Motor (GB) Limited Turnover 2,054,608,000 2,277,292,000 2,507,828,000 Profit / (Loss) before tax 28,674,000 28,282,000 26,156,000 Tangible Net Worth 124,011, ,027, ,895,000 Net Current Assets (Liabilities) 118,955, ,202, ,591,000 6

Automotive Investment Market Commentary 2018 has witnessed further evidence of evolution in the motoring world, increasingly fast-paced technological innovation and reshaping consumer sentiment,

7 Automotive Investment Market Commentary 2018 has witnessed further evidence of evolution in the motoring world, increasingly fast-paced technological innovation and reshaping consumer sentiment, influenced by government policy, are combining to move the sector forward. This gradual paradigm shift brings with it an opportunity for Investors, alert to the potential value of Alternative income streams. This gradual re-orientation of the car dealership sector means it is a good time to invest in the sector. Amidst all this activity the car dealership remains central to the delivery of this evolving product package. This is because, far from being a threat, new technologies such as Electric Vehicles (EVs) are an opportunity for dealers. Just as the Car Dealership sector represents a chance for investors to diversify their income, the new technology and ownership structures offer a unique chance for dealers to innovate, diversify and incrementally increase revenue. The latest new car sales figures highlight the wave of structural change enveloping the car industry as the undercurrent of a shift to electric vehicles (EVs) and Alternatively Fueled Vehicles (AFVs) alongside the rapid technological innovation introduces easier access to car sharing and semi-autonomous driving takes hold. Personal mobility will remain of upmost importance to people, and the car will remain the principle way in which people move. Whether it be new cars, used cars, electric cars, car sharing, subscription services, ride hailing, or indeed autonomous driving vehicles, someone has to own them, service them, insure them, and replace them. Manufacturers will need a dealer network to supply their vehicles, premises are needed to service them, and property is needed to serve the used car market. Other retailing models will support this core market footprint. There is potential for asset value growth being released by the rapidly evolving changes in mobility, and whilst 2018 saw a 6.8% decline in new car sales compared to 2017 to 2.367m units these figures should be compared alongside the 10 year annual average of 2.345m new vehicle sales. In comparison in the first 9 months of 2018 there were 6.18m used cars sold with demand outstripping supply and representing a much more modest 2.1% dip on 2017 sales (source-smmt). Overall used car sales are expected to top 8m for 2018, representing over 3 times the new car sales level, and providing much greater profitability to dealers than new car sales. An exciting array of technological developments leading to improved vehicle connectivity, enhanced autonomy communicating with smart roads, car sharing and subscription services delivered by mobile phone apps, and more electric vehicles with ever greater ranges supported by a dynamic charging infrastructure everywhere is on the horizon. Most manufacturers are targeting to achieve 25% of new car sales being electric, enhanced by fully loaded techpacks, such as auto parking, lane recognition autonomy, and multi-app connectivity. The surge of regulatory and technical innovation is starting to shape the evolving new form of the car and mobility business. Car manufacturers are retooling to build in short order the new cars that government and consumers desire, and meantime dealers are mining other revenue streams, used cars and servicing in particular, pending the arrival shortly of a flurry of new technically enhanced connected vehicles aligned with consumer taste and regulatory requirements. The nationwide nature of Car Dealership Investment offers Investors exposure to the burgeoning Alternatives sector. A distinctive trend has been the recognition by investors of the worth of a strong covenant, the extended range of dealer income and profit streams, supported by a top-rated brand. Thus, the Car Dealership Investment sector remains dynamic and offers Investors sustainable long term income and capital growth fundamentals. 7

EPC C 67. VAT The property has been elected for VAT.

8 Rateable Value We are advised that the property is assessed in the 2017 Valuation List as Car Showroom & Premises. Rateable Value 98,000. Interested parties are advised to make their own enquiries to the local authority regarding the rates liability and any relief that may be available. EPC C 67. VAT The property has been elected for VAT. Proposal We have been instructed to seek offers of 2,700,000 (Two Million Seven Hundred Thousand Pounds) for our Client s Freehold interest, subject to contract and exclusive of VAT. A purchase at this level reflects an initial yield of 5.00% (assuming costs at 7.8%). 8

3 Wetherspoon e Abraham Darby ore TSB L1/2 d L16A 6 Key Entrance Lifts Stairs As at 8 January 2016 Car park Escalators Toilets A458 A491 HIGH ST A4102 A491 HAGLEY RD A45 6 KIDDERMINSTER RD BRETTEL L

9 3 Wetherspoon e Abraham Darby ore TSB L1/2 d L16A 6 Key Entrance Lifts Stairs As at 8 January 2016 Car park Escalators Toilets A458 A491 HIGH ST A4102 A491 HAGLEY RD A45 6 KIDDERMINSTER RD BRETTEL L LANE A458 A491 A4036 PEDMORE RD LEVEL ST B4172 A4100 A4036 A456 MERRY HILL A491 STO URBRIDGE RD A458 HAGLEY RD Merry Hill Shopping Centre West Way Nissan Brettell Lane Brierly Hill, Stourbridge, DY5 3LS THE HAYE S A456 MAN OR WAY A A456 A4123 A456 TO SHREWSBURY A449 4 A449 A5 A449 A449 A A A454 A4123 A5 10a M6 WOLVERHAMPTON STOURBRIDGE A M6 A5 WEST BROMWICH A458 A458 3 A4036 A38 A M6 TOLL WALSALL BIRMINGHAM A456 A441 A435 A452 M6 A5 A34 5 A38 M6 TOLL A45 A453 A446 M6 M42 7a 7 6 M42 9 A446 KIDDERMINSTER 4 A38 4 M M42 3a A491 4 TO WORCESTER & GLOUCESTER TO OXFORD M40 Further Information Viewing strictly by prior arrangement. For further information please contact either: BILL BEXSON DD: M: E: bbexson@automotive-property.com EDDIE HIGHNAM M: E: ehighnam@automotive-property.com IMPORTANT NOTICE Automotive Property Consultancy Ltd for themselves and for the Vendors of this property, whose agents they are, give notice that: The particulars are intended to give a fair and substantially correct overall description for the guidance of the intending purchasers and do not constitute part of an offer or contract. Prospective purchasers and lessees ought to seek their own professional advice. All descriptions, dimensions, areas, reference to condition and necessary permission for use and occupation and other details are in good faith, and are believed to be correct, but any purchaser should not rely upon them as statement of fact. No person in the employment of Automotive Property Consultancy Ltd has authority to give any representation or warranty whatsoever in relation to this property on behalf of either Automotive Property Consultancy or the Vendor No responsibility can be accepted for any expenses incurred by intending purchasers in inspecting properties which have been sold, let or withdrawn. January

FOR SALE CAR SHOWROOM INVESTMENT

FOR SALE CAR SHOWROOM INVESTMENT Hendy Honda, Clement Attlee Way North Harbour, Portsmouth Hampshire PO6 4SR Investment Summary Prime modern car dealership comprising 12,056 sq ft (1,120 sq m) on 1.25