AUTOMOTIVE INVEMENT PORTFOLIO THREE RATEGICALLY LOCATED TOYOTA DEALERSHIPS / / I N V E S T M E N T S U M M A RY / / S TO C K P O RT / / R O C H DA LE / / B O LTO N / / C OV E N A N T A N A LYS I S / / M A R K E T S U M M A RY PROPOSAL ENTER / / C O N TAC TS
TH R E E R AT E GI CA LLY LOCAT ED TOYOTA D E A L E R S H I P S HOME PREON 6 BLACKBURN LEYLAND 9 2 3 RAWTENALL DARWEN 28 25 8 M6 1 WIGAN 5 A portfolio of three strategically located Toyota dealerships in the north west. 17 2 15 WALKDEN 12 1 11 M62 HELENS 21a 10 MANCHEER ECCLES M60 11 24 1a 3a M56 10 Property Sq Ft Initial Rent (PA) Overall Rent Per Sq Ft Stockport 21,183 380,000 17.94 Rochdale 12,072 165,000 13.66 Bolton 18,926 260,000 13.74 4 25 6 8 20a 9 M67 HYDE 7 ALTRINCHAM 20 M60 23 3 5 5 4 1 3 M60 1 27 (SK1 4AH) MANCHEER AIRPORT CALETON WILMSLOW 12 Properties for sale as a package or separately. 19 NORTHWICH << BACK 22 9 A ggregate portfolio rent of 805,000 (EIGHT WARRINGTON HUNDRED AND FIVE THOUSAND POUNDS) per annum. O ffers sought in the region of 15 Million which provides an initial yield of 5% after deducting RUNCORN purchasers costs of 6.73%. 11 2 HOLMFIRTH OLDHAM 21 (OL11 2PD) DENSHAW A627(M) 19 SALFORD 25 A ll properties are let to RRG Group Limited with 24 Marubeni Auto Investments (UK) Limited actingm6 23 as guarantor. 22 20 4 18 3 26 L eases provide for 5-year rent increases in line with 9 RPI collared and capped at 2% and 3.5%. 21 2 6 HUDDERSFIELD BURY M61 24 22 M66 (BL2 2BN) Each property is subject to a new 20 Year FRI lease. 23 M62 CHORLEY 27 2 HALIFAX M65 4 PROPOSAL & FURTHER INFORMATION M606 HEBDEN BRIDGE 30 29 1 MARKET SUMMERY KNUTSFORD MACCLESFIELD M6 BUXTON NEXT >>
TH R E E R AT E GI CA LLY LOCAT ED TOYOTA D E A L E R S H I P S HOME MARKET SUMMERY PROPOSAL & FURTHER INFORMATION TOYOTA MARYS WAY, CHESHIRE, SK1 4AH R ecently upgraded motor dealership of 21,183 Sq Ft (1,967.96 Sq M). L arge site of 2.81 acres providing a low site coverage of 15%. H igh profile position in established motor dealership location. R ent 380,000 per annum equating to 17.94 per Sq Ft. 5 yearly RPI indexed linked rental uplifts, collared and capped at 2% - 3.5% per annum compounded. << BACK S W AY MARY NEXT >>
TH R E E R AT E GI CA LLY LOCAT ED TOYOTA D E A L E R S H I P S HOME MARKET SUMMERY PROPOSAL & FURTHER INFORMATION TOYOTA MARYS WAY, CHESHIRE, SK1 4AH LO CAT I ON OT WAY TIVI L MO NT W A BE A5 1 N RD S HA LL GR EE K.M L LEY RD ICAN MER H TH EA E EDG AW SH RD WA Y RE ET AR YS W AY TRAIN ATION O M ES The property comprises a purpose-built motor dealership premises and a modern detached body shop. A large full height glazed showroom finished to Toyota s latest CI standards, offers extensive profile to St Marys Way and accommodates 18 display vehicles. A suite of offices, customer waiting area and ancillary facilities are set at the rear of the showroom. The workshop lies beyond and provides 15 ramped service bays in an open plan arrangement with independently accessed valet bays. WOODBANK PARK O W DES CR I P T I O N A 5 1 45 A560 P O RT R D W GT 60 A5 60 A5145 D O CK W LLIN WE DS BU RY R RD RT PO K OC Y DI T KING S The surrounding area is characterised by established, franchised motor dealership premises. Occupiers in the immediate vicinity include; Lamborghini, Citroen, Seat, Kia, Renault, Skoda and Nissan with Volvo and Jaguar Land Rover, sitting adjacent to the Peel Centre Retail Park and Tesco Extra at Junction 27. M60 27 MARYS WA. The premises are in a highly prominent location with extensive frontage to St Marys Way, Stockport s established motor dealership destination, approximately 1 mile south to junction 27 of the M60 motorway, which offers links to the M56, M6 and wider north west motorway network. Y SHIRE HILL NCA LA Stockport is a large town in Greater Manchester approximately 7 miles south east of Manchester city centre, with a population of 284,500. 60 A5 The first floor includes additional offices, ancillary staff facilities and parts storage. At the rear of the dealership is a separate steel portal frame body shop and large vehicle compound. << BACK NEXT >>
THREE RATEGICALLY LOCATED TOYOTA DEALERSHIPS HOME MARKET SUMMERY PROPOSAL & FURTHER INFORMATION TOYOTA MARYS WAY, CHESHIRE, SK1 4AH ACCOMMODATION Sq M Sq Ft TENURE Ground Floor Showroom 740.76 7,974 Offices 49.44 532 Workshop 660.96 7,115 Parts 80.29 864 Valet Bay 88.73 955 Ancillary 48.77 525 Sub Total 1,668.95 17,965 First Floor Freehold. SITE AREA The site extends to 2.81 acres (1.138 hectares) providing substantial hard standing parking facilities and a low site density of 15%. The area coloured green is excluded from the Title. Offices 87.82 945 Parts 59.49 640 Staff Facilities 64.28 692 Ancillary 87.42 941 Sub Total 299.01 3,218 Total 1,967.96 21,183 Used car parking: 83 Other parking: 177
TH R E E R AT E GI CA LLY LOCAT ED TOYOTA D E A L E R S H I P S HOME MARKET SUMMERY PROPOSAL & FURTHER INFORMATION TOYOTA EDINBURGH WAY, LANCASHIRE, OL11 2PD H ighly prominent dealership on principal arterial route. 36,000 daily vehicle movements. E xtending to 12,072 Sq Ft (1,121.55 Sq M) on a site of 1.60 acres. K ey retail location close to Sandbrook Retail Park. R ent 165,000 per annum equating to 13.66 per Sq Ft. 5 yearly RPI indexed linked rental uplifts, collared and capped at 2% - 3.5% per annum compounded. << BACK ED U INB RG H W 66 - A AY 4 NEXT >>
THREE RATEGICALLY LOCATED TOYOTA DEALERSHIPS HOME MARKET SUMMERY PROPOSAL & FURTHER INFORMATION TOYOTA EDINBURGH WAY, LANCASHIRE, OL11 2PD MELLOR LOCATION Rochdale is a town to the north east of Greater Manchester, located at the foothills of the South Pennines, 5 miles north west of Oldham and 10 miles north east of Manchester. In 2011 It had a population of 211,699. TRAIN ATION A6193 RD B6222 ROCH VALLEY RD MANCHEER RD DRAKE MILNROW RD E KI LN LAN Located in a highly prominent position, Edinburgh Way is a principal arterial road linking the A627(M) and Junction 20 of the M62 to Rochdale centre. With circa 36,000 vehicles passing the site daily the property is strategically positioned next to Sandbrook Retail Park and 1.5 miles west of Rochdale town centre. The surrounding area is a mix of established retail and franchised motor dealerships premises, where occupiers include: - Peugeot (adjacent), Vauxhall, BMW, Honda and Fiat. A58 MANCHEER RD CALETON TRAIN ATION A664 A664 A627(M) QUEENSWAY OLDHAM RD NEW BROA D RD M62 RD 21 NEWHEY RD DESCRIPTION 20 OLDHAM RD The property comprises a purpose-built motor dealership premises. It provides a modern showroom finished to Toyota s latest CI standards, and room to display 6 vehicles. A suite of offices, customer waiting area and ancillary facilities are set at the rear of the showroom. The workshop lies beyond and provides 9 ramped service bays and a separate valet bay at the rear of the site. M62 SHAW R D THORNHAM RD The first floor includes additional offices, ancillary staff facilities, parts and archive storage.
THREE RATEGICALLY LOCATED TOYOTA DEALERSHIPS HOME MARKET SUMMERY PROPOSAL & FURTHER INFORMATION TOYOTA EDINBURGH WAY, LANCASHIRE, OL11 2PD ACCOMMODATION Sq M Sq Ft TENURE Ground Floor Showroom 309.61 3,333 Offices 81.61 878 Workshop 316.17 3,403 Parts 69.97 753 Valet 37.82 407 Ancillary 14.46 156 Sub Total 829.64 8,930 First Floor Offices 58.24 627 Parts 76.61 825 Staff Facilities 41.10 442 Ancillary 28.97 312 Archive 86.99 936 Sub Total 291.91 3,142 Freehold. SITE AREA The site extends to 1.60 acres (0.648 hectares) providing a low site density of 13.25%. The land hatched brown is subject to rights of way in favour of adjacent occupiers. Total 1,121.55 12,072 Used Car parking: 52 Other parking: 45
TH R E E R AT E GI CA LLY LOCAT ED TOYOTA D E A L E R S H I P S HOME MARKET SUMMERY PROPOSAL & FURTHER INFORMATION TOYOTA 81 BURY NEW ROAD, GREATER MANCHEER, BL2 2BN K M odern purpose built Toyota dealership developed to latest CI standards. ES TO P rominent position in established automotive location. R R EE T E xtending to 18,926 Sq Ft on a site of 1.67 acres. R ent 260,000 per annum equating to 13.74 per Sq Ft. M UL E 5 years RPI indexed linked rental uplifts, collared and capped at 2% - 3.5% per annum compounded. RE ET << BACK R BU E Y N W RO AD NEXT >>
TH R E E R AT E GI CA LLY LOCAT ED TOYOTA D E A L E R S H I P S HOME MARKET SUMMERY PROPOSAL & FURTHER INFORMATION TOYOTA 81 BURY NEW ROAD, GREATER MANCHEER, BL2 2BN A CHORLEY O LD CHO R LEY N EW RD D S EN EL A RO R EDGE LA LEVER NE PE TE R 53 PLODDER LANE AY SW 60 MAN CHES TER RD D 53 HALL A60 L A NE A A575 AD RO ROA EW YN BUR RD 5 PARK R WAY LEVERHULME PARK TE AD RO B6196 E BURY ROAD N GA WI HE S HE NC MA M61 DES CR I P T I O N 4 M AN C ES TE RR DW H At first floor level additional offices are provided overlooking the showroom with staff and parts storage to the rear. WIN C TRAIN ATION The surrounding area is mixed commercial in nature with several franchised motor dealerships premises, nearby, including Hyundai, Volkswagen, BMW, Nissan, Porsche, Renault, Fiat and Mazda. The property comprises a modern purpose-built motor dealership premises. A large double height glazed showroom, which accommodates display for 10 vehicles. The central core provides customer waiting area and ancillary facilities, and separate offices. To the rear of the central core is an open plan workshop with 16 ramped work bays and integral parts stores. 5 8 CRO MPT O RD LOOCK TRAIN ATION H Located on the A672, Bury New Road, the property lies 0.5 miles west of Bolton town centre. Bury New Road is the principal link route to Bury, 3 miles east, whilst enjoying easy access to the A666 which in turn links to M61 / M60, 3 miles south and Blackburn 14 miles to the north. AY KW AN AY NW 8 MOS S B A5 Bolton is a large town in Greater Manchester, close to the West Pennine Moors, it lies 10 miles north west of Manchester city centre and 5 miles north west of Oldham, with a population in 2011 of 211,700. D URN R BLACKB LO CAT I ON M61 3 The dealership has a low site density of 22.5%, and includes an additional linked vehicle compound of ½ an acre or thereabouts held by RRG on a separate lease. << BACK NEXT >>
THREE RATEGICALLY LOCATED TOYOTA DEALERSHIPS HOME MARKET SUMMERY PROPOSAL & FURTHER INFORMATION TOYOTA 81 BURY NEW ROAD, GREATER MANCHEER, BL2 2BN ACCOMMODATION Sq M Sq Ft TENURE Ground Floor Showroom 395.13 4,253 Offices 107.30 1,155 Workshop 746.73 8,038 Parts 101.38 1,091 Valet 37.82 407 Ancillary 34.72 374 Sub Total 1,423.08 15,318 First Floor Offices 137.46 1,480 Parts 34.31 369 Staff Facilities 86.65 933 Ancillary 76.80 827 Sub Total 335.22 3,608 The premises are held long leasehold under two separate leases. Title No: - MAN38691. A 103-year term from June 2004 on a peppercorn rent, with 90 years remaining to expire 2107. Title No: - MAN36519. A 250-year term, from June 1983 on a peppercorn rent, with 216 years remaining to expire 2233. SITE AREA The site extends to 1.67 acres (0.676 hectares) offering a low site density of 22.5%. The tenant occupies an additional vehicle storage compound of 0.56 acres (0.23 hectares) to the rear of the site under a separate lease. Total 1,758.3 18,926 Used Car parking: 80 Other parking: 88
THREE RATEGICALLY LOCATED TOYOTA DEALERSHIPS HOME MARKET SUMMERY PROPOSAL & FURTHER INFORMATION Tenant and Guarantor The properties are let to RRG Group Limited, which is a Subsidiary of Marubeni Auto Investments (UK) Limited which guarantee the leases. RRG is the 24th largest automotive retailer in the UK (2016). It operates 20 franchised motor dealerships in the United Kingdom with seven key brands: Toyota (11), Lexus (3), Peugeot (2) Nissan, Mazda, Kia and Skoda (1). For the year ending 31st March 2017, the Tenant and Guarantor reported the following financial results ( M): RRG 2014 2015 2016 2017 THE TOYOTA BRAND Toyota has secured the position as top vehicle manufacturer nine times in eleven years. Founded in 1937 in Japan, the Multi National Corporation now produces automobiles under 5 brands, including the luxury brand Lexus. It also earned the position of most valuable car brand worldwide in 2015, with a brand value of US$29.5 billion (GBP 22.0 billion). Toyota has achieved UK sales (To November 2017) of 96,797 (4.05%) which is 5.1% up on 2016 and against a market which is down overall by 5.04%. Turnover 257.2 276.9 287.8 315.6 Profit before tax 3.612 3.561 3.7 4.3 Shareholder s funds 29.9 31.2 29.47 29.7 Marubeni Auto Investments (UK) Limited Turnover 407.8 449.7 477.6 529.6 Profit before tax 3.4 4.0 5.0 6.3 Shareholder s funds 34.2 35.8 33.4 36.4
TH R E E R AT E GI CA LLY LOCAT ED TOYOTA D E A L E R S H I P S HOME MARKET SUMMERY PROPOSAL & FURTHER INFORMATION RRG Key Performance Indicators ( M) % Change 2016 / 2017 Turnover 315.6 +10% 14% -6% Operating profit before Goodwill and amortisation 48.0 +6% Return on sales 1.5% -6% Profit before tax 4.3 +17% 29.7 +1% 4.7-38% Interest Cover (times) 13.7 +67% Gearing being Long term debt as % of Shareholders funds 13% -50% Gross Profit as a % of turnover Shareholders funds Net Interest bearing debt RRG is assessed as having a Dun and Bradstreet Financial Strength rating of 4A based on a minimal (2.0%) risk of failure. << BACK NEXT >>
THREE RATEGICALLY LOCATED TOYOTA DEALERSHIPS HOME MARKET SUMMERY PROPOSAL & FURTHER INFORMATION Marubeni Key performance Indicators ( M) % Change 2016 / 2017 Turnover 529.5 +11% Gross Profit as a % of turnover 12% -8% Operating profit before Goodwill and amortisation 7.5 +11% Return on sales 1.4% -% Profit before tax 6.3 +26% Shareholders funds 36.4 +9% Net Interest bearing debt 10.0-47% Interest Cover (times) 12.1 +38% Gearing being Long term debt as % of Shareholders funds - -100% Marubeni is assessed as having a Dun and Bradstreet Financial Strength rating of 4A based on a minimal (1.0%) risk of failure.
THREE RATEGICALLY LOCATED TOYOTA DEALERSHIPS HOME MARKET SUMMERY PROPOSAL & FURTHER INFORMATION AUTOMOTIVE PROPERTY INVEMENT MARKET SUMMARY Demand for modern motor dealership investments remains extremely high, in particular for purpose built dealerships operating premium franchises. Investors are attracted to the strong covenants on offer and the additional security of the ongoing partnership with the manufacturer through the franchise agreement. Automotive properties often provide attractive retailing environments in strong, high profile roadside locations which lend themselves to a variety of different uses. Land and motor dealership development costs are high and therefore investment values are generally well underpinned by vacant possession values. Recent Investment transactions have demonstrated that both manufacturer and dealer let prime stock can attract yields inside NIY 4.75%, with much of the stock that has traded in recent months achieving in excess of the asking prices. With a severe shortage of dealership stock, and a growing pool of investors attracted by the strong underlying fundamentals of the sector, including real rental growth, the market is forecast to remain strong. Transactional evidence suggests that there remains a healthy occupier market with a desire to re-gear leases due to the level of existing investment, flexibility of accommodation and the lack of suitable and affordable alternatives. Vacancy rates for prime stock are extremely low ( 1%). RECENT INVEMENT TRANSACTIONS Date Property Tenant Price ( M) Yield Reviews Unexpired Term Dec 2017 Volvo and Jaguar Glasgow Bolling Investments and Volvo Car UK Limited 14.00 4.50% 5 yearly CPI c and C 2% and 3.5 & 20.00 Oct 2017 Audi Portfolio VWG UK Ltd 21.65 6.01% OMRR 8.15 Oct 2017 Ayr Audi VWG UK Ltd 4.175 5.80% 5 year RPI Capped 2.5% pa 9.50 Oct 2017 Mercedes Benz Portfolio Pendragon plc 22.00 5.88% Annual RPI capped 2.77 14.15 Sept 2017 Cardiff Audi (on the market) VWG UK Ltd 8.50 5.73% OMRR 8.30 Sept 2017 Stirling Audi VWG UK Ltd 3.44 6.01% OMRR 8.75 Aug 2017 BMW High Wycombe Sytner plc 26.10 4.93% 5 Year RPI Capped 2.5% 7.60 June 2017 Huddersfield VW VWG UK Ltd 6.33 6.00% OMRR 7.75 May 2017 York Citroën/Peugeot Pendragon ph Ltd 3.92 5.75% OMRR 12.75 March 2017 Knutsford Bentley Sytner Group plc 7.00 4.93% 5 - yearly RPI capped 2.5% 11.25 Dec 2016 Redditch VW VWG UK Ltd 3.225 6.04% OMRR 9.70 March 2016 Ford Dagenham Ford Retail Ltd 6.62 4.60% - 15.00 Jan 2016 Nissan Bristol Nissan (GB) Limited 6.03 4.60% - 20.00
TH R E E R AT E GI CA LLY LOCAT ED TOYOTA D E A L E R S H I P S HOME MARKET SUMMERY PROPOSAL & FURTHER INFORMATION C ONTAC T P R O P OS A L The freehold / long leasehold interests are available to purchase as a single portfolio or alternatively, individual offers for each property will be considered. Tony Hindley MRICS Paul Mather MRICS Based upon a purchase price of 15,000,000, allowing for costs of 6.73%, the investment would show a net initial yield of 5%. 07793 500 352 07825 254 244 tony@hindleylawrence.co.uk paul@hindleylawrence.co.uk Download vcard Download vcard EPC VAT SUPPLE ME NTA L I NF O R M ATIO N Energy Performance Certificates for all premises are available on request or via the data room. Value Added Tax will be charged on the transaction at the prevailing rate. Various relevant documents are held in a data room. Access to the data room, is available on request. www.hindleylawrence.co.uk TEN A NCY The properties are all let to RRG Group and the leases guaranteed by Marubeni Autos (UK) Limited. The leases are for a term of 20 years from March 2018. The leases are on full repairing and insuring terms and provide for rental uplifts in accordance with 5 yearly RPI reviews, collared and capped at 2% and 3.5% per annum compounded. 1st Floor, Rutherford House Warrington Road, Birchwood Park Warrington, Cheshire, WA3 6ZH 0344 88 000 34 YI ELD P R OFI L E Year Rent 2% Minimum increase Yield Rent 3.5% Maximum increase Yields 2018 805,000 5.00% 805,000 5.00% 2023 888,785 5.93% 956,087 6.37% 2028 981,290 6.54% 1,135,532 7.57% 2034 1,083,424 7.22% 1,348,656 8.99% << BACK Hindley Lawrence, for themselves and for the vendors or lessors of this property whose agents they are, hereby give notice that: 1. These particulars do not constitute any offer, contract or part thereof. 2. While these particulars are given in good faith and believed to be correct, any interested party should satisfy himself by inspection or otherwise as to the correctness of each and every statement therein, which statements are made without responsibility on the part of Hindley Lawrence, the vendors or lessors. 3. Hindley Lawrence, nor any persons in their employment, has authority to make, give or imply any representation of warranty whatsoever relating to this property. January 2018. RB&Co 0161 833 0555. www.richardbarber.co.uk