Sydragon Portfolio Car Dealership Investment Portfolio – for Sale

SYDRAGON PORTFOLIO CAR DEALERSHIP INVESTMENT PORTFOLIO – FOR SALE

HUDDERSFIELD – Mercedes-Benz, Leeds Road HD2 1UA MAIDENHEAD – BMW, Bath Road, Taplow SL6 0BW

SOLIHULL – Toyota, 824–828 Stratford Road B90 4BQ CARDIFF – 232 Penarth Road CF11 8FR

1 SYDRAGON PORTFOLIO CAR DEALERSHIP INVESTMENT PORTFOLIO FOR SALE HUDDERSFIELD | MAIDENHEAD | SOLIHULL | CARDIFF

Portfolio Investment Summary • Strong tenant covenants being the top 2 Dealer Groups by turnover in the UK • 53% of rental income from Prestige Franchises • Anticipated 55% RPI income • Assets located in prime positions • National spread • Low average site density at 28%

• Weighted average unexpired HUDDERSFIELD Mercedes-Benz CARDIFF lease term of 11.3 years • Combined rental income of £1,386,211 p.a. • Price – £23,000,000 equating to 5.64% NIY

SOLIHULL Toyota MAIDENHEAD BMW

2 SYDRAGON PORTFOLIO CAR DEALERSHIP INVESTMENT PORTFOLIO FOR SALE HUDDERSFIELD | MAIDENHEAD | SOLIHULL | CARDIFF

Portfolio Summary

Property Address Description Lease Term Next Lease Unexpired SQ FT Acres Site Passing £psf Comments & Tenure Start (years) Review End Term Density Rent

Freehold let to Leeds Road, Pendragon Property 5 Yearly rent Mercedes- Huddersfield Holdings Limited 20/12/2004 20 20/12/2009 19/12/2024 6.8 20,934 1.50 32% £328,108 £15.67 reviews to the Benz HD2 1UA guaranteed by market rent. Pendragon PLC

Bath Road, Freehold let to Sytner 5 Yearly rent Maidenhead, Limited guaranteed BMW 25/03/2018 20 25/03/2023 25/03/2038 20.0 21,742 2.00 25% £400,000 £18.40 reviews to RPI Buckinghamshire by Sytner Group capped at 2.5% p.a. SL6 0BW Limited

5 yearly rent Freehold let to Sytner reviews to RPI Stratford Road, Holdings Limited capped at 2.85% P.A Toyota 01/10/2007 20 01/10/2022 30/09/2027 9.5 18,009 1.25 33% £380,908 £21.15 Solihull guaranteed by Sytner compound. Sublet Group Limited to Vantage Motor Group.

Freehold let to Pendragon Property 5 Yearly rent Vacant 232 Penarth Road, Holdings Limited 20/12/2004 20 20/12/2019 19/12/2024 6.8 17,785 1.61 25% £277,195 £15.59 reviews to the Dealership Cardiff CF11 8FR guaranteed by market rent. Pendragon PLC

11.3 78,470 6.36 28% £1,386,211 £17.10

3 SYDRAGON PORTFOLIO CAR DEALERSHIP INVESTMENT PORTFOLIO FOR SALE HUDDERSFIELD | MAIDENHEAD | SOLIHULL | CARDIFF

HUDDERSFIELD MERCEDES-BENZ Leeds Road HD2 1UA SUMMARY • Prominent main road dealership • Sits within substantial Mercedes market • Modern dealership along Huddersfield’s ‘motor area operated by Pendragon, including Leeds, alley’, where franchises representing over two Bradford, and Wakefield and therefore thirds of UK new car sales are sited represents a key asset for this business. • Neighbouring Audi dealership recently • Prestige franchise re-furbished, further emphasising the importance • 100% income secured against UK Number 2 of the location. Dealer Group (by turnover), Pendragon PLC

4 SYDRAGON PORTFOLIO CAR DEALERSHIP INVESTMENT PORTFOLIO FOR SALE HUDDERSFIELD | MAIDENHEAD | SOLIHULL | CARDIFF

Description Tenancy EPC The property was built in 2004 and is a purpose-built • The property is leased to Pendragon Property Holdings Ltd D:88. Mercedes dealership comprising a showroom, offices, with a guarantee from Pendragon PLC on a 20-year lease from workshop, first floor offices, valet bay and external 20th December 2004 on FRI terms. Covenant Summary parking. • Rent reviews are five yearly to Market Rent with the current Pendragon, based in Nottingham, is a publically listed multinational operator of franchised car dealerships in the United Kingdom with SQ FT SQ M passing rent at £328,108 per annum. Subsequent rent reviews will be five yearly in an upwards only direction. outlets in the United States. Having previously been the top-ranked Mercedes Showroom 6,035 560.7 UK Vehicle retailer by turnover Pendragon is now No.2 but still with • Unexpired term 6.8 years with the next rent review being in SMART Showroom 2,432 225.9 turnover of over £4.5 billion, up c.£84 million from 2015. In the UK, December 2019. Pendragon trade under the Evans Halshaw (12 brands across 118 Showroom, Offices 2,323 215.8 and Ancillary outlets) and the Sratstone (11 brands across 70 outlets) banners. Workshop 4,064 377.5 The former being the UK’s leading volume motor car retailer, and Parts and Tool Store 1,668 154.9 the latter being one of the UK’s leading premium car retailers. Valeting Bay 1,041 96.8 Pendragon’s franchise breadth and reach places it in the optimum position to capitalise from anticipated growth in the used, premium, First floor aftersales and online businesses. This realisation has seen Mezzanine Offices 1,352 125.6 Pendragon’s share price recover following profit warnings in Ancillary 963 89.5 October 2017. It is conceivable that Pendragon, along with Sytner Parts Mezzanine 1,056 98.1 will surpass the £5 billion turnover mark in the near future.

TOTAL (GIA) 20,934 1,945.00 Pendragon Property Holdings Ltd has a D&B rating of 1A1 meaning it “represents a minimum risk of business failure”. Parking Pendragon PLC has a D&B rating of 3A1 meaning it “represents a Display 106 minimum risk of business failure”. Demos 12 Customer 25 Pendragon Property Holdings Ltd 2014 2015 2016 General 30 Turnover – – – Total 173 Profit/(Loss) (£2,549,000) (£1,815,000) (£1,594,000) The property sits on a site of 1.50 acres (0.61 before tax hectares) and produces a site density of 32%. Net Current Assets (£87,295,000) (£98,328,000) (£121,068,000) (Liabilities)

Pendragon PLC 2014 2015 2016

Turnover £4,000,400,000 £4,453,900,000 £4,537,000,000

Profit/(Loss) £64,600,000 £79,000,000 £73,000,000 before tax

5 SYDRAGON PORTFOLIO CAR DEALERSHIP INVESTMENT PORTFOLIO FOR SALE HUDDERSFIELD | MAIDENHEAD | SOLIHULL | CARDIFF

<< TO M62 J25

NEPTUNE WAY

A62 LEEDS RD

TO HUDDERSFIELD >>

6 SYDRAGON PORTFOLIO CAR DEALERSHIP INVESTMENT PORTFOLIO FOR SALE HUDDERSFIELD | MAIDENHEAD | SOLIHULL | CARDIFF

TO M62, BRADFORD A A6 6 32 AND LEEDS 44 1 77 W TO A1(M) A 25 KE & HARROGATE F TO M621 AND LEEDS IEL BRADFORD LEEDS D RD 32 3 32 M621 M1 M65 A 6 6 2 3 1 9 0 A 6 6 A 4 A 27 A 6 M62 646 26 5 A58 6 M62 42

62 A R D

25 A62 LEEDS

TO BLACKBURN

A644 A6 32 44 TO MANCHESTER 24 62 HUD A 39

A6 DE 2 9 R SF 3

3 2 IE 0 A64 LD

M66 6 M62

A R HUDDERSFIELD D

TO M1 J40

19 M1

A58 A 62 9 18 MIRFIELD M61 37 M60 15 EEDS RD TO BOLTON L 2

12 A6 MANCHESTER A628 1 A6 M1 Leeds Road NEPTU NE WAY M62 32 M67 32 HD2 1UA DEIGHTON M60 TO SHEFFIELD

TO WARRINGTON 5 32 M60 32 3A

M56

Location Huddersfield is an important retail and commercial centre in West Yorkshire, England. It is the administrative capital and the largest urban area in the Metropolitan Borough of TO HUDDERSFIELD Kirkless, the 11th largest local authority district in England and Wales. Kirklees has a population of 4287,279 (2014) with Huddersfield having an estimated population of 169,928 (2016), elevating it to the 11th largest town in the UK. Huddersfield has excellent road communications and benefits from a primary catchment population of 317,000. Kirklees population is predicted to increase by 6.3% by 2025, and the age and socal- economic profile is in line with the UK average. It is located 14 miles (23 km) south-west Situation of Leeds, 22 miles (35.4 km) north east of Manchester, 10.3 miles (16.6 km) south of The property occupies a prominent position on Trident Business Park fronting Leeds Road (A62) in an Bradford and 190 miles (310 km) north of London. Huddersfield’s good transport links in area of mixed motor retail and retail warehousing use, immediately adjacent is Audi Huddersfield include rail links to both Manchester and Leeds. It is connected to the UK motorway while there are various trade counter and warehouses to the rear. Peugeot, Toyota, Volvo and system by the M1 (12 miles) to the East via the A637 and M62 (Junctions 23, 24 & 25) to Volkswagen are all represented on Leeds Road and Huddersfield town centre is located just 3 miles to the North. the south-west.

7 SYDRAGON PORTFOLIO CAR DEALERSHIP INVESTMENT PORTFOLIO FOR SALE MAIDENHEAD | HUDDERSFIELD | SOLIHULL | CARDIFF

MAIDENHEAD BMW Bath Road, Taplow SL6 0BW

SUMMARY • Prominent A4 location in affluent • Part of substantial South East BMW Thames Valley town market area operated by Sytner including • Prestige franchise High Wycombe and Sunningdale • Tenant recently invested c.£1.2 million • 100% income secured against UK refurbishing the dealership, underlining Number 1 Dealer Group (by turnover), its strategic importance Sytner Group Ltd.

8 SYDRAGON PORTFOLIO CAR DEALERSHIP INVESTMENT PORTFOLIO FOR SALE MAIDENHEAD | HUDDERSFIELD | SOLIHULL | CARDIFF

Description Tenancy EPC The main BMW building comprises a purpose built • The property is leased via an assignment from Pendragon BMW dealership – D:89. dealership providing showroom, offices, workshop, Ltd to Sytner Vehicles Ltd guaranteed by Sytner Group Ltd in Used car showroom – F:137. first floor offices and external car parking. Opposite is 2014 for 20 years from 24th June 2004 on full repairing and a used car sales site providing sales office, vehicle insuring basis. display and parking. • Rent reviews are five yearly to market rent. • The current passing rent is £428,931 and there is a rent review SQ FT SQ M in June 2019. Showroom 4,393 408.2 • Unexpired term 6.3 years. Showroom Ancillary 363 33.8 • A replacement lease has been agreed with the tenant as Service Reception Offices 1,101 102.3 follows: Workshop 7,031 653.2 – The existing lease is to be varied such that the passing Smart Repair & Tyre Store 980 91.0 rent will be reduced to £400,000 per annum, subject to five yearly rent reviews from the date of the Deed of Parts 694 64.5 Covenant Summary Variation, with all reviews in accordance with the increase First floor in the Retail Price Index over the preceding five years, During 2016 Sytner Group Ltd became the No.1 UK Vehicle retailer Offices 2,128 197.7 subject to a cap of 13.14% (equivalent to 2.5% per annum by turnover, recording a turnover of c.£4.8 billion, the highest ever Staff Ancillary 1,077 100.1 compounded). All rent reviews are to be in an upward only in the group’s history, with profit before tax of c.£109.4 million, an increase of over 16% in comparison to the 2015 financial year. The Comms Room 200 18.6 direction. This is being progressed by solicitors. increase in scale of Sytner’s operation has been aided by substantial Parts Mezzanine 1,791 166.4 acquisition activity, including the purchase of Clare James in 2016 Used Car Building and independent used car group CarShop in 2017. Sytner now Customer Reception 677 62.9 represent over 20 mostly prestige brands from over 140 sites. Offices 693 64.4 Despite its size Sytner has achieved a top five position in the ‘Sunday Times Best Big companies to Work For’ for eight consecutive Ancillary 163 15.1 years. Sytner’s strong financials, acquisition activity, broad offering Mezzanine Offices 450 41.8 across a multitude of manufacturers at different price points, and TOTAL (GIA) 21,742 2,020.0 the general trend towards consolidation in the Motor Retail sector combine to mean that when 2017 accounts are released, it is likely Parking that Sytner will have surpassed the £5 billion turnover mark. BMW Display 11 Sytner Group Ltd has a D&B rating of 5A1 meaning it “represents a BMW General 76 minimum risk of business failure”. Used Car Display 99 Customer 5 Sytner Group Ltd 2014 2015 2016

Total 191 Turnover £3,665,451,000 £4,234,417,000 £4,811,947,000

Profit/(Loss) The property sits on a site of 2.00 acres (0.81 £81,097,000 £94,250,000 £109,376,000 hectares) and produces a site density of 25%. before tax 9 SYDRAGON PORTFOLIO CAR DEALERSHIP INVESTMENT PORTFOLIO FOR SALE MAIDENHEAD | HUDDERSFIELD | SOLIHULL | CARDIFF

LL I TO OXFORD A308 H & MIDLANDS Y

R TAPLOW

A4 BA M40 TO WATFORD TH R HIGH WYCOMBE A4 D 9b MAIDENHEAD 32

D M25 S R BR Bath Road, Taplow A Y WI 7 M40 A404(M) CK SL6 0BW PPENHANGER RD

HO 16 S M4 9a A308(M) MAIDENHEAD A4 04 SLOUGH TAPLOW BURNHAM 8/9 A308 MAIDENHEAD TO CENTRAL 9b A4 LONDON

Location M25

8/9 7 6 Acknowledged by many publications to be one of Britain’s READING 4 TH RD 5 4b BA M4 READING A3 A4 wealthiest towns, Maidenhead, located in Berkshire to the West of TO SWINDON WINDSOR A4 & BRISTOL M4 M4 London and alongside the River Thames also encompasses 13 12 Cookham rated by the Daily Telegraph as Britain’s Second richest 10 HEATHROW A4 AIRPORT village representing “the epitome of Englishness with Thames 11 NEWBURY BRACKNELL M3 Riverside walks, boating, and gastropubs”. The town is part of the 12 Royal Borough of Windsor and Maidenhead, which according to A TO CENTRAL 32 LONDON A3 2 M3 the 2011 census had a population of 144,560. Maidenhead has 3 9 3 M25 20% higher and intermediate managerial administrative or A3 CAMBERLEY professional households than the national average. It is located 3 WOKING 10 4 25.6 miles (41.2 km) east of London, 28 miles (45 km) south-east of TO WINCHESTER & SOUTHAMPTON M3 3 FARNBOROUGH A Oxford and 7.4 miles (12 km) south of High Wycombe. Maidenhead TO BASINGSTOKE TO LEATHERHEAD & M3 J6 & GATWICK AIRPORT enjoys good transport links. The Great Western Main Line passes through offering direct services to London (21 mins), Reading, Newbury, Didcot and Oxford. While Maidenhead station is going to form part of the western section of the Elizabeth Line (Crossrail) from 2019 onwards accessing Londons’ West End in 39 minutes. In terms of road-links, the A4 runs through Maidenhead while the town lies adjacent to junctions 8/9 of the M4 motorway, providing easy road access to London and to destinations as far west as Cardiff, and via the A308(M)/ A404(M) to J4 M40 at High Wycombe.

Situation The property occupies a prominent road frontage position on either side of the A4, Bath Road, East of Windrush Volkswagen, opposite a Shell Petrol Station and immediately adjacent to a Miller & Carter Steakhouse. While Taplow Utd FC is located directly to the rear of the site. 10 SYDRAGON PORTFOLIO CAR DEALERSHIP INVESTMENT PORTFOLIO FOR SALE SOLIHULL | HUDDERSFIELD | MAIDENHEAD | CARDIFF

SOLIHULL TOYOTA 824–828 Stratford Road B90 4BQ

SUMMARY • Prominent Toyota dealership in an • Excellent access to the M42 and the established and expanding Motor Retail wider motorway system area • 100% income secured against UK • With franchises representing 65% of the Number 1 Dealer Group (by turnover), UK’s new car sales sited along its length, Sytner Group Ltd, underlet to Vantage Stratford Road is the main ‘motor alley’ Motor (formerly Meridian Motor Group) for Birmingham ranked 59th

11 SYDRAGON PORTFOLIO CAR DEALERSHIP INVESTMENT PORTFOLIO FOR SALE SOLIHULL | HUDDERSFIELD | MAIDENHEAD | CARDIFF

Description Tenancy The property comprises a purpose-built dealership • The property is leased to Sytner Holdings Ltd with a guarantee Sytner Holdings Ltd has a D&B rating of 3A1 meaning it erected in 1999 providing showroom, offices, from Sytner Group Limited on a 20-year lease from 1st October “represents a minimum risk of business failure”. Sytner Group Ltd workshop, valet bays, first floor offices and external 2007 on full repairing and insuring basis. The premises were has a D&B rating of 5A1 meaning it “represents a minimum risk car parking. underlet to Meridian Motor Group (now Vantage) in June 2013. of business failure”. • Rent reviews are five yearly to RPI capped at 2.85% p.a. SQ FT SQ M Sytner Group Ltd 2014 2015 2016 • The current passing rent is £380,908 and the next rent review Showroom (upper) 2,277 211.5 is October 2022. Turnover £3,665,451,000 £4,234,417,000 £4,811,947,000

Showroom (lower) 2,745 255.0 • Unexpired term 9.5 years. Profit/(Loss) £81,097,000 £94,250,000 £109,376,000 Offices 1,354 125.8 before tax Ancillary 518 48.1 Sytner Holdings Ltd 2014 2015 2016 Workshop 3,429 318.6 Workshop Ancillary 850 79.0 Turnover – – – Tyre Store 522 48.5 Profit/(Loss) (£1,234,000) – – Parts 695 64.6 before tax Wet Valet 450 41.8 Net Current Dry Valet 763 70.9 Assets (£7,304,000) (£7,304,000) (£7,304,000) (Liabilities) Store 128 11.9 External Plant 93 8.7 Vantage Motor Group First floor Established in 2003, Vantage Motor Group is a leading regional Covenant Summary dealer in the Midlands and the North of England with 25 sales Offices 4,082 379.2 Sytner Group Ltd outlets across 8 manufacturers as of December 2016. In particular Ancillary 103 9.6 During 2016 Sytner Group Ltd became the No.1 UK Vehicle they are closely wedded to Toyota, their main franchise partner, TOTAL (GIA) 18,009 1,673.0 retailer by turnover, recording a turnover of c.£4.8 billion, the with 12 dealerships, meaning the Solihull Toyota is of particular highest ever in the group’s history, with profit before tax of Parking strategic importance. In 2016 Vantage achieved a turnover of c.£109.4 million, an increase of over 16% in comparison to the c.£262 million, up from c.£209 million in 2015. This increase is Primary Display 39 2015 financial year. The increase in scale of Sytner’s operation mainly as a result of acquired activities and the small loss made Service Parking/Used Display 21 has been aided by substantial acquisition activity, including the in 2016 was due to the disposal and closure of two unprofitable Customer 9 purchase of Clare James in 2016 and independent used car group business locations and the costs associated with reorganising Compound 39 CarShop in 2017. Sytner now represent over 20 mostly prestige acquired franchises, as such directors reported that 2017 should Non-Secure Parking 15 brands from over 140 sites. Despite its size Sytner has achieved a see a return to strong profitability. top five position in the ‘Sunday Times Best Big companies to Total 123 Vantage Motor Work For’ for eight consecutive years. Sytner’s strong financials, Group 2014 2015 2016 The property sits on a site of 1.25 acres (0.51 acquisition activity, broad offering across a multitude of hectares) and produces a site density of 33%. manufacturers at different price points, and the general trend Turnover £170,996,000 £209,253,000 £262,040,000 towards consolidation in the Motor Retail sector combine to Profit/(Loss) EPC £1,059,000 £1,005,000 -£134,000 mean that when 2017 accounts are released, it is likely that before tax D:79. Sytner will have surpassed the £5 billion turnover mark. 12 SYDRAGON PORTFOLIO CAR DEALERSHIP INVESTMENT PORTFOLIO FOR SALE SOLIHULL | HUDDERSFIELD | MAIDENHEAD | CARDIFF <<

BIRMINGHAM....

A34 STRATFORD RD

M42 J4 << 13 SYDRAGON PORTFOLIO CAR DEALERSHIP INVESTMENT PORTFOLIO FOR SALE SOLIHULL | HUDDERSFIELD | MAIDENHEAD | CARDIFF

M42 J4

A34 STRATFORD RD

Situation The property is located in the heart of Birmingham’s pre-eminent motor retail clustering along Stratford Road (A34), the main ‘motor alley’ in this part of the West Midlands, immediately adjacent to Honda and situated on the same road as Audi, Ferrari, BMW, Jaguar Land Rover, Volvo, Maserati and Volkswagen, and in the vicinity of Porsche, Mazda, Seat, Skoda, Renault, Ford and others. Additionally, a new Aston Martin dealership is set to open nearby on The Green development next to Audi, and a new Mercedes dealership is to be built next to Volkswagen at the junction of Stratford Road and Monkspath Hall Road. Nearby are retail warehouses and retail parks totalling circa 670,000 sq ft (62,245 sq m) where occupiers include B&Q, Currys, Furniture Village, Halfords, Mothercare, Boots, Toys R Us, Argos, Homebase, Carpetright, and Pets at Home. Other commercial uses along Stratford Road include Beefeater/ Premier Inn, Sainsburys, Porcelanosa, Office Outlet, Burger King, Morrisons, Iceland, Aldi, and American Golf.

14 SYDRAGON PORTFOLIO CAR DEALERSHIP INVESTMENT PORTFOLIO FOR SALE SOLIHULL | HUDDERSFIELD | MAIDENHEAD | CARDIFF

Location A4 A5 12 A5 Solihull is an affluent Birmingham suburb within the larger Metropolitan 49 A4

M6 TOLL A38 824–828 Borough of Solihull, which has a growing population of 211,763 (ONS). TO SHREWSBURY 11 A5 A5 Stratford Road The area is characterised by above average levels of income and home M54 2 1 10a TO NOTTINGHAM B90 4BQ

61 ownership and a high population of residents (50%) classified as A3 A4 A3

49 M6 4 DO 4 G KE N 60 M6 TOLL NE belonging to the prosperous suburb and socio-demographic classification. A4 53 L LN 4 10 A A5

Lying at the heart of the West Midlands motorway network. Solihull is WALSALL A4 A454 10 M42 STR 4 located 94.1 miles (151.5 km) north-west of London, 7 miles (11.3 km) 6 AT FO N L B R S D WOLVERHAMPTON M6 41 LD south-east of Birmingham and 10.9 miles (17.5 km) west of Coventry. A A4 9 O R 45 02 YN D 2 RE C

8 7 4 Birmingham International Airport is located in Bickenhill in Solihull,

A 41 23 RD while Solihull station provides links to Birmingham (17 mins) and London A4 M42 GE M5 RA

91 M6 ICA

46 V (1hr 30 mins). This is in addition to more local rail services to Dorridge, WEST BROMWICH 5 M6 7a

1 Stratford-upon-Avon and Leamington Spa. Both the M40 and M42 pass

BIRMINGHAM 7 M6 through Solihull and provide rapid links to Oxford, Birmingham and 2 A4 A456

A 4 5

London and the wider motorway network. Meanwhile the A41 STOURBRIDGE 3

3 6

A456 Birmingham to Warwick Road and the A34 Birmingham to Stratford Road A4 2 M6 5

M42 A 41 also run through Solihull. Solihull has significant geographic and A4 4 0 A4 52 0 8 A3 6 A4 3 5 4 TO M1 & 9 M5 A 4 A 1 infrastructure advantages. Economically this supports a strong service 43 SOLIHULL 6 MILTON KEYNES A sector ecomony with Solihull Town Centre and key regional strategic 4 COVENTRY A45 assets (the NEC complex, Land Rover, and the Birmingham and Blythe 4

7 17 Valley Business Parks), primarily responsible for drawing in around M42 2 3 M42 3a 4 6 A 4 A 85,000 commuters daily. M5 TO WORCESTER & GLOUCESTER TO OXFORD M40

15 SYDRAGON PORTFOLIO CAR DEALERSHIP INVESTMENT PORTFOLIO FOR SALE CARDIFF | HUDDERSFIELD | MAIDENHEAD | SOLIHULL

CARDIFF 232 Penarth Road CF11 8FR

SUMMARY • Prime pitch location at the pivotal • 100% income secured against UK junction along Cardiff’s ‘motor alley’ Number 2 Dealer Group (by turnover), • Pre-eminent location at the traffic light Pendragon PLC junction of Penarth Road and Hadfield • Opportunity for new lease to Road with 71% of the UK’s new car sales accompany a new letting franchises represented within 1 mile

16 SYDRAGON PORTFOLIO CAR DEALERSHIP INVESTMENT PORTFOLIO FOR SALE CARDIFF | HUDDERSFIELD | MAIDENHEAD | SOLIHULL

Description Tenancy EPC The property comprises a purpose-built dealership • The property is leased to Pendragon Property C:70. erected in 1999 providing showroom, offices, Holdings Ltd with a guarantee from Pendragon workshop, valet bays, first floor offices and external PLC on a 20-year lease from 20th December Covenant Summary car parking. 2004 and on full repairing and insuring basis. Pendragon, based in Nottingham, is a publically listed multinational • Rent reviews are five yearly to market value in an operator of franchised car dealerships in the United Kingdom with outlets in SQ FT SQ M upwards only direction. the United States. Having previously been the top-ranked UK Vehicle retailer by turnover Pendragon is now No.2 but still with turnover of over £4.5 Showroom 4,407 409.4 • The current passing rent is £277,195 and there is a billion, up c.£84 million from 2015. In the UK, Pendragon trade under the rent review in December 2019. Parts 2,298 213.5 Evans Halshaw (12 brands across 118 outlets) and the Stratstone (11 brands • Unexpired term 6.8 years. Stair (Rear of Parts) 62 5.8 across 70 outlets) banners. The former being the UK’s leading volume motor Offices 703 65.3 car retailer, and the latter being one of the UK’s leading premium car Workshop 5,443 505.7 retailers. Pendragon’s franchise breadth and reach places it in the optimum Workshop, Ancillary, position to capitalise from anticipated growth in the used, premium, 711 66.1 Canteen & WC aftersales and online businesses. This realisation has seen Pendragon’s share Valet Bays 1,706 158.5 price recover following profit warnings in October 2017. It is conceivable that Pendragon, along with Sytner will surpass the £5 billion turnover mark First floor in the near future. Mezzanine Offices 1,021 94.9 Pendragon Property Holdings Ltd has a D&B rating of 1A1 meaning it Corridor 239 22.3 “represents a minimum risk of business failure”. Office 346 32.1 Ancillary 342 31.8 Pendragon PLC has a D&B rating of 3A1 meaning it “represents a minimum Storage Deck 507 47.1 risk of business failure”.

TOTAL 17,785 1,652.0 Pendragon Property Holdings Ltd 2014 2015 2016 Parking Turnover – – – Prime Display 19 Canopy Display 12 Profit/(Loss) before tax (£2,549,000) (£1,815,000) (£1,594,000) Secondary Display 24 Net Current Assets (£87,295,000) (£98,328,000) (£121,068,000) Storage/Display 46 (Liabilities) Customer 18 General 5 Pendragon PLC 2014 2015 2016 Storage 63 Turnover £4,000,400,000 £4,453,900,000 £4,537,000,000 Total 119 Profit/(Loss) before tax £64,600,000 £79,000,000 £73,000,000 The property sits on a site of 1.61 acres (0.65 hectares) and produces a site density of 25%.

17 SYDRAGON PORTFOLIO CAR DEALERSHIP INVESTMENT PORTFOLIO FOR SALE CARDIFF | HUDDERSFIELD | MAIDENHEAD | SOLIHULL

<< A4232 & M4

HADFIELD ROAD

A4160 PENARTH ROAD

18 SYDRAGON PORTFOLIO CAR DEALERSHIP INVESTMENT PORTFOLIO FOR SALE CARDIFF | HUDDERSFIELD | MAIDENHEAD | SOLIHULL

A48M TO NEWPORT & BRISTOL 32 TO M4, NEWPORT & BRISTOL 232 Penarth Road, Cardiff A4 E 70 AV N N O R South Glamorgan, CF11 8FR RT E M4 T HE S

RN EA

AV 8 E A4 TO SWANSEA 7 TO M4 J33 SL B426 CAPITAL OPE 33 SHOPPING R PARK RD A4 CARDIFF CITY 8 FOOTBALL CLUB

A42 32 HADFIELD 8 A4

A A 42 4232

32 RD R GR E 61 1 AN EM

A A4 S 416

1 G L ES GRANGETOWN AN E SD B OW TO

N 1 E RD 416 W A N

CARDIFF LI N D NINIAN PARK 0 R 8 416 K A4 A H S T LO

P E HA AR 2 R DF 23 N A4 RD CARDIFF BAY IE 2 L HAD 3 D RD 42 PE A F IE C 160 A L LI 42 D

RD V A4

E 3 ST 2

0 GRANGETOWN FL GR 2 16 3 EE 2 T F A 4 W A4 E A NG R A Y R Y

E R

T D OW N LINK

Location Situation Cardiff is the capital, largest city and principle commercial area in The dealership formerly housing Land Rover, who have moved to Wales. Consequently, Cardiff is the home of most Welsh national join Jaguar at a nearby site, is positioned at the epicentre of institutions and the seat of the National Assembly for Wales. Cardiffs’ primary motor retail location with excellent visibility next to Wickes, opposite the recently redeveloped Honda and next to Cardiff has a primary population catchment of nearly 1.26 million, Toyota, Lexus and new Infiniti dealership under construction. while at the time of the 2011 census the population of the Cardiff Nearby are the relocated Jaguar Land Rover, Maserati, Hyundai, Built Up Area was estimated to be 447,287. Volvo, Fiat & Abarth. Also, represented in close vicinity are Mazda, Cardiff is situated 131 miles (211 km) West of London, 25.5 miles Nissan, Mini, Seat, Suzuki, Mitsubishi, Ford, Vauxhall, and Porsche. (41.11 km) West of Bristol and 34.3 miles (55.2 km) East of A new BMW dealership is planned for Penarth Road on a site next Swansea. Cardiff enjoys a wealth of excellent transport links, to Ford. The premises are situated at the busy traffic light junction Cardiff Airport provides both domestic and international air travel of Penarth Road and Hadfield Road. The dealership fronts onto options, and Cardiff Central railway station caters for some 12.5 both Penarth Road and Hadfield Road and is located approximately million passengers per annum providing direct services to 2.1 miles south of Cardiff town centre. 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. 19 SYDRAGON PORTFOLIO CAR DEALERSHIP INVESTMENT PORTFOLIO FOR SALE HUDDERSFIELD | MAIDENHEAD | SOLIHULL | CARDIFF

Motor Retail Market Highlights Key points: As 2018 progresses, further evidence of evolution in the motoring world is expected. Increasingly fast-paced technological innovation and reshaping consumer sentiment, influenced by • Over 10 years car dealership rental growth has outperformed inflation. government policy, are combining to move the sector forward. This gradual paradigm shift • Over the last 5 years Car Dealership Capital values have increased on brings with it an opportunity for Investors, alert to the potential value of new income streams. average by 14%, and Rental Values by 13%. The gradual re-orientation of the motor retail 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 2017 Motor Retail Investment averages: package. New technologies such as Electric Vehicles (EVs) are an opportunity for dealers. Just • Unexpired lease term = 10.6 years as the Motor Retail sector represents a chance for investors to diversify their income, the new • Site density = 31% technology and ownership structures offer a unique chance for dealers to innovate, diversify • Average sq ft = 28,228 and incrementally increase revenue. • Average Rent £ psf = £12.57 New car sales have been easing, down 5.7% in 2017, denoting a return to a more natural long- • Average lot size = £5,871,771 term equilibrium. 2017 was still the 3rd best year for new car registrations in the past decade and dealers remain optimistic about profitability, which they predict to be driven mainly by Prestige cars, used cars, and an amalgamation of the two in 2018.

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. As a consequence of leading edge market evolution, investors remain drawn to the Motor Retail sector, further encouraged where there are sustaining long term income growth fundamentals.

20 SYDRAGON PORTFOLIO CAR DEALERSHIP INVESTMENT PORTFOLIO – FOR SALE

Data Room For access to further lease information, franchise information and recent motor retail investment market transactions, please visit our data room at: www.automotive-property.com/sydragon-portfolio

Proposal The properties are available as a portfolio, although offers for individual properties will also be considered. We are instructed to seek offers in excess of £23,000,000 (Twenty three million) for the portfolio equating to a NIY of 5.64% assuming purchasers costs of 6.6%.

For more information please contact:

BILL BEXSON M: 07831 827442 E: [email protected] EDDIE HIGHNAM M: 07733 535952 0203 588 7200 E: [email protected]

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. March 2018 21