ON THE INSTRUCTIONS OF THE JOINT FIXED CHARGED RECEIVERS HONDA ROAD, , B63 3NS

LONG INCOME CAR SHOWROOM INVESTMENT OPPORTUNITY

PLEASE NOTE THAT THE TENANTS ARE NO LONGER IN OCCUPATION HONDA HALESOWEN INVESTMENT CONSIDERATIONS DUDLEY ROAD, WEST MIDLANDS, B63 3NS ■■ A modern purpose-built motor dealership in an ■■ Freehold established trading location ■■ A large site area of 0.44 hectares (1.1 acres) with ■■ Let to Honda Motor Europe Limited for a further extensive main road frontage of over 100 metres. 10.5 years. ■■ Prominent site with 23,000 vehicles passing per day.* ■■ The property is let for a term of 25 years from ■■ We are instructed to seek offers in excess of 27th September 2001 at a passing rent of £2,600,000 (Two Million Six Hundred Thousand £223,888 per annum. Pounds), subject to contract and exclusive of VAT. ■■ The rent is subject to five yearly upward only reviews A purchase at this level would reflect a net initial with the next review date being in September 2016. yield of 8.09% assuming purchasers costs of 6.4%.

*Source: Department of Transport LONG INCOME CAR SHOWROOM INVESTMENT OPPORTUNITY

A38 A60 Stoke-on-Trent A614 A52 Newcastle-under-Lyme A1 A d 4 a n Road NOTTINGHAM 5 o we A515 A52 9 R so A50 s ale A53 H b H A46 A52 a m DERBY A453 She d o M1 lah e o n C A4 A518 o H a 9 M6 d il l 9 A60 A15 R 0 ULEY ROA, o 4 Burton upon Trent d a l Burton upon Trent Midlands a A l o d i Airport A6006 h R HALESOEN A442 A51 A38 eec H Hays A6 w A42 o A41 A606 l Shrewsbury A1

l c

Cannock l H i

a u H

Telford w A16 e M M54 n

e c A

LEICESTER a 8 M42 L 4

M6 TOLL A4 n 5 a r 5 n

A458 u 4 e 9

A Sutton Peterborough A5 A4 A454 m oad West BromwichColdfield M69 A6003 hittingha u d A6 A44 l C e t h e e A605 e r M1 r r t y

A442 M6 S S

tr A6116 A1(M) o

A41 d e irmingham e a

o t d

International o ld e w

t H n

HALESOEN t

A14 a a Airport A w L n e e 8 A508 A448 M42 L c 5 A14a a 4

A456 oventr n n A Leasowes

M45 8 S e r 5 u M5 M40 Airport A4 tou ar

A4025 r A45ri A435 Warwick dge a o ad ls oad ic r A A423 NORTHAMPTON h a w 4 m E e 5 A1 9 d A428 A422 A46 o Worcester a Worcester n 8 B Stratford-upon-Avon o

A4 Stratford-upon-Avon d 45 r S A o

tre m a

e s

A5r

t g

d

A44 Bedford r

o n

A4103 v a

e

A438

C e l

A42 hu R ne

A r o a

Hereford ch way r L A6 a o

C ns an A422 Milton r e d o e M A46 ft

A50 u

Keynes

Keynes Q

M50 M40 A421 M1 M5

A4 Highfie d ld a L o 3 a A505 A1(M) 4 n HighfieldsA5 R 0 w 4 SITUATION e LOCATION A B re ar d LUTONn 3 4 a A 8 ueenswa 5 anor GLOUCESTER 1 9 M 4 456 The subject property is prominently situated fronting the A459 Dudley LutonHalesowenB is a West Midlands town located 13 km (8 miles) to the westA Road, which serves as the principle north-south carriageway in the Airportof Birmingham City Centre. Wolverhampton is located 16 km (10 miles) area providing access to Halesowen town centre to the south and to to the north and Coventry is located 36 km (22 miles) to the east. Dudley in the north. The town benefits from excellent road communication links being The area surrounding the subject property is commercial in nature and situated 3 km (2 miles) west of Junction 3 of the , which includes occupiers from the motor industry including Suzuki, Vauxhall, in turn gives access to the national Midland’s motorway network. The Yamaha, Europcar and ARS. The Vauxhall dealership opposite town’s main arterial roads are the A458 which leads eastwards into the property has recently benefitted from significant investment in Birmingham, the A456 which is the link to the M5 Motorway and the refurbishment works. A459 which connects the town to the . The area has benefitted from recent developments in the form of a new Aldi supermarket, Travelodge hotel and KFC restaurant a short DESCRIPTION distance to the south of the property at the intersection of the A459 and A459. Other national occupiers in the area include Tesco Express, The property comprises a modern, purpose-built motor dealership. B&Q and Makro. A large proportion of the accommodation is customer-facing with a large double-height showroom providing space for the display of eight vehicles in addition to a reception area. Along the perimeter of the showroom are a series of partitioned offices, beyond which is a large nine bay workshop, including a MOT bay, served by seven roller shutter doors. In addition there is a two-bay valeting area located to the rear. The first floor is partitioned to provide a boardroom, offices and stores as well as a viewing gallery over the showroom. Externally there are 50 prime display car spaces and 65 customer parking spaces. Honda, Halesowen

HONDA, HALESOWEN, DUDLEY ROAD, WEST MIDLANDS, B63 3NS

104.5m

Shelter

103.9m Lygon Court

Garage

104.2m

Depot © Crown Copyright, ES 100004106. For identification purposes only.

0m 10m 20m 30m SITE AREA ACCOMMODATION TENANCY

Ordnance Survey © Crown Copyright 2016. All rights reserved. The total site area extendsLicence number 100022432.to approximately Plotted Scale - 1:1081 0.44 hectares (1.1 acres) The property provides the following approximate gross internal areas: The property is let in its entirety to Honda Motor Europe Limited on a full providing a site coverage of only 23%. repairing and insuring lease, for a term of 25 years from 27th September Gross Internal Areas Sq m Sq ft 2001. The unexpired lease term is therefore approximately 10.5 years. The current passing rent is £223,888 pa. TENURE Ground Floor Showroom and Offices 495.0 5,329 The rent is subject to five yearly upward only reviews by reference Freehold Workshop and Part Stores 355.2 3,823 to open market rent. The next rent review is in September 2016.

Valeting 62.3 670 The property was sublet to Honda’s main dealer partner for the West Midlands region, W Brindley (Garages) Limited t/a Brindley Honda, First Floor Offices, Boardroom 152.3 1,639 on a co-terminus lease on the same terms and at the same rent and Stores as the headlease. Brindley Honda are no longer in occupation of the property Total 1,064.8 11,461 having vacated at the end of 2015. LONG INCOME CAR SHOWROOM INVESTMENT OPPORTUNITY

COVENANT Honda Motor Europe Ltd is a wholly owned subsidiary of Honda Motor Company (Japan), one of the world’s leading manufacturers of motor cars, motorcycles and power products, with a market capitalisation of $56.5 billion USD. The principal function of Honda Motor Europe Ltd Honda Motor Europe Limited have provided the following accounts: is to coordinate Honda’s operations in Europe, including the manufacturing of vehicles and components as well as distribution, wholesale and retail activities. Honda Motor Europe Ltd 31/03/2013 31/03/2014 31/03/2015 also manufactures and distributes Honda products across Africa and the Middle East. Sales Turnover £4,280,066,0000 £4,151,048,000 £3,820,395,000 Honda plans to increase UK sales by 12% in 2016 and to double dealer profitability on the back of better supply and increased aftersales penetration. Honda has also announced that it Profit/(loss) before Taxes -£31,390,000 -£148,344,000 -£140,360,000 will invest £200 million into its flagship manufacturing centre in Swindon, further evidencing its Tangible Net Worth £29,394,000 -£81,457,000 -£434,825,000 commitment to development of its model range and manufacturing in the UK.

MARKET COMMENTARY INVESTMENT COMPARABLES New car registrations continued to be positive in The table below outlines a number of recent comparable transactions highlighting the attractive pricing of this asset: February, growing 8.4% compared with the same month in 2015, according to figures released Property NIY Tenant Unexpired Term Sold by the Society of Motor Manufacturers and Traders (Years) (SMMT). 83,395 new cars were registered in Tesla, Birmingham 7.5% (quoting) Tesla Motors Ltd 15 Under offer at in excess of quoting (March 2016) February, marking the largest number of registrations in the month since 2004. Ford, Birmingham 6.4% Street First Investments Ltd 11 February 2016 Car showroom requirements and development Nissan, Bristol 4.58% Nissan Motor (GB) Ltd 20 January 2016 activity stand at record levels with investor appetite continuing to be strong for long term Volvo, Sunderland 6.17% Inchcape Estates Ltd 7 December 2015 income opportunities. Mini, Harrogate 5.2% Pendragon Property Holdings Ltd (guaranteed by Pendrago Plc) 10 October 2015

BMW/Mini, Tring 4.85% Specialist Cars Tring Ltd & Malthurst Petroleum Ltd 20 August 2015

VW/Toyota, Crawley 5.00% Motorline Holdings Ltd 20 May 2015

Honda, Orpington 4.35% Honda Motor Europe Ltd 22 January 2015

Honda, Manchester 4.95% Honda Motor Europe Ltd 16 December 2014 VAT The property is subject to an option to tax and VAT will be applicable to the sale. It is expected that the sale will be treated as a Transfer of a Going Concern.

EPC The property has an Energy Performance Certificate rating of 101(E). A copy of the Energy Performance Certificate is available upon request.

PROPOSAL We are instructed to seek offers in excess of £2,600,0000 (Two Million Six For further information or to make arrangements for viewing please contact: Hundred Thousand Pounds), subject to contract and exclusive of VAT which Alex Butler Jonathan Butcher 020 7543 6722 020 7543 6755 reflects a net initial yield of8.09% assuming purchasers costs of 6.4%. [email protected] [email protected]

Receiver Caveat: The property is being marketed for sale on behalf of Joint LPA Receivers (acting as agent for the registered proprietors of the property) and therefore no warranties, representations or guarantees are given or will be given in respect of the information in this brochure or any matter relating to the property, including VAT. Any information provided is provided without liability for any reliance placed on it and the Receivers are acting without personal liability. The Receivers are not bound to accept the highest offer. www.allsop.co.uk

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design: CommandD www.commandHQ.co.uk 04.16