LONG INCOME MODERN VEHICLE DEALERSHIP IN SWINDON WITH FIXED UPLIFTS

JOHNSONS | FOREST PARK ROAD | MEAD WAY | SWINDON | SN5 5PQ Investment Highlights

Located in the large and affluent town of Swindon, which was rated in the Top 10 locations for growth in the 2019 PwC Good Growth for Cities Index.

Recently constructed in 2012, offering a prominent multi-franchise facility on a large site, which undoubtedly will provide the model for volume vehicle retailing.

Situated within an established motor retailing location, with retail, trade counter, industrial and residential uses close by. The property will be let to the strong and established covenant of Johnsons Cars Limited.

Johnsons Cars Limited was incorporated in 1999 and they operate 45 franchises throughout England. A new 20 year FR&I lease, with a tenant only break at year 15, subject to 12 months notice.

Guaranteed rental growth with RPI linked reviews, collared at 1% and capped at 3%.

Supportable market and business derived rent of £250,000 per annum exclusive.

We are instructed to seek offers in the region of £4 million, equating to a NIY of 5.87% assuming purchasers costs of 6.70%.

JOHNSONS | FOREST PARK ROAD | MEAD WAY | SWINDON | SN5 5PQ Location

The property is located within Swindon, including the A419 which ultimately connects an affluent town within the south-west with Cirencester, and the A420 which links of England, which at the last Census (2011) with Oxford. had a population of 182,441 inhabitants. The property occupies a prominent position Swindon is located 47 miles south-west of fronting Mead Way, (B4006). Mead Way is part Oxford, 39 miles east of Bristol and 40 miles of a particularly busy ring road around the JOHNSONS west of Reading. town linking with the A419. Swindon is a highly accessible town benefiting The property is located within an established from close proximity to the M4 Motorway commercial area and is within one of the at Junctions 15 and 16. The town is also motor retailing destinations within Swindon accessed by a number of arterial routes with Vauxhall, MG, Skoda and close by.

JOHNSONS | FOREST PARK ROAD | MEAD WAY | SWINDON | SN5 5PQ

Description

This freehold property comprises a purpose PARKING SPACES built, single storey detached vehicle dealership constructed in 2012. It benefits from Mazda, Display 112 Fiat, Alfa Romeo, Jeep, Abarth and Fiat Storage 67 Professional franchises. Customer/MOT 48 The property is constructed around a steel portal frame and is externally clad in charcoal TOTAL 227 and grey/silver sheet metal cladding. The property includes extensive showrooms, with offices, workshop, parts department and valet facilities all on site. It also benefits from a large amount of parking with approx 230 parking spaces on site, with over 110 dedicated for display.

USE AREA SQ M AREA SQ FT

Showroom 795.06 8,558

Office 35.37 381 RATEABLE VALUE Ancillary 85.20 917 The property has a current Rateable Value of £242,000. Workshop 497.63 5,356 EPC Parts 119.86 1,290 The property has an EPC rating of A-24. Valet 228.76 2,462 A copy can be made available on request.

Parts Mezz 250.90 2,701 SITE AREA The property has a large site area of TOTAL 2,012.78 21,665 approximately 2.35 acres.

JOHNSONS | FOREST PARK ROAD | MEAD WAY | SWINDON | SN5 5PQ Tenancy and Covenant

TENANCY COVENANT The property will be let on a new Full and Repairing and Insuring lease Johnsons Cars Limited (Company Number premium franchises including Lexus, Volvo, to Johnsons Cars Limited, at a rent of £250,000 per annum (£11.54 per sq 3716766) is an independent franchised dealer Abarth, Fiat, Ford, Hyundai, Skoda, Volkswagen, ft). The lease will be for a term of 20 years from legal completion, with a tenant only group established in 1999. They started out Alfa Romeo, Fiat, , Jeep, Mazda, SEAT, break at year 15, subject to 12 months notice. The rent reviews will be five yearly with three dealerships and over the last Toyota and Jeep. and RPI linked, annually compounded, collared at 1% and capped at 3%. 20 years have expanded through organic At present they operate 45 showrooms across and strategic growth with their established England from Southport and Preston in the north, manufacturer partners. The company is As it can be seen from the above, the rent is reversionary, with a sensible to Slough and Swindon in the south. currently ranked 41st in the Motor Trader and affordable per sq ft value, particularly given the strong location of Experian has given Johnsons Cars Limited Top 200 Franchised Dealer Survey (2019). the property and its purpose built nature. Please see below some a Delphi Score of 99/100 and a Delphi Band leasehold evidence: They have recently acquired a number of of ‘very low risk’. In addition, they have a 4A2 businesses and properties, with the last Dun and Bradstreet Rating representing a business acquisition being four Volkswagen lower than average risk. The company has RENT dealerships from Sytner plc in late 2019. reported the following figures over the last DEALERSHIP (£PSF) They represent a number of volume and three financial years: / | Cheltenham £261,500 (£11.73)

31.12.2018 31.12.2017 31.12.2016 Mercedes | Swindon £455,000 (£12.68) (000’s) (000’s) (000’s)

Audi | Swindon £509,133 (£13.14) Sales/Turnover £432,442 £360,478 £321,597

VW | Swindon £329,402 (£13.78) Profit before taxes £4,071 £1,448 £2,808

AUDI | Cheltenham £237,000 (£13.75) Tangible Net Worth £21,169 £15,431 £26,429

ANTI-MONEY LAUNDERING POLICY In accordance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, the Purchaser will be required to comply with our Anti-Money Laundering policy. Further details are available upon request.

JOHNSONS | FOREST PARK ROAD | MEAD WAY | SWINDON | SN5 5PQ

Automotive Market

Despite the recent negative headlines, year increase year on year. However, the Therefore there was a lack in the supply to meet decrease form the record high figures the automotive sector has remained reduction from the highest year has not the demands of the customers. In addition, the in 2016 and similarly 2018 only saw a resilient to national market conditions been substantial by any means, with a continued demonization of diesel vehicles caused 3% decrease. The used car figures for dominated by Brexit, online shopping decrease of only 5.7% in 2017 and 6.8% a lack in consumer confidence, with customers 2019 have recently been announced and and the overall demise in high street in 2018. choosing to not purchase a vehicle till government finished at 7,935,105, which is only a 0.1% retailing. policies were clearer. decrease in comparison to the 2018 figures. There are a number of factors which Therefore, used car sales have remained The graphs below illustrate that new An area of the sector which is often left contributed to the decline in vehicle buoyant. It has been noted as well a large car registrations have remained out of the headlines is used car sales. The sales. One of the major contributors was number of franchised dealers are now consistent. In 2016 we saw the highest graph adjacent highlights that much like the Worldwide Harmonised Light Vehicle concentrating on used vehicles in response year on record for new cars new cars sales, used sales have remained Testing Procedure (WLTP) which left to a slower new car market. This is having registered. This bubble was eventually resilient and since 2016 have been fairly dealerships with a lack of stock to the positive, knock-on effect of keeping the going to burst, after a consecutive 6 consistent. 2017 figures saw only a 1% provide their customers. remarketing sector particularly competitive.

NEW CAR REGISTRATIONS USED CAR SALES New Car Registrations Used Car Sales 3,000,000 9,000,000

8,000,000 2,500,000 7,000,000

2,000,000 6,000,000

5,000,000 1,500,000 4,000,000

1,000,000 3,000,000

2,000,000 500,000 1,000,000

0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

JOHNSONS | FOREST PARK ROAD | MEAD WAY | SWINDON | SN5 5PQ

Investment Transactions

TERM PROPERTY DATE TENANT NIY RENT UNEXPIRED PRICE COMMENTS

Audi | Watford January 2020 VW Group UK Limited 5.5% £808,300 7.75 £13,770,000 RPI Rent reviews capped at 2.5%

Audi | Solihull January 2020 VW Group UK Limited 5.70% £815,750 7.25 £13,410,000 RPI Rent reviews capped at 2.5%

BMW & | Chigwell December 2019 Sytner Limited 4.49% £430,000 16.5 £9,000,000 RPI reviews capped at 2.5%

Mercedes Benz | Chelmsford September 2019 Lancaster PLC 6.43% £343,360 11.00 £5,013,000.00 5 yearly rent reviews with fixed uplifts.

BMW & MINI | Newcastle September 2019 Reg Vardy Property 6.11% £332,157 12.00 £5,100,000.00 Annual RPI rent reviews capped Management Limited at 2.77% pa Pendragon PLC

Ford | Stockport September 2019 Pendragon Plc 7.33% £402,420 12.00 £5,150,000.00 Annaul RPI capped at 2.77%. Sublet to Ford Retail limited.

Jaguar | Newcastle September 2019 Reg Vardy Property 7.17% £208,896 12.00 £2,740,000.00 Annual RPI capped at 2.77% pa Management Limited Pendragon PLC

Mercedes Benz | Wakefield September 2019 Pendragon Property 7.49% £387,276 7.00 £4,850,000 Rent reviews every 5 years, annual Holdings Limited, RPI fixed at 2.25%/. guaranteed by Pendragon PLC

Ford | Manchester September 2019 Bramwell Quicks 7.95% £272,515 4.00 £3,220,000.00 The reviews are 5 yearly open Limited market.

JOHNSONS | FOREST PARK ROAD | MEAD WAY | SWINDON | SN5 5PQ Further Information Contacts

PROPOSAL For further information please contact the sole We are instructed to seek agents, Colliers International: offers in the region of JOHN ROBERTS £4,000,000 (Four Million 0121 265 7553 [email protected] Pounds), equating to a NIY of 5.87% assuming purchasers ANTHONY KEOHANE costs of 6.70%, subject to 0207 487 1672 [email protected] contract and exclusive of VAT. TIM MEAKES 0207 487 1785 [email protected]

12th Floor | Eleven Brindleyplace 2 Brunswick Square Brindleyplace Birmingham B1 2LP

MISREPRESENTATION ACT Colliers International gives notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person employed or engages by Colliers International has any Authority to make any representation or warranty whatsoever in relation to this property. (March 2020). Colliers International is the licensed trading name of Colliers International Property Advisors UK LLP which is a limited liability partnership registered in England and Wales with registered number OC385143. Our registered office is at 50 George Street, London W1U 7GA.

JOHNSONS | FOREST PARK ROAD | MEAD WAY | SWINDON | SN5 5PQ