PRIME CAR SHOWROOM INVESTMENT

CHELTENHAM VOLKSWAGEN, TEWKESBURY ROAD, CHELTENHAM, GL51 9AH

ENTER INVESTMENT SUMMARY

■ Cheltenham is a significant commercial centre in the ■ Let to Volkswagen Group UK Limited for a term of 20 West of with an affluent demographic. years from 21 December 2004. ■ The property is situated on Tewkesbury Road adjacent ■ Approximately 10 years unexpired. to a Tesco Superstore and there are a number of The current passing rent is £254,567 per annum which major occupiers in the nearby vicinity including Audi, equates to £15.12 per sq ft overall. Toyota and Sainsbury’s. ■ Volkswagen Group UK Limited has an Experian risk ■ Within close proximity are other high profile car score of 100 out of 100 and is considered “very low dealerships including BMW Mini, Bentley, Toyota, Lexus, risk”. Aston Martin and Ford. ■ Offers for the freehold interest are sought in excess of ■ Purpose built car showroom totalling 16,837 sq ft with £4,000,000 (Four Million Pounds) subject to contract approximately 165 car spaces. and exclusive of VAT which reflects an initial yield of ■ Site area of approximately 1.54 acres. 6% after allowing for purchasers’ costs of 5.8%. ■ Low site cover of approximately 20%.

PRIME CAR SHOWROOM INVESTMENT - CHELTENHAM VOLKSWAGEN, TEWKESBURY ROAD, CHELTENHAM, GL51 9AH 2 Click here for LOCATION Google Map SITUATION

The regency spa town of Cheltenham is located in The town benefits from excellent transport links with The property is prominently situated at the junction of on the edge of the . The town Junction 10 and 11 of the M5 located approximately Colletts Drive and Tewkesbury Road directly opposite to is famous for its regency architecture, shopping and 4 miles to the west of the town centre, providing direct a Tesco Foodstore with a petrol filling station, one mile festivals. The population of Cheltenham is circa 115,000 access to and Birmingham. The A417/9 dual from Cheltenham city centre. Tewkesbury Road is the persons and draws on a strong regional catchment, as carriageway provides easy access to the M4 motorway principal out of town retail location for Cheltenham and well as attracting a good tourist population. and . within close proximity to other high profile car dealerships including BMW Mini, Bentley, Toyota, Lexus, Austin Martin The town is a major commercial centre and the Cheltenham has a mainline railway station offering and Ford. main employers include Chelsea Building Society, regular train services to London Paddington (1 hour Dowty Aerospace, Endsleigh Insurance, Zurich 50 minutes), Bristol (45 minutes) and Birmingham (40 Financial Services, UCAS and GCHQ (Government minutes). Communications Headquarters). Bristol Internal Airport is situated 40 miles to the south Cheltenham is situated approximately 9 miles east of of the town and is one of the UK’s fastest growing , 45 miles south of Birmingham, 40 miles airports providing direct flights to over 100 domestic and north east of Bristol and 110 miles west of London. international destinations.

PRIME CAR SHOWROOM INVESTMENT - CHELTENHAM VOLKSWAGEN, TEWKESBURY ROAD, CHELTENHAM, GL51 9AH 3 DESCRIPTION ACCOMMODATION

The property was purpose-built as a car showroom in the late 1980’s. The property is of steel portal frame construction The property has been measured in accordance with the with sold concrete floors, brick and blockwork elevations and a combination of profiled and flat cladding panels to the RICS Code of Measuring Practice and the unit has the remainder. Internally the showroom has space to display up to 8 cars. Externally there are between 70 – 80 vehicle following gross internal areas: display spaces, 50 – 60 customer / staff spaces and 25 storage spaces.

DESCRIPTION SQ M SQ FT

Showroom 357.7 3,850 Showroom Offices 87.0 936 Workshop 426.5 4,591 Parts 145.1 1,562

Ancillary /Storage 211.7 2,279

Existing Valeting / 46.5 501 Storage

First Floor Offices 186.6 2,008

TOTAL 1564.2 16,837

SITE AREA

The site area is approximately 1.54 acres, with a very low site cover estimated at 20%.

TENURE The property is held freehold.

PRIME CAR SHOWROOM INVESTMENT - CHELTENHAM VOLKSWAGEN, TEWKESBURY ROAD, CHELTENHAM, GL51 9AH 4 TENANCY TENANCY COVENANT

The property is let to Volkswagen Group UK Limited Volkswagen Group UK Limited has an Experian risk score of 100 out of 100 and is considered “Very Low Risk”. on a full repairing and insuring lease for a term of 20 years from 21 December 2004 at a rent of £254,567 GBP Sales Turnover Profit Before Tax Net Worth per annum (£15.12 per sq ft). There are five-yearly rent reviews to market value with the next on 21 December 31/12/2013 7,619,500,000 130,000,000 699,800,000 2014. 31/12/2012 6,667,600,000 105,100,000 695,400,000 31/12/2011 6,363,600,000 110,500,000 667,800,000 EPC An energy performance certificate is available on request. The property has a rating of E. MARKET COMMENTARY

The number of new cars registered in the UK has evidence, with evidence from deals in nearby Bristol likely increased month-on-month for an unprecedented to be influential in terms of rent review. consecutive 30 months. 2014’s forecast is now 2.45 million new registrations, up 8.1% on 2013 (SMMT). The motor retail investment market continues to receive VAT strong interest from an increasingly wide range of The property is elected for VAT and we understand that As a consequence the sector’s occupational market is as investors, with a limited number of opportunities to fulfil the sale can be treated as a Transfer of a Going Concern strong as it has been for many years, in terms of demand this demand leading to strong capital value performance (TOGC). for new franchised premises in a range of locations, as through 2013 and 2014. a result of manufacturers’ sales growth targets moving forward to match the strong improvement in the economy With sustained pressure on dealers from manufacturers and in consumer confidence. to upgrade to ever-increasing brand standards, landlords and tenants are increasingly able to create mutually This has led to a distinct lack of suitable second-hand beneficial agreements, often involving capital payments dealership stock in the market and, as a result, rents are to assist improvements with extended lease terms. PROPOSAL being driven upwards with recent examples of several We are instructed to seek offers of £4,000,000 (Four dealers being in the market for just one available Million Pounds) subject to contract and exclusive of VAT. A property. purchase at this level reflects an attractive net initial yield of 6% after allow for purchasers costs of 5.8%. Due to lack of suitable premises, more new-build dealerships are also generating fresh headline rental

PRIME CAR SHOWROOM INVESTMENT - CHELTENHAM VOLKSWAGEN, TEWKESBURY ROAD, CHELTENHAM, GL51 9AH 5 CONTACTS

To arrange an inspection or to obtain further information please contact:

Andy Sayner Rose Lake Alastair Coates National Capital Markets National Capital Markets Petroleum & Automotive t: 0117 943 5762 t: 0117 943 5784 t: 0113 394 8864 e: [email protected] e: [email protected] e: [email protected]

SUBJECT TO CONTRACT

Disclaimer: CBRE Limited, October 2014

CBRE on its behalf and for the Vendors or Lessors of this property, whose Agents they are, give notice that:

1. These particulars are set out as a general outline only for guidance to intending Purchasers or Lessees, and do not constitute any part of an offer or contract. 2. 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. 3. No person in the employment of CBRE has any authority to make any representation or warranty whatsoever in relation to this property. 4. Unless otherwise stated, all prices and rents are quoted exclusive of VAT.

PRIME CAR SHOWROOM INVESTMENT - CHELTENHAM VOLKSWAGEN, TEWKESBURY ROAD, CHELTENHAM, GL51 9AH 6