FOR SALE CAR SHOWROOM INVESTMENT. Imperial Cars Cardiff 232 Penarth Road, Cardiff CF11 8FR 17,785 sq ft (1,652 sq m) ON 1.61 ACRES (0.

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1 FOR SALE CAR SHOWROOM INVESTMENT Imperial Cars Cardiff 232 Penarth Road, Cardiff CF11 8FR 17,785 sq ft (1,652 sq m) ON 1.61 ACRES (0.65 HA) 1

Investment Summary Location Prime Pitch located at the pivotal junction along Cardiff s motor alley Cardiff is the capital, largest city and principle commercial area in Wales.

2 Investment Summary Location Prime Pitch located at the pivotal junction along Cardiff s motor alley Cardiff is the capital, largest city and principle commercial area in Wales. Consequently, Cardiff is the home to most Welsh national institutions and the seat of the National Assembly for Wales. Pre-eminent location at the traffic lights junction of Penarth Road and Hadfield Road with 71% of the UK s new car sales franchises represented within 1 mile Cardiff has a primary population catchment of nearly 1.26 million, while at the time of the 2011 census the population of the Cardiff Built Up Area was estimated to be 447,287. Cardiff is a popular tourist location and attracted 21.3 million visitors during Let to the UK s Second largest car dealer and under-let to Imperial Cars Limited Rental income of 277,195 ( psf overall) 5 yearly Rent Reviews in an upward only direction with the next review in December years unexpired term Cardiff is situated 25.5 miles (41.11 km) West of Bristol and 34.4 miles (55.2 km) East of Swansea. Cardiff Airport provides both domestic and international air travel options, and Cardiff central railway station caters for some 12.5 million passengers per annum providing direct services to Wrexham, Holyhead, Bristol, Birmingham, Manchester and London. While the M4 connects Cardiff to Swansea to the west and with Bristol and London to the East. Situation The dealership housing Imperial Car Supermarket is positioned at the epicentre of Cardiff s primary motor retail location with excellent visibility opposite a recently refurbished Honda and next to Toyota, and a newly constructed Lexus dealership. Nearby dealerships include Jaguar Land Rover, Maserati, Hyundai, Volvo, Fiat & Abarth, and a local used car dealer Ron Skinner & Sons. Also, represented in close vicinity are Mazda, Nissan, Mini, Seat, Suzuki, Mitsubishi, Ford, Vauxhall, and Porsche. A new BMW dealership is planned for Penarth Road, on a site next to Ford. The premises are situated at the busy traffic light junction of Penarth Road and Hadfield Road. The dealership fronts onto both and is located approximately 2.1 miles South of Cardiff town centre. 2

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4 Description The property comprises a purpose-built dealership erected in 1999 providing showroom, offices and external car parking. Tenancy The property is leased to Pendragon Property Holdings Limited with a guarantee from Pendragon PLC on a 20-year lease from 20th December 2004 on a full repairing and insuring basis. The lease is subject to 5 yearly reviews to market value in an upward only direction. The current passing rent is 277,195, and is subject to a review in December 2019, current unexpired term of 6.2 years. The property has been underlet to Imperial Cars of Swanwick Limited guaranteed by Imperial Car Supermarkets Ltd for the remainder of the head lease with effect from 10 December 2018, following the principal terms of the head lease. The under-lease is subject to 6 months rent free, and a starting rent of 230,000 per annum. The sub lease will be outside the security of tenure provisions of the landlord and Tenant Act N Accommodation The property comprises the following approximate Gross Internal Areas: SQ FT SQ M Showroom 4, Parts 2, Stair (Rear of Parts) Offices Workshop 5, Workshop, Ancillary, Canteen & WC Valet Bays 1, First floor Mezzanine Offices 1, Corridor Office Ancillary Storage Deck TOTAL 17,785 1,652.0 Parking 1.61 acres (0.65 hectares) Prime Display 19 Canopy Display 12 Secondary Display 24 Storage/Display 46 Customer 18 General 5 Storage 63 Total 119 The property sits on a site of 1.61 acres (0.65 hectares) and produces a site density of 25%. 4

The group has two key brands: Strastone (providing Luxury cars and motorcycles) and Evans Halshaw. Evans Halshaw is the largest volume car retailer in the UK.

5 Covenant Summary Pendragon Property Holdings Limited is a subsidiary of Pendragon Plc- the second largest automotive retailer in the UK. The company operates 211 franchised motor dealers in the United Kingdom with international outlets in the United Staets and is listed on the FTSE 250. The group has two key brands: Strastone (providing Luxury cars and motorcycles) and Evans Halshaw. Evans Halshaw is the largest volume car retailer in the UK. Pendragon Property holdings Limited provides properties for Pendragon PLC motor dealerships and their parts distribution business. Pendragon Property Holdings Limited has a D&B rating of 2A1 meaning it represents a minimum risk of business failure (December 2018). Pendragon Property Holdings Limited Turnover Profit / (Loss) before tax ( 1,815,000) ( 1,594,000) 5,421,000 Tangible Net Worth 1,846,000 1,344,000 2,087,000 Pendragon PLC has a D&B rating of 5A1 meaning it represents a minimum risk of business failure. (September 2018). Pendragon PLC Turnover 4,453,900,000 4,537,000,000 4,739,100,000 Profit / (Loss) before tax 79,000,000 73,000,000 65,300,000 Tangible Net Worth 28,500,000 10,600,000 56,700,000 Imperial Cars of Swanwick Limited has a D&B rating of 2A2 meaning it represents a lower than average risk of business failure (July 2018). Imperial Cars of Swanwick Limited Turnover 107,413, ,617, ,426,000 Profit / (Loss) before tax ( 128,000) 443,000 2,808,000 Tangible Net Worth 958, ,000 2,093,000 Imperial Car Supermarket Limited has a D&B rating of 2A2 meaning it represents a lower than average risk of business failure (July 2018). Imperial Car Supermarket Limited Turnover 88,652, ,617, ,426,000 Profit / (Loss) before tax ( 112,000) 700,000 3,109,000 Tangible Net Worth 1,173,000 1,334,000 4,769,000 5

6 Automotive 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. The 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 Motor Retail 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. 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. The car dealership sector is experiencing rapidly evolving changes in the provision of mobility services, and whilst 2018 saw a 6.9% decline in new car sales compared to 2017 to 2.436m units these figures should be compared alongside the 10 year annual average of 2.345m new vehicle sales. The 2018 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. The near 30% decline in diesel vehicle sales YTD 2018 has taken another hit from the impact of the introduction in September of the WLTP regulations ( real world emissions tests ). It is important to separate the cyclical from the structural. The cyclical issues such as new car sales numbers or consumer confidence is not the real story, instead it is the more fundamental structural changes that are feeding into the motor market, these are the changes that will determine the future shape of the market. Electric cars, autonomous driving and subscription services are ultimately going to have a more farreaching impact than cyclical new car sales figures. The surge of regulatory and technical innovation is starting to shape the evolving new form of the car and mobility business. As with any structural changes there are pains and this is currently expressing itself as a supply side squeeze; the car manufacturers are simply not tooled up to build in short order the new cars that government and consumers desire. It is difficult for manufacturers to change plants over to EV manufacture, same too for suppliers, and it will take time. Dealers are left in the short term with limited new car stock to sell, a situation not seen for decades, and so are focusing on 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. Meanwhile, the nationwide nature of Motor Retail Investment offers Investors exposure to the burgeoning Alternatives sector, risk divergence and the benefit of enhanced dealer profitability from lower cost areas. A distinctive trend has been the recognition by investors of the worth of a strong dealer covenant supported by a top-rated brand. Thus, the Motor Retail Investment sector remains dynamic and offers Investors sustaining long term income and capital growth fundamentals. Rateable Value We are advised that the property is assessed in the 2017 Valuation List as Car Showroom & Premises. Rateable Value 159,000. 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 70. VAT The property has been elected for VAT and it is anticipated that it will be sold by way of a Transfer of Going Concern. Proposal We have been instructed to seek offers of 3,690,000 (Three Million Six Hundred and Ninety 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 7.00%. 6

A48M TO SWANSEA 33 M4 32 TO NEWPORT & BRISTOL A470 NORTHERN AVE A48 A48 EASTERN AVE TO M4, NEWPORT & BRISTOL TO M4 J33 B4267 232 Penarth Road, Cardiff South Glamorgan, CF11 8FR CAPITAL SHOPPING PARK

HADFIELD RD FLEET WAY A4160 PENARTH RD GRANGETOWN A4160 GRANGETOWN FERRY RD OWN LINK Further Information Viewing strictly by prior arrangement.

7 A48M TO SWANSEA 33 M4 32 TO NEWPORT & BRISTOL A470 NORTHERN AVE A48 A48 EASTERN AVE TO M4, NEWPORT & BRISTOL TO M4 J33 B Penarth Road, Cardiff South Glamorgan, CF11 8FR CAPITAL SHOPPING PARK CARDIFF CITY FOOTBALL CLUB SLOPER RD A48 HADFIELD RD A48 A4161 LANSDOWNE RD HADFIELD RD GRANGET SLOPER RD A4161 NINIAN PARK CLIVE ST CARDIFF A4160 A4161 CARDIFF BAY GRANGETOWN LINK BESSEMER RD HADFIELD RD FLEET WAY A4160 PENARTH RD GRANGETOWN A4160 GRANGETOWN FERRY RD OWN LINK Further Information Viewing strictly by prior arrangement. For further information please contact either: BILL BEXSON DD: M: E: EDDIE HIGHNAM M: E: 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